Enterprise Law of the Philippines

The national Corporate Code of the Philippines governs the formation and management of business enterprises.

Philippine enterprise law is encompassed under the national Corporation Code, which governs how corporations may be formed and the responsibilities of the incorporators, the individuals who create the company.

Articles of Incorporation

Every corporation in the Philippines is required to devise "Articles of Incorporation" for their company. This document must include the incorporators, design of the board and officers. The Articles of Incorporation are valid for a term of 50 years. The officers may renew them for a period of 50 years but only within five years of the expiration of the term.

Incorporators

A company may have between five and 15 incorporators. They must be residents of the country and of legal age. If the corporation is publicly traded, each incorporator must own one share of capital stock or more.

Corporate Officers

Each corporation is required to have a board of trustees or directors. The code outlines how officers may be elected and details their responsibilities with regard to the corporation. The code also describes how the company may evaluate the officers and remove them from the board.

References

• Chan Robles, Virtual Law Library: Philippine Business Organization at a Glance
• Chan Robles, Virtual Law Library: The Corporation Code of the Philippines