Conscious Investing Today
  • Top News
  • Business Insider
  • Economic Indicators
  • Investing Ideas
  • Politics News
  • Stock Analysis
  • Editor’s Pick
No Result
View All Result
  • Top News
  • Business Insider
  • Economic Indicators
  • Investing Ideas
  • Politics News
  • Stock Analysis
  • Editor’s Pick
No Result
View All Result
Conscious Investing Today
No Result
View All Result
Home Politics News

Corporate Governance reforms under the Revised Corporation Code

by
April 5, 2021
in Politics News
0
Corporate Governance reforms under the Revised Corporation Code
0
SHARES
3
VIEWS
Share on FacebookShare on Twitter
ADVERTISEMENT
Cesar L. Villanueva-125

By Cesar L. Villanueva


CREATIVEART-FREEPIK

The promulgation into law of the Revised Corporation Code of the Philippines saw the placing into statutory language, and therefore into a more permanent framework, many of the corporate governance principles and best-practices adopted by the Securities and Exchange Commission (SEC) in the area of publicly listed corporations (PLCs).

It should be noted that although the Revised Corporation Code (RCC) has provisions referring to “good corporate governance,” it has not taken a step towards providing for a statutory definition of the term. Consequently, the coverage of the term “corporate governance” under the Revised Corporation Code remains to be that defined under the Corporate Governance (CG) Code for PLCs, thus:

Corporate Governance — the system of stewardship and control to guide organizations in fulfilling their long-term economic, moral, legal and social obligations towards their stakeholders.

CG is a system of direction, feedback and control using regulations, performance standards and ethical guidelines to hold the Board and Senior Management accountable for ensuring ethical behavior — reconciling long-term customer satisfaction with shareholder value — to the benefit of all stakeholders and society.

Its purpose is to maximize the organization’s long-term success, creating sustainable value for its shareholders, stakeholders and the nation.

Unless the SEC in the exercise of its quasi-legislative powers, changes the concept of coverage of “corporate governance,” reference by the Revised Corporation Code to the obligation of the Board of Directors to pursue “good corporate governance” refers to the same concept, coverage and policy considerations as those contained in the CG Codes promulgated by the SEC.

Within Philippine jurisdiction, CG reforms essentially seek to achieve three objectives:

Firstly, to reiterate and place special emphasis on the doctrinal value of the corporate feature of “Centralized Management,” which, under what is now Section 22 of the Revised Corporation Code, provides that outside of specified instances enumerated in the law where shareholders’ ratification vote is required, all corporate powers, all corporate property, and thereby, the management and control of all the corporate business, is granted by law, as an exercise by the state of its police power, to the Board of Directors, for the benefit of the shareholders. Necessarily, the proprietary and management relationship established under the corporate centralized management set-up brings about a fiduciary relationship between the Board of Directors on one hand, and the shareholders and other investors on the other hand, and creates a set of duties and responsibilities on the members of the Board and Management.

Secondly, there is a strong adherence to the principle that corporations whose business enterprise affects public interests, public safety and welfare must behave in a socially acceptable way — to be a good corporate citizen. Consequently, CG reforms in the Philippines seek to expand the coverage of the duties and responsibilities of the Boards of Directors of corporations vested with public interest, to apply beyond their shareholders, and to include all parties who are affected by their operations — termed as the “stakeholders.”

Thirdly, CG principles operate under the credo that Boards of Directors of corporations whose business enterprise are deemed to be vested with public interests have a heightened set of duties and responsibilities to society, and in turn vigilant stakeholders in such companies would constitute the strongest incentive for their Boards to adhere to good governance principles. CG principles seek to promote the corporate virtues of “competency,” “transparency,” “accountability,” “responsibility,” and “independence,” as well as to operationalize such CG principles through a “framework of rules, systems and processes in the corporation that governs the performance by the Board of Directors and Management of their respective duties and responsibilities.”

ADVERTISEMENT

This article reflects the personal opinion of the author and does not reflect the official stand of the Management Association of the Philippines or the MAP.

Attorney Cesar L. Villanueva is Chair of MAP Corporate Governance Committee, trustee of the Institute of Corporate Directors, former Chair of Governance Commission for GOCCs (August 2011 to June 2016), Dean of the Ateneo Law School (April 2004 to September 2011), author of the book The Law and Practice in Philippine Corporate Governance and the National Book Board Award-winning Profession, and founding partner of the Villanueva Gabionza & Dy Law Offices.

map@map.org.ph

cvillanueva@vgslaw.com

http://map.org.ph





Related Posts

G7 aims to raise $600 billion to counter China’s Belt and Road
Politics News

G7 aims to raise $600 billion to counter China’s Belt and Road

June 27, 2022
Measuring economic prospects through the growing demand for credit
Politics News

Measuring economic prospects through the growing demand for credit

June 27, 2022
Why credit scores matter to financial health
Politics News

Why credit scores matter to financial health

June 27, 2022
Next Post
How pandemics change the course of history

How pandemics change the course of history

Rising cases, vaccine and Ivermectin

Rising cases, vaccine and Ivermectin

World economy risks dangerously diverging even as growth booms

World economy risks dangerously diverging even as growth booms

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Categories

  • Economic Indicators
  • Editor's Pick
  • Investing Ideas
  • Politics News
  • Stock Analysis

Popular News

  • A Minute With: Family Reunion cast on relatable story lines

    A Minute With: Family Reunion cast on relatable story lines

    0 shares
    Share 0 Tweet 0
  • Twitter launches ‘Milk Tea Alliance’ emoji as movement grows

    0 shares
    Share 0 Tweet 0
  • Gas and car bills to soar under green revolution

    0 shares
    Share 0 Tweet 0
  • Level up your gaming experience with vivo Y20s [G]

    0 shares
    Share 0 Tweet 0
  • Rehab, expansion of General Santos airport seen completed by Q2

    0 shares
    Share 0 Tweet 0
No Result
View All Result

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!

Highlights

Hamilo Coast: Nurturing nature for 15 years and beyond

Abortion ruling casts cloud over usual cheer at US Pride parades

Driving social inclusion and using Tech4Good: Globe wins in 2022 ASEAN Tech for ESG Awards

Axelum Resources Corp. to conduct annual stockholders’ meeting on July 29 via remote communication

SEC warns public vs investing in three entities

SSC outlasts Perpetual Help in 5 sets, shares second spot

Trending

G7 aims to raise $600 billion to counter China’s Belt and Road
Politics News

G7 aims to raise $600 billion to counter China’s Belt and Road

by
June 27, 2022
0

JCOMP-FREEPIK SCHLOSS ELMAU, Germany — Group of Seven (G7) leaders on Sunday pledged to raise $600 billion...

Measuring economic prospects through the growing demand for credit

Measuring economic prospects through the growing demand for credit

June 27, 2022
Why credit scores matter to financial health

Why credit scores matter to financial health

June 27, 2022
Hamilo Coast: Nurturing nature for 15 years and beyond

Hamilo Coast: Nurturing nature for 15 years and beyond

June 27, 2022
Abortion ruling casts cloud over usual cheer at US Pride parades

Abortion ruling casts cloud over usual cheer at US Pride parades

June 27, 2022

Disclaimer: ConsciousInvestingToday.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice.
The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

  • Home
  • About Us
  • Privacy Policy
  • Terms & Conditions
  • Contact Us
  • Email Whitelisting

Copyright © 2021 ConsciousInvestingToday. All Rights Reserved.

No Result
View All Result
  • Home
  • About Us
  • Privacy Policy
  • Terms & Conditions
  • Contact Us
  • Email Whitelisting

© 2022 JNews - Premium WordPress news & magazine theme by Jegtheme.