The Role of Company Directors in the Philippines is crucial in ensuring the proper governance and management of a corporation. According to the Corporation Code of the Philippines, every company director must be at least 18 years old, ideally possess a clean criminal record, and be a college graduate. Additionally, they must be a shareholder with at least one share in the company.
The Role of Company Directors extends beyond qualifications; they are responsible for overseeing corporate policies, making strategic decisions, and ensuring compliance with legal and ethical standards. Directors must act in the best interest of the company and its stakeholders, balancing profitability with corporate responsibility. Their leadership plays a significant role in the success and sustainability of the business.
A director should be the expected to be knowledgeable and mature when transacting business for the company and must be aware of his accountability. In fact, a director can be liable for damages if he acts in bad faith when directing affairs for the corporation.
The role of company directors should be defined in the By Laws that outlines the structure of a company and determines the way your company should operate. Further information pertaining to the annual meeting date and the accounting period (calendar or fiscal), should also be reflected in this important document.
Furthermore, the Securities and Exchange Commission (SEC) of the Philippines requires that there are at least five (5) but not more than fifteen (15) Incorporators/ Directors. Each Incorporator/ Director must also own at least one (1) share of the corporation. The SEC furthermore requires that at least the majority of the Incorporators and Members of the Board are residents of the Philippines
Determining the exact role of the company directors in your business and the different type of stock of shares is imperative. If you would like to get professional advice from our team specialized in business registration and corporate law, do not hesitate to contact us.
