LEGAL

RESPONSIBILITIES
 Legal Responsibilities
◦All business enterprise need to comply
with a country’s laws and regulation.
◦Obedience to local, national, and relevant
international laws constitutes legal
responsibilities.
A selection of essential laws that explain legal responsibilities of
Philippine enterprise includes the following:

1. Corporation Code (Batas Pambansa Bilang 68)

2. Consumer Act of the Philippines (R.A. 7394)
3. Minimum Wage Law
4. Migrant Workers and Overseas Filipino Act of 1995 (R.A. 8042)
5. Environmental legislation, Which includes the following:
◦ R.A. 6969 is concerned with the Toxic Substance and hazardous and Nuclear Waste Control Act of 1990.
◦ R.A. 8749 includes the Clean Air Act
◦ R.A. 9003 is concerned with the Philippine Ecological Solid Waste Management Act of 2000
◦ R. A. 9512 gives permission to the Environmental Awareness and Educational Act of 2008
 The Corporation Code
(Batas Pambansa Bilang 68)
. Dictates the most important legal
responsibilities towards investors and
owners as it guarantees that the
enterprise is managed in the interest of
its stockholders
 The Consumer Act of the Philippines
(R.A. 7394)
◦ Details the legal responsibilities of enterprise toward their buyers, suppliers,
tradesmen, and distributors.
◦ The policy statement under R.A. 7894 mandates that the conduct of business
and industry must implement measure for
1. Protection against hazards of health and safety
2. Protections against deceptive, unfair and unconscionable sales acts the proper
exercise of rights by the consumer; and
3. Provision of information and education to facilitate sound choice and the
proper exercise of the rights of the consumer; and
4. Involvement of customer representatives in the formulation of social and
economic policies
◦ The implementing agencies tasked to ensure product safety under R.A. 7894 include the
DOH for food , drugs, cosmetics, devices, and substances;
Department of Agriculture(DA) for agricultural products;
Department of Trade and Industry (DTI) for consumer products not administered by
DOH and DA
◦ The trade transactions for consumer products are guided by Bureau of Product Standards
(BPS) under the DTI. Labeling requirements and price rates of food, drugs, cosmetics,
devices, and substances are overseen by Bureau of Food and Drugs (BFAD) under the
DOH
◦ The DA’s Bureau of Agriculture and Fisheries Standards (BAFS) , the Bureau of animal
Industry (BAI) and Bureau of Plant Industry (BPI) administer the export and import
standards of Philippine Agricultural products.
Minimum Wage Law
The Minimum Wage Law entails the
compliance of organizations with the
minimum wages that their employees are
entitled to. The law is administered by the
Department of Labor and Employment
(DOLE)
R.A. 8042 Migrant Workers and Overseas
Filipino Workers Act of 1995
◦ The POEA ,Philippine Overseas Employment Administration and
OWWA, Overseas Workers Welfare Administration are the
government welfare institutions that protects and promotes the
interest of the overseas Filipino workers.
◦ This Act promotes the welfare and protects the rights of the
migrant workers, and whenever applicable, all overseas Filipino
Workers in affiliation with Department of Foreign Affairs (DFA),
DOLE an the OWWA.
The growing concern and care
for environment, business and
industry are the most
challenging legal
responsibilities towards the
community-stakeholders.
In the Philippines, The Environmental Management Bureau (EMB) of the Department
of Environment and Natural Resources (DENR) is mandated to implement and enforce
the following environmental legislation:
R.A. 6969 Toxic Substances and Hazardous
and Nuclear Waste Control Act of 1990.
◦It covers the importation, manufacture,
processing, handling, storage,
transportation, sale, distribution, use and
disposal of all unregulated chemical
substance and mixtures in the Philippines
R.A. 8749 Clean Air Act of 1999
◦It oversees the formulation of the holistic
national program against air pollution that
shall be implemented by the government,
through proper delegation, and effective
coordination of function and activities.
R.A. 9003 Philippine Ecological Solid
Waste Management Act of 2000
◦It calls the institutionalization of a
national program that will manage the
control, transfer, transport, process and
disposal of solid waste in the country.
R.A. Clean Water Act of
2004
◦It aims to protect the countries bodies of
water from pollution from land-based
sources (industries and commercial
establishments, agriculture, and
community or household activities.
 CORPORATE
GOVERNANCE
CORPORATE GOVERNANCE
◦It is the set of procedures
designed to ensure that the
company is managed in the
interests of the shareholders.
Who are the shareholders?
Shareholders are the owners of a
corporation, as distinguished from
the partners in a partnership and the
proprietor in a sole proprietorship.
 Why there must be a special attention to
shareholders?
Public ownership of corporations is a prime
generator of capital that builds and sustains large
corporations.
The prices of shares of stock increase when the
investing public believes in the integrity of financial
statement information.
 Shareholders or investors are
suppliers of capital.
They should be convinced by
integrity of the communication
process with the investee
corporations
Corporation Code
Corporation code defines a corporation as
an artificial being created by operation of
law, having the right of succession and the
powers, attributes and properties expressly
authorized by law or incident to its
existence.
When the Securities and Exchange
Commission (SEC) issues the certificate of
incorporation, the corporation starts to exist.
The stockholders of the SEC-registered
corporation have limited liability –the
shareholders are liable only the extent of
their investment in the corporation.
The death of any of its stockholders does
not dissolve a corporation-it continues to
exist until the expiration of its life, which is
50 years, but may also be extended any
number of times, provided that the extension
shall not exceed fifty years in any once
instance.
 In a corporation, the shares of
stocks can be transferred from
one stockholder to another,
without consent from the other
stockholders.