The Revised Corporation Code (RCC) proposed under Senate Bill No. 1280 continues to impose the duties of diligence, loyalty and obedience upon directors, trustees and officers of corporations. Under the proposed RCC, a corporation which conducts its business through fraud may be penalized with a fine of up to P2 million. A corporation used for fraud or used for committing or concealing graft and corrupt practices could be fined up to P5 million. Without doubt, the foregoing provisions definitely add another level of responsibility and liability for corporate directors, trustees and officers.

Source: Manila Times August 29, 2018 16:30 UTC