The Rotary Balita no. 799 (June 21, 1956)

Mariano Pineda, securities & exchange commissioner, when he addressed the Rotarians on June 7. Seated behind the speaker is Dean Conrado Benitez, Club president. The amendment of section 13 of the corporation law was last week urged by Securities and Exchange Commissioner Mariano C. Pineda during his address before Manila Rotarians at their regular weekly luncheon-meeting at the Manila Hotel. The amendment would allow corporations engaged in agriculture or mining to do business with corporations engaged in similar ventures. Speaking in favor of the proposed change in the statute, Pineda pointed out that the strict implementation of the law means the barring of all contractual dealings between two mining and/or agricultural corporations, as the interest forbidden by the statute may refer to any share, participation, or concern of one such company to any share, participation or concern of one such company in the other. "The participation," said Pineda, "has been found to be a hindrance in the pursuit of mining ventures." Pineda also stressed that its implementation is likely to disrupt the mining industry. The corporation law was introduced in the Philippines in 1906. At that time, the advantages of incorporation were not realized by businessmen who formed commercial entities of collective or limited partnership. "Due to the convenience and facilities afforded by corporations in the easy accumulation of capital, the amendment I urge is a practical one," Pineda concluded.