What is the penalty imposed on a director, trustee, or officer who knowingly tolerates graft and corrupt practices?
A director, trustee, or officer who knowingly fails to sanction, report, or file the appropriate action with proper agencies, or who allows or tolerates graft and corrupt practices committed by corporate personnel, shall be punished (SEC. 168, Revised Corporation Code of the Philippines). The penalty is a substantial fine ranging from Five hundred thousand pesos (P500,000.00) to One million pesos (P1,000,000.00). This provision targets high-level corporate personnel who demonstrate willful blindness or complicity toward illegal activities within the company. This aims to enforce strong governance and accountability at the management level.
02 November 2025
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Nicolas and De Vega Law Offices is a full-service law firm in the Philippines. You may visit us at the 16th Flr., Suite 1607 AIC Burgundy Empire Tower, ADB Ave., Ortigas Center, 1605 Pasig City, Metro Manila, Philippines. You may also call us at +632 84706126, +632 84706130, +632 84016392 or e-mail us at [email protected]. Visit our website https://ndvlaw.com/.
