THE Securities and Exchange Commission (SEC) is giving non-compliant, delinquent, and suspended or revoked corporations another extension — until November 30 — to settle penalties for failing to file their annual reports.
“The SEC is allowing non-compliant, delinquent, and suspended or revoked corporations that missed the Amnesty Program another chance to clear their track record of noncompliance by availing of the Enhanced Compliance Incentive Plan (ECIP),” the regulator said.
Under SEC Memorandum Circular (MC) 13, series of 2024, corporations can regain their good standing for P20,000 for those that incurred fines and penalties for the late or non-filing of annual financial statements (AFS), general information sheets (GIS), and noncompliance with MC 28, series of 2020, which requires corporations to designate and submit official and alternative phone numbers and email addresses for transactions.
“The amnesty program in 2023 showed that companies and associations recognize the importance of maintaining their good standing for them to continue enjoying the benefits of a duly registered corporation,” SEC Chairman Emilio Aquino said.
Suspended or revoked corporations may also apply for the lifting of the orders for their suspension or revocation of their corporate registrations by paying a petition fee of P3,060 and settling 50 percent of their total assessed fines and penalties.
“Accordingly, the SEC wants to give non-compliant, suspended and revoked corporations, which are actually willing to comply with their reportorial requirements moving forward, the chance to settle their fines and penalties at lower rates so that they may continue operating and contribute to a more robust and dynamic business sector,” Aquino said.
Throughout the nine-month run of the program, the SEC said that more than 81,700 corporations were able to complete their applications and regain their good standing with the regulator.
Eligible corporations include stock and nonstock firms, including their branch offices, representative offices, regional headquarters and regional operating headquarters of foreign companies.
Corporations listed on the Philippine Stock Exchange (PSE) whose securities are registered but not listed on the PSE, those who are considered public companies, companies with intra-corporate disputes, with disputed general information sheets, or with expired corporate terms and are covered under Section 17.2 of Republic Act 8799 or the Securities Regulation Code are not eligible to apply.
A corporation is considered non-compliant if it has not submitted its GIS and AFS consecutively in previous years and/or has not complied with MC 28, while delinquent corporations are those that have not filed their GIS and AFS three times within a period of five years, pursuant to SEC Memorandum Circular 19, series of 2023.
Corporations that do not avail of the ECIP may face higher penalties for noncompliance with their reporting requirements, as the updated scale of fines and penalties are at least 900 percent higher than the previous rates that had been in place for more than 22 years now, the regulator said.
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