The SEC is urging entities under its supervision to take advantage of the agency’s amnesty program. It has identified over 298,000 regular corporations that could face being labeled as delinquent.
The SEC has announced on its website that 298,335 corporations must seek amnesty for not complying with the submission of their general information sheet (GIS) as mandated by Republic Act No. 11232, also known as the Revised Corporation Code of the Philippines (RCC).
The SEC recently stated that the deadline for their amnesty program has been prolonged from September 30 to November 6.
31-B of the Corporation Code”
“According to the Commission’s records as of October 12, the companies listed in the attached document have not submitted their GIS for three consecutive or intermittent times within a five-year period. As a result, they are encouraged to participate in the SEC amnesty program before being classified as delinquent under Section 31-B of the Corporation Code.”
The SEC stated that 177 of the RCC have been notified.
According to the corporate regulator, Section 177 of the RCC states that all corporations, whether domestic or foreign, that operate in the Philippines must submit annual financial statements and a GIS to the SEC. These are just some of the reports that are required on an annual basis, within a timeframe set by the Commission.
The Securities and Exchange Commission announced that the companies listed can participate in the amnesty program by submitting an online expression of interest before November 6th. They must also submit their most recent annual financial statement and GIS by December 4th to be eligible.
The SEC has released a roster of 22,403 regular companies at risk of losing their incorporation certificates due to a failure to submit their GIS within five years of their establishment.
According to Section 21 of the RCC, a corporation’s certificate of incorporation will be considered revoked if it fails to formally set up and begin operations within five years after its incorporation date. The revocation will take effect on the day following the fifth year.
“We urge corporations to take advantage of the SEC amnesty program immediately, in order to prevent the revocation of their certificates of incorporation or being placed in delinquent status,” stated SEC Chairperson Emilio B. Aquino.
“Ensuring that corporations submit their annual financial statement, GIS, and other required reports in a timely manner is crucial for maintaining a thriving corporate sector. This process allows us to distinguish between active and inactive corporations, improve and organize the commission’s digital database, and safeguard the public from fraudulent activities,” he explained.
The SEC amnesty program, which began in March, provides a temporary relief for companies who have been penalized for failing to submit their GIS and annual financial statements on time, as well as not complying with Memorandum Circular No. 28, Series of 2020.
Companies that do not take advantage of the amnesty program will also be subject to increased penalties, which will go into effect on November 7th.