SEC extends amnesty deadline for non-compliant firms
By Lizel S. Macatangay
LEGAZPI CITY --- The Securities and Exchange Commission (SEC) has extended the deadline for non-compliant corporations to submit their amnesty application and settle their amnesty fees until December 31 of this year.
The good news was stipulated in SEC Memorandum Circular No. 20, released on November 3, which provides suspended or revoked corporations with a final opportunity to resolve their accumulated penalties resulting from non-compliance with SEC directives.
SEC Legazpi Extension Director Atty Norma A. Tan-Olaya underscored the importance of corporations adhering to regulatory requirements in a timely manner to avoid disruption or loss of their businesses.
“The SEC emphasizes the importance of timely compliance and adherence to regulatory requirements. We encourage all non-compliant corporations to avail the amnesty to avoid delinquent status or revocation of their certificate of registration,” Olaya said.
In a press statement, SEC expressed that companies that have faced penalties due to delays or failure to submit their General Information Sheet (GIS), Annual Financial Statements (AFS), and official contact details, will be given a reduction in penalties for non-compliance with their reporting obligations in accordance with Republic Act No. 11232, also known as the Revised Corporation Code (RCC).
It further stated that “Corporations may avail of amnesty by accepting the web-based Expression of Interest form on their SEC Electronic Filing and Submission Tool (eFAST) accounts. Submission of all other requirements will be accepted until January 31, 2024, so long as the company has filed its expression of interest before December 31.”
Corporations that are not in compliance with SEC’s set directive must upload and submit their most recent General Information Sheet (GIS) and Annual Financial Statements (AFS) on eFAST before January 31, 2024. For suspended or revoked corporations, the submission of their petitions to lift suspension or revocation on eFAST, together with their latest GIS and AFS, is required within the same timeframe.
Suspended and revoked corporations will be given additional requirements such as provision of copies of their certificates of incorporation, latest mayor’s or business permits, and certificates of registration with the Bureau of Internal Revenue. This must be to the SEC Company Registration and Monitoring Department or to the nearest SEC Extension Office initially through email by January 31, 2024.
Failure to submit the complete set of requirements on the aforementioned date, will result to the forfeiture of the amnesty paid, including the petition fee worth P3,060 initially collected from non-compliant corporations in favor of the SEC.
The SEC did not fall short in providing reminders to these corporations.
The Commission has released a list of 22,403 ordinary corporations that are in danger of having their certificates of incorporation revoked for their failure to submit their GIS within five years from the date of incorporation last month.
In addition to this reminder, SEC also released SEC Memorandum Circular No. 19, Series which contains the Guidelines on Declaration of Delinquent Status and Revocation of Certificate of Registration of Corporations stipulated under Sections 21 and 177 of the Revised Corporation Code.
The press statement further reminded the concerned corporations that “the updated scale of fines and penalties for reportorial requirements will be implemented on January 1, 2024, where basic penalties for the late and non-filing of reports are set to increase by as high as 1,900%.”
SEC will continue to ensure that corporations adhere to the submission of reportorial requirements. The commission will also apply necessary penalties to delinquent and non-compliant corporations in the form of monetary penalties, suspension or revocation of a corporation’s certificate of incorporation, in accordance with the provisions outlined in the RCC.
Corporations intending to apply for the amnesty may log on to the SEC Amnesty Microsite at amnesty.sec.gov.ph. (With reports from SEC/AJAlarcon-PIA 5)