The Securities and Exchange Commission (SEC) is extending anew its deadline for non-compliant and suspended or revoked corporations to December 31, from an earlier announced extension to November 3.
This is the last chance to avail of lower fines and penalties for late regulatory filings.
The amnesty program, extended under Memorandum Circular 20 series of 2023, provides corporations that have incurred penalties for the late and non-filing of their general information sheet (GIS), annual financial statements (AFS) and official contact details, a reduction on penalties for non-compliance with their reportorial requirements.
The SEC will increase the penalty after the amnesty is over.
“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 Jan. 31, 2024, so long as the company has filed its expression of interest before December 31,” the SEC said.
“Non-compliant corporations must also upload and submit their latest due GIS and AFS on eFAST before Jan. 31, 2024. Suspended and revoked corporations must submit their respective petitions to lift their suspension or revocation on eFAST, along with their latest GIS and AFS, within the same period,” it added.
For suspended and revoked corporations, additional requirements such as copies of their certificates of incorporation, latest mayor’s or business permits, and certificates of registration with the Bureau of Internal Revenue must be submitted to the SEC Company Registration and Monitoring Department or to the nearest SEC Extension Office, initially through email by January 31, 2024.
“Should an applicant fail to submit the complete set of requirements by Jan. 31, 2024, the amnesty fee paid, as well as the P3,060 petition fee initially collected from suspended/revoked corporation, shall be forfeited in favor of the SEC,” the agency said.
Last month, the SEC 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.
It also listed 298,335 ordinary corporations that have failed to submit their GIS for three times consecutively or intermittently within a five-year period.
“Such corporations are advised to avail of the amnesty program to avoid getting tagged as delinquent or having their corporate registrations suspended or revoked,” the SEC said.
“Going forward, the SEC will strictly enforce the submission of reportorial requirements by corporations, and impose the corresponding penalties,” it added.
The penalties may be in the form of monetary fines, placement of the erring corporation under delinquent status, and suspension and revocation of a corporation’s certificate of incorporation, as provided under the Revised Corporation Code or Republic Act 11232. – Ruelle Castro