The Securities and Exchange Commission (SEC) has suspended the corporate registration of 118,000 companies for failing to comply with reportorial requirements.
The SEC said 117,885 of these corporations failed to submit their annual reports for more than five years.
The list also includes corporations that have commenced their business but subsequently became inoperative for more than five consecutive years, it said.
The SEC said companies are required to submit reportorial requirements, such as annual financial statements and general information sheets, as mandated by Republic Act (RA) 11232 or the Revised Corporation Code of the Philippines.
The SEC stressed that under RA 11232, it can place under delinquent status firms that have failed in filing their reportorial requirements for three times, consecutively or intermittently, within a period of five years, as well as companies that have become inoperative for at least five consecutive years.
It may then suspend the franchise or certificate of incorporation of these firms as provided in the law.
“The SEC has given the suspended corporations a period of 30 days from the publication of the suspension order, to avail of existing remedies under the laws, rules and regulations implemented by the Commission,” it said.
The issuance of the suspension order follows the conclusion of the SEC Amnesty Program, which ran from March to December 2023 and gave non-compliant and suspended or revoked corporations a chance to recover their good standing by paying the reduced fees.
