SEC warns delinquent firms amid ECIP deadline
Noncompliance could lead to the imposition of applicable fines and penalties and, in extreme cases, the suspension or revocation of corporate registration
SEC HEADQUARTERS
Photo courtesy of Securities and Exchange Commission
Firms have less than a month left to clear their record and avoid higher fines and penalties for the late and non-filing of reportorial requirements to the Securities and Exchange Commission (SEC).
Ending on 30 November, the SEC Enhanced Compliance Incentive Plan (ECIP) under Memorandum Circular (MC) 13, Series of 2024 provides eligible corporations a final chance to regain their good standing and pay penalties at significantly lower rates.
“With less than a month left before we officially close ECIP, we encourage non-compliant, suspended and revoked corporations to complete their applications to ensure the continuous operations of their businesses,” SEC Chairperson Emilio B. Aquino said.
“We remind corporations that the submission of reportorial requirements is mandated by law, and failure to comply could result in the suspension or revocation of their corporate registration,” he added.
Republic Act 11232, or the Revised Corporation Code of the Philippines, requires all SEC-registered corporations to submit their annual financial statements (AFS) and General Information Sheets (GIS).
Noncompliance could lead to the imposition of applicable fines and penalties and, in extreme cases, the suspension or revocation of corporate registration. This strips a company of the powers and privileges granted to a registered corporation, including separate juridical personality, limited liability, and perpetual existence, among others.
Corporations who have incurred fines and penalties for the late or non-filing of their AFS or GIS, as well as noncompliance with MC No. 28, Series of 2020, which requires corporations to designate official and alternative contact details, may apply for ECIP.
Under the program, non-compliant corporations, including those under the delinquent status, shall pay only P20,000 to settle their fines and penalties for the covered violations, while suspended or revoked corporations will only have to pay 50 percent of their total assessed penalties, and a petition fee of P3,060 to lift their order of suspension/revocation.