MANILA, Philippines – The Securities and Exchange Commission (SEC) encouraged companies that have failed to submit basic documentary requirements for the past years to avail of an amnesty program, or else risk having their certificates of registration revoked.

The SEC said that 22,403 corporations have failed to submit their general information sheet within five years from the date of their incorporation, which is among the requirements of the corporation code.

The Revised Corporation Code of the Philippines requires companies to submit annual financial statements and a general information sheet, among other reportorial requirements, annually.

In a separate notice, the SEC also released a list of 298,335 companies which have failed to submit their general information sheet for three times consecutively or intermittently within a five-year period. These companies may be placed under delinquent status.

Failure to comply with reportorial requirements will subject the erring company to penalties ranging from monetary penalties, placement under delinquency status, and suspension and revocation of certificate of incorporation.

“Corporations’ timely submission of their annual financial statement, general information sheet, and other reportorial requirements is vital in maintaining a healthy and vibrant corporate sector, as this helps us identify active versus inactive corporations, enhance and organize the Commission’s digital database, and protect the public from fraud,” SEC Chairperson Emilio Aquino said.

The SEC said the tightening comes as it complies with standards set by international standard-setting bodies and is part of its efforts to strengthen the effectiveness of its anti-money laundering efforts.

Recall that the Philippines is part of the so-called grey list of the Financial Action Task Force due to deficiencies in anti-money laundering and terrorism financing issues.

The companies cited by the SEC can apply for an amnesty program to avoid getting their business certificates revoked and must submit the missing forms on or before December 4.

Suspended and revoked corporations must also submit their respective petitions to lift their suspension or revocation within the same period.

Corporations applying for amnesty may proceed to the SEC Amnesty Microsite at amnesty.sec.gov.ph for the step-by-step guide on how to avail of the program.

“Corporations that fail to avail of the amnesty will likewise incur higher fines, as the SEC will be implementing an updated scale of fines and penalties for reportorial requirements on November 7. Basic penalties for the late and non-filing of reports are set to increase by as high as 1,900%,” the SEC said.

The list of companies encouraged to apply for amnesty can be found here. – Rappler.com

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