The Securities and Exchange Commission has appealed to offending corporations and associations facing regulatory sanctions to avail of the amnesty program before higher penalties kick in starting October.
These are those who have been late or failed to file such reportorial documents as the general information sheet and annual financial statement that the SEC issued as Memorandum Circular 2 in March this year and Memorandum Circular 28 in 2020. The amnesty comes in the form of a waiver or reduction of fees to encourage regulated entities to comply with their reportorial duties under Republic Act 11232 or the Revised Corporation Code. Some 40,000 corporations have since completed their amnesty application with the SEC, allowing them to reclaim their good standing with the regulator.
In June this year, the SEC streamlined the amnesty application process and offenders need only answer a web-based form in lieu of the submission of a notarized expression of interest and an amnesty application form. The deadline for all amnesty applications is on September 30.
The SEC is preparing a new set of fines and penalties for the late and non-filing of reportorial requirements that will be imposed starting October 1.
Under the new guidelines, late filing by domestic stock and non-stock corporations with retained earnings of less than P100,000 incur fines at a base amount of P5,000 for the first offense, which increases to P9,000 for the fifth offense. There will also be a P1,000 monthly fine for every month of the continuing violation.
Non-filing of reportorial requirements by both stock and non-stock corporations with retained earnings of less than P100,000 will incur fines amounting to P10,000 for the first offense up to P18,000 for the fifth offense, plus a fine of P1,000 for every month of continuing violation.
The SEC may declare a corporation under delinquent status and revoke its registration at the fourth offense.
