SEC GRANTS INCENTIVES FOR CORPORATIONS TO COMPLY WITH REPORTORIAL REQUIREMENTS

SEC Memorandum Circular (MC) No. 13, Series of 2024, posted on August 30, 2024, adopts an Enhanced Compliance Incentive Plan (ECIP) which rolls out an incentive program that allows corporations, which have failed to submit their annual reports on time, to restore their good standing.

Highlights include:

a. Non-compliant corporations, including those placed under “delinquent” status, may settle their unassessed or unpaid fines and penalties for Php 20,000 only.

b. Suspended and revoked corporations, including those with pending Petitions for the Lifting of the Suspension or Revocation Order issued against them, may settle only 50% of their assessed fines and pay the petition fee of Php 3,060.

c. Covered violations include:

1. Non-filing of General Information Sheet (GIS) for the latest and prior years

2. Late filing of GIS for the latest and prior years

3. Non-filing of Financial Statements (AFS), whether audited or certified, including fines for the non-filing of the attachments required for certain corporations, for the latest and prior years

4. Late filing of AFS, including fines for the late filing of the attachments required for certain corporations, for the latest and prior years

5. Violations under SEC Memorandum Circular No. 28, Series of 2020, which requires all entities registered with the Commission to designate and submit their official and alternative email addresses and mobile phone numbers.

d. Applications of non-compliant, suspended and revoked corporations for ECIP may be submitted starting September 2, 2024, and until November 30, 2024.