Over 100,000 firms suspended

February 22, 2024 | 12:00am

For non-filing of SEC reports for over 5 years

MANILA, Philippines — Over 100,000 corporations have been suspended by the Securities and Exchange Commission (SEC) for non-filing of reportorial requirements.

The SEC ordered the suspension of the certificates of incorporation of 117,885 corporations due to non-filing of reportorial requirements for more than five years.

“The commission suspends the corporations for their continuous inoperation and failure to file their reportorial requirements beyond the prescribed period,” the SEC said.

The suspended corporations are given 30 days from the date of publication of the SEC order to avail themselves of the existing remedies pursuant to the laws, rules and regulations implemented by the commission.

Under the Revised Corporation Code, the SEC, after due notice and hearing, may place a corporation under delinquent status if it has commenced business, but subsequently becomes inoperative for a period of at least five consecutive years.

Corporations are required to submit reportorial requirements, with the SEC authorized to place under delinquent status corporations that are found to have failed in filing their reportorial requirements for three periods, consecutively or intermittently, within five years.

The SEC launched in March last year its amnesty program, which seeks to improve compliance with reportorial requirements by allowing non-compliant and suspended or revoked corporations to pay a reduced penalty for the late or non-filing of their general information sheets, annual financial statement and official contact details required.

Availment of the amnesty entitles non-compliant corporations to pay a fixed amnesty rate of P5,000, regardless of the number of reports and number of years they failed to submit their reports.

Suspended and revoked corporations, meanwhile, shall pay only 50 percent of their total assessed fines, on top of a petition fee of P3,060.

Corporations were previously given a final deadline of Dec. 31, 2023 to avail themselves of the amnesty program.