MANILA – The Securities and Exchange Commission (SEC) is finalizing measures that would allow the use of remote communication in corporations’ regular and special meetings, and extend the filing period for annual reports for affected corporations to help mitigate the impact of the outbreak of the coronavirus disease 2019 (Covid-19).
The SEC will issue a memorandum circular to provide guidelines on the attendance and participation of directors, trustees, stockholders, members, and other officers of corporations in regular and special meetings through remote communication, under Republic Act 11232, or the Revised Corporation Code.
Upon approval of the guidelines, the SEC will immediately allow corporations to conduct meetings through remote communication or other alternative modes to consider and approve the necessary provisions in their bylaws or internal procedures in time for their forthcoming annual stockholders’ or members’ meetings.
The commission has been holding meetings through remote communication, allowing for the participation of the directors of its extension offices in Baguio, Tarlac, Legazpi, Cebu, Bacolod, Iloilo, Davao, Cagayan de Oro, and Zamboanga.
The SEC is likewise set to issue a memo circular giving all affected companies more time to submit their annual reports (SEC Form 17-A), including annual financial statements for the period ending Dec. 31, 2019, as well as quarterly reports (SE Form 17-Q) for the first three months of 2020 for publicly-listed companies.
The extension will allow companies affected by travel restrictions, suspension of business operations, and other measures implemented to contain the Covid-19 outbreak to gather all information or documents necessary in the preparation and the subsequent audit of their reports.
The SEC encourages corporations to use SEC Express Nationwide Submission, www.secexpress.ph/sens, to submit their annual reports through courier.
The public, meanwhile, may request copies of corporate documents through the SEC Express System by logging on to www.secexpress.ph or calling (02) 8737-8888.
“The disruption, risks, and effects of the outbreak of the new coronavirus disease, Covid-19, transcend sectors,” SEC chairperson Emilio Aquino said.
“In line with the President’s declaration of a state of public health emergency, the commission will explore and implement all appropriate measures to help contain the spread of Covid-19 and mitigate its effects.” (PR)
