SEC suspends sign-up of 2.3K firms in Bicol

By Connie Calipay

February 28, 2024, 3:14 pm

<p>The Securities and Exchange Commission-Bicol office in Legazpi City<em> (Photo courtesy of SEC-Bicol)</em></p>

The Securities and Exchange Commission-Bicol office in Legazpi City (Photo courtesy of SEC-Bicol)

LEGAZPI CITY – The Securities and Exchange Commission (SEC) suspended more than 2,000 corporations in Bicol for failing to submit their annual reports.

In an interview on Wednesday, Arlyn Joy Alarcon, SEC-Bicol information officer, said based on the suspension order from their company registration and monitoring department, the registration of 2,313 companies across the six provinces of the region was suspended over their failure to submit the requirements for more than five years.

"Aside from the failure to submit annual reports, also included in the suspension order are those corporations that have commenced their business but later became inoperative for more than five consecutive years," Alarcon said.

She said SEC-registered corporations must submit reportorial requirements such as annual financial statements (AFS) and general information sheets (GIS) under Republic Act 11232, otherwise known as 'An Act Providing for the Revised Corporation Code of the Philippines' .

"For remedies, the suspended corporations in Bicol should request monitoring clearance and pay corresponding penalties within the given 30 days from the publication of the suspension order. They'll have until March 16 to comply. The SEC Legazpi Extension Office will be requesting the deletion of their names from the suspended list," Alarcon said.

The SEC may place under delinquent status corporations found to have failed in filing their reportorial requirements three times, consecutively or intermittently, within five years.

Under Section 21 of the Revised Corporation Code (RCC), a corporation that becomes inoperative for at least five consecutive years after starting its business may be placed under delinquent status by the SEC after due notice and hearing.

The SEC also previously issued guidelines for purging corporations under delinquent status through SEC Memorandum Circular No. 19, Series of 2023, as it strictly enforces the reportorial requirements of corporations provided under the laws, rules, and regulations implemented by the commission. (PNA)