Legal Heads Up
As ECIP deadline approaches, SEC releases list of corporations facing suspension
On 13 December 2024, the Securities and Exchange Commission, in the exercise of its power to suspend or revoke the certificate of registration of corporations under the Revised Corporation Code (RCC), issued a list of corporations at risk of suspension for failing to comply with the repertorial requirements from 2015 to 2022. These repertorial requirements include annual financial statements, general information sheets (GIS), among others as provided by Section 177 of the RCC.
The corporations included in the list have until 31 December 2024 to apply for the Extension of Enhanced Compliance Incentive Plan (ECIP). Under the ECIP, non-compliant and delinquent corporations shall enjoy lower fines and penalties. Suspended or revoked corporations may also lift their suspension or revocation by paying a lower assessment.
Failure to apply for ECIP may result in not only the payment of higher fees and penalties, but the specified corporations may also be evaluated for suspension.
Click here to read the full text of SEC Memorandum Circular No. 17, series of 2024.
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