SEC to implement measures to mitigate impact of COVID-19 outbreak on corporations

CEBU CITY, Philippines—The Securities and Exchange Commission (SEC) is finalizing measures to help mitigate impact of the coronavirus outbreak on corporations.

“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.” SEC chairperson Emilio B. Aquino said in a statement.

SEC is now finalizing measures to allow the use of remote communication methods in a corporation’s regular and special meetings, according to an emailed press release.

It will be issuing a memorandum circular to provide guidelines on the attendance and participation of directors, trustees, stockholders, members, and other corporate officers in regular meetings via remote communication, pursuant to RA 11232, or the Revised Corporation Code (RCC).

The commission also plans to extend the filing period of annual reports for all corporations affected by the outbreak.

SEC requires all corporations whose fiscal year ended on December 31, 2019, including branch offices, representative offices, regional headquarters and regional operating headquarters of foreign corporations, to file their annual reports and audited financial statements depending on the last numerical digit of their SEC registration or license numbers.

The deadline is April 20 to April 24 for registrations ending 1 and 2; April 27 to April 30 for those ending in 3 and 4; May 4 to May 8 for those ending in 5 and 6; May 11 to May 15 for 7 and 8; and May 18 to May 22 for 9 and O.

A separate memorandum circular will provide guidance to affected companies more time to submit their annual reports (SEC Form 17-A), including annual financial statements for corporations whose fiscal year ended in December 31, 2019, as well as quarterly reports (SEC Form 17-Q) for the first three months of 2020 for publicly listed companies.

Once these guidelines are approved, the SEC will allow corporations to conduct meetings through remote communication or other alternative methods, in order for them to hold meetings or convene on necessary internal procedures.

This extension will likewise grant ample time for companies affected by travel restrictions, suspension of business operations, and other measures implemented to contain the COVID-19 outbreak to prepare their annual reports.

In the meantime, the commission encourages corporations to use the SEC Express Nationwide Submission (www.secexpress.ph/sens) to submit their annual reports through courier.

Meanwhile, the public may also request plain and authenticated copies of corporate documents through the SEC Express System by logging on www.secexpress.ph and scheduling an appointment. /bmjo