The Securities and Exchange Commission (SEC) will soon require businesses to file their audited financial statements and other annual reportorial requirements through a new online submission tool (OST).
This is to further limit in-person interactions especially at this time of the pandemic, automate business transactions and promote sustainable business practices, according to the SEC, as it recently released for public comment a draft circular providing for the schedule and procedure for online submissions.
The new system would allow corporations and partnerships to file their audited financial statements (AFS), general information sheet (GIS) and other annual reports in digital format. The OST would be rolled out in time for this year’s filing season.
Initially, corporations could use the OST to file their AFS, GIS, sworn statement for foundation, general form for financial statement, and special form for financial statement.
The OST would likewise accept submissions of affidavit of nonoperation, together with their GIS or AFS, and affidavit of nonholding of annual meeting, together with the GIS, during the initial implementation.
The initiative operationalizes Section 180 of Republic Act No. 11232, or the Revised Corporation Code of the Philippines, which mandates the SEC to develop and implement an electronic filing and monitoring system.
It is likewise consistent with Republic Act No. 11032, or the Ease of Doing Business and Efficient Government Service Delivery Act of 2018, which requires government agencies to adopt a zero-contact policy.
Moreover, the OST is also seen to support the SEC’s commitment to reducing energy consumption. INQ