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The Securities and Exchange Commission (SEC) plans to require public companies and registered issuers to file an annual corporate governance report (ACGR) to create a strong domestic corporate governance culture.
Covered are companies with assets of at least P50 million and with 200 or more shareholders each holding at least 100 shares of stock. Registered issuers refer to companies that issue public shares or depositary receipts, shares that are not listed on an exchange, or debt securities that must be registered with the SEC, whether listed or not.
Public companies and registered issuers listed on the Philippine Stock Exchange are no longer covered by the guidelines, as they have been required to file ACGR since 2017.
The proposed guidelines require ACGRs to be filed on or before May 30 of each year.
Public companies and registered issuers will be mandated to report their compliance or non-compliance with the Corporate Governance Code under SEC Memorandum Circular No. 24, 2019 Series.
The code promotes 16 principles on various corporate governance topics, namely: board responsibilities, disclosure and transparency, internal control and risk management frameworks, cultivating a synergistic relationship with shareholders/members, and duties to stakeholders.
Late or non-compliance with the ACGR can result in a basic fine of P20,000 plus a monthly fine of P2,000.
Incomplete disclosures may result in a fine of P10,000 and a monthly fine of P1,000.
Those who misrepresent or provide misinformation in their ACGR will be subject to a fine of P50,000 and a monthly fine of P5,000. Those with incomplete or incorrect signatories will be struck with a fine of P5,000 plus P500 per month of non-compliance. INQ
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