ILOILO City – The Securities and Exchange Commission (SEC) has warned corporations to comply with annual reporting requirements or face possible suspension and even revocation of their corporate registration, as it intensified its campaign to improve corporate transparency and accountability.
During an information drive in Iloilo, SEC officials reminded corporations that the timely submission of their General Information Sheet (GIS) and Financial Statements (FS) remains a mandatory requirement and a key basis for monitoring whether companies are actively operating and complying with regulations.
SEC Iloilo Securities Specialist I Nescille Therese Parreño said corporations must submit their financial statements within 120 days after the end of their fiscal year, while the GIS must be filed within 30 days from the actual date of their annual stockholders’ meeting.
“These documents serve as vital indicators of a corporation’s operational status and financial performance,” she explained.
Parreño emphasized that corporations can no longer cite filing difficulties as an excuse, noting that the SEC’s electronic filing and submission platform allows reports to be filed online around the clock.
“This digital solution eliminates the excuses for late filings, as they are accessible anytime and from anywhere,” she said.
Although no filing fee is charged for the submission of GIS and FS, corporations may still incur penalties for late filings or for inconsistencies between submitted reports and their Articles of Incorporation and By-laws.
The SEC also stressed that the documents are not only required for regulatory compliance but are valuable public records that can be accessed for legitimate inquiries and investigations.
“These documents can be requested by the public for various investigative purposes, including inquiries related to Senate investigations into issues such as flood control and banking practices,” said SEC Iloilo Information Officer Jola Lyn Tingson.
Tingson said public access to the reports supports government transparency and accountability initiatives consistent with freedom of information principles.
Meanwhile, the SEC announced that monthly compounding fines for the late or non-submission of reports have been suspended under SEC Memorandum Circular No. 16, a move expected to ease compliance burdens on some corporations.
“This comes as a relief to many corporations that have been struggling with compliance-related issues,” explained SEC Director II Lawyer Ma. Cristina Montelibano.
Montelibano clarified, however, that the suspension does not apply to corporations that have already been assessed and have settled their penalties. Companies with pending requests and active payment assessment forms may seek re-evaluation and possible waiver of computed penalties.
The commission likewise highlighted its ongoing digital transformation program, which now covers amendment applications, electronic report submissions, and company monitoring systems. SEC officials said the modernization initiative is intended to make compliance easier while strengthening oversight of corporations.
The SEC reiterated its call for corporations to submit their GIS and FS on time, warning that failure to do so could ultimately result in the suspension or revocation of their corporate registration./PN
