SEC Released List of Corporations in Danger of Being Suspended for Failure to Submit Annual Reports

​The Securities and Exchange Commission (SEC) highly encourages the corporations to avail of the SEC Enhanced Compliance Incentive Plan (ECIP) to avoid having their certificates of incorporation suspended.

Section 177 of Republic Act No. 11232, otherwise known as the Revised Corporation Code of the Philippines (RCC), provides that every corporation, domestic or foreign, doing business in the Philippines shall submit to the SEC annual financial statements and a general information sheet (GIS), among other reportorial requirements, annually and within such period as may be prescribed by the Commission.

Under Section 179(h) of the RCC, as well as Section 6, Paragraph (i) of Presidential Decree No. 902-A and Section 5(m) of Republic Act No. 8799, otherwise known as the Securities Regulation Code, the Commission has the power to suspend or revoke, after proper notice and hearing, the franchise or certificate of registration of corporations upon any of the grounds provided by law. One of the grounds for the suspension or revocation of the certificate of incorporation or registration of a corporation is failure to comply with the reportorial requirements provided under Section 177 of the RCC.

Based on the records of the Commission as of October 31, 2024, the corporations appearing on the list released by SEC have failed to submit their AFS and GIS for eight years, from 2015 to 2022. Accordingly, they are under evaluation for the possible suspension of their certificates of incorporation.

In this light, the corporations appearing on the list are advised to avail of ECIP by 31 December 2024, in accordance with the procedure set forth in SEC Memorandum Circular No. 17, Series of 2024.

Those corporations, which have already availed of ECIP, may disregard the notice from SEC. The list of corporations with suspended certificates of incorporation will be finalized after ECIP ends.
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For the full list of corporations, you may visit this link from the official website of SEC Philippines: ​https://www.sec.gov.ph/notices/corporations-in-danger-of-being-suspended-for-failure-to-submit-annual-reports/#gsc.tab=0