SEC finalizing measures to help firms cope with virus outbreak

THE SECURITIES and Exchange Commission (SEC) is finalizing measures that will allow the use of remote communication in corporation’s regular and special meetings, and extend the filing period for annual reports for affected corporations to help mitigate the impact of the outbreak of the new coronavirus disease, COVID-19.

The SEC will issue a memorandum circular to provide guidelines on the attendance and participation of directors, trustees, stockholders, members and other officers of corporations in regular and special meetings through remote communication, pursuant to Republic Act No. 11232, or the Revised Corporation Code.

Upon approval of the guidelines, the SEC will immediately allow corporations to conduct meetings through remote communication or other alternative modes in order to consider and approve the necessary provisions in their bylaws or internal procedures, in time for their forthcoming annual stockholders’ or members’ meetings.

The Commission itself has been holding meetings through remote communication, allowing for the participation of the directors of its extension offices in Baguio, Tarlac, Legazpi, Cebu, Bacolod, Iloilo, Davao, Cagayan de Oro and Zamboanga.

The SEC is likewise set to issue a memorandum circular giving all affected companies more time to submit their annual reports (SEC Form 17-A), including annual financial statements, for the period ended December 31, 2019, as well as quarterly reports (SE Form 17-Q) for the first three months of 2020 for publicly listed companies.

The extension will allow companies affected by travel restrictions, suspension of business operations and other measures implemented to contain the COVID-19 outbreak to gather all information or documents necessary in the preparation and the subsequent audit of their reports.

The SEC encourages corporations to utilize SEC Express Nationwide Submission (www.secexpress.ph/sens) to submit their annual reports through courier. The public, meanwhile, may request copies of corporate documents through the SEC Express System by logging on www.secexpress.ph or calling (02) 8737-8888.