SEC Cebu bares 8,482 delinquent companies

CEBU, Philippines — Securities and Exchange Commission (SEC) Cebu Extension Office has identified 8,482 delinquent companies as of March 15 2024.

These companies have been urged to participate in the agency's Enhanced Compliance Incentive Plan (ECIP) before the deadline of November 30, 2024.

The ECIP offers a 50 percent penalty reduction for delinquent corporations, providing an opportunity to clear past penalties and avoid potential suspension or revocation of their business registration.

SEC-Cebu Director Atty. Sheara L. Lupango-Tamayo reported that these delinquent companies are facing suspension due to failure to submit required reports.

As part of its push for corporate transparency, SEC has intensified efforts to address non-compliance, with 151 companies already taking advantage of the ECIP in the past two months.

Lupango-Tamayo highlighted the importance of the ECIP in encouraging compliance. She emphasized that companies with outstanding penalties have a chance to comply at a reduced cost.

According to Lupango-Tamayo, SEC continues to modernize its processes by requiring companies to promptly update their contact information and submit necessary documents like annual financial statements and general information sheets.

Lupango-Tamayo, however, noted the increasing number of corporations having issues with their compliance in the submission of report annually.

“In February 2024, a total of 117, 885 companies were suspended by the Commission (across the country), 5,115 of which belong under the Cebu Extension Office’s jurisdiction,” Lupango-Tamayo revealed.

She emphasized the importance of complying with the reportorial requirements as failure to submit the annual reports three (3) times, consecutively or intermittently, within a period of five (5) years is a ground to place the corporation under delinquent status.

Meanwhile, the SEC observed the Investor Protection Week (IPW) from November 9-13, 2024 focusing on raising awareness about investment risks and scams, among others under the theme “Wais sa Pinansya, Sigurado sa Kinabukasan.”

Despite challenges with delinquent companies, compliance rates in Cebu are improving as corporations become more aware of the need for legitimate operations.

Cebu, which hosts over 130,000 active registered companies, remains a major hub for SEC activities, particularly in wholesale and retail sectors.

The SEC-CEBEO encourages all non-compliant, delinquent, suspended and revoked corporations to avail of the ECIP while it is available.