The Securities and Exchange Commission (SEC) has issued Memorandum Circular No. 6, Series of 2023, which provides an amnesty program for corporations that have not filed or have filed late their general information sheet (GIS), annual financial statement (AFS), and other reportorial requirements.
The amnesty program is a one-time opportunity for corporations to get back in compliance with SEC regulations without having to pay penalties. Corporations that avail of the amnesty program will be required to pay a one-time amnesty fee, which is based on the number of years of non-compliance.
The amnesty program is open to all corporations, regardless of their size or industry. The deadline for applying for the amnesty program is June 30, 2023.
Benefits of the Amnesty Program There are several benefits to availing of the SEC amnesty program. These include:
Avoidance of penalties: Corporations that avail of the amnesty program will not be required to pay penalties for their non-compliance.
Restoration of good standing: Corporations that avail of the amnesty program will have their good standing restored with the SEC.
Improved corporate governance: The amnesty program can help corporations improve their corporate governance practices by ensuring that they are in compliance with SEC regulations.
How to Apply for the Amnesty Program To apply for the amnesty program, corporations must submit the following documents to the SEC:
A duly accomplished application form
A copy of the corporation's GIS
A copy of the corporation's AFS
A copy of the corporation's payment of the amnesty fee
The application form and other documents can be downloaded from the SEC website.
The SEC amnesty program is a valuable opportunity for corporations to get back in compliance with SEC regulations. Corporations that avail of the amnesty program will be able to avoid penalties, restore their good standing with the SEC, and improve their corporate governance practices.
If your corporation is not in compliance with SEC regulations, contact us or an SEC lawyer to discuss whether the amnesty program is right for you.
(SEC amnesty program, non-compliance, penalties, good standing, corporate governance)