Date Posted: 4 May 2015
This Advisory is prompted by the constant receipt of the Company Registration and Monitoring Department (CRMD) of notices/letters from various branch offices of foreign stock corporations and Regional Operating Headquarters (ROHQ)/Regional Headquarters (RHQ) of multinational companies or their counsels asking for “extension of time” within which to post securities deposit and to submit a certificate of inward remittance, respectively, in compliance with Section 126 of the Corporation Code in relation to Section 2 of SEC Memorandum Circular No, 2, Series of 2012 and Section 17 of SEC Memorandum Circular No. 15, Series of 2006
The parties concerned are hereby advised that there is no more need for them or their counsels to file the above-mentioned notices/letters since, under existing SEC Memorandum Circulars, appropriate fines and penalties are being imposed for failure to post the required amount of security deposit within the prescribed period and for late submission of the certificate of inward remittance.
Section 12 of SEC Memorandum Circular No, 2, Series of 2012 clearly provides
SECTION 12. FINES AND PENALTIES FOR NON-COMPLIANCE
12.1 Failure to post the required amount ot security deposit within the prescribed period shall subject a foreign corporation to a daily penalty of equivalent to 1/100 of 1% of the amount of security deposit Which should have been additionally posted until the requirement is fully complied.
‘2.2 A license granted to a foreign corporation shall be suspended or revoked for failure to post securities deposit despite notice and hearing.
12.3 The fines and surcharge for late deposit of securities shall be as follows:
Initial Securities Deposit Additional
violation Basic fine Of
PIO.ooo,oo: and surcharge Of
P500.oo month of delay Basic fine of P7 ,OOO.OO:
and surcharge of P500_oo per month of delay
violation Basic fine Of Plo.ooo,oo: and surcharge of PI per month Of delay Basic fine of
and surcharge of
PI. 000.00 per month Of dela
3 violation Basic fine of PIO,000.oo; and surcharge of PI per month of delay Basic fine of P7 , 000.00; and surcharge of p I , 500.00 per month of dela
A fraction of a month shall be considered as one month for purposes of computatlon of the surcharge.
12 4 The above-mentioned penalties shall be without prejudice to the filing of criminal charges against the persons responsible for the violation.
I Violation basic fine of 003 Of the actual remittance; surcha e Of Of dela
basic fine of 004 of the actual remittance surcha e 000OC month of dela
violation basic fine of 005 ot the actual remittance: surch e of PI ,500.00 r month of dela
as provided for in Section 144 of the Corporation Code of the Philippines,
As regards late submission of the certificate Of inward remittance, Section 18 of SEC Memorandum Circular No. 15, Series of 2006 explicitly reads.
SECTION 18. The fines for the late submission of the certificate Of inward remittance shall be as follows’
a. for the initial remittance basicf.neofP10.000_oc:
SLÜCharge Of month Of b for the
31 March 2015, Mandaluyong City