SEC mulls measures allowing firms to conduct meetings remotely, extend filing of annual reports

The Securities and Exchange Commission (SEC) on Wednesday said it will be coming up with a circular outlining measures on how companies can conduct meetings remotely and extend the submission of pertinent regulatory filings amid the threat posed by the coronavirus disease (COVID-19).

In a statement, the SEC said the measures “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.”

This is to help mitigate the impact of the COVID-19 threat on businesses.

The SEC said it 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 corporate regulator said.

The SEC said it 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 agency said it 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,” it said.

“The disruption, risks and effects of the outbreak of the new coronavirus disease, COVID-19, transcend sectors,” SEC chairperson Emilio Aquino said.

“In line with the President’s declaration of a state of public health emergency, the Commission will explore and implement all appropriate measures to help contain the spread of COVID-19 and mitigate its effects,” Aquino said. — Ted Cordero/RSJ, GMA News