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Philippines
Friday, May 24, 2024

10:36 PM

30.6 C
Philippines
Friday, May 24, 2024

10:36 PM

SEC-CDOEO urges non-stock corps to comply with MC28 s.2020 requirement

CAGAYAN DE ORO CITY (PIA)–The Securities and Exchange Commission–Cagayan de Oro Extension Office (SEC-CDOEO) urges Non-Stock Corporations to comply with the Memorandum Circular No. 28 series of 2020 requirement to further avoid penalties. This is after the Extension Office has found out that most of the non-compliant sectors are those from non-stock corporations.

Non-stock corporations

Under the Section 87 of the Corporation Code, a Non-Stock Corporation is one where no part of its income is distributable as dividends to its members, trustees, or officers.

Most common non-stock corporations are: (1) charitable institutions; (2) educational groups and academe; (3) religious organizations; (4) memberships and federations; (5) farmer’s associations; among others.

Memorandum Circular No. 28 s. 2020 (MC28)

The MC28 aims to gather the contact details of each corporation by requesting their designated email address and contact numbers; both the official and alternate. The form is readily available at the SEC website at sec.gov.ph under the Memorandum Circular section or may be immediately searched with “SEC MC28 form” as keywords. 

The commission signed the said memorandum in August 2020 and designated February 23, 2021 as the original deadline for its submission. Due to a very low compliance rate, the Commission moved the submission deadline until February 2022 or a year of extension.

However, the Extension Office still finds low compliance rates particularly among the Non-Stock corporations.

Earlier this year, the commission launched the MC28 portal to help entities in remote areas to submit the document even at the comfort of their offices or homes. 

The portal can be reached through this link: https://apps010.sec.gov.ph. Also, clients are directed to submit a copy to the local database of the Extension Office by emailing it through sec-cdoeo@sec.gov.ph.

The full memorandum circular can be accessed through this link: https://www.sec.gov.ph/mc-2020/mc-no-28-s-2020.

Submission process 

In complying with the MC28 form, clients are directed to fill-out the respective annexes depending on their classifications: (1) Annex D– for Corporations (Stock and Non-stock Corporations); (2) Annex E– for Partnerships; (3) Annex F– for Individuals; and (4) Annex G– for changes of email address and contact numbers.

Each corporation is required to designate the official and alternate email addresses and contact numbers. The form should be signed by the Corporate Secretary or President and notarized.

Once completed, the form should be scanned and submitted via portal at apps010.sec.gov.ph

“It is our goal to achieve an accumulated 100% MC28 compliance. We start taking this challenge by reaching out to the majority of non-compliant entities which are mostly the non-stock corporations,” Lawyer Frederick A. Enopia, Officer-in-Charge and Securities Counsel of SEC-CDOEO said in a statement.

The Cagayan de Oro Extension Office in particular, initiates by providing a kiosk at the office in case there are corporations who would like to ask for assistance in complying with the MC28 requirement.

On the other hand, the commission still allows Non-Stock Corporations to submit manually their reports on Financial Statement and General Information Sheet until March 2022 through the nearest Extension Offices instead of submitting it through the Electronic Filing and Submission Tool (EFAST).

For online concerns, the EO may be directly reached to this email at sec-cdoeo@sec.gov.ph or call the landline numbers at 088-327-3309 or 088-857-7225. (SEC-CDOEO/PIA-10)