Question & AnswerQ&A (SEC-CFD MEMORANDUM CIRCULAR NO. 001)
The basis is Republic Act No. 8799, otherwise known as the Securities Regulation Code (SRC), and its implementing Rules and Regulations.
It applies to reporting corporations enumerated in Section 17.2 of the Securities Regulation Code (SRC).
The reports include Annual Reports, Tender Offer Reports, Proxy Statements, Information Statements, Quarterly Reports, Current Reports, and Statements of Beneficial Ownership.
The basic penalty for the first offense for late filing of an Annual Report is P100,000.00, plus a penalty of P100.00 for every day of delay.
The memorandum circular provides different penalties for first, second, and third offenses, with the second and third offenses referring to violations within a 12-month period from the first offense, generally increasing in amount.
The daily penalty varies; for instance, P100.00 for Annual Reports and P50.00 for Statements of Beneficial Ownership, with other reports having specified daily penalties.
For the first offense, the penalty is P50,000.00; second offense P75,000.00; third offense P100,000.00; plus a daily penalty of P100.00 for every day of delay.
The penalty varies based on the percentage of ownership: nominal, 5%, or 10%. The penalties increase with each offense, starting nominally from P10,000.00 to P100,000.00 for the third offense, plus a daily penalty of either P50.00 or P100.00 depending on the ownership percentage.
It took effect immediately upon adoption on March 28, 2001.
Lilia R. Bautista signed the memorandum circular as Chairman.