Law Summary

Introduction

This Memorandum Circular, issued by the Securities and Exchange Commission (SEC), outlines the compliance requirements for publicly-listed companies (PLCs) regarding a prescribed website template aimed at enhancing corporate governance.

Purpose and Background

• The SEC aims to foster improved corporate governance for PLCs.
• This initiative follows SEC Memorandum Circular No. 11, series of 2014, which established a mandatory website template for all PLCs.
• The directive emphasizes transparency and accessibility of corporate information to stakeholders.

Compliance Requirement

• All companies applying for the registration of securities for listing must adhere to the SEC-prescribed website template.
• Compliance with this requirement is mandatory prior to the effectiveness of their Registration Statement.

Deadline for Compliance

• For companies that were listed prior to the issuance of this Memorandum Circular, compliance is required within six (6) months from their respective listing dates.
• The effective date of this Memorandum Circular is immediate upon issuance.

Penalties for Non-Compliance

• Non-compliance with the website template requirements will result in penalties as stipulated under SEC Memorandum Circular No. 18, series of 2014.
• Specific penalties are not detailed in this Circular but reference to the aforementioned Circular indicates the possibility of sanctions.

Authority

• The Circular is signed by Teresita J. Herbosa, Chairperson of the SEC, and is enforceable as of its issuance date.

Key Takeaways

• The SEC mandates the use of a prescribed website template for all PLCs to enhance corporate governance.
• Companies must comply before their Registration Statement becomes effective, with a six-month compliance window for those listed prior to this Circular's issuance.
• Penalties for non-compliance are referenced from SEC Memorandum Circular No. 18, series of 2014, indicating serious repercussions for violations.