Recently, the Securities and Exchange Commission (SEC) of the Philippines has implemented changes in their rules in order to facilitate the expediency of organizing a corporation or effect amendments to existing companies. This is also in line with all government offices to eliminate, if not, gradually minimize, red tape in all its front line services. This is a three part blog entry to update everyone on the latest changes in the SEC.
In the latter part of 2012, SEC en banc has decided to revise some rules in the registration of corporation and in also subsequent reportorial filings. Bank certificates are no longer required to be attached in domestic corporation application, whether stock or non-stock. This also applies even to corporations that have a required capital contribution or paid-up capital. Also, the format for the required treasurer’s affidavit was slightly revised to make it less technical and simpler, instead.
In other words, applicants need not go through the process of securing a bank certificate which in the past, contribute to delays and added expense. Now, the incorporators and its treasurer just have to ensure that the corporation has a liquid capital, whether contributed in cash or in property, always ready for verification by the SEC. Besides, it is the purpose of executing a treasurer’s affidavit, if upon verification, no proof of contributed capital can be produced then the corporation will be in big trouble specially the treasurer.