SEC pushes simplified rules on corporate amendments

The Securities and Exchange Commission (SEC) aims to further streamline the requirements and procedures for amending a corporation’s articles of incorporation and bylaws to ensure consistency and timeliness in the processing of such transactions.

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The commission has released for public comment new rules on the amendment process for articles of incorporation of corporations through its online portal.

Through the proposed guidelines, the SEC aims to strictly enforce the maximum processing times prescribed under the Ease of Doing Business and Efficient Government Service Delivery Act of 2018 (EODB Act).

The proposed guidelines will enable applicants to submit an affidavit of undertaking instead of a monitoring clearance and clearly categorize the different types of amendment applications as either complex or highly technical transactions.

It also imposes graduated penalties for late or non-submission of the documentary requirements, among others.

"The proposed rules provide clear guidance on the filing of amendments through our online portal, thereby streamlining and improving the efficiency of our services," SEC chairperson Francis Lim said.