SEC issues new compliance rules for one-person corporations

The Securities and Exchange Commission (SEC) is seeking to improve compliance among one-person corporations (OPCs) by establishing new monitoring guidelines.

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The SEC’s recently issued guidelines, which consolidate rules that govern the compliance of OPCs with reportorial requirements and bond posting, aims to reinforce the commission’s supervision over the corporate sector.

“These new guidelines outline the reportorial requirements and penalties imposed on OPCs. By clarifying expectations around their submissions, we are eliminating ambiguity and empowering business owners to operate with the confidence that they are in full compliance with the law,” SEC chair Francis Lim said.

“This streamlined approach also allows the SEC to strengthen its monitoring powers over corporations, in line with its mandate of promoting transparency and accountability in the corporate sector,” he said.

Under the guidelines, an OPC is required to appoint its treasurer, corporate secretary and other officers, as well as subsequently submit a form for appointment of officers (FAO) within 20 days from the approval of its certificate of incorporation.

Failure to do so will result in a penalty of P10,000.