SEC MC No. 10, S. of 2022: Amendments to SEC MC No. 15, S. 2019 Increasing the Penalties and Imposing Additional Non- Financial Penalties and Providing Further Guidelines for Submission

2023 SEC NOTICE SEC MEMORANDUM CIRCULAR NO.10, S. OF 2022 AMENDMENTS TO SEC MC NO.15, S. 2019 INCREASING THE PENALTIES AND IMPOSINGADDITIONAL NON-FINANCIAL PENALTIES AND PROVIDINGFURTHER GUIDELINES FOR SUBMISSION PENALTIES ALL STOCK CORPORATIONS (Domestic and Foreign) RETAINED EARNINGS PENALTIES First Violation Second Violation Third Violation Fourth and Subsequent Violation Less than P500,000.00 P50,000.00 P100,000.00 P250,000.00 P500,000.00 P500,000.00 or more but less than P5,000,000.00 P100,000.00 P200,000.00 P500,000.00 P1,000,000.00 P5,000,000.00 or more but less than P10,000,000.00 P150,000.00 P300,000.00 P750,000.00 P1,500,000.00 P10,000,000.00 or more P200,000.00 P400,000.00 P1,000,000.00 P2,000,000.00 Additional fine of P1,000.00 for each day of delay in the submission of beneficial ownership information as a continuing violation, but shall not exceed P2,000,000.00. ALL NON-STOCK CORPORATIONS (Domestic and Foreign) FUND BALANCE PENALTIES First Violation Second Violation Third Violation Fourth and Subsequent Violation Less than P500,000.00 P25,000.00 P50,000.00 P100,000.00 P250,000.00 P500,000.00 or more but less than P5,000,000.00 P50,000.00 P100,000.00 P200,000.00 P500,000.00 P5,000,000.00 or more but less than P10,000,000.00 P75,000.00 P150,000.00 P300,000.00 P750,000.00 P10,000,000.00 or more P100,000.00 P200,000.00 P400,000.00 P1,000,000.00 Additional fine of P1,000.00 for each day of delay in the submission of beneficial ownership information as a continuing violation, but shall not exceed P2,000,000.00. FALSE DECLARATION FINES OTHER PENALTIES For the Corporation Up to P2,000,000.00 Revocation of Certificate of Incorporation For Directors/Trustees/Officers Up to P200,000.00 Disqualification to be a Director/Officer/Trustee for up to five (5) years LIABILITY OF DIRECTORS/TRUSTEES AND OFFICERS OF THE CORPORATION VIOLATION PENALTIES First Violation Second Violation Third Violation Fourth and Subsequent Violation Non-Disclosure/Late Disclosure P10,000.00 P20,000.00 P50,000.00 P100,000.00 False Declaration Up to P200,000.00 plus disqualification to be a Director/Officer/Trustee for up to five (5) years OTHER IMPOSABLE PENALTIES If, after due notice and hearing, the Commission finds that there is: A willful violation of this Circular or related orders of the Commission, That any person has refused to permit any lawful examination into the corporation's affairs. The Commission may impose the penalty of suspension or revocation of the certificate of incorporation of the reporting corporation along with other penalties that are within the power of the Commission to impose. CRIMINAL ACTIONS AND CRIMINAL LIABILITY The imposition of administrative sanctions shall be without prejudice to the filing of criminal charges against persons responsible for violation of Title XVI of the Revised Corporation Code of the Philippines as well as other applicable laws, rules, and regulations.