The Securities and Exchange Commission (SEC) of the Philippines is an office of the Philippine Government.
The agency has expressed its intent to help stockholders or members of corporations take part effectively in regular company conferences.
Philippine daily newspaper The Philippine Star reported that the SEC had issued a memorandum circular on February 21.
The written message comprises a new set of guidelines. These rules aim to safeguard the interest of stockholders.
In the memorandum circular, the commission relayed that written notices about regular corporation meetings need to be in place.
Corporations need to send these messages to members or shareholders of record.
The SEC cited that companies have to dispatch these pieces of written communication about a regular company conference at least 21 calendar days before the convention’s actual date.
Emilio Aquino is the chairman of the SEC. He made comments regarding the implementation of the new memorandum circular.
He affirmed that the commission had increased the notice time. In the past, it was at least 14 days before the actual date of the corporation meeting.
However, this time, the commission has changed it to 21 days. In this manner, stockholders and members of firms will have more time to get ready, Aquino said.
The commission’s chairman explained that the extended notice period provides stakeholders more benefits.
Aside from permitting members and shareholders to prepare, Aquino pointed out that they will be able to take part more effectively in regular company conventions.
Besides, these components and shareholders of corporations will be able to cast votes on issues that relate to the company they are a part of, he said.
The commission’s executive relayed that the election of corporations’ directors is among these matters.
In the latest memorandum circular, the SEC communicated that members and shareholders’ regular conventions have possibilities of getting deferred.
In this situation, the government agency said that companies have to send a written notice about the postponement of these regular meetings.
Moreover, the commission pointed out that corporations have to indicate their reasons for delaying the scheduled regular convention.
They should perform this measure at least 14 days or two weeks before the date of the conference as planned initially, the government office said.
Furthermore, the SEC stated that corporations should notify their members and stockholders about the new schedule of the regular convention.
The agency of the Philippine government remarked that the written notices of companies’ regular conferences must include all essential details and deadlines.
These pieces of information are pertinent to the participation of the members or the shareholders in the conference, the government bureau said.
Finally, the commission communicated in the memorandum circular that corporations should disclose information to stockholders and members about their performance of the prerogative to vote.
They could exercise this right via a proxy, remotely, or in absentia, the SEC said.
Aquino expressed that the commission issued the new memorandum circular because of its three targets.
The government bureau wants to safeguard minority investors.
Plus, he relayed that the commission desires the transformation of the Philippine corporate industry into a more globally competitive one.
Finally, Aquino said that the commission aims to advance auspicious corporate governance.
Therefore, the office views its new written communication’s implementation as favorable, he added.
The SEC is an office within the Department of Finance. This bureau’s responsibility includes regulating the Philippine securities sector.
Furthermore, it maintains the company register of the country.
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