THE Securities and Exchange Commission (SEC) said they had suspended the corporation of more than 100,000 corporations.

According to the SEC, the Company Registration and Monitoring Department had decided to suspend the certificates of incorporation of some 117,885 corporations.

The order was released on February 16 “for failure to submit their annual reports for more than five years.”

Likewise those suspended were those who commenced business but subsequently became inoperative for more than five consecutive years.

Also the SEC had noted that registered corporations were tasked to give reportorial requirements among which includes annual financial statements and general information sheets, pursuant to Republic Act 11232, or the Revised Corporation Code of the Philippines (RCC).

It stated that under Section 177 of the RCC, the commission may place under delinquent status corporations found to have failed to file their reportorial requirements three times, consecutively or intermittently, within a period of five years.

It also stated that under Section 21 of the RCC, should a corporation commence the business but became inoperative for a period of at least five consecutive years.

This meant that the agency may, after due notice and hearing, place the corporation under delinquent status.