SEC discontinues joint certification for capital stock increase applications

THE SECURITIES and Exchange Commission (SEC) has discontinued the use of joint certification for applications to increase capital stock through cash infusion due to weak public adoption.

In a notice on Wednesday, the SEC Financial Analysis and Audit Department said the decision followed a review of the joint certification requirement for applications to increase capital stock via cash infusion.

“It has been observed that there is a low rate of availment and adoption by the transacting public,” the notice said.

“In view of the foregoing, and in the interest of process efficiency and clarity, the use of the joint certification is hereby discontinued, effective immediately upon issuance of this notice,” it added.

In January, the SEC Company Registration and Monitoring Department implemented a new format for the cover sheet and joint certification to be used by stock corporations for applications to increase their capital stock through cash infusion.

The joint certification replaced several documents, including the certificate of increase, directors’ certificate, treasurer’s affidavit, and secretary’s certificates on the list of stockholders, nonexistence of intracorporate disputes, and waiver of preemptive rights.

Last month, the SEC launched six digital platforms and a data center to enhance the delivery of its services.

Some of the new platforms include the Electronic Workbench and Analytics Technical Computing Hub, which notifies corporations of the deadlines for filing reportorial requirements, and the SEC Verification of Electronic Records and Information Trust and Authentication System, which allows multiple authorized parties to approve and sign corporate documents, such as board resolutions and compliance reports, in real-time. — Revin Mikhael D. Ochave