Monday, June 12, 2006
By Cheryl M. Arcibal, Reporter
THE Securities and Exchange Commission has issued stricter rules and guidelines for foundations to “protect investors and [the] public.”
The new guidelines amends an earlier memorandum issued on January 20, 2004.
For the registration of a foundation, the SEC required additional documents, such as a notarized certification of bank deposit of not less than P1 million and a statement of willingness to let the regulator look into its finances.
The applicant’s corporate name should also contain the word “foundation.”
Upon the effectivity of the new guidelines, all registered foundations are directed to submit sworn statements of their presidents and treasurers on the sources and use of their funds and the planned activity or program relating to the preceding fiscal year.
The sworn statement must also include certification from the office of the mayor or the barangay captain or the office of the chiefs of the Social Welfare and the Health departments in the locality.
Foundations will also be required to deposit their funds in financial institutions regulated by the Bangko Sentral ng Pilipinas.
A violation of the new rules would merit a fine of not less than P10,000.
“In case the foundation fails to submit the required documents for two consecutive years, the [SEC] may, after due notice and hearing, revoke the registration of the foundation,” the new memorandum said.
Besides this, the SEC may also initiate legal action for violations of the new set of rules.
http://www.manilatimes.net/national/2006/june/12/yehey/business/20060612bus6.html
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