Compromise Penalties for Violations by Regional Headquarters of Book III of the Omnibus Investments Code of 1987

March 11, 1999SEC-SMD * MEMORANDUM CIRCULAR NO. 01-99SUBJECT:Compromise Penalties for Violations by Regional Headquarters of Provisions of Book III of the Omnibus Investments Code of 1987 and Violations by Foreign Corporations of Sections 126 & 141 of the Corporation Code and Book II of the said Omnibus Investment Code. Concomitant to the monitoring of the corporate activities of Regional Headquarters/Foreign Corporations in the country, is the imposition of corresponding penalties for violations noted. Going by the current Scale of Fines formulated for this class of corporations, the fines that may be assessed could run to thousands of pesos considering that the regional headquarters and foreign corporations in the Philippines have been remiss in the submission of their reportorial requirements. For this reason the Commission hereby suspends from March 31, 1999 until May 31, 1999, the imposition of the fines under the existing Scale of Fines. In lieu thereof, corporations found in default shall be allowed to pay the compromise penalties under the hereunder prescribed conditions. cdtaiSECTION I. Regional HeadquartersA. Scope of Violations CoveredThe Circular extends...