SEC encourages use of technology to hold corporate meetings

Published March 18, 2020, 12:00 AM

by manilabulletin_admin

By Warren Elijah E. Valdez

DAVAO CITY – The Securities and Exchange Commission (SEC)- Davao Extension Office urged companies here to use technology in holding their meetings amid the declaration of a state of calamity in the entire country, and the threat posed by the coronavirus disease 2019 (COVID-19).

SEC- Davao officer-in-charge Atty. Katrina Jamilla Ponco-Estares on Wednesday said they were pushing for remote meetings or videoconferencing to minimize face-to-face interactions and help prevent further spread of the COVID-19.

Estares said SEC Memorandum Circular No. 6, Series of 2020, allows the use of modern technology in corporate events which are designed to maximize company outputs while helping to fight to curb the outbreak.

With these new guidelines, the commission will allow corporations to hold meetings through remote communications and other alternative electronic means “for the sole purpose of approving the provisions in their bylaws or internal procedures, which will govern participation in board meetings and stockholders’ and members’ meetings through remote communication or other alternative modes.

Meanwhile, SEC chairperson Emilio Benito Aquino said the commission also encourages corporations to explore and implement all necessary measure to prevent the further spread of COVID-19, aside from utilizing the remote communication approach they are going to initiate.

Under the guidelines enclosed to the SEC memorandum, the corporate secretary may send notice of meetings to directors or trustees through email, messaging services, or such other manner provided in the corporation’s bylaws or by board resolution.