Dear All,
On April 20, 2018, the Securities and Exchange Commission (SEC), released Memorandum Circular No.
8 Series of 2018 pertaining to adoption of rules for Publicly-listed Companies (PLC) related to (1)
Shareholders’ approval on any change/s in the Company’s External Auditor and (2) Composition of Audit
Committee. The SEC, in its En Banc meeting dated April 19, 2018, resolved to implement initiatives to
improve Philippines’ ranking in Protecting Minority Investors indicator in the Ease of Doing Business
(EODB) Report. The resulted in the adoption of the following rules:
- All PLCs shall seek shareholders’ approval on any change/s in the company’s external auditor;
and - All PLCs shall have an Audit Committee that are composed only of board members.
Please see attached PDF copy of SEC Memorandum Circular No. 8 Series of 2018 for client’s
information and for your further reading.