Distressed recruiters win extension to meet capitalization norms
RECRUITMENT AGENCIES whose equity has fallen below regulatory minimums during the pandemic have been given a deadline extension to the end of the year to submit a Securities and Exchange Commission certificate that they have been recapitalized.
In Advisory No. 52 dated May 3, the Philippine Overseas Employment Administration, an agency of the Department of Labor and Employment, said the extension covers distressed recruitment and manning agencies.
“All licensed recruitment and manning agencies whose equity falls below the minimum capitalization requirement are hereby given until 31 December 2021 to comply with the submission of the Securities Exchange Commission (SEC) Certificate on capital infusion to aid financial distressed agencies in this time of pandemic,” the advisory said.
Audited financial statements and income tax returns are some of the requirements, recruitment and manning agencies need to renew their licenses.
The submission of a SEC certificate is required for recruitment and manning establishments whose equity is below the minimum capitalization requirement. — Gillian M. Cortez
