QAU Memo 2015-02 SEC Notice: Issuance of Suspension Orders

SEC posted a notice on May 4, 2015 regarding Issuance of Suspension Orders.  Accordingly, SEC will issue an Order of Suspension (instead of an Order of Revocation) to the following:

  • Corporations which failed to comply with the SEC reportorial requirements for five (5) consecutive years; [A]and
  • Corporations with intermittent filing of the reportorial requirements which failed to comply with the Notice of Deficiencies sent by the Commission. [B]

(Note: Intermittent means not continuous)

The diagrams below illustrate the procedures in the issuance of suspension orders:




The Order of Suspension shall remain effective until the submission by the delinquent corporation of its latest reports and its payment of the corresponding penalties/ fines. A petition to lift the Order of Suspension must be filed together with the required reports.

The QAU believes that the suspended status of a Corporation should be considered in the assessment of going concern.

For your reference and guidance.