BIZ BUZZ: Costly ASM delays

Looks like regulators are keeping a close eye on annual stockholders meetings (ASMs).

Prime Media Holdings Inc. was slapped with P216,300 in penalties by the Securities and Exchange Commission (SEC). This was after holding its 2024 and 2025 annual stockholders’ meetings beyond the period prescribed under the Revised Corporation Code.

The company received notices from the SEC on June 9 imposing penalties of P80,300 for its 2024 annual stockholders’ meeting and P136,000 for its 2025 meeting.

Section 25 of the Revised Corporation Code requires corporations to hold their annual stockholders’ meetings within 60 days from the end of their fiscal year. Prime Media acknowledged that both meetings had been conducted beyond the prescribed period.

Still, the company isn’t waving the white flag just yet.

Prime Media plans to seek reconsideration of the SEC’s decision and will also ask for a reduction in the penalties. The company cited “substantial compliance” with regulatory requirements alongside certain circumstances surrounding the postponement of the meetings that justified the delay.

For listed firms, especially those already navigating a tougher regulatory environment, even routine requirements such as annual meetings are matters that the SEC expects companies to take seriously.