SEC MC No. 16, Series of 2023 Revised Guidelines on the Determination of Retained Earnings Available for Dividend Declaration

The Securities and Exchange Commission issued Memorandum Circular No. 16, Series of 2023, to revise the guidelines governing the determination of retained earnings available for dividend declaration. This regulation establishes specific criteria and methodologies for corporations to accurately calculate distributable earnings, ensuring compliance with statutory requirements and protecting creditor interests. The circular mandates strict adherence to these updated standards to maintain financial transparency and corporate governance integrity across all regulated entities.