MANILA - The Securities and Exchange Commission (SEC) has again reminded companies listed on the stock exchange to participate in a yearly corporate governance survey, amid observations that many have not been taking the issue seriously.

In an order issued on Wednesday, regulators said the survey was needed to craft policy and improve the way local firms are managed.

Participation in the survey, a project with the Philippine Stock Exchange (PSE) and Institute of Corporate Directors (ICD), became mandatory for listed firms two years ago but only 169 out of 247 made it. Many were late.

The SEC said it would review, together with the ICD, all survey forms, which must be in by September 21 and signed by company executives. Failure to participate will result in a reprimand for the first offense, a P25,000 fine for the second, and a P50,000 penalty for the third.

SEC Secretary Gerard M. Lukban said the order was issued as a "reminder" to participate in the survey, which was launched in 2005. ICD Chairman Jesus P. Estanislao said about 200 companies submitted their "scorecards" last year from 139 in 2007, but only 169 were vetted because the rest were late.

"My expectation is that there would be more firms participating ... I expect the 200 last year to submit on time this year," he said.

Jonathan Juan D. C. Moreno, PSE vice-president for corporate governance, also hopes that participation will rise this year.

Listed firms’ average rating climbed to 72% last year from 65% in 2007. The ICD said the top 15 scored 94% and up, but the bottom 15 scored 45%, equivalent to some corporations in Africa.

The institute judges companies based on a questionnaire that measures the rights, roles and treatment accorded to shareholders, disclosure policies and transparency, and responsibilities of board members, among others.

Mr. Estanislao said some firms still do not take corporate governance seriously, which is why the ICD will disclose next year how all participants performed, instead of only making public the top scores.

The ICD is also set to reveal the results of a study it commissioned to determine the correlation between good corporate governance and share prices.

Mr. Moreno said the PSE planned to launch in the first quarter a special board listing firms that adhere to higher governance standards.