Public companies with large-scale is subject to information declaration

The Ministry of Finance issued Circular No. 52/2012/TT-BTC dated 05/04/2012 guiding information declaration on the stock market. This Circular shall take effect on 01/06/2012 and replaces Circular No. 09/2010/TT-BTC dated 15/04/2010 of the Ministry of Finance.

Accordingly, large scale public companies must follow stricter rules of information declaration in the stock market. Large-scale public companies are those of paid-up chartered capital of VND 120 billion and above as defined in audited financial statement of the most recent year and have at least 300 shareholders at the time of submitting final shareholder list to the Securities Depository Centre on 31st December annually.

  • Periodic information disclosure

– Release audited financial statements;
– Prepare and release semi-annual financial statements within 5 working days and no later than 45 days from the end of six first months of fiscal year.
– Quarterly financial statements must be released within 20 days from the ending date of that quarter.

Also, any exception to audited financial statements and semi-annual financial statements should come along with relevant explanations.

  • Extraordinary information disclosure

Listed organisations and listed large-scale public companies must make Extraordinary information disclosure within 24 hours of occurrence of one of the following circumstances:

– Asset losses of 10% and above of owner’s equity that has been recorded in the most recent annual audited financial statement or semi-annual financial statement;
– Chartered capital increase/decrease; capital contribution of 10% and above of total assets to other entities; capital contribution of 50% and above to total capital of receiving parties; loan agreements and other contracts worth of 50% and above of total assets that have been recorded in the most recent annual audited financial statements or semi-annual financial statements;
– Selling and purchasing assets worth of more than 15% of total assets that have been recorded in the most recent annual audited financial statements or semi-annual financial statements;
– Opening/closing affiliated companies, branches, plants and representative offices;
– Its listed stocks hit the ceiling price or plunge to the floor price for 10 consecutive trading sessions and above;
– Difference between released financial information and those recorded in audited financial statements;

  • Information disclosure on request

Listed organisations and listed public large-scale companies are required to provide information within 24 hours upon request from the State Securities Committee, Stock Exchanges concerning the following circumstances:

– Severe occurrences hurting investors’ legal rights
– Rumours related to public companies that could hit stocks’ prices and confirmation of such is neccessary.

  • Information disclosure of entities listing corporate bonds

If entities that list corporate bonds are public companies, above regulations on disclosure shall be applied.

If entities that list corporate bonds are non-public joint stock companies, limited liability companies, state-owned enterprises, information disclosure shall be released as follows:

– Periodic information disclosure of annual financial statements and annual reports
– Extraordinary information disclosure
– Information disclosure upon request