FLC was fined 495 million VND

According to information from the Commission Stock The State (SSC), on March 24, this agency issued Decision No. 164/QD-XPHC on sanctioning administrative violations in the field of securities and securities market for joint stock companies. FLC Group (stock code: FLC). The Decision takes effect from the date of signing.

Information about the sanction of FLC was posted on the website of the State Securities Commission on March 25 (Friday).

Specifically, enterprise Mr. Trinh Van Quyet as Chairman of the Board of Directors was fined 100 million VND due to non-disclosure of information required to be disclosed in accordance with the law.

The State Securities Commission said that FLC did not disclose information on the information disclosure system of the State Securities Commission (IDS Plus system) and the website of the Ho Chi Minh Stock Exchange (HoSE) for 34 resolutions of the Board of Directors. value (BOD) on transactions with related parties in the period from March 24, 2020 to May 13, 2021.

Not only that, FLC also published information on time on the IDS Plus system and HoSE’s website with the following documents: Report finance (Financial statements) separately, consolidated in 2019 audit and explain the difference in production and business results; Separate, semi-annual consolidated financial statements in 2020 review and explain the difference in production and business results; Separate and consolidated financial statements for the third quarter of 2020; report on the resignation of a member of the Board of Directors of Mr. Le Thanh Vinh on July 28, 2020; resolution of the Board of Directors No. 49/2020/NQ-HĐQT-FLC dated August 19, 2020 appointing Ms. Le Thi Truc Quynh to hold the position of Deputy General Director; Resolution of the Board of Directors No. 06B/2021/NQ-HĐQT-FLC dated January 19, 2021 on approving the capital contribution and changing the company’s capital ownership ratio at Tre Viet Aviation Joint Stock Company.

The decision on sanctioning is based on the provisions of Point a, Clause 4, Article 42 of the Government’s Decree No. 156/2020/ND-CP dated December 31, 2020 (Decree 156/2020) stipulating the sanctioning of administrative violations. major in the field of securities and the stock market (Decree 156/2020).

In addition, based on the provisions of Clause 5, Article 42 of Decree No. 156 and taking remedial measures to force correction of information specified in Clause 6, Article 42 of Decree No. 156/2020, amended and supplemented at Clause d, Clause 33, Article 1 of Decree No. 128/2021/ND-CP dated December 30, 2021 of the Government amending and supplementing a number of articles of Decree No. 156/2020/ND-CP (Decree No. 128 2021/ND-CP), FLC is also fined 200 million VND with the act of disclosing false information.

According to the audited 2020 and 2021 semi-annual financial statements, FLC has transactions with related parties, but in the corporate governance reports for 2020 and 2021, this group presents no transactions with related parties. Stakeholders.

In addition, Mr. Trinh Van Quyet’s business also published false information in the reviewed semi-annual financial statements for 2021. Specifically, this financial statement does not present the difference between the increase in assets and other income (the difference is VND 70.13 billion because the company contributes capital with property rights, the Grand Sam Son hotel, to Tre Viet Aviation Joint Stock Company. ) according to the law.

FLC was also fined 70 million VND according to the provisions of Point b, Clause 3, Article 42 of Decree No. 156/2020 due to incomplete information disclosure as prescribed by law.

FLC’s audited 2019 financial statements explain the lack of transactions and balances of the company with HAI Agro-pharmaceutical JSC, FLC Stone Investment and Mineral JSC and CFS Import-Export and Trade Investment JSC as related parties.

The State Securities Commission said that FLC also published information on corporate governance reports in 2020 and 2021 with incomplete content. Specifically, according to the audited 2020 and 2021 semi-annual financial statements, the company has transactions with related parties but does not list resolutions of the Board of Directors approving transactions between the company and related parties in the financial statements. Report on corporate governance in 2020 and 2021.

In addition to the above fines, FLC is also fined 125 million VND according to the provisions of Point a, Clause 6, Article 15 of Decree No. 156/2020, as amended and supplemented in Clause 13, Article 1 of Decree No. 128/2021/ND-CP due to the failure to ensure the structure and number of independent BOD members. create. Accordingly, the company does not have an independent BOD member according to the provisions of Point a, Clause 4, Article 276 of the Government’s Decree No. 155/2020/ND-CP dated December 31, 2020 detailing the implementation of a number of articles of the Government’s Decree No. of the Law on Securities and the Company’s Charter.