Securities Commission fined FLC nearly 500 million VND

This is the result of FLC’s inspection of information disclosure from 2018 to 2021. Most of it is an error from the past in the information disclosure process, such as disclosing on time or incomplete some documents such as: documents of the Annual General Meeting of Shareholders; financial statements, reports on appointment/resignation of members of the Board of Directors as well as some resolutions on transactions with related parties…

At the same time, in terms of governance, FLC does not have an independent BOD member according to the provisions of Decree No. 155/2020/ND-CP.

Specifically, the disclosure of information on a number of BOD resolutions during the period from March 24, 2020 to May 13, 2021. not comply with the regulations on the system of the Securities Commission (IDS Plus system) and the website of the Ho Chi Minh Stock Exchange (HoSE)

In addition, this enterprise also failed to disclose on time with separate financial statement documents, consolidated audits in 2019, semi-annual 2020, quarter III/2020 and explained the difference in production and business results. In addition, reports on the resignation, appointment of members of the Board of Directors and the Executive Committee or capital contribution and change of capital ownership ratio at Tre Viet Aviation Joint Stock Company (Bamboo Airways) were also not published in time. time,

The Securities Commission decided to fine FLC an amount of VND 100 million for these violations.

The Securities Commission also fined VND 200 million for FLC disclosing false information in its audited financial statements for 2020 and semi-annual 2021; transactions with related parties in the 2020 and 2021 governance reports.

FLC was also fined 70 million dong for disclosing incomplete information in the 2019 audited financial statements due to the lack of notes on transactions and balances with HAI Agro-Pharmaceutical Joint Stock Company; FLC Stone Investment and Mineral Joint Stock Company and CFS Import-Export Trading Investment Joint Stock Company are related parties.

Finally, a fine of VND 125 million for not ensuring the sufficient number of independent BOD members as prescribed.

These are administrative violations, in addition to fines, there must be remedial measures and information disclosure and appointment of members of the Board of Directors according to regulations.

The above violations belong to the group of administrative violations and the company must overcome the consequences through information disclosure, correction of information, additional election of independent members of the Board of Directors in accordance with regulations at the nearest General Meeting of Shareholders.. .

It is known that after receiving the notice of sanction, FLC has corrected and paid a total fine of 495 million. Particularly, the election of additional independent members of the Board of Directors will also be conducted by FLC in the upcoming General Meeting of Shareholders.

Minh Son