FLC was fined nearly 500 million VND
Due to violations of regulations on information disclosure on the stock market, FLC Group was administratively sanctioned by the Securities Commission with a total amount of nearly half a billion dong.
The State Securities Commission has just issued a decision on sanctioning administrative violations against FLC Group Joint Stock Company (FLC) for improperly disclosing information in the 2018-2021 period.
Specifically, during the period from March 24, 2020 to May 13, 2021, the securities regulator said that some resolutions of the Board of Directors of this enterprise were not disclosed in accordance with regulations on the system. system of the Securities Commission (IDS Plus system) and the website of the Ho Chi Minh Stock Exchange (HoSE).
Along with that, the company 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; report on the resignation of a member of the Board of Directors of Mr. Le Thanh Vinh; resolution of the Board of Directors on the appointment of Ms. Le Thi Truc Quynh to the position of deputy general director; Resolution of the Board of Directors on the approval of capital contribution and change of capital ownership ratio at Tre Viet Aviation Joint Stock Company (Bamboo Airways).
For the above violation, FLC was fined 100 million VND.
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| Recent stock price movements of FLC. Source: Tradingview.com |
In addition, the Securities Commission also fined 200 million dong and applied remedial measures to correct information with this group’s publication of false information on its audited financial statements for 2020 and semi-annual. 2021; transactions with related parties in the management statements for 2020 and 2021. In, these financial statements did not present the difference in valuation of assets and other income with the balance of 70.13 billion dong contributed by the company with property rights, the Grand Sam Son hotel, to Bamboo Airways.
In addition, 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.
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Along with that is a fine of VND 125 million for not ensuring the sufficient number of independent BOD members as prescribed.
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.
On the same day, a representative of FLC said that after receiving the sanctioning decision, the group had fully complied and implemented the sanctioning content, and completed and fixed the issues related to additional announcements and improvements. information according to the guidance of the Securities Commission.
Regarding the additional election of independent members of the Board of Directors, the company plans to conduct it in the upcoming General Meeting of Shareholders.
