Luat Viet

:: Question :: Please kindly advice in which cases public companies must make an extraordinary disclosure of information?

Answer:

Disclosure of information plays an important role to investors and makes an exposure of securities market. Thus, the Law on Securities provides in detail the disclosure of information of public companies including making an extraordinary disclosure of information. Making an extraordinary disclosure of information provided in Clauses 2 and 3, Article 101 of the Law on Securities, as follows:
“A public company must make an extraordinary disclosure of information within twenty four (24) hours from the occurrence of one of the following events:
a) An account of the company at a bank is frozen, or an account is permitted to be released after having been frozen.
b) Temporary suspension of business.
c) Revocation of its business registration certificate, license for establishment and operation, or operating license.
d) A resolution is passed by the general meeting of shareholders in accordance with Article 104 of the Law on Enterprises.
e) When there is a decision of the board of management on redemption of shares of the company or on the resale of redeemed shares; or a decision about the date for implementing share purchase rights by owners of bonds which carry with them share purchase rights, or the date for conversion of convertible bonds into shares, and all decisions relating to offers stipulated in Clause 2 of Article 108 of the Law on Enterprises.
e) When there is a decision to bring legal proceedings against a member of the board of management, the director or general director, the deputy director or deputy general director, or the chief accountant of the company; or where there is a verdict or decision of a court relating to the operation of the company; or where there is a conclusion by the tax office about a breach of the law on taxes by the company.
A public company must make an extraordinary disclosure of information within seventy two (72) hours from the occurrence of one of the following events:
a) There is a decision to borrow or to issue bonds with a value of thirty (30) per cent or more of the company's equity.
b) There is a decision of the board of management on medium term development strategies and plans, or on the annual business plan of the company; a decision to change the applicable accounting method.
c) The company receives a notice from a court about acceptance of jurisdiction over a petition to commence enterprise bankruptcy proceedings.”
 

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