New circular on information disclosure to take effect in January
New circular on information disclosure to take effect in January
The Ministry of Finance has issued a new circular regulating companies’ information disclosure activities.Numbered 96/2020/TT-BTC, it will replace Circular 155/2015/TT-BTC on January 1, 2021.
The previous document was released on October 6, 2015 instructing companies to publish their business information.
Subjects of the new circular include public company, bond issuer, initial public offering (IPO) issuer, bond-listed agency, investment fund, and Viet Nam-based office of overseas securities firm/investment fund.
The finance ministry requires all organisations to make full, accurate and punctual information disclosures.
The disclosures must contain valid identification numbers, passport numbers, addresses, emails, phone numbers, securities trading account numbers, and bank accounts of overseas investors.
Foreign organisations, in which the foreign investor owns more than half of the capital, can only disclose information under the investor’s approval.
The information disclosure of a company can only be executed by the legal representative or the authorised person.
Those receiving the disclosure are accountable for securing and storing the statement. In particular, periodical information disclosure and documents on public-business registration must be stored both in paper and online for at least 10 years.
Any periodical and extraordinary statements must also be kept on the company’s website for at least five years.
Statements must also be published on the websites of the State Securities Commission, stock exchanges, local media and others.
Under Circular 96/2020/TT-BTC, the proposal of the general shareholders’ meeting must be posted on the websites of the stock exchanges, the State Securities Commission and the company at least 21 days before the meeting.
The disclosure must include the link to invitation, agenda, vote, reports and other reading materials, and drafted resolutions. The documents must be amended if there are any changes.
Any extraordinary event must be reported within 24 hours. Such events may be the freeze of the company’s overseas bank account and the unblock of the account.
