ANTD.VN - CIENCO4 was fined nearly 700 million VND due to a series of violations related to information disclosure, use of capital for bond issuance and transactions with shareholders.
The State Securities Commission has just issued a decision on administrative sanctions in the field of securities and securities market against CIENCO4 Group Joint Stock Company (CIENCO4).
In particular, according to administrative penalty decision No. 1180/QD-XPHC dated October 29, 2024, CIENCO4 was fined VND 65 million for the act of disclosing information not on time as prescribed by law.
Specifically, the Company did not disclose information on time as required by law on many financial statements (FS) and audited FS from 2021 to 2023 and a series of documents such as the company charter, resolutions of the Board of Directors, etc.
The company did not send timely information disclosure to the Hanoi Stock Exchange documents such as: Financial statements; report on the implementation of commitments of the issuing enterprise to bondholders; report on the use of funds from audited bond issuance in 2022 and 2023.
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CIENCO4 was fined nearly 700 million VND due to a series of violations in the stock market. |
Along with that, CIENCO4 was fined 65 million VND for the act of providing information that did not fully comply with legal regulations;
This enterprise was fined VND 125 million for violating regulations on transactions with shareholders, enterprise managers and related persons of these entities. Specifically, according to the list of shareholders finalized by the Vietnam Securities Depository and Clearing Corporation on March 26, 2024, Trustlink Investment and Services Joint Stock Company (Trustlink) is a shareholder of the Company; however, from April 1, 2024, the Company used the proceeds from the 2023 public offering to lend to Trustlink under the signed Loan Agreements.
In particular, CIENCO4 was fined up to VND350 million for changing the capital use plan and the amount of money collected from the public offering of securities without going through the General Meeting of Shareholders.
According to the plan for using capital raised from the 2023 public offering of shares approved at the Resolution of the General Meeting of Shareholders, the proceeds from the offering will be used to: Pay off the Company's debts borrowed from the Bank; Pay off expected debts payable to subcontractors and suppliers of goods/services; Pay for the purchase of raw materials and supplies; Advances to contractors; Pay management costs.
However, from May 11, 2023 to May 18, 2023, the Company used VND 600 billion from the 2023 public offering to lend to Trustlink. Thus, the Company changed the plan to use the proceeds from the offering with a change in value greater than 50% of the proceeds from the offering (VND 1,123.6 billion) without being approved by the General Meeting of Shareholders.
For this violation, the State Securities Commission requires CIENCO4 to remedy the consequences by forcing the nearest General Meeting of Shareholders to approve a change in the plan to use the proceeds from the 2023 public offering of securities.
Not stopping there, according to the decision of the State Securities Commission, CIENCO4 was also fined VND 92.50 million for failing to report information that must be reported according to legal regulations.
The State Securities Commission said that on March 3, 2022 and May 10, 2023, the Board of Directors of CIENCO4 approved Decision No. 2338/QD-HDQT and Resolution No. 11/2023/NQ-HDQT on the use of temporarily idle funds to deposit/lend/purchase short-term deposit certificates at financial institutions, the maximum amount not exceeding VND 555 billion.
However, the Company did not report to the State Securities Commission on changes in the plan to use capital raised from the 2022 public offering and the 2023 public offering.
Thus, the total fine that CIENCO4 must pay is 697.5 million VND.
Source: https://www.anninhthudo.vn/dem-tien-phat-hanh-trai-phieu-cho-co-dong-vay-cienco4-bi-phat-nang-post594384.antd
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