The State Securities Commission (SSC) said that on November 4, 2024, the SSC issued Decision No. 457/QD-XPHC on administrative sanctions against Construction Corporation No. 1 - JSC (UPCoM: CC1).
According to the decision, CC1 was fined VND92.5 million for not disclosing information as prescribed.
The State Securities Commission said that CC1 did not disclose information on the State Securities Commission's information disclosure system, the Hanoi Stock Exchange's website and the Corporation's website on the following documents: Resolution of the Board of Directors on approving the investment policy in Cambodia; Resolution of the Board of Directors on approving CC1's 2024 financial plan targets; Resolution of the Board of Directors approving contracts/transactions between CC1 and related parties; Resolutions of the Board of Directors approving, approving the policy and approving the content of draft transaction contracts between CC1 and related parties.
The enterprise did not timely disclose the following documents: Audited separate and consolidated financial statements for 2022; Resolution of the Board of Directors approving the lending policy and method of lending capital to Viet Hung Construction Joint Stock Company No. 1; Resolution of the Board of Directors approving the signing of the contract and approving the content of the draft Construction Contract between the Corporation and related persons of the Corporation, internal persons of the Corporation; Resolution of the Board of Directors approving the plan that all benefits shared by Dong Nai Bridge Investment and Construction Joint Stock Company to the Corporation will be used to ensure support for Hai Phong Coastal Road Investment Company Limited in securing construction capital and repaying debts to Tien Phong Commercial Joint Stock Bank; Resolution of the Board of Directors approving the adjustment of the Organizational Chart issued under Resolution of the Board of Directors No. 05/NQ-HDQT dated January 3, 2023; Resolutions of the Board of Directors approving the approval of borrowing capital, issuing guarantees with banks;
Resolutions of the Board of Directors approving the proposal to issue financial arrangement commitments/capital funding commitments/credit granting commitments, Resolutions of the Board of Directors approving the proposal to grant credit/proposal to apply for credit limits at banks; Resolution of the Board of Directors on adjusting the content of Article 1 of the Resolution of the Board of Directors of the Corporation issued No. 365/NQ-HDQT dated December 28, 2022.
Report on the use of capital from bond issuance in 2021; Payment of interest and principal of bonds in 2021; Report on the use of proceeds from audited bond issuance in 2022 and semi-annual report in 2023.
In addition, CC1 was fined VND65 million for disclosing information that did not fully comply with legal regulations. This included incomplete corporate governance reports for 2021, 2022 and 2023.
Accordingly: The corporate governance report for 2022 and 2023 does not fully state the Board of Directors' Resolutions and does not fully record transactions with related parties according to the audited Notes to the separate financial statements for 2022 and 2023; The corporate governance report for 2021 does not state the Board of Directors' Resolution on transactions between the Corporation and Dat Vang Real Estate Investment Service Trading Joint Stock Company, a company whose Board of Directors member has been the General Director for the past 3 years at the time of the report).
The total fine the business was fined was 157.5 million VND.
On the stock market, at the end of the session on November 14, CC1 shares reached 14,000 VND/share, an increase of 100 VND/share compared to the reference price with a trading volume of only 700 shares.
