Suspend transactions, freeze assets
With nearly 710 million listed shares, shareholders of FLC Group (HOSE: FLC) are facing a decision to require the listing board from September 5. Similarly, with the FLC ecosystem, HAI and ROS also shared the same fate of saying goodbye to the HOSE because the violation had not been resolved.
Responding to a series of negative information, investors holding these stocks are suffering heavy losses. In the stock market, FLC's market price has plummeted by more than 78% compared to the beginning of the year to VND4,000/share. ROS and HAI are priced at VND 2,510/share and VND 1,820/share, respectively. KLF and Art also traded below VND5,000/share.
According to Mr. Do Bao Ngoc - Deputy Director of Kien Thiet Securities Company, the current situation was predicted. This means that investors have had time to exit stocks.
"For many remaining investors, I think they should sell as soon as possible to be able to recover the remaining capital and seek better investment opportunities. Holding these stocks for the long term will not be profitable," said Mr. Ngoc.
Regarding investors' rights, Mr. Do Dinh Duy - Director of Analysis of Alpha JSC commented: "The Department of Securities Exchange's sanctions against listed organizations will not have measures to protect the rights of the majority. Because investment decisions are entirely up to each person's mind. The Department only ensures the smooth implementation of the transaction."
Mr. Duy said that if any business starts to show signs of not meeting standards such as periodic audit reports or being made special opinions by auditing companies, it will be the first sign that the company has problems or has violations in terms of information disclosure. The public investors can thereby avoid such businesses.
There is no reason why businesses cannot choose to be audited
According to Mr. Truong Thanh Duc - Director of ANVI Law Firm, this is a typical example of a risk in investment and the stock market. That is, profit is a loss. Auditing is a mandatory thing, the problem is whether companies in the FLC ecosystem want to audit or not.
Mr. Duc said: "No matter how bad the business is or how many scandals it violates, the audit only needs to simulate, evaluate and make comments and assessments that are completely consistent with reality. However, if that is not in line with the wishes of the business, the audit will certainly produce bad results.
There is no reason not to choose to audit, or even audit but cannot do so. It further shows that this is not a normal risk but a huge risk, a risk that one does not know where to take it from, how to distinguish it".
Lawyer Truong Quoc Hoe - Head of Interla Law Office - emphasized that Mr. Trinh Van Quyet's violations constituted serious fraud and showed signs of appropriating a huge amount of money. Therefore, it has satisfied Clause 4, Article 174 of the 2015 Penal Code with the highest penalty being life imprisonment.
