Does a public company that establishes an investment department need to disclose information? no?

1. How is the information disclosure obligation regulated?

According to Article 295 of Decree 155/2020/ND-CP stipulating the obligation to disclose information as follows:

“Article 295. Obligation to disclose information

1. Public companies are obliged to fully, accurately and promptly disclose periodic and extraordinary information according to the provisions of securities law on information disclosure to shareholders and the investing public. Public companies must fully, accurately and promptly disclose other information, stating that such information has the potential to affect stock prices and affect the decisions of shareholders and investors.

2. The method of information disclosure is carried out in accordance with the provisions of law and the Company’s Charter to ensure that shareholders and the investing public have fair access. Language in information disclosure needs to be clear, easy to understand and avoid misleading shareholders and the investing public.”

Accordingly, public companies are obliged to fully, accurately and promptly disclose periodic and extraordinary information in accordance with the provisions of securities law on information disclosure to shareholders and the investing public. Public companies must fully, accurately and promptly disclose other information, stating that such information has the potential to affect stock prices and affect the decisions of shareholders and investors.

2. Does establishing an investment department require information disclosure?

According to the provisions of Decree 155/2020/ND-CP regulating cases where information must be disclosed, including:

– Disclosing information about the company’s management organization and operations model;

– Disclosure of information about corporate governance;

– Announcing information on income of members of the Board of Directors and General Director (Director).

Each case is specifically specified as follows:

Pursuant to Article 296 of Decree 155/2020/ND-CP stipulating reporting and disclosing information on the company’s management organization and operations model as follows:

Public companies must report to the State Securities Commission, the Stock Exchange and disclose information about changing the management and operating organization model within 24 hours from the date the General Meeting of Shareholders decides to change.

Pursuant to Article 297 of Decree 155/2020/ND-CP regulating reporting and disclosing information Information on corporate governance is as follows:

– Public companies must report on the corporate governance situation at the Annual General Meeting of Shareholders and disclose information in the company’s Annual Report in accordance with the provisions of the securities law on information disclosure.

– Public companies are obliged to report and disclose information on the corporate governance situation periodically every 06 months according to the provisions of law. Securities law on information disclosure.

Pursuant to Article 298 of Decree 155/2020/ND-CP stipulating the disclosure of information on income of members of the Board of Directors and General Director (Director) as follows:

The remuneration of each member of the Board of Directors and the salary of the General Director (Director) and other managers must be shown in a separate section in the company’s annual financial report and must be reported to the General Meeting of Shareholders at the annual meeting.

From the above regulations, it can be seen that the establishment of an investment department does not lead to a change in the company’s management organization model, so the establishment of an investment department of your company is not subject to information disclosure, and is not required to carry out information disclosure procedures.

3. How is information disclosure organized?

According to Article 300 of Decree 155/2020/ND-CP stipulating the information disclosure organization as follows:

“Article 300. Information disclosure organization

1. Public companies must develop and promulgate regulations on information disclosure of the company according to the provisions of the Securities Law and guiding documents.

2. The legal representative or person authorized to disclose information of a public company has the following responsibilities:

a) Disclose the company’s information to the investing public in accordance with the provisions of law and the company’s Charter;

b) Publish the name and working phone number so that shareholders can easily contact them.”

Accordingly, public companies must develop and promulgate regulations on company information disclosure according to the provisions of the Securities Law and guiding documents. The legal representative or person authorized to disclose information of a public company has the following responsibilities:

+ Disclose the company’s information to the investing public in accordance with the law and the company’s Charter;

+ Publicize the name and working phone number so that shareholders can easily contact.