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Reporting and disclosure of issuing and listed companies
Reporting and Disclosure is one of many commitments which issuing and listed companies have to fulfill as mentioned in regulation on reporting and disclosure number 007/LSCO dated 03 April 2014.
I. Reporting and disclosureIssuing and listed companies must report their business performance to securities regulatory body in order to be supervised in the sound manner. The material and significant information which need to be disclosed are price sensitive information, investment decision making related information, as well as information that investors and public must be informed. Furthermore, the issued and listed companies must take all responsibilities to the content of the publicized information. Besides, the issued and listed companies have to assign at least 2 people to be in charge the reporting and disclosure duties and one of which must be CEO of the company.
The companies have to report the information to LSCO through 2 channels such as official black and white report and electronic report. Meanwhile there is only one way of disclosure which must be done through LSX’s website. The company can also be able to disclosure the information via its official website and other media channels but the company must make sure that the information has been disclosed through website of LSX already. The disclosed information must be kept at least 10 years.
II. Reporting and Disclosure principles
- - Accuracy, completeness, transparency and timeliness;
- - Accessible to public;
- - Must be Lao and other languages which accepted by LSCO
III. Reporting and Disclosure types
There are 4 types of reporting and disclosure as following:
This reporting and disclosure type has been divided into 3 categories such as quarterly, semi-annual and annual reporting and disclosure.
• Business performance. • Financial statements approved by accountant division, internal audit division and CEO of the company In case of the group company, it has to show the financial statement into 2 dimensions like separated and consolidated forms. And the regular type of reporting and disclosure must be done within 45 days since the end of the quarte.
The information needs to be reported and disclosed consist of: • Business performance; • Financial statements reviewed by approved external audit firm. • Financial statement must include 2nd quarter information. In case of the group company, it has to show the financial statement into 2 dimensions like separated and consolidated forms. the semi-annual reporting and disclosure must be done within 60 days since the end of 2nd quarter.
The information needs to be reported and disclosed consist of: • Business performance; • Financial statement audited by approved external audit firm. • Financial statement must include 4th quarter information. In case of the group company, it has to show the financial statement into 2 dimensions like separated and consolidated forms. The annual reporting and disclosure must be done within 120 days since the end of calendar year.
• Opening shareholder’s meeting date and record date declaration; • Acquisition and disposal of asset which its value is over 5 % of company’s total asset value and any related party transaction as well as providing donations to person or entity; • Starting or cancelling joint venture, take over, business revocation, disposal or transfer one of business units or all; • Launching new significant products, technological development or new found important natural resources; • Further public offering or buy back securities; • Minutes of shareholder’s meeting such as annual business plan approval, middle and long term business expansion, strategic plan, change in accounting policy, change in applied accounting practice, taking loan which can affect the financial position and business performance; • Significant change in capital expenses.; • Bidding other company’s securities; • Declaration about dividend payment in all forms; • Changing BOD, internal audit committee, senior management, accounting director, finance manager shareholders who hold equal or more than 5 %; • Cannot payback due loan on time; • Bank account in other banks has been suspended temporally or suspended bank account has been solved; • Suspend or dispose one or whole business unit.; • Business license has been suspended or revoked or getting new business license.; • President, vice president, and member of BOD, member of internal committee, member of director, accounting director, and finance director have been sanctioned due to illegal conduct; • Issued and listed companies are about to be bankrupt or sentenced by the people court as bankrupted entity; • Suffering damage from unexpected events, socio – economic crisis and so on; • Changing the form of running business and business objectives; • Come into the contract of hiring other people to manage the business; • Any event might (or already happened) affect the shareholder’s interest or decision making or company’s securities value; • And other events mentioned by LSCO.
• Resolution of branch establishment or disposal; • Replace headquarter; • Change the company and its subsidiaries’ external auditors.; • Securities transaction of company’s president, vice president, BOD, member of internal audit committee, senior management, accounting and finance directors.
The requested reporting and disclosure is prepared by the company when there is a request from LSCO.
Whenever the request of LSCO is taking place, it means that, there should be any events which might affect to shareholder’s interest, price of securities, or stability of the capital market.
Voluntary reporting and disclosure takes place when the issued or listed company reports and discloses the information voluntarily, that being considered as very significant to public interest
The issued and listed company must be ready to response to any rumor at all time, wherever the rumor comes from, for instance, from any media channels, business performance reporting and other sources no matter the particular information is material or not to the public interest, price of securities or investment decision making, the company must take action against that rumor.
| No. | Description | Value (Lao Kip) |
| 1 | Inaccurate reporting and disclosure | 30,000,000 |
| 2 | Incomplete reporting and disclosure | 20,000,000 |
| 3 | Nontransparent reporting and disclosure | 20,000,000 |
| 4 | Untimeliness reporting and disclosure | 1,000,000/day |
| 5 | Report and disclose manipulated information | 20,000,000 |
| 6 | Concealed information in reporting and disclosure | 30,000,000 |
| 7 | specific reporting and disclosure | 20,000,000 |
| 8 | Reporting and disclosure of confidential information | 50,000,000 |
| 9 | Not reporting and disclose via LSX’s website | 25,000,000 |
| Securities Issuance |
Lao Securities Commission, Phonsa At Village, Unit 6, Saysettha District, Vientiane Capital.
PO. Box: 19 Phone: (856-21) 217770 / Fax: (856-21) 217806. Email: lsco@lsc.gov.la.