DIC Corp (DIG) fined 470 million VND

03/01/2024 07:29 Nhat Linh Print article

ANTD.VN - DIC Corp committed a series of violations regarding information disclosure related to private placements of shares, resulting in administrative penalties totaling 470 million VND.

The State Securities Commission (SSC) has just issued a decision imposing administrative penalties for violations in the field of securities and the securities market on the Development Investment Construction Corporation (DIC Corp, stock code: DIG).

According to the penalty decision, DIC Corp committed a series of violations, resulting in a total administrative fine of 470 million VND.

In this case, the Corporation was fined 85 million VND for failing to disclose information required by law. Specifically, DIC Corp failed to disclose Board of Directors Resolution No. 192A/2022/NQ-DICCorp-HĐQT dated January 14, 2022, approving the change in the plan for using capital raised from the private placement of shares.

DIC Corp committed numerous violations in information disclosure.

In addition, DIC Corp was fined VND 175 million for failing to report changes in the capital utilization plan and the proceeds from the offering or issuance at the most recent General Shareholders' Meeting. Specifically, the company failed to report the changes in the capital utilization plan obtained from the 2021 private placement of shares as stated in Board of Directors Resolution No. 192A/2022/NQ-DICCorp-HĐQT dated January 14, 2022, at the 2022 Annual General Shareholders' Meeting.

DIC Corp was also fined an additional 150 million VND for publishing false information in the Capital Utilization Progress Report No. 113/DICGroup-HĐQT dated October 13, 2022, No. 48/DICGroup-HĐQT dated April 14, 2023, and No. 118/DICGroup-HĐQT dated October 10, 2023.

These reports state: "Purpose of capital use according to the issuance plan: investment in the Vung Tau New Urban Area project, Ward 12, Ba Ria - Vung Tau province", "Purpose of disbursement: payment of costs for investment preparation work and land compensation".

However, according to Capital Utilization Progress Report No. 133/DICCorp-KT dated April 20, 2022 and Capital Utilization Progress Report No. 113/DICCorp-HĐQT dated October 13, 2022, the Company used the capital to: (i) invest in the Vung Tau New Urban Area project, and (ii) pay the remaining amount owed to Tan Long Investment and Development Joint Stock Company.

In addition, the company was fined an extra 60 million VND for failing to disclose a report on the use of capital and proceeds from the offering or issuance to implement the project, as audited by an approved auditing firm at the annual general meeting of shareholders, or for failing to provide detailed explanations of the use of capital and proceeds from the offering or issuance to implement the project in the audited annual financial statements.

In addition to the 470 million VND fine, DIC Corp was also required by the State Securities Commission to obtain approval from the next General Shareholders' Meeting regarding the change in the capital utilization plan and the proceeds from the private placement or issuance of securities, as stipulated for failing to report the change in the capital utilization plan and the proceeds from the private placement or issuance at the next General Shareholders' Meeting.

Mandatory correction of information is required in accordance with regulations for the act of publishing false information.

Shareholders are required to publish an audited report on the use of capital at the next General Meeting of Shareholders or to publish a detailed explanation of the use of capital raised from the private placement of shares in the audited annual financial statements.

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