Losing for 14 consecutive years, the company's legal status was revoked right before an important meeting.

Construction Joint Stock Company No. 11 said that the enterprise has lost its legal status and is therefore not allowed to conduct business activities. At the same time, it must temporarily suspend the organization of the general meeting of shareholders.

Construction Joint Stock Company No. 11 lost its legal status since April 16 - Illustration photo created by AI

Construction Joint Stock Company No. 11 (V11) recently sent a document to the State Securities Commission to suspend the annual general meeting of shareholders. The reason is that V11 has just received a decision to revoke its business registration certificate.

Previously, on April 3, the company still sent relevant agencies a notice of the last day to register to attend the 2025 annual shareholders' meeting taking place on May 5.

“However, on April 16, the business registration and corporate finance department under the Hanoi Department of Finance issued a decision to revoke the company’s business registration certificate,” said Mr. Dang Van Hieu, general director and legal representative of V11.

Immediately after that, on April 23, the Hanoi Stock Exchange continued to issue a decision to cancel the trading registration for shares of Construction Joint Stock Company No. 11.

According to the Law on Enterprises 2020, one of the prohibited acts is conducting business in the form of an enterprise without registration or continuing to do business when the enterprise registration certificate has been revoked, or the enterprise is having its business operations temporarily suspended.

Due to losing its legal status since April 16, V11 said it is not allowed to conduct business activities. Therefore, it must temporarily suspend the organization of the annual general meeting of shareholders.

On the stock market, this company's V11 shares are listed on UpCOM and are currently subject to trading restrictions, with the market price down to 400 VND/unit.

The trading restrictions stem from the company's negative equity and the auditor's refusal to give an opinion on its financial statements.

Looking back at the data, V11 has been making consecutive losses since 2011. In the last two years, this business has not recorded any net revenue from sales and service provision. The revenue to cover expenses mainly comes from financial activities.

Auditors refuse to give opinions on V11's financial statements

The independent auditor has declined to express an opinion on V11's 2024 financial statements based on several factors.

At the end of 2024, the company's short-term debt exceeded short-term assets by VND 261 billion, accumulated losses were more than VND 184 billion and negative equity was VND 59.3 billion.

The company also generated no revenue in 2024, while its net cash flow from operating activities was negative VND289 million.

In addition, at the time of preparing the financial statements, the auditors said that V11 had not sent a letter of confirmation to the bank, confirming receivables and payables.

Through audit procedures, the independent auditor fails to obtain sufficient appropriate audit evidence regarding the existence, completeness, accuracy, etc.

The auditor also stated that they did not witness V11's cash inventory at the end of 2024. The company also did not conduct an inventory at the time of the audit, so the auditor could not perform alternative audit procedures.

Recently, HNX issued a decision to cancel the trading registration for V11 shares. Accordingly, all of the nearly 8.4 million shares of this enterprise will be deregistered from May 16.

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BINH KHANH

Source: https://tuoitre.vn/lo-14-nam-lien-doanh-nghiep-bi-xoa-tu-cach-phap-nhan-ngay-truoc-phien-hop-quan-trong-202505031010037.htm