A company gives nearly 96% of its assets to the CEO for financial investment.

Vietnam Revival Health Joint Stock Company (headquartered in Cau Giay District, Hanoi ) has just been administratively fined by the State Securities Commission with a total amount of up to 367.5 million VND for a series of violations in information disclosure and corporate governance activities.

NHV shares on UpCoM floor

What has attracted public attention is that the company has advanced 95.6% of its total assets - equivalent to VND54.16 billion - to General Director Luu Quang Thinh for financial investment without going through the shareholders' meeting. This action violates regulations on transactions with business managers, demonstrating laxity in internal control and risk management.

In addition, Vietnam Revival Health Joint Stock Company was also found to have failed to disclose information as required by law, including important documents such as financial statements, corporate governance status, and audit reports for many consecutive years. The company also failed to explain the difference in after-tax profits exceeding 10% between audited financial statements, and failed to disclose the decision to impose administrative sanctions from the tax authority.

The State Securities Commission also determined that the company had disclosed false information in its financial statements and was not transparent in its transactions with related parties. A specific case was the VND 18 billion advance from Mr. Luu Quang Thinh that was transferred to Ms. Phan Thi Thanh Huyen for a loan but was not recorded in the 2020 corporate governance report.

In addition to the penalty decision, the Securities Commission also requested the company to urgently take remedial measures, including canceling or correcting the published incorrect information to ensure transparency and compliance with regulations in the stock market.

Vietnam Resurrection Health Joint Stock Company is trading shares on the UpCoM floor with stock code NHV, price 800 VND/share.

Source: https://nld.com.vn/mot-cong-ty-ung-gan-96-tai-san-cho-tong-giam-doc-di-dau-tu-tai-chinh-196250513113648479.htm