Approved new rules for the preparation and publication of annual reports of companies

Azerbaijan adopted new rules for the preparation and publication of the annual reports of issuers of investment securities. In the new rules include requirements to make public joint stock companies and limited liability companies (LLC) information about the transactions and events of special importance affecting their financial performance.

The annual report is approved by the general meeting of shareholders in the company for 4 months after the end of the financial year, shareholders of 6 months.

An annual report is to be available to the State Securities Committee (SSC) for 10 days after its approval. SSC report checks for compliance with prepared in accordance with these rules. If the claim is not received within 15 days, the report will be made public in the media within 30 days of its submission to the Committee.

Note that according to the rules, the annual reports of issuers of investment securities make public information on the number of its owners, including the holders of 10 percent or higher shares (equity). The report also provides information on changes in the legal form, the establishment or liquidation of subsidiaries and affiliates, held general meetings of shareholders (shareholders), their decisions issued securities, paid dividends. In addition, the issuer must accompany the annual report of the balance sheet by an independent auditor.

The old rules of drawing up and publication of annual reports of companies have operated from December 2009. However, only about 1% of issuers obey them.

An expert of the analytical stock portal www.sehm.az Hafiz Babalu told Turan about a third of the issuers provide the SSC annual reports. However, for example, in 2012, the reports published in the press only represented about 20 out of about 1,600 JSC. He believes that in 2013 the situation will improve. - 08B-