Joint-stock companies ignore government

Today, June 30, expired providing annual reports of commercial organizations or their higher structures founders. Despite the harsh dimensions of administrative sanctions, few companies have implemented this legal requirement.

The Civil Code provides for general meetings of shareholders not later than the first half of the year to complete the fiscal year. According to the requirement of "Rules of the provision and publication of the annual financial statements and consolidated (combined) financial statements of commercial organizations" (Resolution of the Cabinet of Ministers for the number 97 of 37th May 2010), the financial statements must be approved by shareholders no later than April 30th. Consolidated statements may be presented to a higher structure or to shareholders on June 30.

The Cabinet rules also provide accommodation in corporate sites of commercial organizations of their annual financial and consolidated financial statements for them to educate the public in an accessible form. In addition, these reports should be published in print in the manner prescribed by law. To control this process, the list of companies reporting is annually provided by the Ministry of Taxes to the Ministry of Finance prior to the 31st of March. According to the published list in 2013, in Azerbaijan there are about 500 companies that must prepare consolidated financial statements.

According to the monitoring by Turan, most Azerbaijani companies have no corporate website. Moreover, even those companies that have opened online sites do not put them in the financial statements.

The official media began publishing annual reports by companies that make up the consolidated financial statements. Among them there are LLC Karat Holding, the trading company A + A, and the company Khirman. The Ministry of Finance has not yet informed the public about the application of administrative sanctions against companies that evade providing founders annual financial statements and their publication. - 08B-

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