New Requirements for Reporting Issuers of Securities

From this year securities issuers will prepare, deliver and publish the annual reports on the new order. The State Securities Committee has approved (http://goo.gl/nHkrmC) «Rules of the issuer's management reporting requirements."

Unlike previous forms of reporting, issuers are required to provide information about the group of companies, which, perhaps, they are members of. The scope of activity, the offered goods and services, the licenses, the quarterly dynamics of the labor force, the list of names of members of the Supervisory Board, the Management Board and the Audit Committee are also included in the reporting requirements.

While until 2016, issuers had to publish the names, addresses and so on data of the owners of more than 10 percent of the share, now this figure has reduced to 5%. Under the same scheme information is provided on the issuer's participation in the capital of other companies.

Companies, whose securities are offered en masse, also prepare and publish semi-annual reports.

Reports shall be approved by the general meetings of shareholders of a limited liability company for the first 4 months of the completion of the financial year and the shareholders' meeting of joint stock companies for the first 6 months.

Reports are to be provided to the State Committee for Securities.

Recall that recently the SSC for the first time provided a single platform of electronic disclosure of reports by issuers of securities. Reports are disclosed by the www.disclosure.az  Internet site. ---08D