VNStockNews.com - Listed companies are allowed to issue shares lower than par value under current regulation, the local newspaper Dau Tu Chung Khoan (Securities Investment) quoted an unnamed leader of Stock Issuance Department of the State Securities Commission (SSC).
The newspaper cited Article 87 in the Enterprise Law that “ the Board of Directors decides time, method and offered share price within the number of shares allowed to sell. Offered share price is not allowed to be lower than market price at the time of the sale or book value of the latest record”.
The unnamed leader explained that Article 87 means listed companies are allowed to issue shares lower than par value.
Companies can record negative surplus in their financials and it will be compensated by new share issue or profit.
However, the State Securities Commission (SSC) has never received any filing seeking approval to issue shares under par value, he added.
