SECC Approves Two Regulations

Tuesday, 05 January 2010 02:55 DAP-NEWS

(CAAI News Media)

The Security and Exchange Commis- sion (SECC) of Cambodia has approved two regulations to move a step closer to the Stock Exchange’s opening, a statement from the eighth meeting of SECC obtained on Saturday last week said.

The meeting was presided over by Deputy prime minister and Minister of Economy and Finance Keat Chhon. “The meeting has approved the statement of the publication of selling the public bond’s ownership on security claimed that the publication of selling public bond’s owner on security share will determine on the conditions of mechanism and procedures of publication of bonds or public bond’s share in the country. All the companies will be able to publish bonds to sell publicly unless they have total capital of at least US$1.25 million,” the statement explained.

“The companies that have least than US$5 million capital need to publish at least 20 percent of their shares and for the companies that have over US$5 million capital need to publish bonds to sell at least 15 percent,” the statement said.

“Companies must have US$250,000 profit for the last three years. In a separating case, for publication of bonds or share for private sector, the private companies must hand over involving reports of publishing bonds for sale to SECC and publication must do as persons who have at least 30 members and must not announce information publicly,” the statement added.

“For the second regulation that has approved from the SECC is that statement of governance of corporation for companies that publishes the bonds to sell publicly and that regulation determined that the defense rights of share owner, defense rights of relevant agencies for determination of power’s rights and duties of the director board in preparing the management structure of the companies in establishment of controlling system and providing the information to all members of companies, the statement said.

This regulation also requested all the companies to have at least one fifth members as independent members of director board and the council of the governors needs to have the separating committee of audition for companies that have the active asset of US$50 million. for the companies that has active asset of US$50 million, They need to have a committee of disaster management and the independent governors need to implement the role as president of the those committees and moreover the companies that has rights to publish bond to sell publicly need to change the audition companies in every three years,” the statement said. Cambodia plans to open the stock exchange next year after it was delayed after the global economic crisis.