Publicly traded companies registered at Mongolian Stock Exchange (MSE) are required to submit their annual financial reports by the 10th February in accordance with the Company law and other related regulations. The financial reports must have been audited by qualified auditing companies too.
Mongolian Stock Exchange announced recently that only 51 public companies have submitted their financial reports by the deadline. However, there are about 330 companies listed at the MSE. It can be said that publicly listed companies in Mongolia are reluctant to disclose their financial information, breaching the legal requirements. The Financial Regulatory Committee may fine those companies which did not submit annual report with a penalty of MNT 250,000.
‘Unuuder’ daily newspaper reports that about 130 companies out of all the public companies had submitted their annual reports in the previous years. There was a sharp decline this year. According to sources within the industry, this tendency is to do with the fact that the majority of shares for public companies is now being accumulated by only a few individuals, thus violating the rights of minority shareholders within the organization, and failing to report their information to government agencies on a timely basis. Annual financial reports of those companies that have submitted to the MSE can be viewed at http://www.mse.mn/companies/mfinance2012.