In the State Gazette, issue 62 of August 1, 2017, changes in the Public Offering of Securities Act (POSA) were promulgated. Some of the changes refer to the regime for information disclosure by companies performing activity under the Energy Act, the Water Supply and Sewerage Services Act as well as by companies with more than 50 per cent municipal participation in the capital.
First, changes are introduced in the thresholds determining the persons falling within the scope of §1e of the Additional Provisions of POSA. Pursuant to the new regime, the requirement concerning information disclosure shall not apply to companies which meet two of the following three criteria:
- average number of the staff for the reporting period – up to 10 people (no change);
- book value of the assets at the end of the reporting period – up to BGN 2,000,000 (before the change: "as of December 31 – up to BGN 700,000");
- net income from sales for the year – up to BGN 1,000,000 (before the change: "up to BGN 300,000").
Following the change in the regime, companies will no longer have the obligation under Art. 100n1 to submit reports for the first, third and fourth quarter of the respective year.
- The annual and the sixth-month reporting remain as a requirement, but with the following changes:Annual report on the activity of the company under Art. 100m POSA:
The company shall no longer be required to keep the annual financial report publicly available for a period of no less than 10 years;
Certifying of the financial report by a registered auditor shall no longer be required, unless the company is subject to mandatory financial audit under the Accountancy Act;
A declaration by a registered auditor regarding the authenticity of the information provided in the financial report shall no longer be required;
Enclosing a corporate management declaration shall not be required upon submission of the annual activity report.
- A six-month financial report on the activity of the company under Art. 100n of POSA:
The company shall no longer be required to keep the six-month financial report publicly available for a period of no less than 10 years.
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