CORPORATE GOVERNANCE
Filing Annual Declaration of Commercial Enterprise via Online System
Prakas № 107 dated 5 April 2017
The purpose of Prakas No.107, issued by the Ministry of Commerce (“MOC”), is to regulate the submission of an Annual Declaration of Commercial Enterprise (“ADCE”) by companies, branch offices and representative offices through the MOC’s online system.
Submitting an ADCE is compulsory under the Law on Commercial Enterprises so that all registered business entities keep the MOC updated of any changes in the preceding year to its particulars recorded in the MOC’s database, such as changes in shareholding, board of directors, registered address, etc. Before the launch of the online registration system in early 2016, an ADCE had to be submitted annually in physical form to the MOC.
Prakas No. 107 states that the submission deadline for the 2016 ADCE will be determined by the MOC and communicated directly to each entity in the 11th month following the date of its online re-registration with the MOC. The ADCE must then be submitted via the MOC’s online system within three months from the end of the 12th month.
Entities failing to comply with the ADCE filing deadline will be subject to a fine of KHR 1 million (approximately USD 250).
REAL ESTATE AND CONSTRUCTION
The Establishment of Social and Environmental Funds
Sub-Decree No.238 dated 21 November 2016
The objective of this sub decree is the “Establishment of Social and Environmental Funds”, which will fall under the management and authority of the Committee Governing the Establishment of Social Environment Funds, of the Ministry of Environment.
The sub decree covers all activities concerning the management, usage and organization of the social and environmental funds in order to safeguard environmental protection and preservation, and to enhance environmental conservation and biodiversity in Cambodia.
The social and environmental funds will be collected using the following means:
- Gains received from private and public project owners, as reflected in the environmental management plan of an environmental impact assessment report and of an environmental protection agreement;
- Profits gained through environmental preservation, ecology services and biodiversity conservation;
- Donations or funds raised from charitable organizations, developer partners, and national or international private institutions;
- Other services from the environmental sector; and
- Other sources.
The social and environmental funds must be deposited in an account of the National Bank of Cambodia or other commercial banks permitted by the Ministry of the Economy and Finance.
The procedures for collecting social and environmental funds will be defined in an inter-ministerial prakas from the Ministry of the Environment and the Ministry of the Economy and Finance.
For further inquiries, please contact cambodia@dfdl.com.
*The information provided is for information purposes only, and is not intended to constitute legal advice. Legal advice should be obtained from qualified legal counsel for all specific situation
