Voting thresholds of a general meeting of shareholders in a Vietnamese listed company

The 51% simple majority voting in a general meeting of shareholders of a joint stock company (JSC) under the Enterprise Law 2014 is a major change compared with the Enterprise Law 2005 which provides for a 65% simple majority. However, if a JSC incorporated under the Enterprise Law 2005 already follows the Enterprise Law 2005’s voting rules, then such JSC will need to amend its charter to enjoy the new lower voting thresholds under the Enterprise Law 2014. And such amendment is still subject to the old 75% super majority vote under the Enterprise Law 2005.

Proxy contest in Vietnam

Vietnam securities regulations do not have specific regulations governing a proxy contest where a shareholder or group of shareholder actively seeks to obtain proxies from other shareholders in order to influence the decision of the Shareholder Meeting (e.g. electing new Board directors or approving certain important corporate matters). In particular, a shareholder, who seeks to obtain proxies from other shareholders in a Public Joint Stock Company (Public JSC), is not required to make any public disclosure or filing about its intention for the proxies obtained.

New Publication “Principles of Vietnam’s Enterprise Law”

Volume 1 of my book "Principles of Vietnam's Enterprise Law" is now available in both e-book and paperback format on Amazon.com. The e-book is free for download in from 1 February 2017 to 4 February 2017. A pdf copy of the table of content can be downloaded from here.

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Three issues for secured creditors in a bankruptcy situation in Vietnam

In general, a secured creditor will be given priority over unsecured creditors regarding certain assets of the bankrupt enterprise. However, under Vietnamese bankruptcy law, such priority comes with a cost. In particular:

Vietnam Business Law