Purchasing shares from an individual in Vietnam

A purchaser of listed shares in a public joint stock company (Public JSC) from an individual selling such shares through his/her securities trading account does not need to verify the selling individual’s authority to sell the listed shares under the Law on Family and Marriage 2014 assuming that:

  • the listed shares are not the main sources of income of the selling individual and his/her spouse (if he/she is married); and
  • the purchaser is an innocent purchaser who does not know that the selling individual is married or that the selling individual does not have the authority to sell the listed shares under the Law on Family and Marriage 2014.
Read MoreInfo
Comment
Written by Lawyers VNLaw On In ,

Decree 71/2017 - new corporate governance rules for public joint stock companies in Vietnam

Decree 71/2017 provides for a various corporate governance rules applicable to public joint stock companies in Vietnam. Decree 71/2017 takes effect from 1 August 2017. Below is a detailed comparison between Decree 71/2017 and the old corporate governance rules under Circular 121/2012 of the Ministry of Finance. This post is contributed by Ha Thanh Phuc and Nguyen Hang Nga, legal interns at Venture North Law.

Read MoreInfo
Comment
Written by Lawyers VNLaw On In ,

COOPERATION MECHANISM IN PROCESSING APPLICATIONS FOR INVESTMENT AND ENTERPRISE REGISTRATION OF FOREIGN INVESTORS IN VIETNAM

Circular 2/2017 taking effect from 15 June 2017 regulates the cooperation mechanism in processing applications for investment registration and enterprise registration of foreign investors (cooperation mechanism). Under the cooperation, a foreign investor submits its applications for investment registration and enterprise registration and receives its registration certificates at applicable Department of Planning and Investment (DPI). Therefore, the procedure of investment registration and enterprise registration under the cooperation mechanism may reduce significantly the licensing workload of foreign investors compared to the original separate procedures of investment registration and enterprise registration  (separate procedure).

Read MoreInfo
Comment
Written by Lawyers VNLaw On In ,

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.

Read MoreInfo
Comment
Written by Nguyen Quang Vu On In ,