In other jurisdictions, a shadow director is commonly understood as a person in accordance with whose directions or instructions the directors of the company are accustomed to act. The concept of shadow director is to capture those who are not formally directors of a company but actually control such company through actions of the directors of such company. 

Vietnamese law does not contain the concept of shadow directors. Instead, Vietnamese law adopts a “form over substance” approach whereby a person is regarded as a Director of a public Joint Stock Company (Public JSC) if:

• such person satisfies the conditions of being a Board Member and a General Director; and
• such person is appointed by the Shareholders Meeting as a Board Member or by the Board as the General Director of the Public JSC.

In Vietnam, it is not an uncommon practice for controlling or influential shareholders of a Public JSC to interfere the operation of the Public JSC through the Board of such Public JSC. For example, 

• the State Capital Investment Corporation (SCIC), a large holding State-owned company with controlling stakes in many companies in Vietnam, expressly requires its representatives who sit on the Board of a joint stock company to vote according to instructions given by the SCIC on various matters; and
• Certain Large Public JSCs such as Asia Commercial Bank and FPT Corporation 
   in Vietnam have also created “Founding Committee” (Hội đồng Sáng lập) comprising of former Board Members or influential shareholders of the relevant Public JSC. The Founding Committees of these Public JSCs are entitled to attend meetings of the Board, make recommendation and advice to the Board. 

If the Boards of these Public JSCs regularly act in accordance with instructions of SCIC or the Founding Committee then SCIC or members of the Founding Committee may be regarded as shadow directors of these Public JSCs under the law of other jurisdictions. However, the lack of provisions regulating shadow directors under Vietnamese law would make it more difficult for imposing statutory duties of a Director to controlling or influential shareholders of Public JSCs to interfere the operation of a Public JSC through the Board of such Public JSC. 

That being said, in theory, under certain provisions of Vietnamese law, a shadow director of a Public JSC may still potentially be subject to liabilities of the Directors of such Public JSC:

• Under Article 8 of the Enterprise Law, a Public JSC is entitled to operate and run its business in its own discretion. In addition, Article 11.7 of the Enterprise Law prohibits any action, which prevents shareholders of a joint stock company from exercising their rights in accordance with the Enterprise Law and the charter of the company. If a controlling or influential shareholder interferes the operation of a Public JSC through the Board of such Public JSC then such controlling or influential shareholder may be arguably regarded as preventing other shareholders from exercising their shareholders’ right or interfering the right of the Public JSC to run its business in its own discretion.
• Article 80.5 of the Enterprise Law provides that a shareholder holding ordinary shares in a joint stock company must bear “personal liability” where such shareholder performs one of the following acts in any form in the name of the company: (1) to breach the law; (2) to conduct business and other transactions for the personal benefit of itself or other organisations or individuals; or (3) to pay premature debts where the company is likely to be in financial danger. 
• Article 147 of the Enterprise Law prohibits a parent company from interfering with the operation of its subsidiaries other than by exercising the right of a shareholder in its subsidiaries. If a manager of a parent company interfering with the operation of its subsidiaries then the manager may be jointly liable for the damages caused to the subsidiaries.