Category Archives: Law on public company governance

To be able to issue shares to pay dividends, a public company needs to comply with the provisions of Article 60 in Decree 155/2020/ND-CP, a legal document on enterprises in Vietnam.

Definitions Private placement of securities is another popular form, chosen by businesses to raise capital. The characteristic of private placement of securities is a form of enterprise offering securities to special customers, which is not popular among the public. Private issuers of securities are usually not public companies. The target audience of the company can be 100 strategic investors or professional…

What are the conditions for a public company to buy back its own shares? Clause 1, Article 36 of the Law on Securities 2019 stipulates, a public company that buys back its own shares must meet the following conditions: There is a decision of the General Meeting of Shareholders approving the repurchase of shares to…

Organizational structure, governance and control of the company Pursuant to the provisions of Article 11 Section V of Appendix I promulgated together with Circular 116/2020/TT-BTC, the organizational structure, governance and control of the company applicable to public companies is as follows: “1. General Meeting of Shareholders. [Board of Directors, Control Board (in case the company organizes…

Securities underwriting has many benefits for issuers, helping to promote market development. It can be considered that securities underwriting companies are a place to help businesses raise capital and lead capital for the economy. However, in recent years, securities underwriting activities have not really operated to their full capacity and role. The securities underwriting market is still very gloomy, has not earned…

Concept Pursuant to Clause 17 Article 6 of the Law on Securities 2019, securities listing is the inclusion of eligible securities for trading at the Stock Exchange or Stock Exchange Center. Classification of securities listing – Initial Listing: Initial listing is the permission for securities of an issuer to be registered for listing for the first…

Concept Pursuant to Clause 24, Article 6 of the Law on Securities 2019 stipulates:  “Securities depository means the receipt, deposit, preservation and transfer of securities to customers, helping customers exercise rights related to securities ownership”. In other words, a securities depository is one of the conditions for conducting transactions on the stock market by signing contracts…

Suspension of public offering of securities Cases of suspension of public offering of securities are specified in Article 27 of the Law on Securities 2019, including: The State Securities Commission reserves the right to suspend the offering of securities to the public for up to 60 days in the following cases: The registration dossier for…

Shareholder rights Shareholder rights can be understood as shareholders’ rights that arise when owning shares of a joint-stock company, shareholders are the owners of their shares in the company. Including: Property rights include the right to receive dividends (share interest), the right to divide the remaining assets when the company terminates operation, the right to freely…

Principle 1: The Board of Directors should establish principles and procedures for disclosing information to shareholders and other stakeholders and monitoring the implementation of these principles and procedures. – The Board of Directors needs to approve the disclosure policy to ensure that all relevant information about the company’s operations is disclosed accurately, promptly and fully in accordance with applicable legal regulations. Disclosures should be made available to…