Concept Pursuant to Clause 14 Article 3 of the Law on Investment 2020, a business cooperation contract (hereinafter referred to as a BCC contract) is a contract signed between investors for business cooperation, profit sharing, product division in accordance with law without establishing an economic organization. Contents of BCC contract according to the Investment Law 2020 –…
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Listed shares Listed shares are a class of shares eligible for listing, which are shares issued by joint-stock companies, which have been listed on the stock market. Those shares have been subjected to the stock exchange’s strict inspection system and it has qualified to meet the trade. Conditions for listing shares for post-consolidation public companies – In…
Time limit for the Annual General Meeting of Shareholders The General Meeting of Shareholders is the most powerful organ of a joint-stock company, with the right to decide important issues related to the existence and development of a joint-stock company. According to Clause 2, Article 139 of the Enterprise Law in 2020 stipulates: “The General Meeting of…
What are joint stock companies divided into 2 types: non-public joint stock companies and public joint stock companies for? – Because non-public joint stock companies apply specialized laws (if any) and then the Enterprise Law, the Law on Securities does not apply. For example, a non-public credit institution shall apply the Law on Credit Institutions or a…
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…
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…
