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…
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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…
Concept Under securities law, a public offering is an offering of securities to a large number of investors excluding professional investors or using advertising methods or public solicitation when offering. Forms of offering securities to the public Initial offering: newly established companies, equitized companies Initial public offering of shares to raise additional capital for the…
Process and procedures for offering securities to the public According to the provisions of Article 41 of Decree 155/2020/ND-CP, the order and procedures for offering securities to the public are carried out according to the following steps: Step 1: Register for sale Issuers and shareholders registering for offering and selling shall send registration dossiers for public…
What is public company governance? Corporate Governance is the process and system of rules, principles and methods of managing a large company or corporation to ensure its effective, transparent and fair operations. The goal of public corporate governance is to create value for shareholders and other stakeholders, including employees, customers, communities, and society. Key elements of…
Conditions for enterprises to conduct IPO According to the Law on Securities of Vietnam, to be listed on the stock exchange, the company must ensure the following conditions: From the time of registration for offering shares on the market, the charter capital that the company needs to have is based on a minimum book value of VND…
In developed countries, most businesses before going into operation or after a period of time conduct IPOs. However, in Vietnam, this job is still not really popular and has only been known in the past few years. Therefore, when sensing the strength of IPO, Vietnamese companies have conducted this process quite quickly and strongly. Along with the strong…
Securities underwriting ensures that the organization’s securities issuance is successful. The securities underwriting process includes 6 steps.
RELATED ISSUES ON INTERNAL REGULATIONS ON GOVERNANCE OF PUBLIC COMPANIES What benefits will effective internal governance of public companies bring to businesses? – Help create a clear legal framework and rules for the company to operate. Includes regulations on organizational structure, powers and responsibilities of departments, work procedures, financial management, personnel management, and other regulations. This helps ensure that everyone in…
What is the company’s charter? The company’s charter is an agreement between the company owners / between the founders and between the founders and capital contributors in order to commit and bind members in general regulations, agree on how to create, contribute capital, organizational structure, management, operations… It can be said that the company’s charter is…
In accordance with Section 1, Article 144 of the 2020 Enterprise Law, a shareholder, as defined, encompasses an entity with the capacity to delegate, via written authorization, another individual to participate in the general shareholders’ meeting. Concurrently, the delegatee retains the prerogative to further delegate representation to another individual on behalf of the organizational shareholder….
At present, some public companies have provisions in their charters as follows: “Members of the Board of Directors naturally lose their status as Board members upon resignation.” The question arises as to whether this provision in the charter is in accordance with the law or not. Our answer is NO. Incorporating such content into the…
