Enterprise Law 2020: Regulations on business administration of partnerships in Vietnam

Enterprise Law 2020: Regulations on business administration of partnerships in Vietnam (Illustration)

Article 184 of the Law on Enterprises 2020 stipulates the business management of partnerships in Vietnam as follows:

- General partners are the partnership’s legal representatives and shall administer its everyday business. A limitation to general partners is only applied to a third party when it is known by the third party.

- General partners shall assume different managerial positions in the partnership under agreement.

When some or all general partners perform certain business activities together, it will be decided under the majority rule.

A general partner’s activities beyond the scope of operation of the partnership are not responsibility of the partnership unless they are accepted by the other partners.

- A partnership may open one or some bank accounts. The Board of Partners authorize certain partners to deposit and withdraw money from such account.

In addition, Clause 4 of Article 184 of the Law on Enterprises 2020 also stipulates the obligations of the President of the Board of Partners, the Director/General Director as follows:

- The President of the Board of Partners, the Director/General Director has the following rights and obligations:

+ Manager the partnership’s everyday business as general partners;

+ Convene and organize meetings of the Board of Partners; sign resolutions and decisions of the Board of Partners;

+ Assign tasks and coordinate operation of general partners;

+ Organize and fully retain accounting records, invoices and other documents of the partnership as prescribed by law;

+ Represent the company in civil proceedings, as the plaintiff, defendant, person with relevant interests and duties in front of the court or arbitral tribunal; represent the company in performance of other rights and obligations prescribed by law;

+ Other obligations specified in the charter.

Further details may be found in Enterprise Law 2020 effective January 1, 2021.

Le Vy

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