Large Related Shareholders Are Not Allowed to Increase Their Shares at the Lead Credit Institution

05:54, 11/07/2024

This is a notable content in Circular 46/2018/TT-NHNN regulating the duration, sequence, and transitional procedures in cases where a major shareholder of a credit institution and related persons to that shareholder own 5% or more of the charter capital of another credit institution.

From March 1, 2019, the related group of major shareholders may not increase the number of shares they hold in the leading credit institution, other credit institutions in any form, except in the following cases:

- Receiving bonus shares or dividends in the form of shares;- Purchasing additional issued shares when the leading credit institution, other credit institutions increase charter capital, ensuring that the shareholding ratio after the purchase complies with the shareholding limit specified in Article 55 of the Law on Credit Institutions (as amended and supplemented).

Additionally, the leading credit institution, other credit institutions shall not provide credit or new credit to the related group of major shareholders 90 days from March 1, 2019 until the related group of major shareholders complies with the shareholding ratio.

Note: The related group of major shareholders consists of major shareholders and related persons of that shareholder holding 5% or more of the charter capital in another credit institution.

More details can be found in Circular 46/2018/TT-NHNN, effective from March 1, 2019.

- Thanh Lam -

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