Vietnam: A public company shall send reports to the State Securities Commission before repurchasing its own shares

Specifically, according to Article 37 of the Law on Securities 2019 of Vietnam, before repurchasing its own shares, a public company shall send the following documents to the State Securities Commission (SSC):

- A report on the share repurchase;

- A decision of the General Meeting of Shareholders to approve the share repurchase and the repurchase plan;

- The document confirming the transaction of the securities company, unless the repurchasing company is a member of Vietnam Stock Exchange (VSE);

- A decision of the Board of Directors to approve the share repurchase plan;

- The latest audited financial statement;

- Documents proving that the company has sufficient funds to repurchase shares;

- Documents proving fulfillment of all conditions for share repurchase if the repurchasing company has conditional business lines.

Besides, a report on the share repurchase shall contain: purposes of the repurchase; estimated repurchase quantity; sources of funding for repurchase; method of transaction; expected execution date; pricing method.

Within 07 working days from the receipt of the report on the share repurchase, SCC shall send a notice of receipt to the public company if the documents are adequate and valid, or a request for supplementation if the documents are not fully valid or adequate. The supplementation time shall not be included in the time limit specified in this Clause. In case of rejection, SCC shall send a written notice and provide explanation.

View more details at the Law on Securities 2019 of Vietnam, effective from January 01, 2021.

Ty Na

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