Vietnam: Rights of the acquirer applied from May 15, 2020

17:10, 27/03/2020

Recently, the Government of Vietnam issued Decree No. 35/2020/ND-CP elaborating several articles of the Competition Law.

Các quyền lợi của doanh nghiệp mua lại áp dụng từ 15/5/2020

According to Decree No. 35/2020/ND-CP of Vietnam’s Government, the acquirer has one of the following rights:

- Directly or indirectly making decisions on appointment, dismissal or discharge from office of most or all of members of the Governing Board, president of the Board of Directors, director or general director of the acquire;

- Making decisions on revision or modification of the acquiree’s corporate charter;

- Making decisions on the acquiree’s important business matters, including its form of business organization; its business activities, location, approaches; changes in its business size and activities or industries; its forms and methods of mobilization, distribution and investment of its capital.

Besides, Decree No. 35/2020/ND-CP stipulates that an enterprise will have control and influence over an enterprise or a business activity or industry of another enterprise if it falls into the following situations:

- The acquirer receives the ownership interest that makes up more than 50% of the acquiree's charter capital or more than 50% of the acquiree’s total voting shares;

- The acquirer holds the right to own or use more than 50% of the acquiree’s total assets, out of all or a single business sector or industry of that acquiree.

View more details at Decree No. 35/2020/ND-CP of Vietnam’s Government effective from May 15, 2020.

Le Hai

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