Can an individual who used to be the owner of a bankrupt private enterprise be a director of a commercial bank in Vietnam?
- Can an individual who used to be the owner of a bankrupt private enterprise be a director of a commercial bank in Vietnam?
- Can a person being a director of a commercial bank be the owner of another private enterprise?
- What are the regulations on the management organizational structure of credit institutions in Vietnam?
Can an individual who used to be the owner of a bankrupt private enterprise be a director of a commercial bank in Vietnam?
In Clause 1, Article 33 of the 2010 Law on Credit Institutions of Vietnam (amended and supplemented by Clause 6, Article 1 of the 2017 Law on amendments to some articles of the Law on Credit Institutions of Vietnam) stipulating cases banned from holding posts as follows:
Cases banned from holding posts
1. The following persons may not be members of the Board of Directors, Members' Council and Control Board, Director General (Director). Deputy Director General (Deputy Director) and holders of equivalent titles of a credit institution:
a/ Those defined in Clause 2 of this Article;
b/ Those banned from acting as managers and executives under the laws on cadres and civil servants and corruption prevention and control;
c/ Those who used to be owners of private enterprises, partners of partnerships, Directors General (Directors), members of Boards of Directors, Members' Councils and Control Board of enterprises, chairmen and members of cooperative management boards at the time enterprises or cooperatives are declared bankrupt, except cases of bankruptcy in force majeure circumstances;
…
In addition, based on Clauses 1 and 3, Article 4 of the 2010 Law on Credit Institutions of Vietnam stipulating as follows:
Interpretation of terms
1. Credit institution means an enterprise conducting one, some or all banking operations. Credit institutions include banks, non-bank credit institutions, microfinance institutions and people's credit funds.
3. Commercial bank means a type of bank which may conduct all banking operations and other business activities under this Law for profit.
Thus, according to current regulations, a person who was a former owner of a private enterprise declared bankrupt will not be allowed to act as a director of a commercial bank.
Can an individual who used to be the owner of a bankrupt private enterprise be a director of a commercial bank in Vietnam?
Can a person being a director of a commercial bank be the owner of another private enterprise?
According to the provisions of Article 34 of the 2010 Law on Credit Institutions of Vietnam (amended and supplemented by Clause 7 Article 1 of the 2017 Law on amendments to some articles of the Law on Credit Institutions of Vietnam) stipulating the cases banned from concurrently holding different posts as follows:
Cases banned from concurrently holding different posts
1. The chairman of the Board of Directors or Members' Council of a credit institution may not concurrently be an executive of that credit institution, except cases in which the chairman of the Board of Directors of a people's credit fund is concurrently a member of the Board of Directors of a cooperative bank. A member of the Board of Directors or Members' Council of a credit institution may not concurrently be a manager of another credit institution, unless this institution is the subsidiary or a member of the Control Board of that credit institution.
2. The head of the Control Board may not concurrently be a Control Board member or manager of another credit institution. A Control Board member may not concurrently hold either of the following posts:
a/ Member of the Board of Directors or Members* Council, executive or employee of the same credit institution or its subsidiary, or employee of an enterprise whose member of the Board of Directors, executive or major shareholder is a member of the Board of Directors or Members' Council, or the Director General (Director) of that credit institution;
b/ Member of the Board of Directors or Members' Council or executive of an enterprise whose Control Board member is currently a member of the Board of Directors or Members' Council or executive of the credit institution.
3. The General Director (Director), Deputy General Director (Deputy Director) and people holding equivalent positions of the credit institution must not concurrently hold the position of members of the Board of Directors, the Board of members or the Board of Controllers of another credit institution, unless it is a subsidiary of the credit institution. The General Director (Director), Deputy General Director (Deputy Director) and people holding equivalent positions of the credit institution must not concurrently hold the position of director, deputy director and equivalent positions of another enterprise.
4. The president of the Board of Directors, the Board of members, director of a credit institution must not concurrently hold the position of president of the Board of Directors, member of the Board of Directors, president of the Board of members, member of the Board of members, company’s president, General Director (Director), Deputy General Director (Deputy Director) and equivalent positions of another enterprise.
Thus, according to the above regulations, a person being a director of a commercial bank must not concurrently be the owner of another private enterprise.
What are the regulations on the management organizational structure of credit institutions in Vietnam?
According to the provisions of Article 32 of the 2010 Law on Credit Institutions of Vietnam on the organizational structure of credit institutions in Vietnam as follows:
- The management organizational structure of a credit institution established as a joint-stock company comprises the Shareholders' General Meeting, Board of Directors, Control Board and Director General (Director).
- The management organizational structure of a credit institution established as a one-member limited liability company or a limited liability company with two or more members comprises the Members' Council, Control Board and Director General (Director).
- The management organizational structure of a cooperative bank or people's credit fund complies with Article 75 of this Law.
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