How many years is the term of office of the director hired to manage business of a single-member limited liability company in Vietnam?
- How to manage a single-member limited liability company owned by an organization?
- How many years is the term of office of the director hired to manage business of a single-member limited liability company in Vietnam?
- What are the rights and obligations of the Director of a single-member limited liability company in Vietnam?
How to manage a single-member limited liability company owned by an organization?
According to the provisions of Article 79 of the 2020 Law on Enterprises of Vietnam, the organizational structure of a single-member limited liability company owned by an organization as follows:
- A single-member limited liability company owned by an organization shall apply one of the two models below:
+ A company with a President and the Director/General Director;
+ A company with a Board of Members and the Director/General Director.
- In case the company’s owner is a state-owned enterprise prescribed in Clause 1 Article 88 of this Law, a Board of Controllers shall be established. The establishment of a Board of Controllers in other cases shall be decided by the company. The organizational structure, working regulations, standards, requirements, dismissal, rights, duties and responsibilities of the Board of Controllers and Controllers are specified in Article 65 of this Article.
- The company shall have at least one legal representative who holds the title of President of the Board of Members, the company’s President or Director/General Director. Unless otherwise prescribed by the company's charter, the President of the company or President of the Board of Members shall be the company’s legal representative.
- Unless otherwise prescribed by the company's charter, organizational structure, functions, rights and duties of the Board of Members, the company’s President, the Director/General Director shall comply with this Law.
How many years is the term of office of the director hired to manage business of a single-member limited liability company in Vietnam?
How many years is the term of office of the director hired to manage business of a single-member limited liability company in Vietnam?
According to the provisions of Clause 1, Article 82 of the 2020 Law on Enterprises of Vietnam on this content as follows:
The Director/General Director
1. The Board of Members or the company’s President shall designate or hire the Director/General Director within a term of office not exceeding 05 years to manage the company’s everyday business. The Director/General Director shall be responsible for the law and the Board of Members or the company’s President for his/her performance. The President of the Board of Members, another member of the Board of Members or the company’s President may concurrently hold the position of Director/General Director unless otherwise prescribed by law or the company's charter.
Thus, the Director is hired to manage the company’s everyday business of the single-member limited liability company within a term of office not exceeding 05 years. At the same time, the Director/General Director shall be responsible for the law and the Board of Members or the company’s President for his/her performance.
What are the rights and obligations of the Director of a single-member limited liability company in Vietnam?
According to the provisions of Clause 2, Article 82 of the 2020 Law on Enterprises of Vietnam on the Director of a single-member limited liability company as follows:
The Director/General Director
…
The Director/General Director has the following rights and obligations:
a) Organize the implementation of resolutions and decisions of the Board of Members or the company’s President;
b) Decide everyday operating issues of the company;
c) Organize implementation of the company’s business plans and investment plans;
d) Issue the company’s rules and regulations;
dd) Designate, dismiss the company’s executives, except those within jurisdiction of the Board of Members;
e) Enter into contracts in the company’s name, except those within jurisdiction of the President of the Board of Members or the company’s President;
g) Propose the company’s organizational structure;
h) Submit annual financial statements to the Board of Members or the company’s President;
i) Propose plans for use of profits or settlement of business losses;
k) Recruit employees;
l) Other rights and obligations specified in the company's charter and the employment contract.
Thus, the Director/General Director has the following rights and obligations:
- Organize the implementation of resolutions and decisions of the Board of Members or the company’s President;
- Decide everyday operating issues of the company;
- Organize implementation of the company’s business plans and investment plans;
- Issue the company’s rules and regulations;
- Designate, dismiss the company’s executives, except those within jurisdiction of the Board of Members;
- Enter into contracts in the company’s name, except those within jurisdiction of the President of the Board of Members or the company’s President;
- Propose the company’s organizational structure;
- Submit annual financial statements to the Board of Members or the company’s President;
- Propose plans for use of profits or settlement of business losses;
- Recruit employees;
- Other rights and obligations specified in the company's charter and the employment contract.
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