What are the regulations on the documentation and procedures for notification of foreign ownership ratio in a public company in Vietnam?
- Which organization is responsible for notifying the maximum foreign ownership ratio?
- What are the regulations on the documentation and procedures for notification of foreign ownership ratio in a public company in Vietnam?
- In case of change in foreign ownership ratio, how should a public company prepare documents for notification?
Which organization is responsible for notifying the maximum foreign ownership ratio?
According to the provisions of Article 141 of Decree No. 155/2020/ND-CP on this content as follows:
- The public company shall determine its business lines and notify the foreign ownership ratio therein within 07 working days from the day on which the public company registration is confirmed by State Securities Commission.
- The public company shall determine its business lines and maximum foreign ownership ratio therein in accordance with Clause 1 Article 139 of Decree No. 155/2020/ND-CP.
- In case the public company has not notified the maximum foreign ownership ratio as prescribed in Article 142 of Decree No. 155/2020/ND-CP, it must be done before submission of the application for listing, registration, offering, issuance of securities, public offering of shares by shareholders of the public company.
What are the regulations on the documentation and procedures for notification of foreign ownership ratio in a public company in Vietnam?
What are the regulations on the documentation and procedures for notification of foreign ownership ratio in a public company in Vietnam?
Pursuant to Clause 1, Article 142 of Decree No. 155/2020/ND-CP, the documentation and procedures for notification of foreign ownership ratio in a public company are prescribed as follows:
Documentation and procedures for notification of foreign ownership ratio in a public company
1. Documents for notification of maximum foreign ownership ratio in a public company mentioned in Clauses 1, 2, 3 Article 141 of this Decree include:
a) The notification form No. 38 in the Appendix hereof;
b) The Certificate of Enterprise Registration, establishment and operation license or an equivalent document; confirmation of changes to enterprise registration information, including information about the registered business lines;
c) In case of equitization, written approval for equitization issued by a competent authority which specifies foreign ownership ratio in the company (if any);
d) The company's charter and resolution of the GMS to approve the maximum foreign ownership ratio therein (in the cases specified in Point e Clause 1 Article 139 of this Decree).
…
3. Within 07 working days from the receipt of the satisfactory documents, State Securities Commission shall send a written notification of the receipt thereof and send it to Vietnam Securities Depository and Clearing Corporation.
4. Within 02 working days from the receipt of the notification from State Securities Commission, Vietnam Securities Depository and Clearing Corporation shall update the maximum foreign ownership ratio of the public company on its system.
Thus, the notification of foreign ownership ratio in a public company is made in the above procedures.
In case of change in foreign ownership ratio, how should a public company prepare documents for notification?
According to the provisions of Clause 4, Article 141 and Clause 2, Article 142 of Decree No. 155/2020/ND-CP on as follows:
- The public company shall notify the change in foreign ownership ratio within 30 days from the occurrence of any of the following events:
+ There are changes to business lines that lead to changes to the maximum foreign ownership ratio in the company;
+ There are changes to regulations of law on foreign ownership ratio in the business lines of the company;
+ The maximum foreign ownership ratio in the public company specified in its Charter is changed.
- Documents for notification of maximum foreign ownership ratio in a public company include:
+ The notification form No. 39 in the Appendix hereof;
+ The documents specified in Points b, c, d Clause 1 of this Article;
- Within 07 working days from the receipt of the satisfactory documents, State Securities Commission shall send a written notification of the receipt thereof and send it to Vietnam Securities Depository and Clearing Corporation.
- Within 02 working days from the receipt of the notification from State Securities Commission, Vietnam Securities Depository and Clearing Corporation shall update the maximum foreign ownership ratio of the public company on its system.
LawNet
