What are the regulations on public disclosure of shareholders owning 01% or more of the charter capital of credit institutions in Vietnam?
- What are the regulations on public disclosure of shareholders owning 01% or more of the charter capital of credit institutions in Vietnam?
- What are the regulations on reducing the share ownership rate of credit institutions in Vietnam?
- Vietnam: When will the latest Law on Credit Institutions 2024 come into force?
What are the regulations on public disclosure of shareholders owning 01% or more of the charter capital of credit institutions in Vietnam?
The public disclosure of shareholders owning 01% or more of the charter capital of credit institutions is one of the important new provisions of the Law on Credit Institutions 2024, aimed at preventing cross-ownership issues that may affect the security of the banking industry
Pursuant to Clause 2, Article 49 of the Law on Credit Institutions 2024, shareholders owning 01% or more of the charter capital of credit institutions must provide the following information to the credit institution:
(1) Full name; personal identification number; nationality, passport number, date and place of issuance for foreign shareholders; business registration certificate or equivalent legal documents for corporate shareholders; date and place of issuance of these documents;
(2) Information about related individuals, including: full name; personal identification number; nationality, passport number, date and place of issuance for foreign individuals; relationship with the information provider;
(3) Information about related organizations, including: name, business registration number, registered address of the organization, business registration certificate or equivalent legal documents; legal representative, relationship with the information provider.
(4) The amount and proportion of their own shareholding in that credit institution;
(5) The amount and proportion of shareholding of related parties in that credit institution.
It is important to note that shareholders owning 01% or more of the charter capital of credit institutions must send written information to the credit institution for the first time and when there are changes to this information within 07 working days from the date of occurrence or change.
For information (4) and (5), shareholders only need to provide information to the credit institution when there is a change in the proportion of their own shareholding, the proportion of their own shareholding and that of related parties owning 01% or more of the charter capital of that credit institution compared to the previous disclosure.
Shareholders owning 01% or more of the charter capital of credit institutions must ensure that the provided information is publicly disclosed truthfully, accurately, completely, and in a timely manner, and they are responsible for providing such public information.
In addition, credit institutions must perform the following tasks related to the public disclosure of shareholders owning 01% or more of the charter capital:
Credit institutions must list and keep the information at the main office of the credit institution and submit reports in writing to the State Bank of Vietnam within 07 working days from the date the credit institution receives the provided information.
Annually, credit institutions must publicly disclose information (1), (4), and (5) to the General Meeting of Shareholders, General Assembly of Members, and Board of Members of the credit institution.
Credit institutions must publicly disclose information about the full name of individuals, the name of organizations as shareholders owning 01% or more of the charter capital of the credit institution, and information (4) and (5) on the electronic information page of the credit institution within 07 working days from the date the credit institution receives the provided information.
Credit institutions must ensure that the publicly disclosed information is truthful, accurate, complete, and timely, and they are responsible for the public disclosure of such information.
What are the regulations on public disclosure of shareholders owning 01% or more of the charter capital of credit institutions in Vietnam?
What are the regulations on reducing the share ownership rate of credit institutions in Vietnam?
Pursuant to Article 63 of the Law on Credit Institutions 2024, the regulations on share ownership rate of credit institutions are as follows:
Share ownership rate:
1. An individual shareholder cannot own more than 5% of the charter capital of a credit institution.
2. An organizational shareholder cannot own more than 10% of the charter capital of a credit institution.
3. Shareholders and related persons of those shareholders cannot collectively own more than 15% of the charter capital of a credit institution. Large shareholders of a credit institution and related persons of those shareholders cannot own shares exceeding 5% of the charter capital of another credit institution.
Compared to the current regulations in Article 55 of the Law on Credit Institutions 2010 amended by Article 14 of the Law on amendments to the Law on credit institutions 2017, the ownership rate of individual shareholders remains at 5%. However, for cross-ownership between organizational entities, the Law on Credit Institutions 2024 has reduced the ownership rates for organizational shareholders and related persons of shareholders compared to the current regulations, specifically:
- The ownership rate of organizational shareholders has been reduced from not exceeding 15% to not exceeding 10%.
- The ownership rate of shareholders and related persons has been reduced from not exceeding 20% to not exceeding 15%.
Regarding cross-ownership between credit institutions, the new regulations still maintain the previous spirit, which states that a large shareholder of a credit institution and related persons of that shareholder cannot own shares exceeding 5% of the charter capital of another credit institution.
Vietnam: When will the latest Law on Credit Institutions 2024 come into force?
Pursuant to the newly officially promulgated Law on Credit Institutions 2024, specifically Article 209 of the Law on Credit Institutions 2024 stipulates:
The Law on Credit Institutions 2024 comes into force from July 1, 2024, except for Clause 3, Article 200 and Clause 15, Article 210 of the Law on Credit Institutions 2024, which come into force from January 1, 2025.
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