Do Capital Contributing Members Need to Commit to Holding at Least 20% of the Charter Capital of the Issuing Organization for a Minimum of One Year?

Pursuant to Clause 3, Article 15 of Decree 155/2020/ND-CP stipulating the conditions for the initial public offering of shares to convert a limited liability company into a joint-stock company as follows:

- ........................................................................- There must be an issuance plan approved by the Members' Council or the company's owner; there must be a plan for the use of capital obtained from the offering (except for offerings in the form specified at Point b, Clause 1, Article 10 of this Decree) approved by the Members' Council or the company's owner.

- Contributing members or the company's owner must commit to jointly hold at least 20% of the charter capital of the issuing organization for a minimum period of one year from the date the offering ends.

Thus, it is not mandatory for the contributing members to commit to holding at least 20% of the charter capital of the issuing organization for a minimum period of one year, but instead, the company's owner commits to the above contents which still meet this condition.

Sincerely!