In which cases shall a public company in Vietnam be allowed to sell the shares right after they are repurchased?

In which cases shall a public company in Vietnam be allowed to sell the shares right after they are repurchased?

According to the Law on Securities in 2019, in which cases shall a public company in Vietnam be allowed to sell the shares right after they are repurchased? - Thank you!

Answer:

Pursuant to Clause 7 Article 36 of the Law on Securities in 2019, a securities company or public company that repurchases its own shares may sell the shares right after they are repurchased in the following cases:

- The repurchase is meant to fix a transaction error or is an odd lot buyback;

- The public company repurchases odd lot shares under a scrip issue or plan for share issue from equity;

- The share repurchase is requested by the company’s shareholders.

What are procedures for reporting share repurchase, disclosing information and execution of share repurchase in Vietnam?

According to latest regulations on securities activities, what are procedures for reporting share repurchase, disclosing information and execution of share repurchase in Vietnam?

Answer:

Pursuant to Article 37 of the Law on Securities in 2019 stipulating procedures for reporting share repurchase, disclosing information and execution of share repurchase in Vietnam as follows:

- Within 07 working days from the receipt of the documents specified in Clause 1 of this Article, SCC shall send a notice of receipt to the public company if the documents are adequate and valid, or a request for supplementation if the documents are not fully valid or adequate.  The supplementation time shall not be included in the time limit specified in this Clause. In case of rejection, SCC shall send a written notice and provide explanation.

- Within 07 working days from the date of the SSC’s notice, the public company shall disclose the information specified in Clause 2 of this Article on its website and the media of SSC and VSE. The public company may initiate the share repurchase after 07 working days from the day on which information is disclosed.

- Within 10 working days from the end of the share repurchase, the public company shall send a report to SSC and publicly disclose information. In case the public company does not repurchase all the expected quantity of shares, it shall submit a report and explanation.

- The public company shall complete the share repurchase within the time limit specified in the information disclosure statement, which must not exceed 30 days from the beginning date.

- Within 06 months from the end of the share repurchase, the public company must not offer its shares to increase charter capital, except conversion of convertible bonds into shares under commitments.

What shall a public company in Vietnam do in order to repurchase employees' shares?

I want to ask about the new regulation on the securities sector. What shall a public company in Vietnam do in order to repurchase employees' shares? Thank you!

Answer:

Pursuant to Clause 6 Article 36 of the Law on Securities in 2019, in case the employees’ shares are repurchased in accordance with the regulations on employee share ownership:

a) The total quantity of employees’ shares being repurchased by the company to reduce charter capital shall be reported at the annual General Meeting of Shareholders;

b) The company shall reduce its charter capital according to the total value of repurchased shares at their nominal value within 10 days from the day on which it is reported at the annual General Meeting of Shareholders as prescribed in Point a of this Clause.

Best regards!