In which cases shall a securities investment fund management company in Vietnam be dissolved?
In which cases shall a securities investment fund management company in Vietnam be dissolved? Is initial public offering (IPO) of fund certificates considered as a form of IPO of securities in Vietnam? If a public company in Vietnam issues call options to its existing shareholders, is it considered as follow-on public offers?
In which cases shall a securities investment fund management company in Vietnam be dissolved?
When shall a securities investment fund management company in Vietnam be dissolved?
Answer:
Pursuant to Clause 1, Article 211 of the Decree 155/2020/NĐ-CP stipulating as follows:
1. A securities investment fund management company or Vietnamese branch of a foreign fund management company will be dissolved in the following cases:
a) The operating period specified in the company’s charter expires and is not extended;
b) The dissolution is voluntary under a decision of the GMS, Board of Members or the company’s owner or the foreign securities organization;
c) The license for establishment and securities operation is revoked according to Clause 1 Article 95 of the Law on Securities;
d) Other cases specified in the Law on Enterprises.
Is initial public offering (IPO) of fund certificates considered as a form of IPO of securities in Vietnam?
What are regulations on IPO of securities in Vietnam? Is IPO of fund certificates considered as a form of IPO of securities in Vietnam?
Answer:
Pursuant to Clause 1, Article 10 of the Decree 155/2020/NĐ-CP stipulating as follows:
1. IPO of securities includes:
a) IPO for raising additional capital to the issuer;
b) IPO to become a public company by changing ownership structure without increasing the issuer’s charter capital;
c) Combination of (a) and (b);
d) Initial public offering of fund certificates for establishment of a securities investment fund.
Above are forms of IPO of securities in Vietnam. IPO of fund certificates is a form of IPO of securities in Vietnam.
If a public company in Vietnam issues call options to its existing shareholders, is it considered as follow-on public offers?
When a public company in Vietnam issues call options to its existing shareholders, is it considered as follow-on public offers?
Answer:
Pursuant to Clause 2a, Article 10 of the Decree 155/2020/NĐ-CP stipulating as follows:
Follow-on offering or follow-on public offers (FPO) includes the following cases:
- A public company conducts an FPO of shares or issues call options to its existing shareholders;
As regulations above, when a public company in Vietnam issues call options to its existing shareholders, it is considered as follow-on public offers.
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