What are cases in which a securities investment fund shall be dissolved in Vietnam?

What are cases in which a securities investment fund shall be dissolved in Vietnam?

Pursuant to Article 104 of the Law on Securities in 2019 stipulating dissolution of securities investment funds:

Dissolution of securities investment funds

1. A securities investment fund shall be dissolved in the following cases:

a) The operation period written in the fund’s charter expires;

b) The General Meeting of Investors decides to dissolve the fund ahead of schedule;

c) The fund management company has its securities trading license revoked or is dissolved or goes bankrupt and a substitute fund management company is not appointed by the representative board of the fund within 02 months from the event;

d) The supervisory bank has its certificate of securities depository registration revoked or is dissolved or goes bankrupt, or the supervision contract between the supervisory bank and the fund management company is terminated and a substitute supervisory bank is not appointed by the fund management company within 02 months from the event;

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As regulated above, a securities investment fund shall be dissolved in the following cases:

- The operation period written in the fund’s charter expires;

- The General Meeting of Investors decides to dissolve the fund ahead of schedule;

- The fund management company has its securities trading license revoked or is dissolved or goes bankrupt and a substitute fund management company is not appointed by the representative board of the fund within 02 months from the event;

- The supervisory bank has its certificate of securities depository registration revoked or is dissolved or goes bankrupt, or the supervision contract between the supervisory bank and the fund management company is terminated and a substitute supervisory bank is not appointed by the fund management company within 02 months from the event;

- The net asset value of the fund is under 10 billion VND for 06 consecutive months;

- Other cases specified in the fund’s charter.

What are cases in which a securities investment fund shall be dissolved in Vietnam? - image from internet

What are rights and obligations of investors in securities investment funds in Vietnam?

Pursuant to Article 101 of the Law on Securities in 2019 stipulating rights and obligations of investors in securities investment funds in Vietnam:

1. Investors have the rights to:

- Benefits from investments of the securities investment fund in proportion to their contributions;

- Interests and assets lawfully distributed from liquidation of assets of the securities investment fund;

- Request the fund management company to repurchase open-end fund certificates;

- File lawsuits against the fund management company, supervisory bank or relevant organizations if they violate their the lawful rights and interests;

- Execute their rights through the General Meeting of Investors;

- Transfer fund certificates in accordance with the fund’s charter;

- Exercise other rights prescribed by law and the fund’s charter.

2. Investors have the obligations to:

- Implement decisions of the General Meetings of Investors;

- Fully pay for the fund certificates;

- Fulfill other obligations prescribed by law and the charter of the securities investment fund.

What are rights and obligations of the General Meeting of Investors of securities investment funds in Vietnam?

Pursuant to Clause 2 Article 102 of the Law on Securities in 2019, the General Meeting of Investors has the following rights and obligations:

- Elect, dismiss the chairperson and members of the representative board of the securities investment fund;

- Decide the wages and operating cost of the representative board;

- Decide fundamental changes in investment policies, profit distribution and investment objectives of the fund; decide change of the fund management company and supervisory bank; change of payment to the fund management company and supervisory bank;

- Decide revisions to the fund’s charter;

- Decide division, consolidation, merger, dissolution of the securities investment fund; change of the charter capital or operating period of the securities investment fund;

- Request the fund management company and supervisory bank to present transaction documents at the meeting;

- Approve annual reports on the fund’s finance, assets and operation; select accredited audit organization to audit the fund’s annual financial statements;

- Take actions against violations committed by the fund management company, supervisory bank and representative board if they cause damage to the fund;

- Exercise other rights and obligation prescribed by law and the fund’s charter.