What are regulations on the General Meeting of Investors of securities investment funds in Vietnam?

What are regulations on the General Meeting of Investors of securities investment funds in Vietnam?

I have a question about the securities sector under the new regulations as follows: are all investors participating in a securities investment fund allowed to participate in the annual general meeting of investors? Is this the supreme decision-making body of a securities investment fund? Ask for help!

Answer: Pursuant to Article 102 of the Securities Law 2019, the general meeting of investors of securities investment funds is as follows:

1. General Meeting of Investors consists of all investors and is the supreme decision-making body of a securities investment fund.

2. The General Meeting of Investors has the following rights and obligations:

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

b) Decide the wages and operating cost of the representative board;

c) 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;

d) Decide revisions to the fund’s charter;

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

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

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

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

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

3. General Meetings of Investors of securities investment funds shall be convened on an annual and ad hoc basis.

4. The Minister of Finance shall specify the procedures for convening, conducting General Meetings of Investors of securities investment funds and procedures for approving decisions thereof.

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

Regarding the general meeting of investors of securities investment funds, may I ask what are the rights and obligations of the general meeting of investors of securities investment funds according to the latest regulations? Thank you!

Answer: Pursuant to Clause 2, Article 102 of the Securities Law 2019, the rights and obligations of the general meeting of investors of securities investment funds are as follows:

2. The General Meeting of Investors has the following rights and obligations:

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

b) Decide the wages and operating cost of the representative board;

c) 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;

d) Decide revisions to the fund’s charter;

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

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

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

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

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

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What are principles of determination of net asset value of securities investment fund in Vietnam?

May I ask what principle are principles of determination of net asset value of securities investment fund according to latest regulations? Thank you!

Answer: Pursuant to Article 106 of the Securities Law 2019 stipulates determination of net asset value of securities investment fund as follows:

1.  The net asset value or a securities investment fund shall be determined by the fund management company and confirmed by the supervisory bank; the net asset value of the private fund shall be confirmed by the supervisory bank or depository bank.

2. The net asset value of securities investment fund shall be determined as follows:

a) Prices of listed and registered securities shall be closing price or average price of the latest trading date before the valuation date;

b) For securities mentioned in Point a of this Clause that are not traded for more than 15 days before the valuation dates, and securities other than those mentioned in Point a of this Clause, the valuation shall be based upon the valuation process and method specified in the fund’s charter.  The valuation process and method must be confirmed by the supervisory bank, and approved by the fund’s representative board and General Meeting of Investors. The valuating parties must be independent from the fund management company and the supervisory bank or depository bank;

c) Liquid assets including dividends and interests shall have the values written on the accounting books on valuation date.

3. The net asset value of a securities investment fund shall be periodically published in accordance with Clause 1 Article 124 of this Law.

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