Can a single-member limited liability company be converted into a joint stock company in Vietnam?
Can a single-member limited liability company be converted into a joint stock company in Vietnam? Who has authority to terminate contracts with the Director in a multiple-member limited liability company in Vietnam? Can a single-member limited liability company mobilize capital contributions from other individuals in Vietnam?
Can a single-member limited liability company be converted into a joint stock company in Vietnam?
Let me ask, if my single-member limited liability company wants to increase its charter capital, can it be converted to a joint stock company?
Answer: According to Article 87 of the Enterprise Law 2020, regulations on increasing, decreasing charter capital are as follows:
1. A single-member limited liability company may increase its charter capital when its owner contributes capital or raises capital from other persons. The owner shall decide on the specific increase and the method.
2. In case of raising capital from other persons, the company shall be converted into a multiple-member limited liability company or joint stock company. To be specific:
a) In case of conversion into a multiple-member limited liability company, a notification of change in enterprise registration information shall be submitted within 10 days from the day on which the change in charter capital is complete;
b) In case of conversion into a joint stock company, follow the instructions in Article 202 of this Law;
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Thus, based on the above regulations in Vietnam, a single-member limited liability company has right to increase its charter capital through the company owner contributing more capital or mobilizing additional capital contributions from others. In case of increasing charter capital, the limited liability company can be converted into a joint stock company according to the above regulations.
Can a single-member limited liability company be converted into a joint stock company in Vietnam? (Image from the Internet)
Who has authority to terminate contracts with the Director in a multiple-member limited liability company in Vietnam?
Who has authority to terminate contracts with the Director in a multiple-member limited liability company in Vietnam?
Answer: Pursuant to Point dd, Clause 2, Article 55 of the Enterprise Law 2020, rights of the Board of Members are stipulated as follows:
dd) Elect, dismiss the President of the Board of Members; designate, dismiss, sign and terminate contracts with the Director/General Director, chief accountant, controllers and other executives specified in the company's charter;
Thus, the Board of Members will have authority to terminate the contract of the Director in a multiple-member limited liability company according to the above regulations in Vietnam.
Can a single-member limited liability company mobilize capital contributions from other individuals in Vietnam?
My company is a single-member limited liability. Due to the epidemic, the company needs to increase its charter capital, so it plans to mobilize capital from individuals. So is it allowed? If so, do I have to switch to multiple-member limited liability company?
Answer: According to Article 87 of the Enterprise Law 2020, regulations on increasing, decreasing charter capital are as follows:
1. The Board of Members is the supreme governing body of the company, consists of all members that are individuals and authorized representatives of members that are organizations. The company's charter shall specify the frequency of meetings of the Board of Members but at least one meeting shall be held per year.
Thus, the single-member limited liability company can completely mobilize capital contributions from other individuals. In case of increasing charter capital by mobilizing additional capital contributions from others, the company must organize management in the form of a multiple-member limited liability company or a joint stock company.
If your company wants to change to the form of a multiple-member limited liability company, the organization and management of the company is carried out as follows:
In case the management organization is in the form of a multiple-member limited liability company, the company must notify the change in business registration content within 10 days from the date of completion of the change in charter capital.
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