Can shareholders use their shares to pay off debts?
Pursuant to clause 5, Article 127 of the Law on Enterprises 2020 (effective January 1, 2021) stipulating the transfer of shares as follows:
Shareholders have the right to donate a portion or all of their shares in the company to other individuals or organizations; use shares to settle debts. Individuals or organizations that are given or receive shares as debt payment will become shareholders of the company.
Thus, it can be seen that when transferring shares, you have the full right to use those shares to settle debts with the organization you are indebted to, in accordance with the new enterprise law.
Respectfully!
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