How to authorize others in Vietnam when the legal representative of the enterprise exits?

How to authorize others in Vietnam when the legal representative of the enterprise exits?

Pursuant to Clause 3, Article 12 of the Law on Enterprises 2020 has the following provisions:

3. An enterprise shall have at least one legal representative residing in Vietnam. Whenever this representative leaves Vietnam, he/she has to authorize another Vietnamese resident, in writing, to act as the legal representative, in which case the authorizing person is still responsible for the authorized person’s performance.

Thus, when you exit abroad, you need to authorize in writing the person residing in Vietnam, so that this person can exercise the rights and obligations of the legal representative.

At the end of the authorization period but the legal representative not return to Vietnam, how must the company solve it?

In case of expiry of authorization under paragraph 3 of this Article that in case the authorizing person has not returned to Vietnam when the letter of authorization mentioned in (3) expires and does not have any further actions:

a) In case the enterprise is a sole proprietorship, the authorized person shall continue acting as the enterprise’s legal representative until the authorizing person returns;

b) In case the enterprise is a limited liability company, joint stock company or partnership, the authorized person shall continue acting as the enterprise’s legal representative until the authorizing person returns or until the enterprise’s owner, Board of Members/Partners or Board of Directors designates another legal representative.

According to this Article, if the authorization period expires and you have not returned to your country, a new authorization letter must be prepared. If you do not do this, the person you previously authorized will continue to perform the authorization until you return or the member council appoints a new representative under Vietnamese law.

Best Regards!