If a joint-stock company in Vietnam has only 2 shareholders, will it be dissolved?

If a joint-stock company in Vietnam has only 2 shareholders, will it be dissolved?

If a joint-stock company in Vietnam has only 2 shareholders, will it be dissolved?

Answer:

Pursuant to Clause 1.c Article 207 of the Law on Enterprises in 2020 stipulating as follows:

An enterprise shall be dissolved in the following case: The enterprise fails to maintain the adequate number of members prescribed in this Law for 06 consecutive months without converting into another type of business;

Pursuant to Clause 1.b Article 111 of the Law on Enterprises in 2020, a joint stock company is an enterprise in which the minimum number of shareholders is 03.

Therefore, a joint-stock company will only be dissolved if it has only 2 shareholders continuously for 6 consecutive months without undergoing the procedures for changing the business form.

According to Article 204 of this Law, in this case, the joint-stock company can be converted into a multiple-member limited liability company.

If a joint-stock company in Vietnam has only 2 shareholders, will it be dissolved? - image from internet

Is there any educational requirement for the controller of a joint-stock company in Vietnam?

Is there any educational requirement for the controller of a joint-stock company in Vietnam?

Answer:

Pursuant to Clause 3 Article 103 of the Law on Enterprises in 2020 stipulating as follows:

A Controller or Chief Controller shall satisfy the following requirements:

- He/she has a bachelor’s degree or higher in economics, finance, accounting, audit, law, business administration or a major that is relevant to the enterprise’s business operation and at least 03 years’ experience (05 years for Chief Controller);

- He/she is not executive of the company or any other enterprise; not a Controller of enterprises other than state-owned enterprises; not a company’s employee.

- He/she is not a relative of the head or deputies of the state ownership representative body; any of the members of the Board of members, the Director/General Director, any of the Deputy Directors/General Directors, the chief accountant or any other Controllers of the company;

He/she satisfies other requirements specified in the company’s charter.

Thus, according to the above regulations, not only the Chief Controller but also the Controller of the joint-stock company must have a bachelor’s degree or higher in certain specific fields.

Can a sole proprietorship purchase shares in a joint-stock company in Vietnam?

Can a sole proprietorship purchase shares in a joint-stock company in Vietnam?

Answer:

Pursuant to Article 188 of the Law on Enterprises in 2020 stipulating sole proprietorships as follows:

1. A sole proprietorship is an enterprise owned by a single individual whose liability for its entire operation is equal to his/her total assets.

2. A sole proprietorship must not issue any kind of securities.

3. An individual may only establish one sole proprietorship. The owner of a sole proprietorship must not concurrently own a household business or hold the position of general partner of a partnership.

4. A sole proprietorship must not contribute capital upon establishment or purchase shares or stakes of partnerships, limited liability companies or joint stock companies.

As regulations above, a sole proprietorship are not allowed to purchase shares in a joint-stock company in Vietnam.

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