If the owner of a single-member limited liability company is an organization or an individual, do they all have same rights in Vietnam?
Please ask, If the owner of a single-member limited liability company is an organization or an individual, do they all have same rights in Vietnam? Please advice.
Article 76 of the Law on Enterprises 2020 provides for the rights of owners of single-member limited liability companies as follows:
1. The owner that is an organization has the rights to:
a) Draw up and revise the company's charter;
b) Decide the company’s annual business plan and development strategy;
c) Decide the company’s organizational structure; designate, dismiss the company’s executives and controllers;
d) Decide the company’s investment projects?
dd) Decide solutions for market development, marketing and technology;
e) Approve contracts for borrowing, lending, sale of assets and other contracts prescribed by the company's charter whose value are at least 50% of the total assets written in the latest financial statement (or a smaller ratio or value specified in the company's charter);
g) Ratify the company’s annual financial statements;
h) Decide increase or decrease in the company’s charter capital, transfer part or all of the company’s charter capital to another organization or individual; decide issuance of bonds;
i) Decide establishment of subsidiary companies and contribution of capital to other companies;
k) Organize the supervision and assessment of the company’s performance;
l) Decide the use of profits after the company’s tax liabilities and other financial obligations have been fulfilled;
m) Decide the company’s reorganization, dissolution or file bankruptcy;
n) Recover all assets of the company after the dissolution or bankruptcy process is complete;
o) Other rights prescribed by this Law and the company's charter.
2. The owner that is an individual has the rights specified in Points a, h, l, m, n and o Clause 1 of this Article; the right to decide investment, business operation and the company’s administration, unless otherwise prescribed by the company's charter.
Thus, unless otherwise provided in the Charter of the company in Vietnam , the an individual owner of company shall have fewer rights than the an organization owner under the above provisions.
Best Regards!
