Is it mandatory to hold a supplementary meeting for the annual General Meeting of Shareholders?
Article 136 of the 2014 Enterprise Law stipulates:
The General Meeting of Shareholders shall be held annually once a year. In addition to the annual meeting, the General Meeting of Shareholders may hold extraordinary meetings. The venue for the General Meeting of Shareholders must be within the territory of Vietnam. In the case that the General Meeting of Shareholders is held simultaneously at multiple locations, the location of the General Meeting of Shareholders shall be determined as the place where the presiding officer attends the meeting.
The General Meeting of Shareholders must be held annually within 4 months from the end of the fiscal year. At the request of the Board of Directors, the Business Registration Authority may extend this period, but not beyond 6 months from the end of the fiscal year.
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In the case that the General Meeting of Shareholders is not held annually within the prescribed time limit, the company may be fined from 5,000,000 VND to 10,000,000 VND.
Remedial measures: Required to hold the annual General Meeting of Shareholders as stipulated. (Article 34 of Decree 50/2016/ND-CP).
Thus, according to the above regulation, the annual General Meeting of Shareholders is mandatory. Therefore, the company is required to hold an additional annual General Meeting of Shareholders.
Sincerely!
