Newly Established Joint Stock Company Must Have How Many Founding Shareholders
At Article 120 of the Law on Enterprises 2020, the provisions are as follows:
A newly established joint stock company must have at least 03 founding shareholders. A joint stock company converted from a state-owned enterprise or from a limited liability company or divided, separated, merged, or consolidated from another joint stock company is not required to have founding shareholders; in such cases, the charter of the company in the enterprise registration dossier must be signed by the legal representative or the common shareholders of that company.
The founding shareholders must together subscribe to purchase at least 20% of the total number of ordinary shares authorized for issuance at the time of enterprise registration.
Within 03 years from the date a company is granted the Enterprise Registration Certificate, the ordinary shares of founding shareholders can be freely transferred to other founding shareholders and only be transferred to non-founding shareholders if approved by the General Meeting of Shareholders. In this case, the founding shareholder intending to transfer ordinary shares does not have the right to vote on that share transfer.
The restrictions stipulated in Clause 3 of this Article do not apply to the following ordinary shares:
a) Shares that the founding shareholder holds in addition to those registered at the time of enterprise establishment;
b) Shares that have been transferred to others who are not founding shareholders.
=> Thus, according to the above provisions, a newly established joint stock company must have at least 03 founding shareholders.
Best regards.
