Regarding whether a Limited Liability Company may issue bonds

Can a Limited Liability Company (LLC) issue bonds?

Can you advise if, according to the regulations, a Limited Liability Company (LLC) is allowed to issue bonds?

Answer: According to the Law on Enterprises 2020, a Limited Liability Company (LLC) includes single-member limited liability companies and multi-member limited liability companies.

Thus, can single-member limited liability companies and multi-member limited liability companies issue bonds?

Based on Clause 4, Article 46 and Clause 4, Article 74 of this Law:

Multi-member limited liability companies are allowed to issue bonds in accordance with the provisions of this Law and other related legal regulations; the issuance of private bonds must comply with the provisions of Articles 128 and 129 of this Law.

Single-member limited liability companies are allowed to issue bonds in accordance with the provisions of this Law and other related legal regulations; the issuance of private bonds must comply with the provisions of Articles 128 and 129 of this Law.

Therefore, both single-member and multi-member limited liability companies are allowed to issue bonds in accordance with regulations. Thus, it can be concluded that LLCs are allowed to issue bonds.

Can a multi-member LLC elect 2 people as Chairpersons of the Members' Council?

Can a multi-member LLC elect 2 people as Chairpersons of the Members' Council?

Answer: Based on Clause 1, Article 56 of the Law on Enterprises 2020, the Chairperson of the Members' Council is regulated as follows:

The Members' Council elects one member to be the Chairperson. The Chairperson of the Members' Council may also concurrently hold the position of Director or General Director of the company.

Thus, in principle, the Members' Council elects one member as the Chairperson. Therefore, there cannot be 2 people serving as Chairpersons of the Members' Council according to the mentioned regulation.

Must a multi-member LLC have a Deputy Director?

Is it mandatory for a multi-member LLC to have a Deputy Director?

Answer: Based on Clause 1, Article 54 of the Law on Enterprises 2020, the company structure is regulated as follows:

A multi-member limited liability company has a Members' Council, a Chairperson of the Members' Council, and a Director or General Director.

Thus, in terms of the company structure, it is not mandatory. However, whether there is a Deputy Director or not is up to each company's arrangement and based on the practical situation of that company.

Sincerely!