What are types of shares of joint stock companies in Vietnam? What is the number of legal representative of a joint stock company in Vietnam?

What are types of shares of joint stock companies in Vietnam? What is the number of legal representative of a joint stock company in Vietnam? - Ms. Huu (HCMC)

What are types of shares of joint stock companies in Vietnam?

Pursuant to Article 114 of the Law on Enterprises in 2020 stipulating types of shares:

Types of shares

1. A joint stock company shall have ordinary shares, which are held by ordinary shareholders.

2. In addition to ordinary shares, a joint stock company may have preference shares, which are held by preference shareholders. Preference shares include:

a) Participating preference shares;

b) Redeemable preference shares;

c) Super-voting shares;

d) Other types of preference shares prescribed by the company's charter and securities laws.

3. The persons that may purchase participating preference shares, redeemable preference shares and other preference shares shall be specified in the company's charter or decided by the GMS.

4. Every share of the same type will confer upon the holder equal rights, obligations and interest.

5. Ordinary shares cannot not be converted into preference shares. preference shares may be converted into ordinary shares under a resolution of the GMS.

6. Ordinary shares used as underlying assets to issue non-voting depository receipts are called underlying ordinary shares. Non-voting depository receipts have interest and obligations proportional to the underlying ordinary shares, except voting rights.

7. The Government shall provide for non-voting depository receipts.

As regulated above, there are 02 types of shares of joint stock companies in Vietnam, including:

(1) Ordinary shares

(2) Preference shares, including:

- Participating preference shares;

- Redeemable preference shares;

- Super-voting shares;

- Other types of preference shares prescribed by the company's charter and securities laws.

What are types of shares of joint stock companies in Vietnam? What is the number of legal representative of a joint stock company in Vietnam? - image from internet

What is the number of legal representative of a joint stock company in Vietnam?

Pursuant to Article 12 of the Law on Enterprises in 2020 stipulating the enterprise’s legal representative:

The enterprise’s legal representative

1. The enterprise’s legal representative is the person that, on behalf of the enterprise, exercises and performs the rights and obligations derived from the enterprise’s transactions, acts as the plaintiff, defendant or person with relevant interests and duties before in court, arbitration, and performs other rights and obligations prescribed by law.

2. A limited liability company or joint stock company may have one or more than one legal representative. The enterprise’s charter shall specify the quantity, position, rights and obligations of its legal representatives. In case there are more than one legal representative, the charter shall specify the rights and obligations of each of them. Otherwise, each of the legal representatives shall fully representative the enterprise and take joint responsibility for any damage to the enterprise as prescribed by civil laws and relevant laws.

3. An enterprise shall have at least one legal representative residing in Vietnam. Whenever this representative leaves Vietnam, he/she has to authorize another Vietnamese resident, in writing, to act as the legal representative, in which case the authorizing person is still responsible for the authorized person’s performance.

...

As regulated above, a joint stock company must have at least one legal representative. It may have more than one legal representative.

In case there are more than one legal representative, the charter shall specify the rights and obligations of each of them.

In case the charter does not specify the rights and obligations of legal representatives, each of them is the authorized representative of the enterprise with the third parties.

What are responsibilities of the enterprise’s legal representative in Vietnam?

Pursuant to Article 13 of the Law on Enterprises in 2020 stipulating responsibilities of the enterprise’s legal representative:

An enterprise’s legal representative shall:

- Exercise and perform his/her rights and obligations in an honest and prudent manner to protect the enterprise’s lawful interests;

- Be loyal to the enterprise’s interests;

- Not abuse his/her power and position or use the enterprise’s information, secrets, business opportunities and assets for personal gain or serve any other organization’s or individual’s interests;

- Promptly and fully provide the enterprise with information about the enterprises that he/she or his/her related person owns or has shares/stakes in as prescribed in the Law on Enterprises in 2020.

Best regards!

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