Vietnam: What is the supreme body in a joint-stock company? What are the rights and obligations of the supreme body?

What is the supreme body in a joint-stock company in Vietnam?

According to the provisions of Clause 1, Article 138 of the Enterprise Law 2020, there are provisions:

1. The GMS shall consist of all voting shareholders and is the supreme body of a joint stock company.

Rights and obligations of the supreme body in Vietnam

In Clause 2, Article 138 of the Law, there are regulations on the rights and obligations of the supreme body in a joint-stock company in Vietnam:

2. The GMS has the following rights and obligations:

a) Ratify the orientation for development of the company;

b) Decide the types of authorized shares and quantity of each type; decide the annual dividends of each type of shares;

c) Elect, dismiss members of the Board of Directors and Controllers;

d) Decide investment in or sale of assets that are worth at least 35% of the total assets written in the latest financial statement, unless another ratio or value is specified in the company's charter;

dd) Decide revisions to the company’s charter;

e) Ratify annual financial statements;

g) Decide repurchase of more than 10% of total sold shares of each type;

h) Take actions against violations committed by members of the Board of Directors and Controllers that cause damage the company and its shareholders;

i) Decide reorganization or dissolution of the company;

k) Decide the budget or total salaries, bonuses and other benefits of the Board of Directors and the Board of Controllers;

l) Approve the rules and regulations of the company, the Board of Directors and the Board of Controllers;

m) Approve the list of independent audit companies; choose independent audit companies carry out audit of the company; dismiss independent audits where necessary;

n) Other rights and obligations prescribed by Law and the company's charter.

Best Regards!