Circumstances Considered as Control or Domination of an Enterprise or an Industry of Another Enterprise

According to Clause 1, Article 2 of Decree 35/2020/ND-CP guiding the Law on Competition (Effective from May 15, 2020), the content is regulated as follows:

Control or dominance over an enterprise or a sector of another enterprise occurs in one of the following cases:

a) The acquiring enterprise obtains ownership of more than 50% of the charter capital or more than 50% of the voting shares of the acquired enterprise;

b) The acquiring enterprise obtains ownership or the right to use more than 50% of the assets of the acquired enterprise in the entirety or in one business sector of the acquired enterprise;

c) The acquiring enterprise has one of the following rights:

- Directly or indirectly deciding the appointment, dismissal, or removal of the majority or all members of the board of directors, the chairperson of the members' council, the director or general director of the acquired enterprise;

- Deciding to amend or supplement the charter of the acquired enterprise;

- Deciding on important business activities of the acquired enterprise, including the selection of business organization forms; selection of business sectors, geographical area, business forms; adjusting the scale and business sectors; choosing the forms, methods of raising, allocating, and using the business capital of the enterprise.

Sincerely!