05 cases of dissolution of private investment companies in Vietnam

05 cases of dissolution of private investment companies in Vietnam (Internet image)

Article 29 of Circular 227/2012/TT-BTC stipulates that an investment company shall be dissolved under the decision of General meeting of shareholders in the following cases:

• The investment management contract is terminated, or the asset management company is dissolved, bankrupted, or has its License revoked, and the Board of Directors of the investment company fails to appoint an alternative asset management company within 60 days from the occurrence of the event;

• The depository or supervision contract is terminated, or the depository bank or supervisory bank is dissolved, bankrupted, or has its License revoked, and the Board of Directors of the investment company fails to appoint an alternative depository bank or supervisory bank within 60 days from the occurrence of the event;

• The net asset value of the investment company falls below 10 billion VND in 06 consecutive months;

• The operating period in the charter of the investment company is over;

• Other cases prescribed in the charter of the investment company.

Note: The General meeting of shareholders may appoint an independent audit organization to inspect, assess, and supervise the liquidation, verify the validation and the distribution of assets of the investment company among its shareholders, ensuring that the investment company is liquidated and dissolved in a fair and open manner. From the date on which the investment company decides or is compelled to dissolve, the investment company, the asset management company (if any), the depository bank, and the supervisory bank may not carry out the forbidden activities prescribed by the laws on enterprises.

More details can be found in Circular 227/2012/TT-BTC, which comes into force from July 1, 2013.

Le Vy

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