07 Special Cases in Which Company Owners May Exercise Their Rights

07 special cases in which the company owner can exercise their rights - Illustrative image.

Based on Article 78 of the Enterprise Law 2020, the following 7 special cases allow the company owner to exercise their rights:

1. In the case where the company owner transfers or gifts part of their charter capital to one or several other organizations or individuals, or the company admits new members, the company must organize management in accordance with the corresponding type of enterprise and register to change the enterprise registration content within 10 days from the date of completing the transfer, gift, or admission of new members.

2. In the case where the company owner is an individual who is temporarily detained, serving a prison sentence, or following administrative treatment measures at a compulsory detoxification center or a compulsory education center, they shall authorize another person to exercise some or all of the rights and obligations of the company owner.

3. In the case where the company owner is an individual who dies, the heir according to the will or law becomes the company owner or a member of the company. The company must organize management in accordance with the corresponding type of enterprise and register to change the enterprise registration content within 10 days from the date of concluding the inheritance settlement. If the company owner is an individual who dies without an heir, the heir renounces the inheritance, or the heir is disinherited, the contributed capital portion of the owner shall be handled in accordance with civil law.

4. In the case where the company owner is an individual who is missing, the contributed capital portion of the owner shall be handled in accordance with civil law.

5. In the case where the company owner is an individual who is restricted or loses civil act capacity, has difficulty in cognition or controlling behavior, the rights and obligations of the company owner shall be exercised through a representative.

6. In the case where the company owner is an organization that dissolves or goes bankrupt, the transferee of the owner’s capital contribution becomes the owner or a member of the company. The company must organize management in accordance with the corresponding type of enterprise and register to change the enterprise registration content within 10 days from the date of completing the transfer.

7. In the case where the company owner is an individual prohibited by the Court from practicing certain professions or performing certain jobs, or the company owner is a legal entity prohibited by the Court from doing business or operating in certain sectors that fall within the business scope of the enterprise, that individual shall not practice or perform certain jobs at that company, or the company shall temporarily suspend or terminate business in the relevant sectors in accordance with the Court’s decision.

For details, refer to the Enterprise Law 2020, effective January 01, 2021.

Le Vy

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