Circular 155: Charter Capital Structure of Joint Stock Companies When Converting from State-Owned Enterprises

22:33, 09/07/2024

This is important content mentioned in Circular 155/2019/TT-BQP of the Ministry of National Defense guiding the transformation of state-owned enterprises and single-member limited liability companies with 100% charter capital invested by state-owned enterprises under the Ministry of National Defense into joint-stock companies.

Based on Article 12 of Circular 155/2019/TT-BQP, state-owned enterprises, single-member limited liability companies with 100% charter capital invested by state-owned enterprises, not subject to state-held shares (according to the state-owned enterprise classification criteria announced by the Prime Minister of the Government of Vietnam in each period), shall comply with the provisions of Clause 3, Article 5 of Decree 126/2017/ND-CP.

For enterprises not falling within the aforementioned category, based on the business production plan, strategy, and the existing state capital in the enterprise, a reasonable charter capital level shall be proposed and submitted to the competent authority for approval in the equitization plan.

Equity capital structure of a joint-stock company when converting from a state-owned enterprise, Circular 155/2019/TT-BQP

Illustrative image (source: internet)

Furthermore, this Circular also stipulates that within 90 days from the date of issuance of the initial certificate of joint-stock enterprise registration, the equitized enterprise must complete the tasks prescribed in Clause 3, Article 21 of Decree 126/2017/ND-CP. The transfer between the equitized enterprise and the joint-stock company shall be carried out according to the provisions of Article 9 of Circular 41/2018/TT-BTC.

See more regulations in Circular 155/2019/TT-BQP, effective from December 1, 2019.

Thu Ba

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