Enterprise Law 2020: Regulations on the Administration of Partnerships

Regulations on business management of partnership companies (Illustration)

To be specific: Article 184 of the Law on Enterprises 2020 stipulates the business management of partnership companies as follows:

- General partners are the legal representatives of the company and organize the daily business activities of the company. Any restriction on general partners in performing daily business activities of the company is only effective against third parties when they are aware of such restrictions.- In managing the company's business activities, general partners assign each other to assume management positions and control the company.- When some or all general partners together perform some business tasks, decisions are made under the majority approval principle.- Activities performed by general partners outside the scope of the company's business do not fall under the company's responsibility unless those activities have been approved by the other partners.- The company may open one or several accounts at the bank. The Members' Council appoints a member who is authorized to deposit and withdraw money from such accounts.

In addition, Clause 4 of Article 184 of the Law on Enterprises 2020 also stipulates the obligations of the Chairman of the Members' Council, the Director or the General Director as follows:

- Manage and operate the company's daily business activities as a general partner;- Convene and organize meetings of the Members' Council; sign resolutions and decisions of the Members' Council;- Assign, coordinate business tasks among the general partners;- Organize, fully and honestly keep accounting books, invoices, documents, and other materials of the company as prescribed by law;- Represent the company as the person requesting civil matters to be resolved, the plaintiff, defendant, the person with related rights and obligations before Arbitration, Court; represent the company in exercising rights and obligations as prescribed by law;- Other obligations as stipulated by the company's charter.

For the full text of the document, see more at Law on Enterprises 2020, effective January 1, 2021.

Le Vy

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