General meeting of shareholders of an investment company in Vietnam shall decide the investment targets

 General meeting of shareholders of an investment company in Vietnam shall decide the investment targets (Internet image)

Article 13 of Circular 227/2012/TT-BTC stipulates that the General meeting of shareholders of an investment company in Vietnam is convene by the asset management company, and shall decide:

• The revisions of the charter of the investment company and the supervision contract;

• The changes of the investment policies and targets, the ownership ratio of foreign investors in the investment company; the changes of the profit distribution plan; the increase of the payment to the asset management company and supervisory bank; the replacement of the asset management company and supervisory bank;

• The merger, amalgamation, dissolution, capital increase; and expansion of the operation of the investment company;

• The approval for the contracts and transactions between the investment company and the shareholders that own more than 35% of shares outstanding, their representatives, and members of the Board of Directors of the investment company. In this case the shareholders having relevant benefits must not vote. The contracts and transactions are approved when a number of shareholders that represent at least 65% of the votes agree;

• The election and dismissal of the President and members of the Board of Directors; the wages and operating cost of the Board of Directors; the selection of the accredited audit organization to audit annual financial statements, and the selection of independent valuation organizations (if any); and the approval for the Financial statements, the annual reports on assets and operation of the investment company;

• Examine and handle the violations committed by the asset management company, the supervisory bank, and members of the Board of Directors that cause damage to the investment company.

• Other issues within its authority as prescribed by laws on enterprises, securities, and by the charter of the investment company.

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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