Increasing or decreasing charter capital against regulations of law shall be fined up to VND 100 million

According to Article 31 of the Decree No. 156/2020/NĐ-CP of the Vietnam’s Government, sanctioning of administrative violations against regulations on establishment of private funds are specified as following:

- A fine ranging from VND 50.000.000 to VND 70.000.000 shall be imposed for failing to revise the application for establishment of a private fund when finding inaccurate, inadequate or misleading information or any new information related to the submitted application.

- A fine ranging from VND 70.000.000 to VND 100.000.000 shall be imposed for committing one of the following violations:

+ Using mass media for advertising, raising capital or making market surveys during the establishment of a private fund;

+ Increasing or decreasing charter capital against regulations of law.

- A fine ranging from VND 100.000.000 to VND 150.000.000 shall be imposed for committing one of the following violations:

+ Failing to submit reports on establishment of private fund as prescribed by law or establishing a private fund before fulfilling establishment requirements set forth in law;

+ Failing to submit reports on risks or loss of the fund’s assets by the prescribed deadline.

- A fine ranging from VND 400.000.000 to VND 500.000.000 shall be imposed for preparing or making certification on the application for establishment of a private fund which contains false information or conceals true information.

Thus, it can be seen that increasing or decreasing charter capital against regulations of law shall be fined up to VND 100 million. However, it should be noted that this fine is imposed for organization, and the fine imposed upon an individual shall be a half of the fine imposed upon an organization for committing the same violation.

Besides, the violating entity is compelled to remove or correct information in case of preparing or making certification on the application for establishment of a private fund which contains false information or conceals true information.

More details at the Decree No. 156/2020/NĐ-CP of the Vietnam’s Government, effective from January 01, 2021.

Ty Na

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