Is it Necessary to Amend the Company's Charter When Changing Business Lines?

Do you need to amend the company's charter when changing business lines? (Illustrative Image)

As stipulated in Clause 1, Article 25 of the Enterprise Law 2014, effective until December 31, 2020, and in Clause 2, Article 24 of the Enterprise Law 2020, effective from January 1, 2021, the company's charter must include the following essential contents:

- Name, address of the company's head office; name, address of branches and representative offices (if any);

- Business lines;

- Charter capital; total shares, types of shares and par value of each type of share for a joint-stock company;

- …

Business lines are one of the mandatory contents that must be included in the company's charter. Therefore, when changing business lines, the enterprise must amend the company's charter.

Additionally, it should be noted that in Clause 3, Article 25 of the Enterprise Law 2014, effective until December 31, 2020, and in Clause 4, Article 24 of the Enterprise Law 2020, effective from January 1, 2021, it is stipulated that the amended or supplemented company's charter must include the full names and signatures of the following individuals:

- Chairman of the Members' Council for partnerships;

- Owner, legal representative of the owner, or legal representative for a one-member limited liability company;

- Legal representative for a limited liability company with two or more members and for a joint-stock company.

More details can be found in Enterprise Law 2014, Enterprise Law 2020.

Le Vy

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