Regulations on involuntary delisting in Vietnam

According to Article 38 of the Law on Securities 2019 of Vietnam, the public company shall send the State Securities Commission (SSC) a notice enclosed with a list of shareholders provided by Vietnam Securities Depository and Clearing Corporation (VSDCC) within 15 days from the day on which the contributed charter capital is found to be under 30 billion VND according to the latest audited financial statement, or the composition of shareholders is found to be unconformable the requirements that the company has a contributed charter capital of at least 30 billion VND and at least 10% of the voting shares are being held by at least 100 non-major shareholders according to confirmation of VSDCC.

In case a public company fails to fully satisfy the requirements for listing after 01 year from the day on which it no longer fully satisfies the requirements that the company has a contributed charter capital of at least 30 billion VND and at least 10% of the voting shares are being held by at least 100 non-major shareholders, SSC shall consider delisting it.

- The company shall fully comply with regulations on public companies until SSC issues a delisting notice.

- Within 07 working days from the receipt of SSC’s notice of delisting, the company shall announce the delisting on its website and the media of SSC and Vietnam Stock Exchange (VSE), follow procedures for delisting or deregistration as prescribed by law.

- The Minister of Finance of Vietnam shall promulgate regulations on delisting of public companies due to reorganization, dissolution and bankruptcy.

View more details at the Law on Securities 2019 of Vietnam, effective from January 01, 2021.

Ty Na

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE