Regulations on the Board of Controllers of credit institutions that are joint stock companies in Vietnam as of July 1, 2024

Regulations on the Board of Controllers of credit institutions that are joint stock companies in Vietnam as of July 1, 2024 (Internet image)

Regarding this matter, LawNet would like to answer as follows:

On January 18, 2024, the National Assembly passed the Law on Credit Institutions 2024.

Regulations on the Board of Controllers of credit institutions that are joint stock companies in Vietnam as of July 1, 2024

According to Article 51 of the Law on Credit Institutions 2024, regulations on the Board of Controllers of credit institutions that are joint stock companies are as follows:

- The Board of Controllers shall conduct supervision and assessment of the observance of law, internal regulations, charter, resolutions and decisions of the General Meeting of Shareholders or owners, the Board of Directors and Board of Members.

- The Board of Controllers of a commercial bank shall have at least 05 members. The Board of Controllers of a credit institution shall have at least 03 members. The number of members of the Board of Controllers shall be specified in the credit institution's charter.

- The Board of Controllers shall have an assistance department and an internal audit department to perform its tasks.

- The term of the Board of Controllers shall not exceed 05 years. A member of the Board of Controllers shall have the same term of office as the Board of Controllers, except for the case specified in Clause 5 of Article 51 of the Law on Credit Institutions 2024. The term of office of an added or replaced member of the Board of Controllers is the remaining term of the Board of Controllers. The Board of Controllers of the previous term shall continue to operate until the Board of Controllers of the new term takes over its work

- The term of the Head and a member of the Board of Controllers in the credit institution that is a single-member limited liability company shall be specified in the credit institution’s charter and shall not exceed 05 years.

- When the number of members of the Board of Controllers is less than the minimum number of members prescribed in Clause 2 of Article 51 of the Law on Credit Institutions 2024, within 90 days from the date on which the minimum number of members is insufficient, the credit institution shall elect and add members to the Board of Controllers in order to ensure that the minimum number of members is sufficient, except for the case specified in Clause 5 Article 166 of the Law on Credit Institutions 2024.

+ The quantity of members, structure, tenure of the Board of Directors, the Board of Members, the Board of Controllers of each credit institution placed under special control shall be decided by the State Bank according to its performance.

In case where a new Board of Directors, Board of Members or Board of Controllers is not elected at the end of the tenure, the current one shall keep carrying out administration and control of the credit institution as prescribed by law until the new Board of Directors, Board of Members or Board of Controllers elected takes over its works.

More details can be found in the Law on Credit Institutions 2024 which comes into force from July 1, 2024, except for Clause 3, Article 200 and Clause 15, Article 210 of the Law on Credit Institutions 2024, which comes into force from January 1, 2025.

The Law on Credit Institutions 2010 expires from the date the Law on Credit Institutions 2024 comes into force, except for the provisions in Clauses 1, 2, 3, 4, 8, 9, 12 and 14, Article 210 of the Law on Credit Institutions 2024.

To Quoc Trinh

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE