Stipulation on 06 Forms of Investment Outside the Parent Company - Vietnam Oil and Gas Group

At Clause 2, Article 7 of Decree 06/2015/ND-CP stipulates that the Parent Company - Vietnam Oil and Gas Group is permitted to invest abroad in the following 06 forms:

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- Investment in the establishment of a single-member limited liability company;- Contribution of capital to establish a joint-stock company, limited liability company, partnership company, joint venture company, affiliated company; capital contribution to Business Cooperation Contracts (BCC) without establishing a new legal entity;- Purchase of shares or capital contribution in joint-stock companies, limited liability companies, joint venture companies, partnership companies;- Acquisition of another company;- Purchase of government bonds, corporate bonds to earn interest;- Other forms of investment as prescribed by law.

It should be noted that the Parent Company is not allowed to contribute capital to businesses engaged in real estate or invest in real estate projects, nor is it allowed to contribute capital, purchase shares in banks, insurers, securities companies, venture capital funds, securities investment funds, or securities investment companies, except in special cases as decided by the Prime Minister of the Government of Vietnam. For the invested capital in the fields mentioned above that are not permitted by the Prime Minister of the Government of Vietnam, the Parent Company is responsible for developing a restructuring plan to divest all invested capital according to regulations.

The Parent Company is not allowed to invest or contribute capital to buy shares of other businesses where the manager, operator, or main owner of these businesses is the spouse, parent, child, sibling of the members of the Board of Members, Controllers, Board of Directors, and Chief Accountant of the Parent Company.

In addition to these restrictions on capital contribution, the Parent Company must also limit the following forms of investment:

- Subsidiary companies are not allowed to invest in or contribute capital to the Parent Company.- Subsidiaries and dependent accounting units of the Parent Company are not allowed to contribute capital with the Parent Company to establish a new enterprise; they are not allowed to contribute capital or buy shares during the equitization of units within the same Group or Parent Company - Subsidiary Complex.

See details at: Decree 06/2015/ND-CP effective from March 1, 2015.

Thu Ba

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