Transactions that Public Companies Are Prohibited from Conducting

19:07, 11/07/2024

Public companies are restricted from conducting transactions specified in Decree 71/2017/ND-CP, except for transactions approved by the General Meeting of Shareholders.

1. Grant loans or guarantees to members of the Board of Directors, Controllers, Directors (General Directors), other managers, and individuals or organizations related to these subjects, except in the case of public companies and organizations related to shareholders that are companies within the same group or companies operating under a company group model, including parent-subsidiary companies, economic groups, and specialized legal frameworks that have different regulations.

2. Transactions leading to a total transaction value of 35% or more of the total asset value recorded in the latest financial statements between the public company and one of the following subjects:

- Members of the Board of Directors, Controllers, Directors (General Directors), other managers, and individuals related to these subjects;- Shareholders, proxies of shareholders owning over 10% of the total common capital of the company, and their related persons;- Enterprises related to the subjects specified in Clause 2, Article 159 of the Law on Enterprises.

More details can be found in Decree 71/2017/ND-CP effective from August 1, 2017.

- Ngoc Duyen -

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