Vietnam: 06 rules for administration of public companies

According to Article 40 of the Law on Securities 2019 of Vietnam, administration of public companies shall comply with regulations of this Law, the Law on Enterprises of Vietnam, relevant laws and the following rules:

1. The administration structure shall be reasonable and effective;

2. Ensure effectiveness of the Board of Directors and the Board of Controllers; strengthen the accountability of the Board of Directors to the company and its shareholders;

3. Ensure the rights and equality of shareholders;

4. Ensure the roles of investors, the securities market and intermediate organizations in assisting the company administration;

5. Respect and protect the lawful rights and interests of the parties in company administration;

6. Punctually, adequately, accurately and transparently disclose information about the company’s operation; ensure equal accessibility of information to all shareholders.

Besides, this Law also stipulates that Shareholders of a public company shall:

- Have the right to equal treatment;

- Have accessibility to information periodically and irregularly published by the company as prescribed by law;

- Have their the lawful rights and interests protected; have the right to request suspension or cancellation of a Resolution or decision of the General Meeting of Shareholders or Board of Directors as prescribed by the Law on Enterprises of Vietnam;

- Not take advantage of the major shareholder’s status to influence rights and interests of the company and other shareholders as prescribed by law and the company’s charter; disclose information as prescribed by law;

- Have other rights and obligations prescribed by law and the company’s charter.

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

Ty Na

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