Vietnam: Application on change in charter capital to be prepared by microfinance institutions

According to Circular No. 10/2018/TT-NHNN of the State Bank of Vietnam, the application on change in charter capital includes:

- An application form for approval for the increase in charter capital, containing at least:

+ The charter capital specified in the license;

+ The expected increase in charter capital;

+ Reasons and necessity for the increase in charter capital;

+ Sources used for increasing charter capital;

+ Plan and expected duration for complete increase in charter capital;

+ The holding of contributing members (in case the change in charter capital results in a change in the holding of contributing members);

+ Expected plan for use of the increased charter capital for business activities; capacity of management and control of risks to the increased charter capital;

- A decision on approval for change in the charter capital issued by the Board of Members;

- An owner’s decision on approval for or contributing member’s written approval for increase in the charter capital;

Notably, regarding the charter capital increase resulting from additional contributions by the owner or contributing member, in addition to the documents specified above, the MFI shall supplement the following documents:

+ The owner’s or contributing member’s commitment to use legal sources to grant or contribute capital according to the plan for increasing the MFI’s charter capital;

+ A written confirmation given by the Operation Center of the State Bank or the branch of the State Bank of the area where the MFI's headquarters is located of the increased charter capital already deposited into the blocked account;

Regarding the charter capital increase resulting from additional contributions by the new contributing member, in addition to the documents specified above, the MFI shall supplement the application of the MFI’s contributing member which is the same as that of the MFI’s founding member in accordance with regulations of the State Bank on licensing, organization and operation of microfinance institutions.

View more details at Circular No. 10/2018/TT-NHNN of the State Bank of Vietnam, effective from June 01, 2018.

-Thao Uyen-

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