Vietnam: Delisting of public company without notice shall be sanctioned from January 01, 2021

06:40, 07/01/2021

This is a notable content of the Decree No. 156/2020/NĐ-CP prescribing penalties for administrative violations against regulations on securities and securities market.

hủy tư cách công ty đại chúng, Nghị định 156/2020/NĐ-CP

According to Article 14 of the Decree No. 156/2020/NĐ-CP of the Vietnam’s Government, violations against regulations on delisting of public company are as follows:

- The following penalties shall be imposed for committing violations against regulations on notification to the State Securities Commission of Vietnam (SSC) when failing to satisfy the eligibility requirements for a public company laid down in Article 32 of the Law on Securities of Vietnam:

+ A warning shall be imposed for late submission of notice to SSC of less than 15 days after the prescribed deadline;

+ A fine ranging from VND 5.000.000 to VND 10.000.000 shall be imposed for late submission of notice to SSC of 15 days or more after the prescribed deadline;

+ A fine ranging from VND 10.000.000 to VND 15.000.000 shall be imposed for failing to send notice to SSC as prescribed.

- A fine ranging from VND 30.000.000 to VND 50.000.000 shall be imposed for failing to submit an application for delisting as prescribed in Article 39 of the Law on Securities of Vietnam in case such application is compulsory.

The Decree No. 108/2013/NĐ-CP (amended by the Decree No. 145/2016/NĐ-CP) did not mention violations against regulations on delisting of public company. Thus, delisting of public company is a new provision, of which the highest fine is VND 50.000.000 for violations.

More details at the Decree No. 156/2020/NĐ-CP of the Vietnam’s Government, effective from January 01, 2021.

Phuong Thanh

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