Vietnam: Notification of dissolution of a venture capital fund

Specifically, according to Article 15 of Decree No. 38/2018/NĐ-CP of Vietnam’s Government, notification of fund dissolution is prescribed as follows:

- Within 07 days from the date on which the fund dissolution is approved by the General meeting of investors, the fund management company must send a notice of fund dissolution using the form No. 04 enclosed herewith to the company registration office at the place where the fund's head office is located.

- The notification of the fund dissolution and liquidation shall include:

+ The minutes and resolution of the General meeting of investors on the fund dissolution, enclosed with the plan of liquidation and distribution of the fund's assets approved by the General meeting of investors, which must specify the principle of asset valuation made at the dissolution date and time-limit for asset distribution in conformity with the law regulations, the fund's Charter and valuation manual; the methods of distributing assets to investors and providing information concerning asset liquidation and distribution for investors.

+ The written commitment signed by the legal representative of the fund management company on the completion of the procedures for asset liquidation.

- The procedures for notice of the fund dissolution and liquidation, and responsibilities of the fund management company shall be the same as those for notice of establishment of venture capital fund specified in Clauses 2, 3, 4, 5 and 6 Article 11 herein.

- The asset liquidation and the time-limit for completing asset liquidation shall be performed according to the dissolution plan approved by the General meeting of investors provided that the liquidation of assets must be completed within one year from the date on which the fund dissolution is published. During the liquidation of assets, the administration costs, supervisions costs and other costs shall be paid according to the cost levels approved by the General meeting of investors.

Since the dissolution date, the fund management company must monthly provide investors with information about the payment rate for each proportion of paid-in capital, expenses incurred in the period, the remaining net asset value and value of assets distributed to investors. The information provided for investors must be also provided for the company registration office for monitoring.

- Within 05 working days from the completion of fund dissolution, the fund management company shall publish information concerning the completion of asset liquidation and distribution, and fund dissolution on its website, and at the same time, submit reports on fund dissolution results to the company registration office and the Ministry of Planning and Investment for publishing on the National SMEs support portal.

- In case the notification of fund dissolution contains inaccurate information or forged documents, the fund management company and relevant organizations/individuals shall be jointly responsible for paying outstanding debts and bear liability before the law for any consequences arising within 03 years from the date on which the reports on the fund dissolution results are sent to the company registration office.

View more details at Decree No. 38/2018/NĐ-CP of Vietnam’s Government, effective from March 11, 2018.

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE