Vietnam: Public company is responsible for transparency and prevention of conflict of interest

Specifically, according to the Law on Securities 2019 of Vietnam, a public company shall comply with the following regulations on transparency and prevention of conflict of interest:

- Members of the Board of Directors, Controllers, the General Director (Director) and other executive officers shall disclose their related interests; must not use the information that is obtained due to their positions for selfish purpose or to serve other organizations or individuals;

- The public company shall implement necessary measures to prevent members of the Board of Directors, Controllers, the General Director (Director), other executive officers, shareholders and related person from interfering with the company’s operation, causing damage to the company; ensure compliance to regulations on transaction with shareholders, executive officers and their related persons; protect the lawful rights and interests of people with relevant interests;

- The public company shall fully, accurately and promptly provide periodic and irregular information and about the company’s business operation, finance and administration, and other information for the shareholders and the public if such information may affect the securities prices, shareholders’ and investors’ decision making;

- The information disclosed and method of information disclosure shall comply with this Law, the company’s charter and regulations on information disclosure.

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

Ty Na

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