Vietnam: Shareholders of the public investment company pay for the shares on time

According to Article 12 of Circular No. 227/2012/TT-BTC of the Ministry of Finance of Vietnam, shareholders of the investment company have the following rights and obligations:

- The right to fair treatment. Each share brings its holder equal rights, obligations, and interests;

- The right to free transfer of shares, unless the transfer is restricted as prescribed by law and the charter of the investment company;

- The right to receive all periodic and irregular information about activities of the investment company;

- The right and obligation to attend meetings of the General meeting of shareholders, and to vote directly or via a representative or from a distance;

- The obligation to pay for the shares within the period prescribed in the charter of the investment company, the prospectus, and the responsibility for the financial obligation of the investment company within the paid amount when buying shares;

- Other rights and obligations as prescribed by laws on securities and the charter of the investment company.

In particular, the shareholders or groups of shareholder that own more than 10% of the shares outstanding for at least consecutive 06 months, or a smaller proportion prescribed in the charter, have the rights to:

- Suggest persons for the Board of Directors. The order and procedure for suggestion are specified in relevant laws on enterprises and securities applicable to public companies;

- Consider and make copies of the records and resolutions of the Board of Directors, annual financial statements, and reports of the supervisory bank on activities of the investment company;

- Request the asset management company to convene irregular meetings General meeting of shareholders in the following cases:

+ There is evidence that the asset management company or supervisory bank violates the rights of shareholders, obligations of the asset management company, the supervisory bank, or make decisions beyond the authority which is prescribed in the charter of the investment company, the supervision contract, or delegated by the General meeting of shareholders, and cause damage to the investment company;

+ The tenure of the Board of Directors (06 months) is over, and no voting is held;

+ Other cases prescribed in the charter of the investment company.

- Request the asset management company and supervisory bank to explain the unusual issues related to the assets, the management, and transactions of assets of the investment company. The asset management company and supervisory bank must send a written reply to the shareholder within 15 days from the date on which the written request is received.

- Suggest bringing issues to the meeting of the General meeting of shareholders. Suggestions must be made in writing and sent to the asset management company at least 03 working days before the opening date, unless otherwise prescribed by the charter of the investment company;

- Other rights and obligations as prescribed by the charter of the investment company.

View more details at Circular No. 227/2012/TT-BTC of the Ministry of Finance of Vietnam, effective from July 01, 2013.

Le Vy

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