Vietnam: The bank must not make transactions for the purpose of selling assets of the investment company

According to Article 18 of Circular No. 227/2012/TT-BTC of the Ministry of Finance of Vietnam, the General meeting of shareholders shall decide the dissolution date of the investment company. From the date on which the dissolution decision is made, the asset management company and the supervisory bank may not:

- Make investments and purchase assets for the investment company;

- Transfer the non-guaranteed debts into debts guaranteed by the assets of the investment company;

- Donate the assets of the investment company to other organizations and individuals;

- Pay contracts in which the value of the obligations of the investment company is greater than the value of the obligations of the other party; or repay debts to the creditors that are debtors of the investment company without offsetting;

- Make other transactions for the purpose of selling assets of the investment company;

- Other forbidden acts prescribed by the laws on enterprises.

The documentation, order, and procedure for requesting the State Securities Commission to initiate the dissolution of the investment company are specified in Clause 4 and Clause 5 Article 84 of the Decree No. 58/2012/ND-CP of Vietnam’s Government. The written request for the dissolution of the investment company is made in accordance with the template in Annex 13 enclosed with Circular No. 227/2012/TT-BTC.

Within 24 hours after the written request for initiating the procedure for the liquidation and dissolution is made, the investment company, asset management company, and supervisory bank are responsible for providing information as prescribed in Clause 10 Article 3 of Circular No. 227/2012/TT-BTC. Concurrently, the asset management company shall follow the procedure for delisting, canceling share registration under the guidance of the Stock Exchange and the Vietnam Securities Depository.

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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