What are public companies? Application for public company registration in Vietnam

What are public companies? Application for public company registration in Vietnam (Internet image)

1. What are public companies?

Article 32 of the Law on Securities 2019 stipulates public companies as follows:

- A joint-stock company will become a public company in one of the following cases:

+ The company has a contributed charter capital of at least 30 billion VND and at least 10% of the voting shares are being held by at least 100 non-major shareholders;

+ The company has successfully made its IPO by registration with SSC as prescribed in Clause 1 Article 16 of the Law on Securities 2019.

- The joint-stock company mentioned in Point a Clause 1 of Article 32 of the Law on Securities 2019 shall submit the application for public company registration as prescribed in Clause 1 Article 33 of the Law on Securities 2019 within 90 days from the day on which the requirements specified in Point a Clause 1 of Article 32 of the Law on Securities 2019 are fully satisfied.

- Within 15 days from the receipt of the valid application from the joint-stock company mentioned in Point a Clause 1 of Article 32 of the Law on Securities 2019, or from the receipt of the report on completion of the offering prescribed in Point b Clause 1 of Article 32 of the Law on Securities 2019, SSC shall confirm the registration of the public company, publish the company’s name, operations and other information on SSC’s media.

2. Application for public company registration in Vietnam

Pursuant to Article 33 of the Law on Securities 2019, an application for public company registration consists of:

- The application form;

- The company’s charter;

- The certificate of enterprise registration;

- The information disclosure statement about the public company, including summary of the company’s organizational structure, business operations, management, shareholders, assets, financial status and other information;

- The latest annual financial statement audited by an independent audit organization. In case the company’s charter capital is increased after the end of the latest fiscal year, an audited financial statement of the latest period is required;

- The list of shareholders.

3. Rights and obligations of public companies in Vietnam

Pursuant to Article 34 of the Law on Securities 2019, the rights and obligations of public companies in Vietnam are as follows:

- After SSC confirms the public company registration, the public company shall have the following rights and obligations:

+ Disclose information in accordance with the Law on Securities 2019;

+ Comply with regulations on company administration in the Law on Securities 2019;

+ Apply for share registration at VSDCC  as prescribed in Clause 1 Article 61 of the Law on Securities 2019;

+ The public company mentioned in Point a Clause 1 Article 32 of the Law on Securities 2019 shall apply for trading shares on the trading system for unlisted securities within 30 days from the day on which SSC confirms the public company registration. After 02 years from the first day of trading on the trading system for unlisted securities, the public company may apply for listing if whenever all listing requirements are satisfied;

+ The public company mentioned in Point b Clause 1 Article 32 of the Law on Securities 2019 shall have its shares listed or registered within 30 days from the ending date of the public offering.

Note: Apart from the rights and obligations specified in Clause 1 of Article 24 of the Law on Securities 2019, a public company also has the rights and obligations specified in the Law on Enterprises and relevant laws.

Ngoc Nhi

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE