Chairman of the Board of Directors Shall Not Concurrently Hold the Position of General Director in the Same Company

09:35, 11/07/2024

This is an important new content in Decree 71/2017/ND-CP providing guidance on corporate governance for public companies.

Membership of the Board of Directors (BOD) of a public company has noted some important points as follows:

- From August 1, 2020: The Chairman of the BOD is not allowed to concurrently hold the position of Director (General Director) of the same public company.

Prior to this time, the Chairman of the BOD could concurrently hold the position of Director (General Director) of the same public company;

- From August 1, 2019: A member of the BOD of a public company is not allowed to concurrently hold the position of a BOD member in more than 5 other companies.

According to Decree 71, the General Meeting of Shareholders is authorized to approve the internal governance rules of the company formulated by the Board of Directors and ensure that these internal rules comply with legal regulations and the company's Charter.

Decree 71/2017/ND-CP took effect from August 1, 2017, repealing Circular 121/2012/TT-BTC.

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