Subjects buy shares for the first time when converting a public service provider into a joint stock company in Vietnam

Duc Thao

11:55, 16/01/2021

Recently, the Ministry of Finance of Vietnam has just issued the Circular No. 111/2020/TT-BTC guiding a number of contents on financial handling, valuation of public service provider, initial sale of shares and management and use of proceeds from converting public service provider into joint stock companies.

According to Article 12 of the Circular No. 111/2020/TT-BTC issued by the Finance Ministry of Vietnam, subjects who buy shares for the first time when converting a public service provider into a joint stock company include:

- Domestic and foreign investors as prescribed in Clauses 1 and 2, Article 6 of the Decree No. 150/2020/ND-CP, including organizations and individuals (including employees in converted public service providers);

- Strategic investors are domestic and foreign investors, and fully satisfy the conditions specified at Point b, Clause 3, Article 6 of the Decree No. 150/2020/ND-CP;

- Subjects specified in Article 37 of the Decree No. 150/2020/ND-CP of the Government of Vietnam;

- Labor union of the transformed public service provider as prescribed at Point b, Clause 2, Article 31 of the Decree No. 150/2020/ND-CP;

Organizations and individuals are not allowed to buy shares issued for the first time of converted public service providers according to the provisions of Clause 4, Article 6 of the Decree No. 150/2020/ND-CP of the Government of Vietnam.

More details at the Circular No. 111/2020/TT-BTC issued by the Finance Ministry of Vietnam, takes effect on February 15, 2021.

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