Offering and transferring shares in Vietnamese enterprises
Offering and transferring shares in an enterprise is implemented for a variety of reasons, such as:
i) Transferring internal shares of founding shareholders, transferring internal shares of ordinary ones;
ii) Issuing additional shares to increase charter capital for small-sized enterprises;
iii) Issuing additional shares to increase charter capital for large-sized enterprises (issuing stocks);
iv) Transferring activities regarding to the aspect of enterprise acquisition and merging;
This activity is basically regulated by the Law on Enterprise for conditions and procedure orders of offering and transfer. For large-scale offerings on the securities market, this activity is subject to the Securities Law in terms of the order and procedures.
As another aspect of this activity, the Investment Law and specialized business laws also stipulate a number of enterprises operating in certain conditional business lines, including business conditions and share ownership ratio of foreign investors in enterprises.
The Competition law is also referred to these transactions if they are likely to form monopoly or economic concentration.
Parties involved in shares offering and transferring probably should pay attention to regulations on taxation, payment, insurance and derivative transactions.
In addition to the domestic law source of Vietnam, multilateral, bilateral agreements and internationally recognized practices are also the basis for referencing and reviewing when these activities conducted.
BFSC Law Firm’s lawyers will give exact and detailed legal advices when providing any legal services.