Directors’ remuneration in a joint-stock company in Vietnam

Hi DMS Attorney in Vietnam! We are going to incorporate a joint-stock company in Vietnam. Could you advise me about regulations in relation to Directors’ remuneration and disclosure of Directors’ remuneration in a joint-stock company in Vietnam ? Thanks!

Hi!

Remuneration, salary and other benefits of members of Board of Directors, Director or General Director

The company is entitled to pay remuneration to members of the Board of Directors and salary to the Director or General Director and other managers based on the business results and efficiency.

Unless otherwise stipulated in the charter of the company, the remuneration, salary and other benefits of members of the Board of Directors and the Director or General Director shall be paid in accordance with the following provisions:

- Members of the Board of Directors are entitled to remuneration for work and bonuses. Remuneration for work shall be calculated on the basis of the working days which are necessary to fulfill the duties of the members of the Board of Directors and the daily rate of remuneration. The Board of Directors shall estimate the remuneration for each member on the principle of agreement. The total amount of remuneration for the Board of Directors shall be decided by the General Meeting of Shareholders at the annual meeting;

- Members of the Board of Directors are entitled to reimbursement of expenses for meals, accommodation and travel and other reasonable expenses they have incurred in order to fulfill their delegated duties;

- The Director or General Director is entitled to salary and bonus. The salary of the Director or General Director shall be decided by the Board of Directors.

The remuneration of members of the Board of Directors and the salary of the Director or General Director and other managers shall be included in the business expenses of the company in accordance with the law on corporate income tax and shall be presented as a separate item in the annual financial statements of the company and shall be reported to the annual General Meeting of Shareholders (Article 158 Law on Enterprises No.68/2014/QH13 dated 11/26/2014).

Related topics:

Establish a joint-stock company in Da Nang, Vietnam

Set up a shareholding company, partly owned by foreign investors in Vietnam.

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Directors’ remuneration in a joint-stock company in Vietnam