Corporate Governance Structure of a joint-stock company in Vietnam

Hi DMS Lawyer in Vietnam! I want to start a joint-stock company in software development sector. Could you advise me about Corporate Governance Structure of a joint-stock company in Vietnam ? Thank you!

Hi!

Corporate Governance Structure of a joint-stock company in Vietnam:

Shareholding companies may select either of the following models of organization, management and operation, unless otherwise stipulated in the law on securities:

A General Meeting of Shareholders, a Board of Directors, a Suporvisory Committee and a Director or General Director. If a shareholding company has less than 11 shareholders and shareholders being organizations own less than 50 per cent of the total shares of the company, it is not required to have a Supervisory Committee;

A General Meeting of Shareholders, a Board of Directors and a Director or General Director. In this case, at least 20 per cent of the number of members of the Board of Directors must be independent members and there must be an internal audit committee under the Board of Directors. Independent members shall perform the function of supervision and organize the supervision of the management and operation of the company.

Where there is only one legal representative, the Chairman of the Board of Directors or the Director or General Director shall be the legal representative of the company. Unless otherwise stipulated in the charter, the Chairman of the Board of Directors shall be the legal representative of the company. Where there is more than one legal representative, the chairman of the Board of Directors and the Director or General Director shall automatically be the legal representatives of the company (Article 134 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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Corporate Governance Structure of a joint-stock company in Vietnam