Capital of joint-stock companies in Vietnam

Hi DMS Attorney in Vietnam! Can you let me know about the charter capital of a shareholding company in Vietnam ? 

Hi!

Capital of shareholding companies:

Charter capital of a shareholding company means the total aggregate par value of all classes of sold shares. The charter capital of a shareholding company at the time of registration for establishment of enterprise shall be the total aggregate par value of all classes of shares which have been registered for subscription and stated in the charter of the company.

Sold shares means the number of shares entitled to be offered for sale for which shareholders have paid in full to the company. At the time of registration for establishment of enterprise, sold shares shall be the total number of all classes of shares which have been registered for subscription.

Shares entitled to be offered for sale of a shareholding company means the total number of all classes of shares which the General Meeting of Shareholders decides to offer for sale in order to raise capital. The number of shares entitled to be offered for sale of a shareholding company at the time of enterprise registration shall be the total number of all classes of shares which the company will sell to raise capital, including shares which have been registered for subscription and shares which have not been registered for subscription.

Unsold shares mean shares which may be offered for sale and have not been paid for. At the time of registration for establishment of enterprise, unsold shares shall be the total number of shares which shareholders have not yet registered for subscription.

A company may change its charter capital in the following cases:

According to a decision of the General Meeting of Shareholders, the company shall return part of the capital contribution to the shareholders in proportion to their ownership percentages of shares in the company if the company has conducted business activities for two consecutive years from the date of enterprise registration, and must ensure payment of all debts and other property obligations upon return to the shareholders;

The company redeems issued shares in accordance with Articles 129 and 130 of this Law;

The shareholders fail to pay for the charter capital in full and on time in accordance with Article 112 of this Law (Article 111, Law on Enterprises No.68/2014/QH13 dated 11/26/2014).

Related topics:

Conversion of shareholding companies into limited liability companies

Conversion of limited liability companies into shareholding companies

Consulting services:

Phone: 0914 165 703 or email: dmslawfirm@gmail.com

Capital of joint-stock companies in Vietnam