Regulation of governing bodies Corporate law in Vietnam

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1 regulation of governing bodies

1.1 ownership
1.2 executive
1.3 inspection





regulation of governing bodies
ownership

the ownership powers of enterprises vested in mc/chairman llcs , in sm , bom scs. highest decision making bodies each enterprise , tasked passing of resolutions, amending company charter , setting out general direction of company, etc. resolution can passed minimum percentage approval. such rule put in place ensure interests of shareholders protected.


executive

the director, appointed ownership institutions of enterprise, has executive powers , oversees day-to-day running of company scs , llcs. legally responsible implementation of delegated rights , obligations. directors of llcs cannot affiliated member of mc, ensuring separation of powers between company s ownership , management.


however, scs, loe permits persons take dual roles director , chairman of bom. 1 survey found 75% of chairmen of bom directors of company. furthermore, other members of bom majority shareholders , managers of company. highlights indefinite differentiation between ownership , management.


inspection

the loe prescribes formation of mandatory ic monitor , check ownership , executive powers. members of ic must minimally possess professional qualifications or accounting/auditing work experience, , cannot related members of ownership or executive bodies. ensures impartiality , prevents conflict of interests. however, in scs, while members of ic cannot hold managerial positions in company, allowed own company shares or general employee of company.








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