Business law

CHARACTERISTICS AND MANAGEMENT

OF A JOINT STOCK COMPANY IN
VIETNAM?

GROUP 4
Nguyen Thuc Huyen
Truong Anh Quan
Nguyen Quang Huy
Nguyen Quang Phu
Nguyen Dang Hung
Tran Thi Bao Ngoc
 TABLE OF CONTENTS

1 Definition 2 Characteristics 3 Structure

1. DEFINITION
WHAT DEFINES JOINT STOCK
COMPANIES ?

• A Joint-Stock Company (JSC) is a business entity referred to in

Vietnamese legislation as a shareholding company in which shares are
owned by three or more original shareholders.
• Shareholders are entitled to own company stock in proportion evidenced
by the shares
• JSC is a type of enterprise with the ability to concentrate capital more
quickly and effectively than other business models,
 It has been and is a popular business type and plays an increasingly
important role in the market economy socialist-oriented school in our
country
2 CHARACTERISTICS
Pursuant Article 111, Law on Enterprise 2020 which comes into force from 2021, a joint stock
company in Vietnam:
 Feature of joint-stock company in VietNam

=> Thus, from this concept, according to Vietnamese enterprise law, we

can understand that a JSC has the following characteristics:
• First, a joint-stock company is a company with a counterpart to capital.
• Second, a joint stock company is an enterprise with legal status.
• Third, the company's charter capital is divided into equal parts called
shares. This is a very basic feature of a JSC
• Fourthly, the freedom to transfer shares is a key feature of JSCs compared
to other types of companies.
 TYPES OF JOINT STOCK COMPANIES IN
VIETNAM
Private held corporation Public joint stock company

Listed joint stock company

Private held corporation
• Is a company that only issues shares • Very hard to increase in the
to its founders, officers, employees company's capital as it is only
and affiliates. allowed to mobilize capital from
• This is a type of registered share credit institutions or within the
that cannot be transferred or can company.
only be transferred under certain • These are normally small and
conditions within the company. newly established companies with
few shareholders, who already
know each other.
Public joint stock company
A public joint-stock company is a joint-stock company that issues shares to the public.
Listed joint stock company
• Public joint stock companies will strive to be listed on the stock exchange and become listed
joint stock companies.

• Their securities will be traded on centralized stock exchanges, and they will become leading
joint stock companies in Vietnam, with prestige and reputation, and enjoy many advantages in
production activities and capital mobilization.

• In Vietnam, Hose is considered the largest exchange and has an influence on the Vietnamese
financial market.
3. STRUCTURE
 • The General Meeting of Shareholders, the Management Board , the
Inspection Committee and the Director or General Director.
(In case a joint-stock company has less than 11 shareholders and the
shareholders are organizations holding less than 50% of the total shares of
the company, it is not required to have a Inspection Committee).

TWO BASIC
STRUCTURE • General Meeting of Shareholders, Management Board’ chairman and
Director or General Director.
(In this case, at least 20% of the members of the Management Board must be
independent members and have an Internal Audit Committee under the
Management Board. Independent members of the Management Board perform
the function of supervising and organizing the exercise of control over the
management and administration of the company.
The General Meeting

Shareholders control the company through general

meetings, it is mandatory to held those every year.
Director is mandatory to present annual reports for the
sake of proper strategies and good results.

The Inspection Committee

The Inspection Committee has the function of supervising the

Board of Directors, Director or General Director in the work
of management and operating company. The Inspection
Committee is responsible before the General Meeting of
Shareholders in performing the assigned tasks…
 Director or General Manager

The management board chose the legal representation of a company. This employee
of the company is residing in Vietnam. This person holds responsibility for the
everyday actions conducted by the company.

The Management Board

Shareholders control the company through general meetings, it is mandatory to held
those every year. Director is mandatory to present annual reports for the sake of proper
strategies and good results.

The Management Board’s Chairman

The general meeting has the right to elect members that supervise all the activities
conducted in the company.
THANK FOR LISTENING!