Question:
Please indicate how the rights of shareholders or groups of major shareholders are regulated?
Answer:
According to Clause 2, Article 114 of the Law on Enterprises any shareholder or group of shareholders that holds at least 10% of ordinary shares for at least 06 consecutive months (or a smaller amount prescribed by the company’s charter) shall have the right to:
a) Nominate candidates for the Board of Directors and the Control Board;
b) Examine, copy minutes of meetings and Resolutions of the Board of Directors, mid-year and annual financial statement using the forms of Vietnam’s Accounting System, and reports of the Control Board;
c) Request convention of the General Meeting of Shareholders in the cases mentioned in Clause 3 of this Article;
d) Request the Control Board to inspect each issue related to the company’s administration where necessary. The request shall be made in writing, bear the full name, address, Nationality, ID/passport number if the shareholder is an individual; name, permanent residence, nationality, establishment decision number or business registration number if the shareholder is an organization; the holding and time of shares registration of each shareholder; total shares of the group of shareholders and the proportion of shares to the company’s total shares; the issues that need inspecting, and inspection purposes;
e) Exercise other rights prescribed in this Law and the company’s charter.