Trang chủNewsQuestion and AnswerWhich case must reduce the charter capital of a joint stock company?

Date: 21/10/2020

 

 
Question: Please indicate the reduction of charter capital of a joint stock company?
 
 
 
Answer:
 
 
According to the Law on Enterprises 2014,joint-stock companies shall be entitled to reduce charter capital in three cases as follows:
 
 
a) According to a decision of the General Meeting of Shareholders, the company returns part of the stakes to shareholders in proportion to their holding, provided that the company has continued its business operation for more than 02 years from the business registration date, and that all debts and liabilities can be paid after the return;
 
 
b) The company repurchases issued shares as prescribed in Article 129 and Article 130 of this Law;
 
 
c) Charter capital is not contributed fully and punctually by shareholders as prescribed in Article 112 of this Law.
 
 
 

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