Asia Counsel Insights gives readers a concise insight into legal and business developments in Vietnam. This edition has news on breaches of ownership limits in credit institutions, foreign invested vocational schools and colleges and advertisements of medicines. Asia Counsel is an AusCham Member.
Breach of Ownership Limit
The State Bank of Vietnam issued Circular 06-2015-TT-NHNN dated 1 June 2015 requiring all shareholding credit institutions to prepare a remedial plan to be filed with the SBV to ensure that there is no breach of the single shareholder or the foreign ownership limit set out in the Law on Credit Institutions and Decree 01. The breaches must be remedied before 31 December 2015. There are negative consequences if the breach is not remedied including the refusal of the SBV to approve any board member or authorized representative of the breaching shareholder. Shareholders in breach are not entitled to payment of dividends for the amount of shares which exceeds the cap. All credit institutions must file with their remedial plan, the shareholder register and identify any related shareholders. Circular 06 comes into effect on 15 July 2015.
For more information, please download Asia Counsel Insights 15 June 2015.
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