How does the current Vietnamese law stipulate the form of offering shares to existing shareholders? What are the order and procedure? Let’s find out with Lawyer X through the article below.
Legal grounds
– Enterprise Law 2020
What are shares?
Shares are essentially property rights expressed in shares, which are the smallest division of the company’s charter capital. Charter capital divided into equal parts called shares. Individuals or organizations that own shares are called shareholders.
– The value of each share (par value of shares) that decided by the company and recorded in the shares. The par value of the shares may differ from the offering price of the shares.
– Shares are the legal basis to prove the status of shareholders of the company regardless of whether they participate in the establishment of the company or not.
Types of shares
Shares of a joint-stock company can exist under two types: ordinary shares and preferred shares
Common shares
If your company is a joint-stock company, your company can require to have ordinary shares. And the owners of common shares are called common shareholders.
Preference shares
A joint-stock company may have preferred shares. Owners of preferred shares are preferred shareholders. Preference shares include the following types:
– Dividend preference shares.
– Secondly, refundable preferred shares.
– Thirdly, voting preference shares.
– Besides, other preferred shares as prescribed in the company’s charter and the law on securities.
Types of shares offering
A share offering is an increase in the number of shares or types of shares that your company which entitled to offer to increase its charter capital.
Offerings of shares may be made in the following forms:
– Above all, offering shares to existing shareholders.
– Then, private placement of shares.
– Moreover, offering shares to the public.
Thus, at present, the law stipulates that there are three forms of the share offering. In the case of your company, it wants to make a share offering in the form of an offer of shares to existing shareholders. So below, lawyer X will advise more specifically on the provisions of this form. Please continue to follow.
What is an offer of shares to existing shareholders?
Offering shares to existing shareholders is a case where the company increases the number of shares, and the type of shares that entitled to offer. At the same time, sell all those shares to all shareholders in proportion to their existing share ownership in the company.
Procedures for offering shares to existing shareholders
To conduct a stock offering for existing shareholders, your company must go through four steps:
Step 1
Your company’s general meeting of shareholders must meet. At the same time, deciding to offer shares in the form of a share offering to existing shareholders.
Step 2
1. Your company must send a written notice to shareholders. This notice must be sure to reach their contacts 15 days before the end of the subscription period. This notice includes:
– Full name, contact address, nationality, number of legal papers of the individual for shareholders being individuals; name, enterprise code or number of legal papers of the organization, address of the head office, for shareholders being organizations.
– Number of shares and the current share ownership ratio of shareholders in the company.
– Besides, a total number of shares expected to be offered for sale and the number of shares shareholders are entitled to buy.
– Moreover, the share offering price.
– Then, the purchase registration deadline.
– Full name and signature of the legal representative of the company.
2. Attached to the above notice is a form of the registration form to buy shares issued by your company. If your company can not receive this form on time; that shareholder considered to have not received the right to buy priority. Shareholders have the right to transfer their priority right to buy shares to others.
3. If the number of shares offered for sale that not fully registered, the Board of Directors of your company has the right to sell these shares to the company’s shareholders and other people with conditions not more favorable than those of the company. with the previous conditions. Unless otherwise approved by the General Meeting of Shareholders of your company; or other provisions of the securities law.
Step 3
So, After the shares are paid in full, your company must:
– Issue and deliver shares to buyers.
– In case of not handing over shares, information about shareholders must record in the register of shareholders to certify ownership of shares of that shareholder in your company.
Step 4
Your company must register to change its charter capital within 10 days from the date of completion of the share sale.
Related article
Current cases of business transformation in Vietnam
Procedures for offering shares to the public of a joint-stock company in Vietnam
Frequently asked questions
The answer is yes. Your company can sell shares without handing over shares. In this case, the information about the fund shareholder recorded in the register of shareholders is enough to attest to that shareholder’s ownership of shares in your company.
The answer is no. According to current law, ordinary shares cannot be converted into preferred shares. Currently, the law only allows preference shares that can be converted into common shares according to the resolution of the General Meeting of Shareholders.
Services of Lawyer X
Prestigious professional services: Firstly, the team of consultants and consultants for many years in the field of civil status, and customer support.
On-time: Certainly, with the motto “Get your lawyer right at your fingertips”, we ensure the service always performs on time. The rights and interests of customers always come first.
Cost: Besides, Lawyer X’s service costs are highly competitive; depending on the nature of the particular case. So, we want our guests to have the best possible service experience. Therefore, costs which guaranteed to be the most suitable and economical for customers.
Confidentiality of client information: Finally, all personal information of clients Lawyer X will be 100% confidential.
Please contact us immediately with questions about the “Form of offering shares to existing shareholders in Vietnam”
Contact LSX Lawfirm
Finally, we hope this article is useful for you to answer the question: “Form of offering shares to existing shareholders in Vietnam”. If you need any further information, please contact LSX Law firm: at +84846175333 or Email: [email protected]
Conclusion: So the above is Form of offering shares to existing shareholders in Vietnam. Hopefully with this article can help you in life, please always follow and read our good articles on the website: lsxlawfirm.com
