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Law on enterprises 2020
Legal representative of the enterprise
Accordingly, the legal representative of an enterprise is an individual; who represents the enterprise to exercise the rights and obligations arising from the transaction of the enterprise; and represents the enterprise as a plaintiff; defendant; a related rights and obligations before the Arbitrator, the Court and other rights and obligations as prescribed by law.
A limited liability company may have one or more legal representatives. The company’s charter specifies the number and management titles and rights and obligations of the legal representative of the enterprise.
Related article: Limited liability company in Vietnam: What are the pros and cons?
Responsibilities of the legal representative
The legal representative of an enterprise has the following responsibilities. If causing damage due to a breach of these obligations, he/she must be personally responsible for that act:
- To perform the assigned rights and obligations honestly, carefully, and best to ensure the legitimate interests of the enterprise;
- Loyalty to the interests of the enterprise; do not use information, know-how; business opportunities of the enterprise; do not abuse their position and position and use the assets of the enterprise for personal gain or to serve the interests of other organizations and individuals;
- To promptly, fully and accurately notify the enterprise that such representative and his/her related persons own; or have controlling shares or contributed capital in other enterprises.
Legal representative of one member limited liability company in Vietnam
Accordingly, one member limited liability company is a company owned by an individual or an organization. So, the company owner has limited liability for the business activities, debts and other property obligations of the company to the extent of the charter capital or the amount of capital contributed to the company.
In addition, Clause 2, Article 78 of the Law on Enterprises provides for the organizational and management structure of a one-member limited liability company owned by the organization. So, if the company’s charter does not provide, the Chairman of the Board of Directors shall member; or the President of the company is the legal representative of the company. Thus, if the company’s charter does not otherwise stipulate the appointment of a legal representative of the company; the Chairman of the Members’ Council or the President of the company will be the legal representative of the company for the company with the model of a one-member limited liability company; owned by the organization.
For a single-member limited liability company owned by an individual, unless the company’s charter provides otherwise; the company’s president is the company’s legal representative.
Related questions about “The legal representative of a one-member limited liability company in Vietnam”
Can foreign investors open an LLC in Vietnam?
So, Yes, they can. In Vietnam; a foreigner may choose to establish any type of business such as sole proprietorship; limited liability company; corporation shares, partnerships.
Can foreign investors establish a company with 100% foreign investment capital in Vietnam?
So, Yes, they can. According to the provision of law, foreign investors can establish a company with 100% foreign investment capital in Vietnam. Still, it will vary depending on the business line.
What type of business is the most common to foreign investors?
The two most common types of enterprises are limited liability companies and joint-stock companies.
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