A Vietnamese commercial bank can have a maximum number of foreign individuals owning 5% of its charter capital?
A Vietnamese commercial bank can have a maximum number of foreign individuals owning 5% of its charter capital based on the provisions of Article 7 of Decree 01/2014/ND-CP, the content is as follows:
“Share ownership ratio for foreign investors
1. The share ownership ratio of a foreign individual must not exceed 5% of the charter capital of a Vietnamese credit institution.
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5. Total share ownership of foreign investors does not exceed 30% of the charter capital of a Vietnamese commercial bank. Total share ownership of foreign investors in a Vietnamese non-bank credit institution shall comply with the provisions of law for public and listed companies.
6. In special cases, in order to restructure weak and difficult credit institutions and ensure the safety of the credit institution system, the Prime Minister shall decide on the share ownership ratio of an institution. foreign official, a foreign strategic investor, the total share ownership of foreign investors in a restructured weak joint stock credit institution exceeds the limit specified in Clauses 2 , 3, 5 This is for each specific case.
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According to the above regulations, the total share ownership of foreign individuals does not exceed 30% of the charter capital of a Vietnamese commercial bank and each foreign individual owns 5% of the charter capital.
Therefore, Vietnamese commercial banks can have a maximum of 06 foreign individuals owning 5% of charter capital at the bank.
Note: In special cases, in order to restructure weak and difficult credit institutions and ensure the safety of the credit institution system, the Prime Minister will decide on the share ownership ratio of a credit institution. foreign strategic investors,
The total share ownership of foreign investors in a weak, restructured joint stock credit institution now exceeds the prescribed limit (5%) for each specific case.
Can a foreign individual owning 5% of charter capital participate in the Board of Directors of a Vietnamese commercial bank?
Whether or not a foreign individual owning 5% of charter capital can participate in the Board of Directors of a Vietnamese commercial bank depends on the provisions in Clause 3, Article 13 of Decree 01/2014/ND-CP, content as follows:
Rights of foreign investors
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3. To participate or appoint a representative to participate in the Board of Directors, Supervisory Board, and Executives of the joint stock credit institution according to the provisions of the Charter of the joint stock credit institution in which the foreign investor is invested. Buying shares and regulations of Vietnamese law.
Thus, foreign individuals owning 5% of charter capital can participate in the Board of Directors of Vietnamese commercial banks according to the provisions of the bank's Charter and the provisions of Vietnamese law.
Is a foreign individual owning 5% of charter capital responsible for the legality of the capital source to purchase shares?
Whether a foreign individual owning 5% of charter capital is responsible for the legality of the source of capital to purchase shares or not is based on the provisions of Article 14 of Decree 01/2014/ND-CP, the content is as follows. :
Obligations of foreign investors
1. Fully fulfill the obligations of shareholders according to the provisions of Vietnamese law, the Charter of the Vietnamese credit institution in which the foreign investor purchases shares and make agreements in accordance with Vietnamese law in Share purchase and sale contracts between foreign investors and Vietnamese credit institutions.
2. Ensure and be responsible for the legality of the source of capital to purchase shares, the validity of the share purchase documents and the accuracy of the information and documents provided in accordance with the provisions of Vietnamese law .
3. Report full information and take responsibility for the accuracy of information about related persons owning shares, information about share ownership through related persons and through investment trusts. investment in Vietnamese credit institutions in which foreign investors participate in purchasing shares.
4. Transfer the full amount of capital registered to buy shares at a Vietnamese credit institution as agreed in the share purchase and sale contract between the foreign investor and the Vietnamese credit institution and in accordance with the provisions of law.
Thus, foreign individuals owning 5% of charter capital must ensure and be responsible for the legality of the capital source to purchase shares.