3 CASES OF CROSS-OWNERSHIP AMONGST COMPANIES IN A CORPORATE GROUP
The Decree No. 47/2021/ND-CP detailing a number of articles of the Law on Enterprises is promulgated by the Government on April 01, 2021.
According to the Decree, the contribution of capital to, or purchase of shares of another enterprise, or establishment of a new enterprise includes the following cases: Together contribute capital to establish a new enterprise; Together purchase contributed capital amounts, purchase shares of established enterprises; Together receive the transfer of shares or contributed capital amounts from members or shareholders of established enterprises.
The business registration agency shall refuse application dossier for change of members or shareholders of a company if, during the processing of the dossier, it discovers that the contribution of capital, purchase of shares to establish a new enterprise or the transfer of shares or related contributed capital amounts is in contravention of law provisions.
In addition, information of an enterprise shall be publicly provided on the Business Portal. Reports on information disclosure must be kept on the website of the enterprise, the portal or website of the agency representing the owner and the Business Portal for at least 05 years. Enterprises disclosing information shall preserve and archive reported and announced information in accordance with the law provisions.
This Decree takes effect on the signing date.
