Vietnam: Persons eligible to purchase discounted shares upon equitization of enterprises

According to Circular No. 07/2018/TT-BLDTBXH of the Ministry of Labor, War Invalids and Social Affairs of Vietnam, the following persons are eligible to purchase discounted:

- Employees working under employment contracts for equitized enterprises on the date of enterprise valuation.

- Employees working for equitized enterprises on the date of enterprise valuation and appointed to be full-time representatives of the equitized enterprises’ capital (except the employees working for parent companies on the date of equitized enterprise valuation and appointed to be full-time representatives of the parent companies’ capital in level II enterprises in the case of equitization of parent companies of state-owned economic groups, parent companies of state corporations or parent companies in groups of parent companies and subsidiaries) that have not been eligible to purchase discounted shares from other enterprises.

- Managers of equitized enterprises on the date of equitized enterprise valuation.

- Employees working under employment contracts and managers (including full-time representatives of the parent companies' capital) of enterprises (level II enterprises) that have not been eligible to purchase discounted shares from other enterprises on the date of equitized enterprise valuation in the case of equitization of parent companies of state-owned economic groups, parent companies of state corporations or parent companies in groups of parent companies and subsidiaries.

Representatives of household businesses to receive fixed funding (if any) of equitized enterprises on the date of equitized enterprise valuation.

Circular No. 07/2018/TT-BLDTBXH stipulates that the equitized enterprise shall compile a list of persons who are eligible to purchase discounted shares by adopting the Forms as prescribed.

Circular No. 07/2018/TT-BLDTBXH of the Ministry of Labor, War Invalids and Social Affairs of Vietnam takes effect from September 15, 2018.

-Thao Uyen-

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