Taking effect on the signing date, the Decision No. 41/2015/QD-TTg issued by the Government on September 15, 2015 on selling shares in blocks deals with withdrawal of state capital of unlisted public companies from joint-stock companies that have not been listed or registered on Upcom (Hanoi Stock Exchange), the ownership of which is represented by Ministries, ministerial agencies, Governmental agencies , (hereinafter referred to as regulatory Ministries), People’s Committees of central-affiliated cities and provinces (hereinafter referred to as provinces), state-owned corporations, and companies whose 100% charter capital is held by the State (hereinafter referred to as wholly state-owned companies)
At the Decision, the Prime Minister emphasizes that the sale of shares in blocks must be put up at auction via the Stock Exchange under a plan approved by a competent authority as prescribed in Article 5 of this Decision. The plan for selling shares in blocks must contain the following information: quantity of blocks of shares to be sold at
auction; quantity of shares of each block; starting price, requirements for participation in the auction; contingency plan in case the auction is unsuccessful. Shares may be divided into multiple blocks to be sold at auction depending on the quantity of shares and market development. However, only one block of shares shall be sold in an auction. The quantity of shares in a block must be at least 5% of charter capital of the joint-stock company. Particularly, investors who participate in the auction to buy shares in blocks under this Decision are not required to hold a public procurement according to regulations of law on securities and securities market.
Investors buying shares in blocks must be financially capable; commit themselves to the enterprise’s interest; have plans for keep existing employees; support the enterprise in expanding its market, improving its capacity in terms of finance, business administration, transfer and application of new technologies, training; improve the enterprise’s business efficiency and competitiveness….
Source: luatvietnam.vn
