A joint-stock company is a enterprise of which:

1. A joint-stock company is a enterprise of which:

accounting-services-in-vietnam2a) Charter capital is split into multiple units of equal value called shares;

b) Shareholders may be organizations and individuals; the minimum quantity of shareholders is 03; the maximum quantity is not restricted.

c) Shareholders are only liable for the enterprise’s debts and other liabilities up to the value of capital contributed to the enterprise;

d) Shareholders are entitled to transfer their shares to other persons, except for the cases in Clause 3 Article 119 and Clause 1 Article 126 of this Law.

2. A joint-stock company has its legal status from the issuance date of the Certificate of Business registration.

3. Joint-stock companies are entitled to issue various types of shares to raise capital.

Article 111. Capital of joint-stock companies

1. Charter capital of a joint-stock company is to total face value of sold shares. Charter capital of a joint-stock company on the business registration date is total face value of registered shares of various types. Charter capital is specified in the company’s charter.

2. Sold shares are the amount of authorized shares that have been paid-off by shareholders to the company. On the enterprise registration date, sold shares are the total amount of registered shares.

3. Authorized shares are the total amount of shares of various types that the General Meeting of Shareholders decides to offer to raise capital. The amount of authorized shares on the business registration date is the total amount of shares of various types that will be sold by the company to raise capital, including registered shares and unregistered shares.

accounting-services-in-vietnam14. Unsold shares are authorized shares that have not been paid-off. On the enterprise registration date, unsold shares are the total amount of shares that are not registered by shareholders.

5. The company may changes its charter capital in the following cases:

a) According to a decision of the General Meeting of Shareholders, the company returns part of the stakes to shareholders in proportion to their holding, provided that the company has continued its business operation for more than 02 years from the business registration date, and that all debts and liabilities can be paid after the return;

b) The company repurchases issued shares as prescribed in Article 129 and Article 130 of this Law;

c) Charter capital is not contributed fully and punctually by members as prescribed in Article 112 of this Law.