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Question :: Some enterprises have recently issued convertible bonds in the Stock Market. What is the convertible bond and conditions to issue convertible bonds ?
Question :: Shares of my Company are listed on the HOSE. The enterprise intended to increase its charter capital under the form of issuing additional shares to offer investors in 2009. Nevertheless, when the enterprise registered the dossier to increase its charter capital with the competent Planning and Investment Department, this competent authority did not accept the vote counting minutes, which collects the shareholders’ written opinion. As a result, the Planning and Investment Department requested the enterprise to supply the copy of the Minutes of the General Meeting of Shareholders of the Company. Please kindly advise how the law regulates this case?
Question :: We are a bank accepted by the State Securities Commission (SSC) to issue share to public to increase the charter capital. Under the applicable regulations, the invested capital by the Investors to purchase shares of an enterprise must deposit in an escrow bank account at a commercial bank (CB). Please kindly advise whether we are permitted to open such bank account at our bank or not?

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LEGAL NEWS

Management of expenses for construction investment projects

The Government issued Decree No. 112/2009/ND-CP guiding the management of expenses for construction investment projects, applicable to natural persons or legal entities managing the expenses of the 30% state-funded construction projects (“Construction project”).

The Decree covers all aspects of expense management of construction projects, namely objects of application; total investment; construction cost estimates; construction norms and price; professional capacity conditions of management service providers, either a person or organization; rights and obligations of the investment decision makers, investors, construction, etc, in the course of managing the expense of construction projects.

Accordingly, the individuals and organizations involved in expense management must satisfy the conditions on capacity of preparing and verifying the total investment estimation, evaluating efficacy of the construction project, measuring and separating work volumes; preparing and verifying construction cost estimates; controlling the construction cost, etc.

The professional capacity of the expense management organizations are determined relying on the number of construction valuation engineers of the company and accordingly classified into two grades:

- Management consultancy organization – Grade 1 (providing the consultant service to projects of national importance, projects of Group A, B and C and the projects which is subject only to requirement of econo-technical reports): at least 5 employees holding Certificates of Grade -1 Construction Valuation Engineer.

- Management consultancy organization – Grade 2 (providing the services as the Grade 1 organizations do but the preparation of the total capital estimates, efficacy evaluation and the cost control with regard to projects of national importance): at least 3 employees holding Certificates of Grade -2 Construction Valuation Engineer or 1 holding Certificate of Grade -1 Construction Valuation Engineer.

- For organizations that fail to meet grading conditions, they are permitted to advise on construction expense management for projects which only require the technical – economic report.

Individuals’ professional capacity is determined in form of the Certificate of Construction Valuation Engineer granted by the Director of provincial Construction Department. Two conditions for an individual to provide consultant services in this area are Certificate of Construction Valuation Engineer and registration for such consultancy business. Those who hold the Certificate and fail to register the consultancy business can provide the expense management service only but are not allowed to sign the reports or verification statement relating to the service.

The Decree comes into effect on 1 February 2010 and shall supersede the regulations of construction expense management under Decree no. 99/2007/ND-CP dated 13 June 2007 and Decree no. 03/2008/ND-CP amending and supplementing several provisions of Decree no. 99.