Luat Viet

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Question :: I am a member of the Supervisory Commission (the Commission) of a public company which is unlisted and termed from 2007 to 2010. Until now, my term is still valid. In 2009, I was [not] invited to attend any meeting of the company’s Commission. Recently, I also did not attend the Commission’s meeting to produce the Commission’s Report for submission to the General Shareholder’s Meeting (the Meeting) year 2010 on April 9. I was informed that this Commission’s Report was built by the Commissions’ Director (the another member of the Commission also did not attend). I would like to ask you whether the operation of the Commission like that is legal or not? Is the Report mentioned above legal? What should I do to comply with the rights, duties and obligations of a Commission’s member?
Question :: I am a president of the Management Board (“the Board”) of a public company. As per regulations, the term of the Board, Supervisory Commission (“the Commission”) is five (5) years. Therefore, the first term of the Board, Commission is due on November 2010. However, in order to facilitate the voting of the Board, the Commission in the second term, the Board would like to submit the General Shareholder’s Meeting (“the Meeting”) with the latest on April 19, 2010 for renewal of the first term of the Board, the Commission until April 2011. So, the question is that is the renewal true or not? If the shareholders are not taken opinions directly at the Meeting, can the Board collect opinions indirectly from shareholders in writing? If the Meeting does not pass the renewal, how can the voting of the Board, the Commission be taken in compliance with laws?
Question :: Our company registers shares at the Securities Depository Central (SDC), but cannot deposit, of which my 10.000 shares. So, can I transfer directly 2.000 shares to my brother and compliment 2.000 shares to my wife?

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LEGAL NEWS

Short-term Lending Rate and Deposit Rate Ceilings Reduced

On 8 June 2012, the State Bank issued Circular no. 20/2012/TT-NHNN setting maximum short-term lending rate in Vietnam dong applied to credit institutions and foreign bank branches. Circular no. 19/2012/TT-NHNN setting maximum mobilizing interest rate for deposits in Vietnam dong applied to credit institutions and foreign bank branches was also issued on the same day.

Under the new provisions of Circular 20/2012/TT-NHNN, short-term lending rate in Vietnam dong is capped at 13% per annum. Thus, from the effective date of this Circular, short-term lending rate ceiling no longer depends on deposit rate (+3% of the mobilizing rate) as stipulated in Circular 14/2012/TT-NHNN.

The Local People’s Credit Funds are allowed to apply the maximum rate of 14% per annum.

With respect to deposit interest rates set in Circular 19/2012/TT-NHNN, credit institutions and foreign bank branches have to reduce the deposit rate ceiling to 9% per annum, instead of the deposit rate ceiling of 11% per annum applied from 28 May 2012.

In addition, credit institutions and foreign bank branches are allowed to set their own deposit rate including promotion in any form but such rate may not exceed:

- 2% per annum with respect to non-term deposits and deposits with term of less than one month;

- 9% per annum with respect to deposits with term of from 1 month to less than 12 months; the Local People’s Credit Funds are allowed to set maximum interest rate for deposits with term of from 1 month to less than 12 months at 9,5% per annum.

- Interest rate for deposits with term of 12 months or more shall be set by credit institutions and foreign bank branches based on the supply and demand of capital in the market.

These Circulars takes effect from 11 June 2012.