Apolat Legal

In this update: 1) The definition ‘’Organization executing the program that awards shares issued in foreign nation’’ is amended in Article 3, Circular 10/2016/TT-NHNN, 2) Circular 10/2016/TT-NHNN supplementing regulations on implementation principles related to the purpose of the share awarding program.

1. The definition ‘’Organization executing the program that awards shares issued in foreign nation’’ is amended in Article 3, Circular 10/2016/TT-NHNN

Circular 10/2016/TT-NHNN guiding certain contents in the Government’s decree No. 135/2015/ND-CP dated December 31st, 2015 providing for regulations on foreign portfolio investment (Circular 10) issued on June 29th, 2016 has regulations on the definition of presence of foreign organizations in Vietnam in Clause 3, Article 3 as follows: “Organization executing the program that awards shares issued in foreign nation refers to a commercial presence of foreign organization in Vietnam…”

Regarding the above-mentioned definition, the State Bank proposes amendments to ensure compliance with the actual situations that arise during the implementation of regulations when bonus share programs of foreign organizations in reality often for subsidiaries and affiliated companies directly or indirectly owned by the foreign organizations. The specific amendment content drafted by the State Bank is as follows: “The organization implementing the program that awards shares issued in foreign nations refers to a commercial presence in Vietnam and is directly or indirectly owned by a foreign organization, including: economic organizations with foreign investment capital, branches, representative offices, executive offices of foreign parties in business cooperation contracts and other forms of presence according to the provisions of law (hereinafter referred to as the organization implementing the share awarding program) may participate in the share awarding program of the Foreign organization. 

2. Circular 10/2016/TT-NHNN supplementing regulations on implementation principles related to the purpose of the share awarding program

During the process of reviewing and confirming registration documents, realizing that the purpose of the share awarding program is not to encourage and engage employees, so draft Circular 10 supplements regulations on cases where an employee can/not participate in the share awarding program, specifically:

  1. Vietnamese employees are eligible to participate in the share awarding program issued by foreign organizations to motivate, encourage, and engage employees with achievements, dedication, and long-term commitment to the organization.
  2. Vietnamese employees are not allowed to participate in the share awarding program issued by foreign organizations with the purpose and nature of being an investment abroad to offer shares to increase capital and support payment accounts for foreign organizations.

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Apolat Legal

Established in 2014, Apolat Legal is a licensed law firm providing a board range of legal services in multiple practice areas for domestic and international clients. The firm commits resolving legal issues regarding businesses thoroughly and in the most beneficial way for various clients in Vietnam.

Apolat Legal is also honored to receive numerous recognitions and/or articles posted by world-leading and local organizations and publications including: The Law Association for Asia and the Pacific (LawAsia, 1966), The Legal500, IP Link, AIPPI, IP Coster, Lexology, Global Trade Review (GTR), The Saigon Times, etc.

Apolat Legal lawyers have long been recognized for their legal expertise and paid attention to their dedication in work as well as the capacity to take advantages from their relationship to maximize the interests of clients. The lawyers will be grouped into specialized teams, directly participate in each case to provide advices and close support to customers, thereby quickly completing the assigned work in the most effective way.

APOLAT LEGAL’s reputation and the quality of its services are reflected by its clients. We are serving nearly 1,000 clients both local and foreign clients. Some past and current long-term clients which the firm worked with such as: LG Electronics, Coastal Living Land Joint Stock Company, Wall Street English, Hochiki Asia Pacific Pte.Ltd, Asus Technology (Vietnam) Company Limited, AEON Mall Vietnam, Baskin Robbin, Citigym, Woori Bank Vietnam Limited, Central Group, CJ Gemadept Logistics Holdings Company Limited, K Group Company Limited, Digiworld Corp., Yellow Cab Pizza, Bamboo Capital Joint Stock Company, Sinobright Pharma Co. Limited, Mayekawa, Sky Music Jsc, Oxalis Holiday Company Limited, PGT Holdings, Vinacapital, Capitaland, Donghyup,...

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