Draft Law on Enterprises amendments will focus on solving fundamental problems of enterprises
Draft Law on Enterprise amendments will focus on simplifying market entry procedures, reducing corporate restructuring costs, improving corporate governance...
If comparing internationally and regionally, the procedures for establishing a business and starting a business in our country are still complicated and expensive in terms of time and cost. According to the World Bank's comparison in 2019, Vietnam is ranked 106 out of 190 countries and economies in terms of competitiveness in terms of business registration procedure index. Accordingly, the proposed draft Law on Enterprises amendments is revised according to the following directions:
Reducing administrative procedures to shorten the time to start business
According to the Law on Enterprise, enterprises must complete 5 administrative procedures to start business, including: Business registration at the business registration office; creat seal at the seal making office; Notice of seal form with business registration office; Opening an account and notifying the opening of an account to the business registration office ... these procedures take about 20 days under the current law.
In addition, some other administrative procedures are really unclear about the management objectives, such as the requirement of reporting information of the company manager, asking the business registration agency to regularly send information about business registration for all districts, towns ...
The draft eliminates these unnecessary procedures such as removing the requirement that enterprises register their seal samples before using them; remove the requirement to report changes in business manager information. The regime of sending information to the business registration office where the enterprise is headquartered when the branch is established, nor does it need to make a new business location.
Eliminating minimum time of stock ownership
This draft Law proposes to loosen regulations on time to hold shares to exercise shareholder rights. Specifically, Clause 2 of Article 114, Clause 4 of Article 149 and Clause 1 of Article 161 are proposed to abolish the regulation on minimum ownership of shares, which limits the rights of shareholders, especially in schools. case of business merger, acquisition and merger.
However, the above-mentioned amended regulations which still do not change the minimum share ownership ratio of 10% (Item 2 Article 114) is unreasonable, greatly affecting the interests of shareholders, especially large public company. There are also many suggestions to reduce the ownership ratio from 10% to 5% to strengthen the rights of shareholders, and also compatible with the regulation that large shareholders own from 5% or more in accordance with Securities Law and Law on Credit Institutions.
Eliminating the requirements of professional qualifications and experience with a number of management titles in the enterprise
The Enterprise Law requires a number of managerial titles in the enterprise to have certain professional qualifications and qualifications such as require the company director to have expertise and experience in corporate governance (Article 65 of the Enterprise Law). These requirements are no longer practical and ineffective, limiting job opportunities and investors in participating in business management, adverse impacts on start-ups and creativity.
According to Resolution No. 57/2018/QH14 dated 8/6/2018, the Law on amending and supplementing a number of articles of the Law on Enterprise together with the amended Investment Law will be passed in the National Assembly of the Socialist Republic Vietnamese term XIV, the 8th session (in 2019)
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