FROM SEPTEMBER 1, 2024 WHO HAS THE AUTHORITY TO DECIDE ON THE CONVERSION OF A SUBSIDIARY THAT HAS NOT YET BEEN CONVERTED INTO A SINGLE-MEMBER LIMITED LIABILITY COMPANY ?

Starting from September 1, Decree 89/2024/ND-CP comes into effect and stipulates the authority to decide on the conversion of a subsidiary that has not yet been converted into a single-member limited liability company.

=>See More: Principles for Converting State-Owned Enterprises into Private Single-Member Limited Liability Companies from September 1, 2024

Photo 1. From September 1, 2024 who has the authority to decide on the conversion of a subsidiary that has not yet been converted into a single-member limited liability company?_ Hotline: 097 211 8764

Based on Article 8 of Decree 89/2024/ND-CP, the authority to decide on the conversion is regulated as follows:

"The Members' Council or the Chairman of the parent company shall decide on the conversion of a subsidiary, which has not yet been converted, into a single-member limited liability company if it was established by or assigned to the management of the parent company. In the case where the subsidiary that has not yet been converted is a credit institution, the Members' Council or the Chairman of the parent company shall decide on the conversion after obtaining approval from the State Bank of Vietnam."

Thus, according to the above regulation, the Members' Council or the Chairman of the parent company has the authority to decide on the conversion of a subsidiary, which has not yet been converted and was established by or assigned to their management, into a single-member limited liability company.

Note: In the case where the subsidiary that has not yet been converted is a credit institution, the Members' Council or the Chairman of the parent company shall decide on the conversion after obtaining approval from the State Bank of Vietnam.

Decree 89/2024/ND-CP comes into effect on September 1, 2024.

=>See More: Banks must publicly disclose information of shareholders owning 1% or more of charter capital from July 1, 2024

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