The Enterprise Law 2020 stipulates that within 6 months from the end of the fiscal year, a joint stock company must hold an annual general meeting of shareholders. But up to now, there are still many businesses that have not organized the congress.
Conditions for conducting a meeting of the general meeting of shareholders
According to Article 145 of the Enterprise Law 2020, the conditions for conducting a General Meeting of Shareholders in a Joint Stock Company are as follows:
(1) The number of shareholders attending the meeting represents more than 50% of the total number of votes. The specific rate is regulated by the company’s charter.
(2) If the first meeting is not conducted, a notice of invitation for the second meeting will be sent. The time limit for sending the first meeting is 30 days from the planned date of the first meeting. If the company’s charter otherwise provides, according to the time limit. time in the regulations. The second meeting shall be held when there is a ratio of 33% of the total number of votes or more. The specific rate is regulated by the company’s charter.
(3) In case the second meeting is not conducted, a notice of invitation to the third meeting will be sent. The time limit for sending the second meeting is 20 days from the planned date of the second meeting. If the company’s charter provides otherwise, according to the time limit. time in the regulations. The 3rd meeting shall be conducted regardless of the total number of votes.
(4) Only the General Meeting of Shareholders has the right to decide to change the meeting agenda sent with the notice of meeting invitation.
From unsuccessful meeting convening
This year’s AGM season, many real estate businesses did not hold their AGMs on time because there was not enough shareholder attendance. The reason is because the real estate market is difficult and the shareholder structure in the enterprise is dispersed.
The real estate market plunged, investors stuck in a state of panic. A series of securities companies continuously brought shares of real estate leaders for sale to ensure capital safety for margin loans. This makes the company no longer a major shareholder. In addition, many investors accidentally become “reluctant” shareholders, so the actual number of shareholders who want to attend the meeting is not much.
… to intentionally be late to the “deadline”
In addition to the enterprises that held late for objective reasons, there were still many enterprises that purposely held the AGM late. Recently, Vietnam Airlines Corporation has announced that it will hold a General Meeting of Shareholders before August 30, 2023. Thus, this company will be overdue for nearly 2 months compared to the provisions of the law. Recently, Pomina Steel Joint Stock Company has just closed the list to attend the 2023 Annual General Meeting of Shareholders, scheduled to be held on July 14.
The late congress is not a new story, but a long-standing “unscheduled appointment”. According to the Regulation on listing and trading of listed securities of the Vietnam Stock Exchange, a listed organization that has not held an annual general meeting of shareholders more than 6 months from the end of the fiscal year will be classified as a banned securities. warning.
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