VI Vietnam’s stock market has achieved certain progress in recent times. The issuance of shares by companies is currently increasing in scale and depth, and is considered to be gradually becoming an important capital mobilization and allocation channel for economic development. So can a securities company buy shares issued for the first time in an equitized enterprise? Through today’s article, let’s learn about this issue with Pham Consult!
Is a securities company an organization that auctions shares?
Pursuant to Clause 7, Article 3 of Decree 126/2017/ND-CP, the organizations conducting share auctions are stock exchanges, securities companies or service centers, and asset auction enterprises. according to the provisions of law on asset auction according to the decision of the owner’s representative agency.
Thus, a securities company is one of the organizations that conducts share auctions.
Can a securities company buy shares issued for the first time by an equitized enterprise?
Is a securities company allowed to buy shares issued for the first time by an equitized enterprise, according to the provisions of Point d, Clause 4, Article 6 of Decree 126/2017/ND-CP, supplemented by Point a, Clause 3, Article 1 Decree 140/2020/ND-CP as follows:
Subjects and conditions for buying shares
1. Domestic investors are entitled to buy shares of equitized enterprises in unlimited quantities, except for the cases specified in Clause 4 of this Article.
2. Foreign investors are entitled to buy shares of equitized enterprises according to the provisions of this Decree and relevant legal documents.
Foreign investors wishing to buy shares must open an account at a credit institution in accordance with Vietnamese law on foreign exchange.
Foreign investors are allowed to make deposits and deposits in foreign currency by transfer when participating in auctions to buy shares and capital of enterprises whose charter capital is 100% held by the State in accordance with the provisions of Vietnamese law on foreign affairs. exchange and guidance of the State Bank of Vietnam.
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3. Strategic investors:
a) Strategic investors are domestic investors and foreign investors who meet the following conditions:
– Have full legal status according to the provisions of law;
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4. Organizations and individuals who are not allowed to buy shares issued for the first time by equitized enterprises include:
a) Members of the Steering Committee and the Enterprise Equitization Support Team (except for members who are representatives of the enterprise);
b) Intermediate financial institutions and individuals belonging to these organizations participate in equitization consulting, financial statement audits and audit agencies to determine enterprise value (except for organizations underwriting agency purchases undistributed shares according to the guarantee contract);
c) Subsidiaries and affiliated companies within the same Group, Corporation and parent company – subsidiary company combination;
d) Organize the auction of shares and individuals of this organization involved in the auction;
d) Related persons as prescribed in Clause 17, Article 4 of the 2014 Law on Enterprises of organizations and individuals specified in Points a, b and d of this Clause.
Thus, according to the above regulations, if a securities company is an organization conducting share auctions, it is not allowed to buy shares issued for the first time of the equitized enterprise that it organizes the auction for.
Can an equitized enterprise hire a consulting organization to determine enterprise value?
Whether an equitized enterprise can hire a consulting organization to determine the value of the enterprise, according to the provisions of Clause 1, Article 12, Decree 126/2017/ND-CP, amended by Point a, Clause 6, Article 1 Decree 140/2020/ND-CP is as follows:
Consulting on equitization
1. Equitized enterprises are allowed to hire consulting organizations to determine the enterprise value, determine the starting price, develop an equitization plan and sell shares for the first time. The owner’s representative agency is responsible for deciding on the selection of a consulting organization, which can decentralize and authorize the Steering Committee to carry out all or some of the responsibilities of the investor and the party calling for tenders according to the law. regulations of the law on bidding in hiring consulting organizations (except for the responsibility to approve the results of contractor selection).
2. Equitized enterprises must hire qualified consulting organizations to provide consulting services to determine enterprise value.
3. The owner’s representative agency decides to select a consulting organization that meets the standards specified in Clauses 5 and 6 of this Article to determine enterprise value according to the principles:
a) For valuation consulting packages with a value of not more than 500 million VND, the owner’s representative agency decides to choose the form of contractor appointment to select a consulting organization to determine enterprise value;
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Thus, according to the above regulations, equitized enterprises can hire consulting organizations to determine enterprise value.
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