On July 13, 2022, the State Bank of Vietnam (SBV) issued Document No. 4827/NHNN-TTGSNH allowing VietCredit Finance Joint Stock Company (VietCredit) to increase its charter capital.
Accordingly, the SBV has approved of VietCredit's request to increase its charter capital by the maximum amount of VND 13,700,000,000 (Thirdteen billion seven hundred million Vietnamese Dongs) through the means of issuing additional shares in an optional plan for VietCredit’s employees in line with Resolution No. 152/2022/VietCredit-NQ, which was adopted by the General Shareholders’ Meeting of VietCredit on April 29, 2022.
The Document also clearly requests VietCredit to conduct the charter capital increase in conformity with the applicable laws, including the regulations on the share ownership limits of shareholders, shareholders and their related persons in line with the 2010 Law on Credit Institution (as amended and supplemented), as well as other guiding documents of the SBV upon the completion of the charter capital increase.
VietCredit may only increase its charter capital after it has ensured full compliance with the applicable provisions of law.
Also in the same Document, VietCredit is requested to notify all shareholders buying its shares to fully comply with the regulations on shareholders' obligations as prescribed for in Articles 54 of the 2010 Law on Credit Institutions (as amended and supplemented), and Circular No. 25/2017/TT-NHNN dated December 29, 2017 of the SBV stipulating the dossiers, sequences and procedures for requesting approval of a number of revised substances by non-bank credit institutions, as well as other applicable legal provisions; in which, all shareholders should be reminded of the following requirements:
Taking responsibility before the law for the legality of their capital sources used for the contributions, purchases and transfers of shares at VietCredit; not using any capital source provided by a credit institution or a foreign bank branch to purchase or receive a transfer of any share of VietCredit; not contributing capital or purchasing shares of VietCredit under the name of another individual or a different legal entity in any case, except for the case of entrustment as prescribed by laws. Any shareholder who is entrusted to make investment on behalf of another organization or individual must provide VietCredit with information about the real owner of the shares that he/she is entrusted to make investment in VietCredit. VietCredit has the right to suspend a shareholder’s rights in case of discovery that he/she does not provide authentic information about the real owner(s) of the shares.
VietCredit shall be responsible for complying with the provisions of the 2010 Law on Credit Institutions (as amended and supplemented) and other relevant legal texts on the limits of share ownership of shareholders and their related persons.
VietCredit shall also be responsible for complying with the applicable legal regulations for the situation of any of its shareholders being foreign investors, major shareholders, major shareholders and their related persons.
Within a maximum of 10 working days from the completion date of the issuance of the new shares in accordance with the laws, VietCredit is requested to implement the procedures for revising its License as prescribed for in Paragraph 4 of Article 9 of Circular No. 25/2017/TT-NHNN dated December 29, 2017 of the SBV stipulating the dossiers, sequences and procedures for requesting approval of a number of revised substances by non-bank credit institutions.
This Document is valid within 12 months from the date of its signing. In case the charter capital increase has not been completed within the validity of this Document, or if the General Shareholders’ Meeting of VietCredit adopts a new recapitalization plan different from the plan already approved by the SBV, this Document will cease to be valid.
LK