On December 27, 2019, the State Bank of Vietnam (SBV) issued Document No. 10184/NHNN-TTGSNH approving the proposal to increase the charter capital of Saigon - Hanoi Commercial Joint Stock Bank (SHB).
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Accordingly, in responding to the SHB’s proposal to increase the charter capital in Document No. 5490/TGD dated December 23, 2019 and the attached dossiers, the SBV has approved to allow the SHB to proceed with the charter capital increase from VND 12,036,161,100,000 (twelve thousand and thirty-six billion, one hundred and sixty-one million, one hundred thousand Vietnamese dongs) to VND 14,550,681,740,000 (fourteen thousand five hundred and fifty billion, six hundred and eighty-one million, seven hundred and forty thousand Vietnamese dongs) in the form of stock dividends from the retained earnings up to December 31, 2018.
The SHB shall only be permitted to conduct stock dividends in line with the regulations upon having fulfilled the applicable legal regulations, the instructions of the SBV in Official Note No. 786/NHNN-TTGSNH dated February 1, 2019 on the distribution of profits, advances, dividends in 2018, and other relevant guiding documents.
The SBV also requires the SHB’s Board of Directors to conduct the capital increase in accordance with the laws and the SBV's regulations. Within a maximum of 10 working days from the completion date of the issuance of the new shares in accordance with the laws, the SHB shall implement the procedures for the amendment and supplementation of its Operation License as stipulated in Paragraph 4, Article 11 of Circular No. 50/2018/TT-NHNN dated December 31st, 2018 stipulating the dossiers, sequences and procedures for requesting approval of a number of revised substances by commercial banks, foreign bank branches.
The Document shall be valid within 12 months from the date of signing.
VA