THE MINISTRY OF FINANCE
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SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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No. 19/2003/TT-BTC
Hanoi, March 20, 2003
 
CIRCULAR
GUIDING THE INCREASING AND REDUCING READJUSTMENT OF CHARTER CAPITAL AND MANAGEMENT OF TREASURY STOCKS IN JOINT-STOCK COMPANIES
Pursuant to the Enterprise Law and the documents guiding the implementation thereof;
Pursuant to the State’s legal documents prescribing securities trading and securities market;
The Finance Ministry hereby guides a number of financial matters in the increasing and reducing readjustment of charter capital and management (of the purchase, sale and use) of treasury stocks in joint- stock companies as follows:
I. GENERAL PROVISIONS
1. Subject to the application of this Circular are joint-stock companies established and operating under the Enterprise Law.
For financial institutions, credit institutions, insurance organizations and securities organizations operating in the form of joint-stock company, the increasing or reducing readjustment of charter capital, the purchase, sale and use of treasury stocks shall comply with the provisions of the specialized legal documents.
2. In this Circular the following terms shall be construed as follows:
a/ Shareholders’ capital at a time is that determined to be equal to the owner’s capital minus the balance of reward and welfare funds and joint-venture capital received at that time.
b/ Treasury stocks are stocks issued and purchased back by companies themselves with their lawful capital sources according to the provisions of this Circular.

>> See also:  DECREE No.107/2009/ND-CP ON TRADING OF LIQUEFIED PETROLEUM GAS THE GOVERNMENT

c/ Enterprise managers are the subjects defined in Clause 12, Article 3 of the Enterprise Law.
 

>> See also:  How to establish a foreign-invested company in Vietnam?