What are the legal requirements for a joint stock commercial bank when established? This content will be guided by our company specifically as follows:

Legal basis

• Clause 9 Article 4 of the Law on the State Bank of Vietnam No. 46/2010/QH12;
• Articles 18, 20, 21 and 50 of the Law on Credit Institutions No. 47/2010/QH12;
• Decree 141/2006/ND-CP;
• Decree No. 10/2011/ND-CP;
• Clause 27, Article 1 of the Ordinance amending and supplementing the Ordinance on Foreign Exchange No. 06/2013/UBTVQH13;

Content

First, having charter capital, the capital allocated at least equal to the legal capital of 3,000 billion dong;

Second, founding shareholders are legal entities that are operating legally and have sufficient financial capacity to contribute capital; Founding shareholders are individuals with full civil act capacity and sufficient financial capacity to contribute capital.

Conditions for the owner of a credit institution being a founding shareholder are prescribed by the State Bank:

Third, Managers, executives and members of the Supervisory Board fully meet the following criteria and conditions:

– A member of the Board of Directors, a member of the Members’ Council must fully meet the following criteria and conditions:

+ Not falling into the categories specified in Clause 1, Article 33 of the Law on Credit Institutions;

+ Having professional ethics;

+ Being an individual owner or an authorized representative owning at least 5% of the charter capital of a credit institution, except for the case of a member of the Members’ Council, an independent member of the Board of Directors or a member of the Board of Directors. University degree or higher in one of the fields of economics, business administration, law or have at least 03 years as a manager of a credit institution or an enterprise operating in the insurance, securities, accounting industry, Auditor or have at least 05 years working directly in professional departments in the field of banking, finance, auditing or accounting.

– Independent members of the Board of Directors must fully meet the criteria and conditions specified in Section 1.3.1 above and the following criteria and conditions:

+ Not being a person who is currently working for the credit institution or its subsidiary or has worked for the credit institution or its subsidiary in the preceding 03 years;

+ Not being the person receiving regular salary or remuneration of the credit institution in addition to the allowances that the members of the Board of Directors are entitled to as prescribed;

+ Not being a person whose wife, husband, father, mother, child, brother, sister and spouse are major shareholders of the credit institution, manager or member of the Supervisory Board of the credit institution. credit institution or a subsidiary of a credit institution;

+ Not directly or indirectly owning or representing 1% or more of the charter capital or voting share capital of the credit institution; not together with a related person own 5% or more of the charter capital or voting share capital of the credit institution;

+ Not being a manager or a member of the Supervisory Board of the credit institution at any time in the preceding 05 years.

– A member of the Supervisory Board must fully meet the following criteria and conditions:

+ Not falling into the categories specified in Clause 1, Article 33 of the Law on Credit Institutions;

+ Having professional ethics;

+ Having a university degree or higher in one of the fields of economics, business administration, law, accounting or auditing; have at least 03 years working directly in the field of banking, finance, accounting or auditing;

+ Not being a related person of the credit institution’s manager;

+ Full-time members of the Supervisory Board must reside in Vietnam during their tenure

– The General Director (Director) must fully meet the following criteria and conditions:

+ Not falling into the categories specified in Clause 1, Article 33 of the Law on Credit Institutions;

+ Have professional ethics;

+ Having a university degree or higher in one of the fields of economics, business administration, or law;

+ Having at least 5 years working as an executive of a credit institution or at least 5 years working as an administrator

+ General Director (Director), Deputy General Director (Deputy Director) of an enterprise whose equity capital is at least equal to the legal capital for each type of credit institution as prescribed by law or has at least 10 years working directly in the field of finance, banking, accounting or auditing;

+ Residing in Vietnam during the term of office.

– Deputy General Director (Deputy Director), Chief Accountant, Branch Director, Director of Subsidiaries and equivalent titles must fully meet the following criteria and conditions:

+ Not falling into the categories specified in Clause 2, Article 33 of the Law on Credit Institutions; for the Deputy General Director (Deputy Director) other than those specified in Clause 1, Article 33 of the Law on Credit Institutions;

+ Having a university degree or higher in one of the fields of economics, business administration, law or the professional field that he or she will undertake; or have a university degree or higher outside of the fields and fields mentioned above and have at least 03 years of working directly in the banking, financial or professional fields that they will be responsible for;

+ Residing in Vietnam during the term of office.

Fourth, having a Charter in accordance with regulations;

Last, having an establishment scheme and a feasible business plan that does not affect the safety and stability of the credit institution system; does not create a monopoly or restrict competition or unfair competition in the credit institution system.

Above is our consultancy about this issue. If you need more detailed advice and answers as well as how to access this service, please contact directly the Deputy Director of Sales: Lawyer Nhat Nam via hotline: 0912.35.65.75, 0912.35.53.53 or call the free legal consultation hotline 1900.6575 or send a service request via email: lienheluathongbang@gmail.com

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