Question:
My company is a joint stock company with 15 shareholders. The company plans to convene a General Meeting of Shareholders; however, since some shareholders are located in different provinces and cities, organizing an in-person meeting is quite difficult. May my company hold the meeting in an online (virtual) format?
Answer:
In the case where a company organizes the General Meeting of Shareholders in an online format, Point c, Clause 3, Article 144 of the Law on Enterprises 2020 provides that:A shareholder shall be deemed to have attended and voted at the General Meeting of Shareholders if he/she attends and votes via an online conference, electronic voting, or another electronic form.
However, the legal framework governing virtual General Meetings of Shareholders in Vietnam is still not fully developed, apart from the above-mentioned provision that allows shareholders to attend and vote via online means. Therefore, in practice, the organization of a virtual General Meeting of Shareholders still largely depends on each company’s internal regulations.
If the company’s charter provides for the possibility of organizing an online General Meeting of Shareholders, the company may proceed accordingly but must ensure full compliance with all applicable legal provisions on convening and conducting such meetings.
Consulting reference: Business Law services
