Tiếng Việt
中文Quick answer: A public company is a joint-stock company falling into one of two cases: (1) having paid-up charter capital of VND 30 billion or more with at least 10% of voting shares held by at least 100 investors who are not major shareholders; or (2) having successfully conducted an initial public offering (IPO) registered with the State Securities Commission. Public companies are subject to stricter information disclosure and corporate governance obligations than ordinary joint-stock companies under the Securities Law 2019 (as amended by Law 56/2024/QH15, effective 01/01/2025).
Legal basis
- Securities Law 2019 (as amended by Law 56/2024/QH15, effective 01/01/2025) — Article 32 (public companies);
- Decrees and circulars guiding public company governance and information disclosure.
What is a public company?
Under Article 32 of the Securities Law 2019, a public company is a joint-stock company in one of two cases:
Related services
Corporate Legal Advisory
If your company needs to review governance authority, resolutions, charter documents or internal dispute risk, ANT Legal can help assess the file and suggest appropriate next steps.
- Having paid-up charter capital of VND 30 billion or more with at least 10% of voting shares held by at least 100 investors who are not major shareholders;
- Having successfully conducted an initial public offering of shares registered with the State Securities Commission.
Joint-stock companies in the first case must file for public company registration with the State Securities Commission.
Rights of public companies
- Broad capital raising from the public through securities offerings;
- Shares traded on a centralized market (listing/registration for trading), increasing liquidity;
- Enhanced reputation and brand and better access to capital sources.
Obligations of public companies
- Information disclosure: periodic disclosure (financial statements, annual reports) and ad hoc disclosure (events affecting securities prices) as prescribed;
- Corporate governance: compliance with higher governance standards — Board of Directors structure, Supervisory Board/Internal Audit, related-party transactions;
- Restrictions on concurrent positions: the Chairman of the Board of a public company may not concurrently serve as Director/General Director (except where approved annually by the General Meeting of Shareholders);
- Compliance with public tender offer rules upon reaching prescribed ownership thresholds.
Key notes
- Failure to fully perform information disclosure and governance obligations may result in administrative penalties in the securities sector and possible revocation of public company status;
- Law 56/2024/QH15 amended the Securities Law 2019 (effective 01/01/2025) — the amended version should be consulted when applying.
How ANT Legal can help
ANT Legal advises on public company registration, IPOs, information disclosure and corporate governance. For advice on your specific case, please contact our lawyers at 0966.475.966.
