Reissuance of forfeited shares What should I do if it is lost, destroyed or damaged?

What contents will a stock have?

According to Clause 1, Article 121 of the Law on Enterprises 2020, a stock has the following contents:

– Shares are certificates issued by a joint stock company, book entries or electronic data confirming ownership of one or several shares of that company. Shares must include the following main contents:

+ Name, business code, and head office address of the company;

+ Number of shares and type of shares;

+ Par value of each share and total par value of shares recorded on the stock;

+ Full name, contact address, nationality, legal document number of individual for individual shareholders; name, business code or legal document number of the organization, head office address for institutional shareholders;

+ Signature of the company’s legal representative;

+ Registration number in the company’s shareholder register and share issuance date;

+ Other contents as prescribed in Articles 116, 117 and 118 of this Law for shares of preferred stock.

How will old shares be damaged or lost?

According to Clause 3, Article 121 of the Law on Enterprises 2020, it is mentioned:

“Article 121. Shares

…

3. In case shares are lost, damaged or destroyed in another form, the shareholder will be re-issued shares by the company at that shareholder’s request. The shareholder’s request must include the following contents:

a) Information about shares that have been lost, damaged or destroyed in any form other forms;

b) Commitment to take responsibility for disputes arising from the re-issuance of new shares.”

Thus, any shareholder whose shares are damaged or lost can make a request to reissue them and the company will reissue them according to the above regulations.

How to sell shares to current stock holders?

According to Article 123 of the Law on Enterprises 2020, the share offering is regulated as follows:

“Article 123. Share offering

1. Offering shares is a company increasing the number of shares and types of shares authorized to be offered for sale to increase charter capital.

2. Offering shares can be done in the following forms:

a) Offering shares to existing shareholders;

b) Offering private shares;

c) Offering shares to the public.

3. Offering shares to the public, offering shares of public companies and other organizations shall comply with the provisions of securities law.

4. The company registers changes in charter capital within 10 days from the date of completion of the share sale.”

In addition, according to Article 124 of the Law on Enterprises 2020 it is stipulated as follows:

“Article 124. Offering shares to existing shareholders

1. Offering shares to existing shareholders is a case where the company increases the number of shares and types of shares authorized to be offered and sells all of those shares to all shareholders in proportion to their existing share ownership in the company.

2. Offering shares to existing shareholders of a joint stock company that is not a public company is carried out as follows:

a) The company must notify shareholders in writing in a manner that ensures it reaches their contact address in the shareholder registration number no later than 15 days before the end of the registration period to purchase shares;

b) The notice must include full name, contact address. Contact, nationality, legal document number of individual for individual shareholders; name, business code or legal document number of the organization, head office address for institutional shareholders; number of shares and current share ownership ratio of shareholders in the company; total number of shares expected to be offered and number of shares shareholders are entitled to buy; share offering price; purchase registration deadline; Full name, signature of the company’s legal representative. Accompanying the notice must be a share purchase registration form issued by the company. In case the share purchase registration form is not sent to the company on time according to the notice, the shareholder is considered to have not received the priority right to buy shares;

c) Shareholders have the right to transfer the priority right to buy their shares to another person.

3. In case the number of shares expected to be offered for sale is not fully registered by the shareholders and the transferee of the priority right to buy, the Board of Directors has the right to sell the remaining shares with the right to be offered for sale to the company’s shareholders and others with conditions no more favorable than those offered to the shareholders, unless the General Meeting of Shareholders has other approval or the law on securities has other provisions.

4. Shares are considered sold when full payment is made and information about the buyer specified in Clause 2, Article 122 of this Law is fully recorded in the shareholder registration number; From that moment on, the person who purchases the shares becomes a shareholder of the company.

5. After the shares are fully paid, the company issues and delivers the shares to the buyer; In case the shares are not delivered, the shareholder information specified in Clause 2, Article 122 of this Law will be recorded in the shareholder register to certify that shareholder’s ownership of shares in the company.”

Thus, in your case, you proceed with the stock offering and stock issuance according to the provisions of this Article 124.