Transactions between a joint stock company and related persons
Introduction. In the context of corporate governance, transactions between a joint stock company (“ JSC ”) and related persons (“ Related Persons ”) are subject to stringent regulatory oversight. Given their inherent nature – transactions entered into between parties connected by ownership, management, or control – transactions with Related Persons always present risks of conflicts of interest, asset diversion, or abuse of managerial authority. To safeguard the interests of the company and minority shareholders, the Law on Enterprises 2020 (“ LOE 2020 ”) and its implementing regulations establish a system of controls to ensure that such transactions are conducted transparently, within the proper authority, and in a manner consistent with the company’s best interests. This article provides an analysis of the regulatory framework and practical application concerning transactions between a JSC and Related Persons under current Vietnamese law. ...