This Decree prescribes the acquirer may have the controlling influence over an acquire enterprise or a sector or industry of the acquiree enterprise if the acquirer falls into the following situations:
- The acquirer receives the ownership interest that makes up more than 50% of the acquiree's charter capital or more than 50% of the acquiree’s total voting shares;
- The acquirer receives the right to own or use more than 50% of the acquiree’s total assets, out of all or a single sector or industry of that acquiree.
In addition, it sets out regulations on the acquirer’s rights over the acquiree as follows:
- Directly or indirectly making decisions on appointment, dismissal or discharge from office of most or all of members of the Governing Board, president of the Board of Directors, director or general director of the acquire.
- Making decisions on revision or modification of the acquiree’s charter.
- Making decisions on the acquiree’s important issues.
See more details in the Decree No. 35/2020/ND-CP coming into force from May 15, 2020.
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