Vietnam – New Decree 71 offers further clarity on Corporate Governance for Public Companies
On 6 June 2017, the Government issued Decree No. 71/2017/ND-CP providing guidelines on corporate governance applicable to public companies (“Decree 71”). Decree 71 took effect on 01 August 2017 and replaced Circular No. 121/2012/TT-BTC issued by the Ministry of Finance on 26 July 2012, which had set the corporate governance regime for public companies in Vietnam for the past five years.
Overall, Decree 71 reflects the provisions of the current Law on Enterprises. However, it introduces stricter regulations on transactions with related persons, conflict of interests, organizational structure and disclosure obligations for public companies.
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