New regulations on finance leasing firms promulgated
28-AUG-2008 Intellasia | Government Website
Aug 28, 2008 - 7:00:00 AM
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Under the Decree No 95/2008/ND-CP dated on August 25 issued by the government, financial leasing company is a non-banking credit institution being established and operated in Vietnam with three models including finance leasing two-member limited company, finance leasing one member limited company. and finance leasing joint stock company. Changing the ownership or operation model must comply with the State Bank of Vietnam (SBV)'s regulations.
Similarly, a finance leasing joint venture company will be set up in Vietnam by capital contribution of Vietnamese partner and foreign side based on joint venture contract. The finance leasing joint venture company will be established under the model of two-member limited company.
100% foreign-invested finance leasing company will be formed in Vietnam under the limited company model with 100% chartered capital of one or several foreign credit institutions.
A subsidiary of financial leasing company has to meet one of the following demands:
+ It owns over 50% of chartered capital or total issued ordinary shares of financial leasing company.
+ Financial leasing company has right to appoint members for director board and general director of its subsidiary.
+ Financial leasing company has right to amend operation regulations of its subsidiary.
In addition, financial leasing joint venture company or 100% foreign invested financial leasing company must operate following allowable regulations of the local country and have total assets of over US$10 billion.
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