Vietnam Listed Companies Can Issue Shares Under Par Value

The newspaper cited Article 87 in the Enterprise Law that “ the Board of Directors decides time, method and offered share price within the number of shares allowed to sell. Offered share price is not allowed to be lower than market price at the time of the sale or book value of the latest record”.

The unnamed leader explained that Article 87 means listed companies are allowed to issue shares lower than par value.

Companies can record negative surplus in their financials and it will be compensated by new share issue or profit.

However, the State Securities Commission (SSC) has never received any filing seeking approval to issue shares under par value, he added.