According to the Law on Enterprises of Vietnam, a Vietnam company shall appoint at least one legal representative. The legal representative usually concurrently holds the poison of the chairman of the board of directors, president, director, or general director, depending on the organization structure of the company. The legal representative is entitled to represent the company to exercise the rights and perform the obligations externally.
The Law on Enterprises of Vietnam has not imposed restrictions on the nationality of the legal representative. However, the legal representative of a Vietnam company usually has to participate in and manage the daily operations of the company. Therefore, the law requires at least one legal representative to reside in Vietnam. In case that there is only one legal representative, this person must authorize in writing another individual residing in Vietnam to exercise the rights and perform the obligations of the legal representative before leaving Vietnam.
According to the Law on Enterprises of Vietnam, the legal representative of a Vietnam company has the following responsibilities:
To exercise or perform the assigned rights and obligations in an honest and prudent manner to protect the legal interests of the company.
Be loyal to the interests of the company; not abuse his/her power and position or use the information, secrets, business opportunities and other assets of the company for personal gain or to serve the interests of other organizations or individuals.
To promptly and fully notify the company of the enterprise of which he/she or his/her related person owns or has shares or contributed capital in accordance with the Law on Enterprises.
The legal representative shall be personally liable for any damage to the company due to the violation of the above-mentioned responsibilities.
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Disclaimer
All information in this article is only for the purpose of information sharing, instead of professional suggestion. Kaizen will not assume any responsibility for loss or damage.
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