FOR REFERENCE ONLY
CHARTER
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TABLE CONTENTS
I.DEFINITIONS AND INTERPRETATIONS
II.INCORPORATION OF COMPANY
Article 1.Limited Liability
Article 2.Names of Company
Article 3.Head Office, Branches and Representative Offices
Article 4.Business Activities
Article 5.Legal Representative of Company
III.CHARTER CAPITAL, SHAREHOLDERS, SHARES AND SHARE CERTIFICATES
Article 6.Charter Capital
Article 7.Shares
Article 8.Rights of Ordinary Shareholders
Article 9.Obligations of Ordinary Shareholders
Article 10.Ordinary Shares of Founding Shareholders
Article 11.Rights of Preference Shareholders
Article 12.Share Certificates
Article 13.Shareholders Book
Article 14.Issuance of Shares
Article 15.Shares Transfer
Article 16.Issue of Bonds
Article 17.Denomination of Shares
Article 18.Shares Buy-back at Shareholders’ Requests
Article 19.Share Buy-back at Company’s Request
Article 20.Conditions for Payment of Buy-back Shares
Article 21.Payment of Dividends
Article 22.Recovery of Payment for Buy-back SharesShares or Dividends
IV.STRUCTURAL ORGANIZATION
Article 23.Organizational Structure
Article 24.Shareholder Meeting
Article 25.Call for Shareholder Meetings
Article 26.Agenda and Contents of Shareholder Meetings
Article 27.List of Shareholders Eligible to Participate in Shareholder Meetings
Article 28.Invitation of the Shareholder Meetings
Article 29.Conditions for Valid Shareholder Meeting
Article 30.Steps and Voting Methods of Shareholder Meetings
Article 31.Passing Decisions of Shareholder Meetings
Article 32.Board of Management
Article 33.Chairman
Article 34.Board Meetings
Article 35.Board Meeting Quorum
Article 36.Voting at Board Meetings
Article 37.Minutes of the Shareholder Meeting and Minutes of the Board Meeting
Article 38.Written Resolutions without Board Meeting
Article 39.General Director
Article 40.Salaries, Allowance and Other Benefits of Board Members and General Director
Article 41.Duties of Managers
Article 42.Limitations on Contracts
Article 43.Board of Supervision
Article 44.Books and Records
V.ACCOUNTS, ACOUNTING AND AUDITING
Article 45.Bank Accounts
Article 46.Fiscal Year
Article 47.Accounts and Records
Article 48.Annual Reports
Article 49.Information Release and Public Announcements
Article 50.Auditing
VI.RE-ORGANIZATION AND DISSOLUTION
Article 51.Re-organization of Company
Article 52.Termination of Operations
Article 53.Liquidation
VII.INDEMNIFICATION
Article 54.Indemnification
VIII.DISPUTE RESOLUTIONS
Article 55.Dispute resolutions
IX.MISCELLANEOUS
Article 56.Validity of the Charter
Article 57.Severability
Article 58.Amendment and supplementation of the Charter
Article 59.Rights Cumulative
Article 60.Language and Counterparts
ANNEX 1
LIST OF FOUNDING SHAREHOLDER
ANNEX 2
CLASSES AND NUMBER OF SHARES
CHARTER
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- DEFINITIONS AND INTERPRETATIONS
- Definitions
Unless the terms or context of this Charter otherwise require, the capitalized terms used herein shall have the following meanings:
“Affiliate” shall mean an entity, corporate or non-corporate, controlling or controlled by a Shareholder, or associated with a Shareholder through common controlling or controlled entities. For the purposes hereof, control shall be deemed to exist if one entity owns, directly or indirectly, through shareholdings or otherwise, at least fifty-one (51%) percent of the voting shares or other voting units of participation in another entity.
“Annual Financial Accounts” means the unconsolidated and consolidated balance sheet, profit and loss account, and cash flow statement, or such other annual financial reports for the immediate preceding fiscal year, which the Company shall prepare during the first two months of each fiscal year. These accounts are required by the Law to be maintained and submitted to the competent State Authorities.
“Board Meeting” means a meeting of the Board of Management.
“Board Member” means a member of the Board of Management.
“Board of Management”means the board of management of the Company appointed and having such powers and duties as set out herein.
“Board of Supervision” means the board of supervision of the Company having the powers and duties set out in this Charter and operating in accordance with this Charter and the Law.
“Business Day” meansa day on which banks are open for business in Ho Chi Minh City and Tokyo.
“Chairman” means the chairman of the Board of Management.
“Charter Capital” means the charter capital of the Company as referred to in Article 6.
“Charter”means this Charter of the Company as may be amended and supplemented from time to time.
“Connected Person”means organization and individual who have direct or indirect relationship with the Company as follows:
(a)Any group of persons who act together in an attempt to take over the capital contribution, Shares, or control the decision making process of the Company;
(b)Company managers;
(c)Enterprises that is controlled by persons specified in Item (a) to Item (h), hold Shares to the level that they can control the decision-making process of the management bodies of the enterprise; and
(d)Holding company of the Company, its managers and other persons who are competent to appoint managers of its subsidiary;
(e)Individual or group of individuals those are capable of dominating operations of the Company through management bodies in the Company;
(f)Individual who is authorized representative of those specified in Item (a) to Item (e);
(g)Subsidiaries of the Company; and
(h)Wife, husband, father, foster father, mother, foster mother, child, passed child, or sibling of a manager or a member holding dominant capital share or Shareholder holding a majority of Shares.
“Founding Shareholder” means a Shareholder who initially executed this Charter to establish the Company, whose name, address and shareholding in the Charter Capital is set out in Annex 1.
“Head Office” means the head office of the Company.
“Investment Certificate” means an Investment Certificate issued by the Licensing Authority to establish the Company as may be amended and/or supplemented from time to time.
“Law or Laws”means the Law on Enterprises and all other applicable laws, decrees, decisions, circulars, regulations and other documents having the effect of Law issued by any State Authority (as the same may be amended, supplemented or replaced from time to time) and which are applicable to the Company’s establishment and operation.
“Libor” means, the rate per annum equal to the rate for deposits for a period equal to the term of each period, which appears on Telerate Page 3750 under the caption “British Bankers Association Libor Rates” (or on any successor or substitute page of such service, or any successor to or substitute for such service, providing rate quotations comparable to those currently provided on such page of such service, as reasonably determined by the Lender from time to time for purpose of providing quotations of interest rates applicable to US Dollar deposits in the London interbank market) as of 11:00 a.m. London time.
“Licensing Authority”means the Department of Planning and Investment of Binh Duong Province or such other State Authority as may, at the relevant time, have the responsibility and authority under the Law to license and supervise the incorporation, extension and/or operation of the Company.
“Manager” means any Board Member, General Director or other person appointed by the General Director as the manager of the Company from time to time.
“Minute Book” means a book recording all the minutes of the Shareholders Meetings and Board Meetings.
“Ordinary Share” means ordinary share issued by the Company from time to time.
“Ordinary Shareholder” means any person who owns at least one Ordinary Share from time to time.
“Preference Share” means a dividend preference and redeemable Share as set forth in Article 7.4(b).
“Preference Shareholder” means any person who owns at least one Preference Share from time to time.
“Share Certificates” means the certificates issued by the Company in accordance with Article 12 evidencing the ownership over the related amount of Shares by a particular Shareholder and “Share Certificate” means any of them.
“Shareholder Book” means a register to be established and maintained by the Company in accordance with Article 13.
“Shareholder” means any person who owns at least one Share from time to time.
“Shareholders Meeting” means the highest authority of the Company having the powers set out in this Charter and operating in accordance with this Charter and the Law.
“Shares” means Ordinary Shares and Preference Shares issued by the Company from time to time, and “Share” means one of them.
“State Authority” means any and all of the following bodies: the National Assembly, the Standing Committee of the National Assembly, the President of the State, the Government, the Prime Minister, the Government Office, any Ministry, any People's Committee or any of its agencies, departments or bodies, and any and all other committees, ministers, councils, agencies, bodies or officers whose consent, approval, registration, commitment, involvement or consultation is required or desirable in the opinion of the Company for anything or matter referred to in or contemplated by this Charter.
“Supervisor” means a member of the Board of Supervision.
“USD” or “Dollar” means the lawful currency of the UnitedState of America.
“Vietnam” means the Socialist Republic of Vietnam.
“VND” or “Dong” means the lawful currency of Vietnam.
“Year”means a calendar year.
- Interpretation
(a)The headings used in the Charter are for convenience only and shall not affect the interpretation hereof.
(b)Unless the context otherwise requires, references in the Charter to:
(i)words (including words defined herein) denoting the singular number shall also include the plural and vice versa and words denoting any gender shall include any other gender;
(ii)the expressions "include" or "including" shall be construed without limitation;
(iii)the annexes form part of the Charter;
(iv)“day” shall mean a working day on which banks open to operate in Vietnam; and
(v)“Article” and “Annex” means an article and an annex of the Charter, respectively.
- INCORPORATION OF COMPANY
Article 1.Limited Liability
The Company is a joint stock company being established and operating pursuant to the Laws. Shareholders shall be responsible for debts and other liabilities of the Company within amount of their contributed capital (Shares) in the Company.
Article 2.Names of Company[1]
The names of the Company shall include:
(a)Vietnamese Name
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(b)English Name
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(c)Abbreviated Name
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Article 3.Head Office, Branches and Representative Offices
The Head Office shall be located at [___], Vietnam.[2] The Company may open branch or representative offices anywhere within or outside Vietnam in conformity with the Lawsand as the Board of Management may decide from time to time.
Article 4.Business Activities
The business activities of the Company shall include ___
Article 5.Legal Representative of Company
[The Chairman][3] shall be the legal representative of the Company.
- CHARTER CAPITAL, SHAREHOLDERS, SHARES ANDSHARE CERTIFICATES
Article 6.Charter Capital
6.1The Charter Capital of the Company shall be ___
6.2The increase or decrease of Charter Capital shall be subject to the business of the Company and solely decided by the Shareholder Meeting.
Article 7.Shares
7.1Number and Value of Shares
(a)The Charter Capital is divided into __
(b)Share value: USD___.
7.2Classes and Number of Shares of each Class of Shares
(a)The Company shall have the following classes of Shares:
(i)Ordinary Shares; and
(ii)Preference Shares.[4]
(b)Out of the total [15,000] Shares, there shall be:
9,000[5]Ordinary Shares; and
6,000[6] Preference Shares.
(c)The Shareholders of the same class of Shares shall have the same rights, interests and obligations. Details of Shareholders, the number of Shares of each Shareholder are stipulated in Annex 2.
(d)The Company may issue other types of preferential Shares under the decision of the Shareholder Meeting in line with the Laws.
(e)The Ordinary Sharesmay not be converted into Preference Shares. Preference Shares may be converted into Ordinary Shares pursuant to the decision of the Shareholder Meeting.
7.3Rights attached to Shares
(a)As to voting
(i)The Ordinary Shares shall confer the right to receive notice of and to attend and vote at any Shareholder Meeting on the basis of one vote per Ordinary Share. Upon a show of hands or a poll every Ordinary Shareholder present in person or by proxy shall have one vote for every Ordinary Share held by him.
(ii)The Preference Shares shall have the right to receive notice of, and to attend but not to vote at,a Shareholder Meeting.
(b)As to dividends
Subject to Article 21, dividable dividends of the Company shall be paid by the following sequence with preference.
1)Cumulative Dividends for a Preference Shareholder
Preference Shareholders shall be entitled to receive cumulative dividends in preference to any dividend on the OrdinaryShare, at the aggregate rate of 3month Libor + five (5) % of the sharevalue per annum, when and as declared by the Shareholder Meeting. If the dividends are not paid in any year, the unpaid dividends accumulate and must be paid before any dividends to Ordinary Shareholders.
2)Cumulative Dividends for Ordinary Shareholders
Ordinary Shareholders shall be entitled to receive cumulative dividends in preference to any participating dividends set forth in 3) of this article, at the aggregate rate of 3month Libor + five (5) % of the share value per annum, when and as declared by the Shareholder Meeting. If the dividends are not paid in any year, the unpaid dividends accumulate and must be paid before any Participating Dividends.
3)Participating Dividends
It’s shall be payable pro rata based on the number of shares of the Ordinary Share and the Preference Share, of which number shall be calculated into the number of the Ordinary Share into which they are convertible, but only if and when declared by the Shareholder Meeting. No Participating Dividends shall be paid unless Cumulative Dividends of the Preference Share and Ordinary Share have been paid.
(i)For the purpose of the determination of the dividends, the Libor shall be determined on the last Business Day in December in each year.
(c)As to capital
(i)A Preference Shareholder shall be entitled to request the Company to buy back part or whole of his Preference Shares at any time; and
(ii)In the event of any liquidation or winding up of the Company, a Preference Shareholder shall be entitled to receive, in preference to Ordinary Shareholders, the amount at which the Preference Shareholders, as the case may be, was purchased from the Company plus any accrued but unpaid dividends.
The remaining balance of the proceeds from the liquidation shall then be allocated to the Ordinary Shareholders.
At the option of the holders of the Preferred Share, a merger, sale of all or substantially all of the assets of the Issuer, reorganization or other transaction in which control of the Issuer is transferred may be treated as a liquidation, dissolution or winding up for purposes of the liquidation preference.
Article 8.Rights of Ordinary Shareholders
Without prejudice to any other provisions of this Charter,an Ordinary Shareholder shall have the following rights:[7]
(a)to participate and discuss in all Shareholder Meeting and vote directly or via proxy, each Ordinary Share carries one vote;
(b)to receive dividends at the rate decided by the Shareholder Meeting;
(c)to be given priority in subscribing for new Shares offered for sales in proportion to his Ordinary Shares of the Company;
(d)to check, review and extract information from the list of Shareholders with voting rights and request for correction of any inaccurate information;
(e)to check, review and extract or copy the Charter, Minute Book and other resolutions of Shareholder Meeting;
(f)to receive part of the remaining property in proportion to his Shares in the Company when the Company is dissolved or bankrupted;
(g)to nominate Board Member and Supervisor. Each Ordinary Shareholder shall be entitled to nominate one Board Member and one Supervisor. To the fullest extent permitted by the Laws, a person who is nominated as a Board Member by a Shareholder may be nominated as other Board Members by other Shareholder however he shall not be nominated as Board Members by all Shareholders;[8]
(h)to review and extract the Minute Book, resolutions of the Board of Management, periodical and annual financial report in forms of accounting system of Vietnam and reports of Board of Supervision; and
(i)to request the Board of Supervision to examine specific issue in relation to the management and operation of the Company if necessary. The request must be in writing.
(j)To call for the Shareholder Meeting in any following cases:
(i)The Board of Management seriously violates the rights of Shareholders, duties of managers or makes decisions beyond its power; and
(ii)The term of the Board of Management is expired more than 06 months and no election for the new Board of Management is held.
Such request must be made in writing enclosed with the documents, evidence proving the violations of the Board of Management, seriousness of the said violations and the defective decisions.
Article 9.Obligations of Ordinary Shareholders
Without prejudice to any other provisions of this Charter, an Ordinary Shareholder must:
(a)make full payment to the Company for the subscribed Shares within 90 (ninety) days from the issuance date of the Investment Certificate and be liable for debts and other liabilities of the Company to the extent of the paid-up Shares;
(b)not be entitled to withdraw the paid-up capital made in form of Ordinary Shares unless otherwise those Shares are bought back by the Company or transferred to another person. If the paid-up capital in form of Ordinary Sharesis withdrawn partially or wholly by a Shareholder in contrary to this Article 9.1, Board Member and the Legal Representative of the Company shall be jointly liable to debts and other obligations of the Company to the extent of the revoked capital;
(c)comply with the Charter and internal rules of the Company;
(d)comply with the decisions of the Shareholder Meeting and the Board of Management;
(e)Comply with other obligations in accordance with the Laws and the Charter; and
(f)obtain prior approval from a Preference Shareholder in writing, for the following, before the resolution by the Shareholder Meeting ;
(a)amendmentand/or repeal or alteration of the Company Charter;
i)sale, lease, exchange, mortgage, pledge or any disposition in equivalent to [70]%or more of the total value of assets recorded in the latest financial report of the Company including the goodwill of the Company;
ii)incurring and creating indebtedness and issuance of new shares or securities;
iii)merger or consolidation of the Company with any other company, or acquisition of the shares or assets of another entity, or entering into a joint venture;