Shortcomings in the Legal System on Securities in Vietnam

Hung, Nguyen Vinh; Thinh, Tran Cong; Hoi, Dao Xuan

doi:10.15408/jch.v10i3.26449

Cited by 1 publication

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“…"Nowadays, Vietnam's stock market has had rapid growth and attracted an increasing number of investors" (Nguyen Vinh Hung et al, 2022_2). Therein, "securities company is an important intermediary financial institution in the stock market" (Hanoi Law University, 2012).…”

Section: Introductionmentioning

confidence: 99%

The Organizational Structure of the Securities Company Under the Law of Vietnam Current

Hung¹,

Hoi²,

Duy³

2023

J. Professional Business Review

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Purpose: The article researches on the organizational structure of securities company under the Securities Law 2019 in order to point out some limitations and shortcomings and propose for recommendations to improve law about organizational structure on this form of company. Theoretical framework: Recent literature points out that securities companies play very important role in the development of Vietnam's stock market. However, in the current stage of development, from the influence and impact of international integration and the increasingly fierce competitive pressure, the securities companies have encountered many difficulties to survive. In there, limits and problems in regulations about securities company organizational structures has caused many difficulties for these companies when organization and operation. On the other hand, in the context of judicial reform in Vietnam, the issue of complete law system and expanding the freedom to business has always been paid special attention by the Party and Vietnam State. Design/methodology/approach: The authors have combined traditional research methods of legal science such as legal analysis method, legal efficiency assessment method and legal comparison method. Findings: According to research, regulations on the organizational structure of a securities company are directly related to the efficiency of management and administration of this company. In there, Supervisory Board/Internal Audit Committee always ensuring to limit negative and fraudulent acts of the company’s leaders, to better ensure the legitimate rights and interests of the company's members and customers. Therefore, the authors have proposed several solutions such as the need to stipulate the mandatory requirement of a Supervisory Board for the securities trading company under the model of limited liability company, and expand and strengthen the powers of the Supervisory Board/Internal Audit Committee, independent members in securities companies doing business in the form of joint stock company. These are important bases to contribute to perfecting the Law on the organizational structure of securities companies in Vietnam and further enhancing the stability and safety of the Vietnamese stock market. Research, Practical & Social implications: This research may support many develop future research in Vietnam. At the same time, the research to help foreign investors' activities in Vietnam's stock market. Originality/value: The research of the freedom to business and organizational structure of securities companies become more and more urgent and very important in Vietnam.

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Section: Introductionmentioning

confidence: 99%