Delisting Process and Procedures Under Vietnam's Securities Law
Vietnam Legal & Investment Insights · Harley Miller Law Firm
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Show Notes
Today we're exploring delisting - when a company's shares are removed from a stock exchange. While this might sound concerning, delisting can happen for various legitimate reasons.
There are two types of delisting: mandatory and voluntary. Mandatory delisting occurs when companies violate exchange rules or fail to meet requirements. The exchange monitors companies and can force delisting to protect investors.
For mandatory delisting, companies get a chance to explain and address issues. If problems persist, the exchange announces the delisting decision. Companies usually get a 30-day grace period, except in cases of fraud.
Voluntary delisting happens when companies choose to leave the exchange, often for strategic reasons like restructuring or going private. This requires shareholder approval through a general assembly meeting.
In both cases, investor protection is key. Companies must provide clear communication and fair share buyback plans. Information is shared through official channels, and independent experts may help determine fair prices.
The process balances company freedom with investor protection through regulations and safeguards.