On April 1, 2021, the Government promulgated Decree No. 47/2021/ND-CP providing details for a number of articles of the Law on Enterprises on social enterprises, state-owned enterprises, group of companies, and national defense and security enterprises. The Decree took effect from April 1, 2021. The following are some notable contents of this Decree:
- Allowing social enterprises to divide, separate, consolidate, merge with other enterprises which are not social enterprises;
- Specifying the cross-ownership among companies in a group of companies, particularly, clarifying cases considered as “jointly contribute capital, purchase shares of another enterprise or establish a new enterprise” among subsidiaries having the same parent company being “an enterprise with at least 65% of State capital”.
