PROCEDURES FOR DISSOLUTION OF MEMBER FUNDS

Securities investment funds can be dissolved in prescribed cases. The dissolution of securities investment funds in general and the dissolution of member funds in particular must comply with legal procedures stipulating the liquidation of fund assets, distribution of fund assets to investors, and reporting to the State Securities Commission.

1. Cases of dissolution of member funds

– The operation period written in the fund’s charter expires;

– The General Meeting of Investors decides to dissolve the fund before schedule;

– The fund management company has its securities trading license revoked or is dissolved or goes bankrupt and a substitute fund management company is not appointed by the representative board of the fund within 02 months from the event;

– The supervisory bank has its certificate of securities depository registration revoked or is dissolved or goes bankrupt, or the supervision contract between the supervisory bank and the fund management company is terminated and a substitute supervisory bank is not appointed by the fund management company within 02 months from the event;

– The net asset value of the fund is under 10 billion VND for 06 consecutive months;

– Other cases specified in the fund’s charter.

2. Procedures

– Step 1: Convening a General Meeting of Investors to ratify the dissolution plan.

– Step 2: Submiting application for dissolution of member funds

Within 15 days from the day on which the Investor Assembly approves the dissolution of the fund, the securities investment fund management company or the depository bank, supervisory bank (if any) and the representative board of the fund (in case there is no securities investment fund management company) shall submit the application for dissolution to State Securities Commission.

Within 15 days from the receipt of the satisfactory application, State Securities Commission shall issue a document to approve the dissolution under the plan approved the Investor Assembly of the fund. In case the application is rejected, State Securities Commission shall issue a written response and provide explanation.

– Step 3: Liquidating and divide of assets among investors.

– Step 4: Completing fund dissolution

Within 05 working days from the date of completing the dissolution of the fund, the securities investment fund management company or depository bank or custodian bank (if any) in case there is no fund management company securities investment, is responsible for disclosing information and reporting results of fund dissolution to the State Securities Commission. 

– Step 5: Revoking the Fund establishment registration certificate

Within 15 days from the date of receipt of complete and valid documents reporting the results of fund dissolution, the State Securities Commission shall decide to revoke the Certificate of fund establishment registration.

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3. Application for dissolution of member funds

– The application form;

– The minutes of meeting and resolution of the Investor Assembly on approval for the dissolution of the fund and the dissolution plan;

– The dissolution plan;

– The written commitment to complete procedures for liquidation of assets serving the dissolution of member funds.