Son Ha Joint Stock Company has also completed the registration to reduce charter capital in accordance with regulations. At the time of the transaction, the Company consulted the list of transactions that must be paid via bank posted on July 23, 2021 at the website of the Ministry of Finance, there was no case of a joint stock company buying back shares of company shareholders.

Up to now, when investigating issues related to payment obligations in the company's transactions, Son Ha Joint Stock Company found that in Article 6 of Decree No. 222/2013/ND-CP there are provisions:

"Article 6. Financial transactions of enterprises

1. Enterprises do not make cash payments in transactions of capital contribution and purchase, sale and transfer of capital contributions to the enterprise.

2. Enterprises other than credit institutions do not use cash when borrowing and lending to each other.

Circular No. 09/2015/TT-BTC dated January 29, 2015 of the Ministry of Finance guiding financial transactions of enterprises as prescribed in Article 6 of Decree No. 222/2013/ND-CP dated December 31, 2013 of the Government on cash payment:

"Article 1. Governing scope of this Circular guides payment methods of enterprises in transactions of capital contribution and purchase, sale and transfer of capital contributions to other enterprises; and payment methods of enterprises that are not credit institutions in the relationship of borrowing, lending and repaying loans to each other in the territory of Vietnam.

"Article 3. Forms of payment in capital contribution transactions and purchase, sale and transfer of capital contributions to other enterprises

1. Enterprises do not use cash (paper money, metal coins issued by the State Bank) to make payment when performing capital contribution transactions and buying, selling and transferring capital contributions to other enterprises. 

Son Ha Joint Stock Company asked that the payment of money to buy back shares to company shareholders (according to Article 132, 133 of the Enterprise Law 2020) in cash as above violates legal regulations law?

The provisions of Article 6 of Decree No. 222/2013/ND-CP on enterprises' failure to make cash payments in capital contribution transactions and purchase, sale and transfer of capital contributions to enterprises must be construed as Enterprises do not use cash (paper money, metal coins issued by the State Bank) to make payment when performing capital contribution transactions and buying, selling and transferring capital contributions to other enterprises according to the guidance at Point a of this Clause. Article 3 Circular No. 09/2015/BTC or not?

The State Bank of Vietnam responded to this issue as follows:

In Article 6 of Decree No. 222/2013/ND-CP dated December 31, 2013 of the Government on payment in cash, the financial transactions of enterprises are regulated as follows:

"1. Enterprises do not make cash payments in transactions of capital contribution and purchase, sale and transfer of capital contributions to the enterprise.

2. Enterprises other than credit institutions do not use cash when borrowing and lending to each other.

Pursuant to the provisions of the current law mentioned above, enterprises are not allowed to use cash when contributing capital, buying, selling, transferring capital contributions to enterprises, borrowing and lending to each other.

The provisions in Article 6 of Decree No. 222/2013/ND-CP do not apply to individuals contributing capital and buying, selling and transferring capital contributions to enterprises; capital contribution enterprises and purchase, sale and transfer of capital contributions of individuals.

Capital contribution, purchase, sale and transfer of capital of individuals into enterprises; capital contribution enterprises and purchase, sale and transfer of capital contributions of individuals must comply with the provisions of the Enterprise Law 2020 and relevant laws.