Etymology Corner 📚
The word "share" comes from Old English "scearu," meaning "cutting, shaving, division." Like slicing a pie 🥧, how you divide and price your company shares matters!
The Market Price Puzzle 🧩
What is Market Price?
According to Vietnam's Enterprise Law 2020, market price of shares is:
- Actual trading price at the nearest previous time 📊
- Agreed price between buyer and seller 🤝
- Price determined by a valuation organization 📋
Can You Sell Below Market? The 4 Special Cases! 🎯
Generally: NO! ❌ But wait, there are exceptions...
The Lucky Four 🍀
- First-time sales to non-founding shareholders
- Pro-rata sales to existing shareholders
- Broker/Underwriter sales (with shareholder approval)
- Special cases defined in company charter
Real-Life Example 🎭
Meet Company X:
- Market price: 10,000 VND/share
- Wants to sell to new investors at 8,000 VND/share
- Solution: Used the "first-time sale" exception ✅
🌿 Nature's Parallel
Just like how honey bees offer "discount nectar" to attract new pollinators to less popular flowers, companies can use below-market pricing to attract new investors!
💡 Pro Tips:
For Companies:
- Document everything
- Get shareholder approval
- Update company charter
- Follow disclosure rules
For Investors:
- Check transfer restrictions
- Verify exception eligibility
- Get everything in writing
- Consider tax implications
🤔 Did You Know?
- Below-market transfers must be reported within 10 days
- Company charters can add more exceptions
- Foreign investors may need additional approvals
Quick Quiz! 📝
- How many exceptions exist for below-market sales?
- Do you need shareholder approval for broker discounts?
- What's the reporting deadline for share transfers?
Best Practice Tips 💫
- Always get board approval
- Document market price determination
- Keep detailed transfer records
- Consider tax implications
#ShareTransfer #CorporateLaw #VietnamBusiness #InvestmentLaw
🚨 Share Market Safety: Legal Disclaimer 🚨
Hey share trader! 📈 Before you discount:
- This guide is like a stock tip - not a guarantee!
- Each share transfer needs unique evaluation 🎯
- For actual transfers, consult a securities lawyer 👨⚖️
- Remember: Reading about share transfers doesn't make you a broker, just like playing Monopoly doesn't make you Warren Buffett! 🎲
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