On December 31, 2020, the Ministry of Finance issued Circular No. 118/2020/TT-BTC guides some contents on offering, issuing securities, public offering, repurchasing shares, registering public companies and canceling the status of a public company. This Circular takes effect from February 15, 2021.

One of the highlights of this document is related to the procedures for disqualification of a public company in case of failure to meet the condition of public companies which are reorganized, dissolved, or bankrupt, specifically as follows: 

• For public companies that do not meet the conditions of public company after division, consolidation, merger, dissolution or bankruptcy of an enterprise must report and disclose information on the corporate reorganization, dissolution or bankruptcy on information disclosure on the stock market. After updating the legal status or when there is a decision of the Court declaring bankruptcy, the State Securities Commission will review and notify on the information disclosure media of the State Securities Commission about disqualification of a public company.
• For public companies that do not meet the conditions that public companies have their business registration certificates revoked, they must report and disclose information on the stock market. Within 180 days from the date of receipt of the report, the State Securities Commission will consider canceling the status of a public company. After the time limit for consideration expires, the State Securities Commission shall notify on the State Securities Commission’s means of disclosing information about the cancellation of the status of a public company. 
• For public companies that do not meet the conditions as a public company after the split or merger, in this case the order and procedures for disqualification of the public company will be performed in accordance with the Law on Securities. After 15 days from the date of receipt of a complete application for disqualification, the State Securities Commission will notify on the media of the State Securities Commission on the cancellation of the status of a public company. 
• For public companies that do not meet the conditions for being public companies due to the transformation of their business form from joint stock companies into limited liability companies, they must make reports and disclose information on the stock market. After receiving the report or announcement, the State Securities Commission will review and notify the cancellation of the status of a public company on the information disclosure media of the State Securities Commission.