Decree No. 35/2020/ND-CP detailing the Competition Law

DECREE

Detailing a number of articles of the Competition Law^[1]

Pursuant to the June 19, 2015 Law on Organization of the Government;

Pursuant to the June 12, 2018 Competition Law;

At the proposal of the Minister of Industry and Trade;

The Government promulgates the Decree detailing a number of articles of the Competition Law.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

This Decree details Articles 9, 10, 13, 26, 31, 32, 33, 36, 56 and 82 of the Competition Law.

Article 2. Interpretation of terms

1. Controlling and dominating another enterprise or one of its business lines means one of the following cases where:

a/ The acquiring enterprise acquires the right to own over 50% of charter capital or over 50% of voting shares of the acquired enterprise;

b/ The acquiring enterprise acquires the right to own or use over 50% of assets of the acquired enterprise in all or one of the latter’s business lines;

c/ The acquiring enterprise has one of the following rights:

- To directly or indirectly decide on appointment, relief from duty or removal from office of majority or all of members of the Board of Directors, the chairperson of the Members’ Council, or the director or director general of the acquired enterprise;

- To decide to modify and supplement the charter of the acquired enterprise;

- To decide on important matters in business operations of the acquired enterprise, including selection of forms of business organization; selection of business lines, locations and forms; selection and adjustment of business scale and lines; and selection of forms and modes of raising, distribution and use of business capital of the acquired capital.

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