Policy to buy more shares for employees when converting public non-business units

Legal Consulting Department of Lao Dong Newspaper answers:

Clause 2, Article 38 of Decree 373/2026/ND-CP on converting public non-business units into enterprises (effective from September 30, 2026) stipulates as follows:

2. Employees of public non-business units at the time of determining the value of converted public non-business units, who are subject to converted public non-business units that need to be used and have committed to working long-term for the joint-stock company for at least 03 years (from the date the enterprise is granted the Certificate of Joint Stock Company Registration for the first time) will be allowed to buy additional shares according to the following regulations:

a) Buy additional shares at a rate of 200 shares/01 year of commitment to continue working in the enterprise but not exceeding 2,000 shares for one employee.

Employees who are good experts with high professional qualifications are allowed to buy additional shares at a rate of 800 shares/01 year of commitment to continue working in the enterprise, but not more than 8,000 shares per employee. Public non-business units converting, based on the specific nature of their industry and business field, develop criteria to identify good experts with high professional qualifications; approve at the Employee Conference of the public non-business unit before converting into a joint-stock company and submit to the agency for approval of the conversion plan for decision;

b) The selling price of shares to employees who buy additional shares specified in point a of this clause is the starting price approved by the competent authority specified in Article 40 of this Decree in the equitization plan;

c) Each employee is only entitled to purchase additional shares at a level specified in point a of this clause;

d) The number of shares employees are allowed to buy additionally specified in point a, clause 2 of this Article is determined according to the committed time of continuing to work to reach retirement age for employees in normal working conditions as prescribed in the current Labor Code;

d) The additional shares purchased by employees specified in point a, clause 2 of this Article are converted into common shares after the committed period ends.

In case the joint-stock company implements changes in structure, technology, relocates or narrows production and business locations as required by competent state agencies, leading to employees having to terminate labor contracts, quit their jobs, lose their jobs according to the provisions of the Labor Code before the committed deadline, the additionally purchased shares will be converted into common shares. In case employees have a need to resell these shares to the enterprise, the joint-stock company is responsible for repurchasing them at the market transaction price.

In case the employee terminates the labor contract before the committed term, they must sell back to the joint stock company the entire number of shares that have been additionally purchased at the market transaction price but not exceeding the purchase price at the time of equitization.

Thus, from September 30, 2026, employees are allowed to buy additional shares when converting public non-business units into enterprises according to the above regulations.

See the original here