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| Protecting Minority Shareholders |
Vietnamese corporate law, in comparison to more industrialized jurisdictions, has fewer codified protections of minority shareholders' rights. Pure financial investors who hold minority stakes need always be aware of instances of self-dealing, dilution of shareholder interests, transactions among related third parties, and other fiduciary duty violations by the majority shareholders and management.
Through our M&A investment, AI Capital will either hold a majority interest or a significantly substantial minority interest, to effectively monitor and block corporate action that impairs the rights of minority shareholders. Until Vietnam’s corporate law catches up to international standards, one of the few ways to ensure the fullest protection of shareholder interests is through an M&A investment.
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