Vietnam: new legal framework for innovative start-up funds
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According to the Decree, the Fund for Investment in Creative Industries has no legal status, as a maximum of 30 investors contributing capital on the basis of charter capital.
The portfolio and investment activities of the innovative investment fund include: deposits at commercial banks in accordance with the law; invest no more than 50% of the charter capital of small and medium enterprises starting their creative businesses after receiving investment.
The investment start-up fund is managed in one of the following models: the company manages the creative start-up investment fund; the General Meeting of Investors, the Board of Representatives of the Fund, or the Director of the Fund, the Company shall manage the creation of a Creative Investment Fund; the General Meeting of Investors, the Board of Representatives of the Fund and the Director of the Fund, the Company manages the investment start-up fund.
Fund investors can set up or hire a fund management company. Fund management companies shall have to carry out the procedures for setting up funds under the provisions of the legislation on enterprise registration.
The management of the investment start-up fund provided for in the Decree shall be governed by the charter of the fund, the contracts entered into with the fund (if any) and shall not be governed by the law on securities.
