The law on corporate governance at credit institutions which are single shareholder limited companies

Abstract

In reality, governance always plays an extremely essential role in the existence and development of each company.
Every success and failure of the company on the market shows quite obvious marks of internal management. This
shows that in order to achieve good business results, firstly, the company needs to have a management system
which operates smoothly and efficiently. This factor is even more important for companies working in fields which
are sensitive to fluctuations of socio-economics factors, and credit institutions (CI) are one of those.
In the market economy, fundamental issues in corporate governance, such as identifying internal organizational
apparatus, the method of construction as well as operation of each agency and even the conditions or criteria of
titles participating in that apparatus, are usually adjusted by the law. Thus, if the law regulations (the rules) are
appropriate or inappropriate for the requirements of reality, they may create advantages or difficulties for each
company in their existence.
This paper will analyze the shortcomings of Vietnam’s current law regulations in corporate governance at credit
institutions which are single shareholder limited companies, as well as propose scientific recommendations
to overcome these drawbacks, leading to creating a more suitable legal corridor for the present conditions of
corporate governance at credit institutions which are single shareholder limited companies