Appraisal of Assets Contributed Capital to Business Establishment

The Law on Enterprises 2014 states:
“1. Contributed assets other than VND, freely convertible foreign currencies, gold must be valued by members, founding shareholders or a professional valuation organization and expressed in VND.

2. Assets contributed as capital upon the establishment of an enterprise must be valued by founding members or shareholders on the principle of consensus or by a professional valuation organization. In case the professional valuation organization conducts valuation, the value of assets contributed as capital must be approved by a majority of members, founding shareholders.

In case the assets contributed as capital are valued at a higher price than the actual value at the time of capital contribution, the founding members and shareholders jointly contribute by the difference between the valued value and the real value. economics of the assets contributed as capital at the end of the valuation; at the same time, to be jointly liable for damages caused by the intentional valuation of the assets contributed as capital higher than the actual value. ”
According to the above provisions, the valuation of assets contributed as capital has the following problems:

• First, all assets contributed as capital other than VND, freely convertible foreign currencies, gold must be valued and expressed. into Vietnamese Dong. This means to evaluate the most accurate amount of capital contribution of each member.
• Second, the valuation of assets contributed as capital upon the establishment of a business must be priced by founding members and shareholders on the principle of consensus or agreement with the valuation results provided by a professional valuation organization. proceed.
• Third, if the contributed assets are valued at a higher value than the actual value at the time of capital contribution, the founding members and shareholders must contribute more by the difference between the valued value and the actual value of assets contributed as capital at the end of the valuation; at the same time, to be jointly liable for losses caused by the intentional valuation of the assets contributed as capital higher than the actual value.