Directors in public companies: A comparative study between Vietnam and Australia

Abstract

Company directors in general and directors of public companies are indispensable officers who, on behalf of and under authorization from shareholders, manage the flow of funds and operate the business activities of the company. Being the key link within a corporate body, directors are bound by the laws to exercise their duties and power in an appropriate manner for the best interests of the company and its owners. With due examination in this paper, it can be concluded that Vietnamese laws on enterprises and, in particular, public companies are updated with sufficient regulations on directors and their function, yet deficiencies are found which can lead to obstacles in understanding and applying such regulations in practice. Australian statutory and case laws, on the other hand, have been forming and supporting the growth and maintenance of the laws on directors’ role, duties and power which in fact helps building strong corporate governance practices. In short, regarding the fundamental matters of directors in public companies, Vietnam still has a long road ahead to review and evaluate, and can take Australia’s experience alongside to complete such journey.