Conditions to become a Controller of a joint stock company

Controller of a joint stock company plays an important role in ensuring transparency and efficiency in financial operations. To become a controller, candidates need to meet certain requirements. The participation of the controller not only helps the company comply with legal regulations but also contributes to enhancing corporate reputation and value. The following article will analyze in detail the roles, conditions and regulations related to controllers of joint stock companies.

What is a controller?

Controller is a position in the organizational structure of a joint stock company. They are members of the Supervisory Board, responsible for supervising the management and operation of the business. Although the Law on Enterprise 2020 does not specifically define a controller, it can be understood that this is a person who performs the company’s internal inspection and supervision function.

The role of the Controller of a joint stock company

Controllers play an important role in monitoring and checking the operations of joint stock companies. They perform independent monitoring functions, ensuring transparency and legal compliance in corporate governance. The specific role of the controller includes:

• Supervising management and operating activities: Controllers monitor and evaluate the performance of tasks by the Board of Directors, Board of Directors and other management staff. They check the reasonableness and legality of company management and operating decisions.
• Check financial reports: Controllers evaluate the completeness, honesty and legality of financial reports and business reports. They ensure financial information is published accurately and reliably.
• Evaluate the internal control system: Controllers review and evaluate the effectiveness of the company’s internal control and risk management system. From there, they make recommendations to improve the corporate governance system.

Conditions to become a Controller of a joint stock company

According to Article 169 of the Law on Enterprise 2020, to become a Controller of a joint stock company, candidates need to meet the following conditions:

• Not subject to the provisions of Clause 2, Article 17 of the Law on Enterprises 2020
• Be trained in one of the majors in economics, finance, accounting, auditing, law, business administration or a major suitable to the business activities of the enterprise.
• Must not be a family member of a member of the Board of Directors, Director or General Director and other managers.
• Not a company manager. Controllers do not necessarily have to be shareholders or employees of the company, unless otherwise stipulated in the company charter.
• Other standards and conditions according to other relevant laws and company charter

Organizational structure of the supervisory board in a joint stock company

The Supervisory Board is the body responsible for supervising the operations of a joint stock company. According to Article 168 of the Law on Enterprise 2020, the organizational structure of the Supervisory Board is prescribed as follows:

• Number of members: The Supervisory Board has from 03 to 05 controllers. The specific amount is prescribed by the company charter.
• Term: The term of office of a controller shall not exceed 05 years and can be re-elected for an unlimited number of terms.
• Head of the Supervisory Board: The Head of the Supervisory Board is elected by the Supervisory Board from among the controllers. The election, dismissal and dismissal of the Head of the Supervisory Board is carried out according to the majority principle. The specific rights and obligations of the Head of the Supervisory Board are prescribed by the Company’s Charter.
• Residence requirement: The Supervisory Board must have more than half of its controllers permanently residing in Vietnam.

Consulting services for conditions to become a Controller of a joint stock company at Long Phan

The controller of a joint stock company not only ensures compliance with regulations but also contributes to optimizing the performance of the enterprise. With a team of experts with a deep understanding of the Law on Enterprise 2020 and related legal regulations, Long Phan provides professional consulting services on conditions to become a controller and issues related to governance.

Long Phan’s consulting services include:

• Consulting on conditions and standards: detailed analysis of conditions and giving specific instructions for candidates who want to become controllers.
• Support the development of operating regulations for the Supervisory Board: support businesses in establishing effective operating regulations for the Supervisory Board, in accordance with regulations and specific characteristics of the company.
• Consulting on rights and obligations: detailed information about the responsibilities and powers of controllers according to regulations.
• Procedural support: consulting and supporting businesses on procedures for candidacy, election, dismissal and removal of controllers according to regulations.

Controllers play an important role in ensuring transparency and effective governance of joint stock companies. To become a controller, candidates need to meet strict standards of expertise and professional ethics. Customers who need detailed advice on the conditions to become a controller or issues related to corporate governance, please contact Long Phan via the hotline: 0906735386 for in-depth support.