Policies to support employees working in enterprises where the state holds 100% of charter capital when the enterprise is dissolved?

Main Content

• What are the responsibilities of enterprises in which 100% charter capital is held by the state when dissolved?
• What support will employees in enterprises in which 100% charter capital is held by the state?
• How long does it take to dissolve an enterprise in which the state holds 100% of charter capital?

What are the responsibilities of enterprises in which 100% charter capital is held by the state when dissolved?

Pursuant to Article 45 of Decree 23/2022/ND-CP stipulates as follows:

“Article 45. Responsibilities of dissolved enterprises

1. When there is a decision on dissolution, the dissolved enterprise must publicly post up the dissolution decision at the head office, branch or representative office of the enterprise and publish it on an electronic or written newspaper in 03 consecutive issues. followed by a notice on the date of termination of the enterprise's operation and the time required for creditors to come for debt reconciliation.

2. From the effective date of the dissolution decision, the dissolved enterprise in which 100% charter capital is held by the State shall be responsible for:

a) Failing to carry out all prohibited activities as prescribed in Article 211 of the Law on Enterprises;

b) Termination of business activities, payment of payable debts, loan of assets, custody of assets;

c) Close accounting books; inventory of assets; compare receivables and payables; prepare financial statements up to the effective date of the dissolution decision;

d) Make a list of creditors and payable amounts (divided into secured debt, partially secured debt and unsecured debt); list of debtors and amounts of receivables (dividing recoverable debts and irrecoverable debts);

dd) Send a written request to the tax authority to certify the tax liability of the enterprise.

3. Within 30 working days from the effective date of the dissolution decision, the enterprise must hand over to the dissolution Council:

a) Financial statements, accounting books and documents related to the dissolution of the enterprise; the list of creditors and debtors of the enterprise;

b) All assets under the lawful ownership, management and use of the enterprise (including unrecovered assets), assets received and kept on behalf of, borrowed or leased.”

Accordingly, from the effective date of the dissolution decision, enterprises with 100% charter capital held by the State will not be able to carry out all activities prohibited under the Enterprise Law 2020, and must terminate business activities. and debt payment, must close the accounting books, make a list of creditors and payable amounts and send a written request to the tax authority to terminate the validity of the tax identification number

What support will employees in enterprises in which 100% charter capital is held by the state?

Pursuant to Article 46 of Decree 23/2022/ND-CP stipulates as follows:

“Article 46. Policies for employees and holders of leadership and management titles

1. Employees who are eligible for the retirement regime shall comply with the law on social insurance and other benefits in accordance with the labor law.

2. The employee who terminates the labor contract is entitled to the allowance for job loss or job severance in accordance with the provisions of the labor law or the policy for redundant employees when reorganizing the enterprise by the State. the country holds 100% of the charter capital.

3. The chairman and members of the Members' Council or the company's president, the general director (director) and the controller working under the appointment regime shall be considered on a case-by-case basis by the owner's representative agency. to arrange jobs after the dissolution of the enterprise. In case they work under the appointment regime but cannot arrange jobs, they will be dealt with the regime of downsizing according to regulations.”

Accordingly, eligible employees will be entitled to retirement benefits. The employee who terminates the labor contract will receive a job loss allowance, a severance allowance.

How long does it take to dissolve an enterprise in which the state holds 100% of charter capital?

Pursuant to Article 47 of Decree 23/2022/ND-CP stipulates as follows:

“Article 47. Time limit for enterprise dissolution

1. The enterprise dissolution period shall not exceed 01 year from the effective date of the dissolution decision and may be extended for more but not more than 06 months in case the dissolution decider agrees in writing. In case there are problems and difficulties leading to the extension of the dissolution time compared to the above time limit, they shall report them to the Prime Minister for consideration and decision.

2. In case an enterprise has its enterprise registration certificate revoked, the time limit for dissolution shall comply with the law on enterprises.”

Thus, the time to implement the dissolution of enterprises in which 100% of charter capital is held by the country is not more than 01 year from the effective date of the dissolution decision