When must a public service provider report the status of conversion into a joint stock company after successful conversion?
When must a public service provider report the conversion status upon successfully transitioning to a joint-stock company?
Pursuant to Clause 2, Article 11 of Circular 111/2020/TT-BTC (amended by Clause 2, Article 1 of Circular 76/2022/TT-BTC) as follows:
Ensuring transparency and information disclosure:
A public service provider undergoing conversion must publicly disclose information about the conversion process into a joint-stock company according to the provisions of Clause 1, Article 42 of Decree No. 150/2020/ND-CP and specific guidelines as follows:
1. No later than 10 working days from the date of receiving decisions or documents from competent authorities concerning financial treatment, labor, and land related to the conversion process into a joint-stock company per the provisions of Decree No. 150/2020/ND-CP, the converted public service provider must publicly disclose on the Government of Vietnam's electronic portal, and simultaneously send reports to the Ministry of Finance, the Ministry of Planning and Investment, and the Steering Committee for Enterprise Innovation and Development for monitoring purposes.
2. Quarterly (before the 5th of the month following the reporting quarter), the converted public service provider is responsible for reporting on the status and progress of the conversion process into a joint-stock company according to the plan approved by competent authorities (in the form detailed in Appendix No. 3 issued together with this Circular) and publicly disclosing on the Government of Vietnam's electronic portal, while also sending reports to the Ministry of Finance, the Ministry of Planning and Investment, and the Steering Committee for Enterprise Innovation and Development for monitoring purposes.
The converted public service provider must send the public disclosure content via one of the following methods: direct submission; postal services; or through the Government of Vietnam's electronic system (if the unit has already been connected to the Government of Vietnam's electronic system).
Quarterly (before the 5th of the month following the reporting quarter), the converted public service provider is responsible for reporting on the status and progress of the conversion process into a joint-stock company according to the plan approved by competent authorities and publicly disclosing on the Government of Vietnam's electronic portal, while also sending reports to the Ministry of Finance, the Ministry of Planning and Investment, and the Steering Committee for Enterprise Innovation and Development for monitoring purposes.
When must a public service provider report the conversion status upon successfully transitioning to a joint-stock company?
What does the public service provider's debt obligations not payable upon converting to a joint-stock company include?
According to Point b, Clause 2, Article 5 of Circular 111/2020/TT-BTC (amended by Clause 1, Article 1 of Circular 76/2022/TT-BTC), debt obligations not payable by the public service provider upon conversion to a joint-stock company include:
- Debts where the creditor of the converted public service provider, upon reconciliation, falls under one of the following cases:+ Debts from enterprises that have been dissolved or bankrupt but with no identifiable entity or individual inheriting the debt following the dissolution or bankruptcy plan approved by competent authorities;+ Debts of deceased individuals with no identifiable heirs according to inheritance law;+ Debts of other creditors that are overdue and where the creditor does not come forward for reconciliation and confirmation. In this case, the converted public service provider must directly notify the creditor in writing and also make a public announcement through mass media at least 10 working days before determining the value.
- State budget allocations;- Non-refundable foreign loans or aid;- Fees retained according to the law on fees and charges;- Special fund allocations or other funds derived from state budget sources or revenue-expenditure differences of the converted public service provider;- Other non-payable debts.
What is the basis for certifying and reconciling the debts payable by the public service provider during the conversion to a joint-stock company?
According to Point a, Clause 2, Article 5 of Circular 111/2020/TT-BTC (amended by Clause 1, Article 1 of Circular 76/2022/TT-BTC), the reconciliation and certification of debts payable by the public service provider when converting to a joint-stock company are regulated as follows:
Reconciling, certifying, and classifying payables
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2. Payables:
The converting public service provider classifies debts payable according to the provisions in Clause 1, Article 16 of Decree No. 150/2020/ND-CP dated December 25, 2020, of the Government of Vietnam on converting public service providers into joint-stock companies.
a) Based on contracts, debt notices, debt reconciliation, and other documents (if any), the converting public service provider shall: List loans by each creditor; Determine tax debts, fees, and amounts payable to the state budget; Specifically analyze loans by contract (domestic, foreign loans), guaranteed and unguaranteed loans, bond issuance loans; debts payable that are due and not yet due, principal debts, interest debts, debts payable but not due for payment.
The basis for certifying and reconciling the debts payable by the public service provider during the conversion to a joint-stock company includes contracts, debt notices, debt reconciliation, and other relevant documents (if any). Based on these, the converting public service provider shall list loans by each creditor, determine tax debts, fees, and amounts payable to the state budget, and specifically analyze loans by contract (domestic, foreign loans), guaranteed and unguaranteed loans, bond issuance loans; debts payable that are due and not yet due, principal debts, interest debts, and debts payable but not due for payment.
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