Which public service providers may be converted into joint stock companies in Vietnam? When will a public service provider be converted into a joint stock company?
Which public service providers may be converted into joint stock companies in Vietnam?
Pursuant to Article 2 of Decree 150/2020/ND-CP, the public service providers that can be converted into joint-stock companies are defined as follows:
Applicable subjects:
1. Public service providers that meet the conditions for conversion into joint-stock companies as specified in Article 4 of this Decree include:
a) Public service providers under ministries, equivalent agencies, and agencies under the Government.
b) Public service providers under units under ministries, equivalent agencies, and agencies under the Government.
c) Public service providers under the People's Committees of provinces and centrally-run cities (referred to as provincial-level People's Committees).
d) Public service providers under specialized agencies and other administrative organizations of provincial-level People's Committees.
e) Public service providers under the National University of Hanoi and the National University of Ho Chi Minh City.
g) Public service providers under ministries, equivalent agencies, agencies under the Government, provincial-level People's Committees, the National University of Hanoi, and the National University of Ho Chi Minh City.
h) Public service providers under state-owned enterprises with 100% charter capital held by the state.
2. Ministries, equivalent agencies, agencies under the Government, provincial-level People's Committees, the National University of Hanoi, the National University of Ho Chi Minh City, and other relevant agencies, organizations, and individuals involved in the conversion of public service providers into joint-stock companies.
Therefore, the public service providers that can be converted into joint-stock companies include:
- Public service providers under ministries, equivalent agencies, agencies under the Government.
- Public service providers under units under ministries, equivalent agencies, agencies under the Government.
- Public service providers under the People's Committees of provinces and centrally-run cities (provincial-level People's Committees).
- Public service providers under specialized agencies and other administrative organizations of provincial-level People's Committees.
- Public service providers under the People's Committees of districts, towns, and cities belonging to provinces (district-level People's Committees).
- Public service providers under the National University of Hanoi and the National University of Ho Chi Minh City.
- Public service providers under ministries, equivalent agencies, agencies under the Government, provincial-level People's Committees, the National University of Hanoi, and the National University of Ho Chi Minh City.
- Public service providers under state-owned enterprises with 100% charter capital held by the state.
Which public service providers may be converted into joint stock companies in Vietnam? When will a public service provider be converted into a joint stock company? (Image from the Internet)
What are forms of conversion of public service providers in Vietnam?
The forms of conversion of public service providers into joint-stock companies are regulated in Article 5 of Decree 150/2020/ND-CP as follows:
Forms of conversion of public service providers:
1. Maintaining the existing state capital in public service providers and issuing additional shares to increase the charter capital.
2. Selling a portion of the existing state capital in public service providers, or a combination of selling a portion of the state capital and issuing additional shares to increase the charter capital.
Therefore, the forms of converting public service providers into joint-stock companies include:
+ Maintaining the existing state capital in public service providers and issuing additional shares to increase the charter capital.
+ Selling a portion of the existing state capital in public service providers, or a combination of selling a portion of the state capital and issuing additional shares to increase the charter capital.
What are the conditions for conversion of public service providers into joint-stock companies in Vietnam?
Pursuant to the regulations in Article 4 of Decree 150/2020/ND-CP, the conditions for conversion of public service providers into joint-stock companies are as follows:
Conditions for conversion of public service providers into joint-stock companies:
1. Ensure regular expenditures and have the ability to invest or ensure regular expenditures in the previous year prior to the conversion.
2. Retain state capital after financial processing and reassessment of the value of public service providers.
3. Belong to the list of sectors and fields for converting public service providers into joint-stock companies, which is decided by the Prime Minister for each period. This list does not include sectors or fields that specialized legislation prohibits from converting public service providers into joint-stock companies.
4. Have a plan for restructuring and handling public properties and land, which has been approved by the competent authority in accordance with the regulations on management and use of state assets.
Therefore, public service providers can be converted into joint-stock companies when they meet the conditions specified in Article 4 as mentioned above.
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