On what principles are the parent company MobiFone Corporation entitled to lease, mortgage or pledge MobiFone's assets in Vietnam?

On what principles are the parent company MobiFone Corporation entitled to lease, mortgage or pledge MobiFone's assets in Vietnam?

According to Article 16 of the Regulation on financial management of the parent company - MobiFone Corporation issued by the Chairman of the State Capital Management Committee at enterprises together with Decision 618/QD-UBQLV in 2022, providing for lease, mortgage or pledge assets as follows:

1. MobiFone is entitled to lease, mortgage or pledge MobiFone's assets on the principle of efficiency, preservation and development of capital in accordance with the law, in which:

a) The Board of Members shall decide on each contract of lease, mortgage or pledge of assets valued at less than 50 % of equity recorded in MobiFone's quarterly or annual financial statements at the nearest time to the date of the contract decision point to lease, mortgage or pledge assets, but the residual value of the leased, mortgaged or pledged assets does not exceed the capital of group B projects in accordance with the Law on Public Investment.

The Board of Members shall specify the decentralization for the General Director: MobiFone decides each contract of lease, mortgage and pledge of collateral in accordance with the provisions of the Regulations of the Board of Members and legal regulations. 

b) In case the property lease, mortgage or pledge contracts are above the level specified at Point a of this Clause, MobiFone's Board of Members shall report to the owner's representative agency for consideration and decision before signing the contracts. property lease, mortgage or pledge contracts.

2. The authority to decide on the use of MobiFone's assets for mortgage or loan is specified in Clause 6, Article 6 of this Regulation.

3. The use of property for lease, mortgage or pledge must strictly comply with the provisions of the Civil Code and other relevant laws.

According to this Article in Vietnam, the parent company of MobiFone Corporation is entitled to lease, mortgage and pledge MobiFone's assets on the principle of efficiency, capital preservation and development in accordance with the law.

What are regulations on asset inventory of the parent company of MobiFone Corporation in Vietnam?

In Article 21 of the Regulation on financial management of the parent company - MobiFone Corporation issued by the Chairman of the State Capital Management Committee at enterprises together with Decision 618/QD-UBQLV in 2022, there are provisions on asset inventory, specifically as follows:

1. MobiFone must organize physical inventory to determine the quantity of short-term and long-term assets under the management and use of the enterprise; the number of shares owned by the business; compare payables and receivables in the following cases:

a) Time to close accounting books for preparation of annual financial statements;

b) When implementing decisions of competent authorities on division, separation, merger, consolidation, dissolution, bankruptcy or ownership conversion;

c) After a natural disaster or enemy sabotage occurs; or for other reasons causing changes in the assets of the enterprise;

d) Other cases as prescribed by competent authorities.

2. Processing inventory results:

a) Handling inventory results at the time of making annual financial statements:

- In case the inventory result is insufficient compared to the number of assets recorded in the accounting books, if it is caused by subjective causes of the concerned collective or individual must compensate. MobiFone's Board of Members decides the compensation level and is responsible for its decision. The value of the missing property after it has been compensated by the compensation of the collective or individual (if any) or the value of the missing property due to objective reasons, the enterprise shall account it in production and business expenses.

- In case the result of inventory of assets is excess compared to the number of assets recorded in the accounting books, MobiFone must clearly determine the cause of the excess of other of the enterprise; for excess assets with unidentified causes, they shall be recorded in payables and other payables; In case the cause of excess property value has been identified and a handling record is available, the settlement decision shall be based on the appropriate accounting decision.

b) The handling of inventory results as prescribed at Points b, c and d, Clause 1 of this Article shall comply with the provisions of law for each specific case of inventory.

c) MobiFone is responsible for timely handling of losses of assets and debts, in case the losses of assets and debts are not handled, the Board of Members, the General Director of MobiFone are responsible before the owner's representative agency and take responsibility before law for violations that cause damage to the enterprise's assets.

According to this Article, MobiFone must organize an actual inventory to determine the quantity of short-term and long-term assets under the management and use of the enterprise; the number of shares owned by the business; reconciliation of accounts payable in Vietnam.

In addition, processing inventory results at the time of making annual financial statements. MobiFone is responsible for timely handling of losses of assets and debts. In case the loss of assets and debts is not handled, the Board of members and the General Director of MobiFone are responsible to the represent agency of the owner and take responsibility before the law for violations that cause property damage of the enterprise in Vietnam.

Under what circumstances does the parent company MobiFone Corporation carry out an asset reassessment in Vietnam?

In Article 22 of the Regulation on financial management of the parent company - MobiFone Corporation issued by the Chairman of the State Capital Management Committee at enterprises together with Decision 618/QD-UBQLV in 2022, on assessment property is specified as follows:

1. MobiFone re-assess assets in the following cases:

a) According to a decision of a competent state agency.

b) Carrying out enterprise ownership transformation: equitization, sale or conversion of enterprise ownership in other forms.

c) Using assets to invest outside MobiFone.

d) Other cases as prescribed by law.

2. The revaluation of the property must comply with the regulations of the State, the difference in value increase or decrease due to the revaluation of the property specified in Clause 1 of this Article shall comply with the regulations for each case. 

According to this Article, the parent company of MobiFone Corporation in Vietnam shall re-assess assets in the following cases:

- According to the decision of the competent state agency.

- Carrying out enterprise ownership transformation: equitization, sale or conversion of enterprise ownership in other forms.

- Use assets to invest outside MobiFone.

Best Regards!