What are regulations on restrictions on investment and business lines in the VINACHEM?

What are regulations on restrictions on investment and business lines in the VINACHEM?

Pursuant to Article 70 of the Charter of Organization and Operation of the Vietnam Chemical Group issued together with Decree 20/2018/ND-CP stipulating restrictions on investment and business lines in the VINACHEM as follows:

1. The affected enterprise is not allowed to buy shares or contribute capital to the enterprise holding the controlling right in the same VINACHEM.

2. The capital investment outside Vietnam Chemical Group shall comply with the Regulation on financial management of the VINACHEM; regulations and guidance of competent state management agencies.

3. VINACHEM is not allowed to invest outside the enterprise in the following cases:

- Contribute capital, buy shares, buy entire other enterprises where the manager or representative at that enterprise is the spouse, biological father, adoptive father, biological mother, adoptive mother, biological child, adopted child, brother siblings, siblings, brothers-in-law, sisters-in-law of the Chairman and members of the Board of Members, Controllers, General Director, Deputy General Director, Chief Accountant of the Group;

- Contribute capital with subsidiaries to establish a joint stock company, limited liability company or implement a business cooperation contract.

4. VINACHEM and member enterprises of VINACHEM Group may register their business lines in accordance with law, including main business lines and industries. , occupations related to main business lines, other lines of business; subject to the supervision of state ownership representative agencies on the investment ratio of investment capital and investment efficiency in the main business lines, lines of business, lines and trades related to the main business lines and other business sectors and professions.

The owner's representative agency decides on business lines and occupations; decide on adjustments or changes to business lines and lines of VINACHEM; Business supervision of business lines, lines of business, lines of business related to the main line of business, other lines of business.

5. Where the VINACHEM directly or through its subsidiary conducts business in lines of business unrelated to the main business lines, the following conditions must be satisfied:

a) Complete the main business tasks assigned by the owner; conducting business in unrelated industries and occupations that do not affect the business tasks of the main business and the expansion and development of the main business industries and occupations;

b) Use activities and business results of unrelated industries and sectors to support and develop main business sectors and industries;

c) Fulfill reporting obligations and submit to supervision by state ownership representative agencies on investment, investment efficiency and impacts of business in industries and trades unrelated to the industry and main business lines.

What are subsidiaries with 100% charter capital held by VINACHEM?

Pursuant to Clause 1 Article 72 of the Charter of Organization and Operation of the Vietnam Chemical Group issued together with Decree 20/2018/ND-CP, subsidiaries with 100% charter capital held by VINACHEM are:

a) The parent company in the Corporation model under the VINACHEM operates in the form of parent company - subsidiary company and is a one-member limited liability company with 100% charter capital held by VINACHEM;

b) One-member limited liability companies in which 100% of charter capital is held by VINACHEM;

c) Companies converted from scientific and technological research units or training establishments;

d) Other companies as prescribed by law.

Best regards!