Who has authority to decide on liquidation and sale of fixed assets of the parent company of MobiFone Telecommunications Corporation in Vietnam?

Who has authority to decide on liquidation and sale of fixed assets of the parent company of MobiFone Telecommunications Corporation in Vietnam?

In Clause 2, Article 17 of the Regulation on financial management of the parent company - MobiFone Telecommunications Corporation, promulgated by the President of the Committee for the Management of State Capital at Enterprises together with Decision 618/QD-UBQLV in 2022 on the authority to decide on the liquidation and sale of fixed assets:

2. Competence to decide on the liquidation and sale of fixed assets:

a) MobiFone's Board of Members shall decide on plans for liquidation or sale of assets with the remaining value of less than 50% of equity recorded on the balance sheet in the quarterly or annual financial statements of MobiFone at the time closest to the time of asset liquidation, but not exceeding group B projects in accordance with the Law on Public Investment.

For plans on liquidation or sale of fixed assets with a value greater than that assigned to the Members' Council, the Members' Council shall report to the owner's representative agency for decision in accordance with law.

b) In case MobiFone's plan to sell fixed assets is not able to fully recover the invested capital, MobiFone must clearly explain the reason for its inability to recover capital and report it to the owner's representative agency in advance. when selling fixed assets to carry out supervision.

c) Particularly for the case of newly invested, purchased fixed assets that have been completed and put into use within the first 3 years but do not bring economic efficiency as per the initial approved plan, MobiFone has no need continue to exploit and use, but the sale of assets is not able to recover enough investment capital, leading to MobiFone's inability to repay the loan according to the contract or loan contract, the Members' Council must clarify the responsibilities of the relevant persons to report to the owner's representative agency for consideration and handling in accordance with law.

In what form is the sale of fixed assets organized by the parent company of MobiFone Telecommunications Corporation in Vietnam?

According to Clause 3, Article 17 of the Regulation on financial management of the parent company - MobiFone Telecommunications Corporation, promulgated by the President of the Committee for the Management of State Capital at Enterprises together with Decision 618/QD-UBQLV in 2022:

3. Method of liquidation and sale of fixed assets:

The sale of fixed assets is done in the form of an auction through an organization that has the function of asset auction or publicly organized by MobiFone in accordance with the order and procedures prescribed by law. property auctions. In case of selling fixed assets with the residual value recorded in the accounting books of less than VND 100 million, the General Director of MobiFone shall decide to choose to sell by auction or agreement method but not lower than the market price. In case the fixed assets are not traded on the market, MobiFone may hire an organization with the function of price appraisal to determine the price as a basis for selling assets according to the above methods.

According to this Article, the sale of fixed assets shall be carried out in the form of an auction through an organization with the asset auction function or by MobiFone's self-organized public implementation in accordance with the prescribed order and procedures of the law on property auction.

What are procedures for liquidation and sale of assets of the parent company of MobiFone Telecommunications Corporation in Vietnam?

Pursuant to Clause 5, Article 17 of the Regulation on financial management of the parent company - MobiFone Telecommunications Corporation, promulgated by the President of the Committee for the Management of State Capital at Enterprises together with Decision 618/QD-UBQLV in 2022, there are state:

5. Order and procedures for asset liquidation and sale according to the provisions of Clause 4, Article 27 of Decree No. 91/2015/ND-CP dated October 13, 2015 of the Government, Decrees amending and supplementing, replacing (if any) and relevant laws.

Referring to Clause 4, Article 27 of Decree 91/2015/ND-CP and Clause 2, Article 6 of Decree 140/2020/ND-CP, which stipulates that:

4. Procedures for asset disposal, transfer or sale:

a) The Board of Members or the Chairperson of a state enterprise makes a decision on establishment of the council on fixed asset disposal, transfer and sale in such enterprise. The council is composed of a Director General or Director, Chief Accountant, related department heads; representatives of the Executive Board of Trade Union in a state enterprise and several experts on technical specifications of these fixed assets (when necessary). The council on fixed asset disposal, transfer and sale shall take on the following duties:

- Identify the technical status and remaining value of assets held for disposal, transfer or sale;

- Define the reasons and responsibilities of collectives or individuals for the circumstance under which newly-shopped fixed assets do not generate required economic value, have to be disposed of, transferred or sold without assurance of the invested capital recovery, or fixed assets which have not been fully depreciated have been damaged beyond repair and must be held for disposal, transfer or sale in order to report to owners in accordance with legal regulations;

- Identify or hire other organization competent to conduct appraisal to determine the value which may be obtained from asset disposal, transfer or sale;

- Conduct an auction sale or hire an organization competent to conduct an auction sale of these assets in accordance with relevant laws;

- Automatically terminate operations of the council on asset disposal, transfer and sale upon completion of the enterprise's asset disposal, transfer or sale.

b) Where a state enterprise is executing construction investment projects approved by the competent authority, and such enterprise is obliged to demolish or eliminate old fixed assets, the disposal or transfer of such assets and recording of such assets into accounting records must be carried out in the same manner as the disposal or transfer of fixed assets in accordance with this Point.

Best Regards!