Cases of State Capital Reduction in Enterprises

Circular 59 supplements regulations on recording the reduction of state capital invested in enterprises, specifically:

1. State-owned enterprises currently in operation shall adjust the reduction of state capital in the following cases:

- For enterprises implementing a reduction in charter capital:- The representative agency of the owner shall, based on the actual operational situation of the enterprise, the necessity to reduce the scale of the enterprise's operations, and the principles for determining the charter capital of state-owned enterprises, determine the reduced charter capital and report to the Prime Minister of the Government of Vietnam for a decision on handling the value of the reduced charter capital.- After receiving the decision from the Prime Minister of the Government of Vietnam regarding the handling of the reduced charter capital value, the representative agency of the owner shall decide on the adjustment to reduce the charter capital for the enterprise.- In the case of restructuring state capital in the enterprise in the form of splitting the enterprise, it shall be implemented according to the provisions at Point d, Clause 2, Article 19 of Decree 91/2015/ND-CP, which has been amended and supplemented in Clause 6, Article 1 of Decree 32/2018/ND-CP.- During the period of applying the adjusted charter capital level specified at Point a, Clause 1, Article 9 of Decree 91/2015/ND-CP:- If the source for supplementing the charter capital is insufficient to add according to the adjusted level already approved, the competent authority shall decide on the re-adjustment of the charter capital level based on the actual contributed capital for the enterprise.- If, due to changes in policy, the enterprise no longer qualifies for state capital investment, the competent authority shall decide on the adjustment to reduce the charter capital for the enterprise.

2. In the cases of adjusting the reduction of charter capital of state-owned enterprises currently in operation as mentioned above, the enterprise shall be responsible for carrying out the procedures for changing and publishing information on charter capital in the business registration certificate as prescribed by the Law on Enterprises.

Refer to Circular 59/2018/TT-BTC effective from September 1, 2018.

- Thanh Lam -

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