Circular 155: Appointment of up to 05 representatives of state capital in joint-stock companies

To be specific:, according to Clause 2, Article 13 of Circular 155/2019/TT-BQP, the maximum number of representatives appointed shall be 05 for state equitized enterprises holding 50% or more of the charter capital and a maximum of 03 for state equitized enterprises holding less than 50% of the charter capital.

Illustration (source: internet)

Regarding the composition and structure of the Representative at the enterprise as prescribed in the Enterprise Law, the company's Charter, and the specific characteristics of each enterprise with state capital according to: The scale of the company's charter capital; the proportion of state capital invested in the enterprise; business industries and characteristics of production and business activities of the enterprise; strategy and development objectives of the enterprise oriented by the State; other legal regulations;

Particularly: In the case of appointing 02 (two) or more Representatives, the specific number of shares assigned to each Representative must be determined and one representative shall be assigned overall responsibility.

Thus, based on the % of charter capital of the state equitized enterprise to limit the number of state capital representatives at the joint-stock company appropriately.

Some regulations related to the standards, tenure, rights, and responsibilities of Representatives at joint-stock companies are specified in this Circular as follows:

- Regarding the standards of Representatives at joint-stock companies: Ensuring compliance with Article 46 of the Law on Management and Use of State Capital Invested in Production and Business at Enterprises, other relevant State regulations, and the Ministry of National Defense.- Tenure of appointment of Representatives: 05 years, upon the end of the term, reappointment shall be considered, but no more than 02 terms as a representative at a joint-stock company.- Rights and responsibilities of Representatives at joint-stock companies: specified in Article 48 of the Law on Management and Use of State Capital Invested in Production and Business at Enterprises, Decree 10/2019/ND-CP dated January 30, 2019 of the Government of Vietnam on exercising the rights and responsibilities of state ownership representatives, other relevant State regulations, and the Ministry of National Defense.

See additional regulations at Circular 155/2019/TT-BQP effective from December 1, 2019.

Thu Ba

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