Dismissal and Removal of Chairman and Members of the Members' Council

On February 5, 2018, the Government of Vietnam issued Decree 20/2018/ND-CP accompanied by regulations on the dismissal and removal of the Chairman and members of the Member Council of the Vietnam National Chemical Group.

Chairperson and members of the Members' Council are dismissed in the following cases:

- Do not meet the standards and conditions as stipulated by the competent authority;- Engage in illegal activities, specifically in the cases:- Violate the law and receive a disciplinary action in the form of a reprimand or warning, requiring a replacement due to job requirements;- Are concluded in writing by a competent authority regarding the violation of law but not to the extent of being dismissed.- Lack the capacity, level, or credibility to perform the assigned responsibilities, specifically in the cases:- Are evaluated and classified at the level of not completing tasks for two consecutive years of the term;- During one term or two consecutive terms, are disciplined twice related to assigned responsibilities;- Cause the organization or unit under their charge to be disbanded or make the organization or unit disband according to the conclusion of the competent authority;- Are concluded in writing by a competent inspection or auditing body regarding violations of ethical conduct or violations of regulations on prohibited activities for Party members related to managerial positions held by Party members.- Submit a resignation letter that is accepted in writing by the competent authority.

According to Decree 20, the Chairperson and other members of the Members' Council are dismissed in the following cases:

- Use illegal documents to be appointed to the position;- The corporation fails to meet annual goals, targets, fails to maintain and develop investment capital as required by the competent authority without explaining objective reasons or explaining reasons but not accepted by the competent authority;- Are prosecuted and declared guilty by the court;- Lack honesty in the execution of rights and duties or abuse their position and rights, use the assets of the corporation for personal gain or to serve the interests of other organizations or individuals;- Have serious violations of the legal regulations on anti-corruption; practicing thrift, anti-waste; gender equality; prevention of prostitution, and other relevant legal regulations;- Cause the corporation to go bankrupt but do not submit a bankruptcy application; corporations, general companies, or companies that are subject to reorganization, dissolution, or ownership conversion but do not proceed with the procedures for reorganization, dissolution, or ownership conversion without legitimate reasons approved by the competent authority.

Particularly, in the case of replacing the Chairperson or members of the Members’ Council, within 60 days, the Members' Council must meet to propose the Minister of Industry and Trade to consider and decide or submit to the Prime Minister of the Government of Vietnam for decision according to authority.

See details at Decree 20/2018/ND-CP, effective from February 5, 2018.

-Thao Uyen-

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