Relationship between the Members' Board, Board of Supervisors, Comptroller and the Director in management and administration of the small and medium enterprise development fund in Vietnam

Relationship between the Members' Board, Board of Supervisors, Comptroller and the Director in management and administration of the small and medium enterprise development fund in Vietnam (Internet image) 

Regarding this matter, LawNet would like to answer as follows:

On April 26, 2024, the Government issued Decree 45/2024/ND-CP amending and supplementing a number of articles of Decree 39/2019/ND-CP on the organization and Operation of Small and Medium Enterprise Development Fund, including amending the lending requirements of this Fund in Vietnam as of June 10, 2024.

Relationship between the Members' Board, Board of Supervisors, Comptroller and the Director in management and administration of the small and medium enterprise development fund in Vietnam

Relationship between the Members' Board, Board of Supervisors, Comptroller and the Director in management and administration of the small and medium enterprise development fund (hereinafter referred to as Fund) in Vietnam is as follows:

-In the process of taking charge of implementation of the resolutions and decisions of the Members' Board, if the Director finds that there is any problem disadvantageous to the Fund, the Director shall report to the Members' Board to consider adjusting their resolutions and decisions. Even if the Members’ Board does not adjust their resolution or decision, the Director must still implement it but must report to the Ministry of Planning and Investment to request it to take proper action according to his/her competence.

- The Director shall be responsible for periodically reporting to the Members’ Board on the Fund’s performance. Where necessary, the Members’ Board’s Chairperson must request the Director to directly report to the Members’ Board or second the representative of the Members' Board to attend the Fund's meetings.

- The Members’ Board shall authorize the Director to perform the Fund’s assigned duties and bear responsibility for their authorization. The Director shall bear responsibility to the Members’ Board and before law for assigned duties.

- The relationship between the Board of Supervisors, Comptroller and the Ministry of Planning and Investment, the Members’ Board and the Director shall be subject to laws applied to single-member limited companies whose charter capital is wholly owned by the State and operational rules of the Board of Supervisors, Comptroller and the Members’ Board.

(Article 11 of Decree 39/2019/ND-CP (amended in Decree 45/2024/ND-CP))

What are the regulations on assistant apparatus of small and medium enterprises in Vietnam?

The assistant apparatus of the Fund shall be composed of Deputy Directors, specialized divisions, branches and representative office (hereinafter referred to as specialized affiliates).

- Deputy Directors

+ Deputy Directors shall assist the Director in performing assigned duties and bear responsibility to the Director or before law for assigned or fiduciary duties. The Deputy Director shall be appointed or hired according to the personnel plan, dismissed, discharged, rewarded or disciplined upon the Director’s request. The Deputy Director shall be appointed to hold office for 5 years and may be reappointed;

+ The number of Deputy Directors shall not be greater than 03 persons;

+ Standards and requirements for being appointed as Deputy Directors shall be subject to following provisions

++ Commissioners of the Members' Board must have a university degree or higher and must have experience as a manager and executive in the fields of economy, finance, banking, business administration, law, accounting and audit;

++ Not a husband or wife, natural father, adoptive father, natural mother, adoptive mother, blood child, adopted child, natural sibling, elder brother-in-law, younger brother-in-law, elder sister-in-law, younger sister-in-law of the Fund’s manager;

++Not a public official or servant working for state agencies, political organizations, socio-political organizations or not a manager or executive of other enterprise;

++ Have not ever been dismissed from the Chairperson of the Members' Board, commissioners of the Members' Board or the Chairperson of the Company, Director, Deputy Director or General Director, Deputy General Director of a state enterprise.

- Specialized affiliates shall have the function of counseling and assisting the Members’ Board and the Director to manage and supervise the Fund.

(Article 12 of Decree 39/2019/ND-CP)

Nguyen Ngoc Que Anh

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