Requirements for Appointing Managers in 100% State-Owned Limited Liability Companies

On October 19, 2015, the Government of Vietnam promulgated Decree 97/2015/ND-CP on the management of individuals holding titles and positions at enterprises that are single-member limited liability companies with 100% charter capital held by the State.

Conditions for appointing management of 100% state-owned limited liability companies, Decree 97/2015/ND-CP

Illustrative photo (source: internet)

Article 27 of Decree 97/2015/ND-CP stipulates the conditions for appointing management of single-member limited liability companies with 100% state-owned capital. Specifically:

  1. Meet the general standards of the Communist Party, the State, and the standards of the position issued by the competent authority.

  2. Be scheduled for the appointed position for in-place human resources or be scheduled for an equivalent position with the appointed position for human resources from elsewhere.

  3. Have complete personal records as appraised, verified, and confirmed by the competent authority.

  4. Within the appointment age:

- Must be of an age (calculated by month) that allows for serving at least one term in the management position from the date the competent authority signs the approval for the appointment.

- In cases where the enterprise manager is assigned a new position that is equivalent or lower due to work needs, the age for appointment is not considered.

- In cases where the enterprise manager is evaluated as not completing tasks or is disciplined from a reprimand to a salary grade reduction or dismissed or resigned due to disciplinary violations, after 1 year from the date they are assessed as not completing tasks by the competent authority or from the effective date of the disciplinary decision, resignation, or dismissal (including violations discovered and disciplined later), if considered for appointment to a management position, the age condition applies.

  1. Have sufficient health to complete the assigned tasks as certified by a competent medical agency. The health certificate is valid for up to 6 months from the date of submission to the personnel advisory agency.

  2. Not subject to any legal prohibitions from holding the position.

  3. Not undergoing disciplinary action from a reprimand or higher.

  4. Not under disciplinary review, investigation, prosecution, or trial.

  5. In cases where the appointed personnel are under inspection or audit by the competent authority, the appointing authority shall consult with the head of the inspection/audit team before appointment.

Read the full regulation at Decree 97/2015/ND-CP effective from December 5, 2015.

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