Responsibilities of SCIC in Transfer of State-Owned Capital Representation Rights at Enterprises

To be specific, according to the provisions of Article 14 Circular 83/2018/TT-BTC, SCIC has the following responsibilities:

1. Coordinate with Ministries and provincial People's Committees to select the Representative of State Capital at the equitized enterprise subject to transfer when consulted according to the provisions of Clause 2 Article 12 Circular 83/2018/TT-BTC.

2. Exercise the rights and fulfill the obligations of the State owner representative in the enterprises from the time of transfer; take the lead in resolving the existing issues of the enterprise arising after the time of transferring the state owner representation to SCIC.

3. At enterprises where SCIC has received the state owner representation, SCIC cooperates with relevant owner representative agencies to appoint, supplement, replace the Representative of State Capital at the enterprise when necessary.

4. Monitor and urge the enterprises where SCIC has received the state owner representation to pay the proceeds according to the regulations to the Fund for Enterprise Arrangement and Development; within 15 days from the end of each quarter, report to the Ministry of Finance the implementation results.

5. Direct the Representative and relevant functional departments:

- Complete the transfer of state owner representation at enterprises within the stipulated time under this Circular.- Coordinate with enterprises that have transferred state owner representation:

- Prepare the final settlement dossier of the state capital value at the time the joint-stock company is issued with the first Enterprise Registration Certificate, submit it to the Ministries, provincial People's Committees for consideration and decision according to the provisions of the law on the transformation of state-owned enterprises and one-member limited liability companies wholly invested by state enterprises into joint-stock companies.- Supplement the missing documents in the Transfer Dossier (if any) according to the law, this Circular, and the agreed contents in the Transfer Minutes.

6. Periodically, within 15 days from the end of the quarter, SCIC reports to the Ministry of Finance, or reports unexpectedly as required by the Ministry of Finance on the status of implementing the transfer of state owner representation at enterprises; and the plan for the reception organization of the next quarter.

The report must clearly state the implementation status, results, and the list of enterprises with state capital subject to transfer to SCIC but not yet transferred, along with advantages, difficulties, obstacles, and recommendations (if any).

7. Periodically, along with the time of submitting annual financial reports as prescribed by law, report to the Prime Minister of the Government of Vietnam and the Ministry of Finance on the status of implementing transfer of state owner representation; and the business performance results at the enterprises received.

The report must clearly state the implementation status, results, and the list of enterprises with state capital subject to transfer to SCIC but not yet transferred, along with advantages, difficulties, obstacles, and recommendations (if any).

8. Coordinate with Ministries and provincial People's Committees to continue addressing the unresolved issues related to the state owner representation at enterprises and the existing financial issues (if any) arising before the signing of the Transfer Minutes.

9. For enterprises subject to re-transfer of state owner representation as directed by the Prime Minister of the Government of Vietnam, when the transfer has not been completed, SCIC instructs the Representative to consider and vote for maintaining the size and structure of the enterprise's charter capital without any changes; and to not sell the capital at subsidiaries and affiliate companies.

10. For enterprises where SCIC has received the state owner representation but the valuation of state capital at the time the joint-stock company is issued with the first Enterprise Registration Certificate according to the law on transformation of state-owned enterprises and one-member limited liability companies wholly invested by state enterprises into joint-stock companies has not been completed by Ministries or provincial People's Committees, SCIC will not execute the sale of state capital at these enterprises.

In cases where the enterprise is facing difficulties, loss-making and not selling capital immediately leads to the risk of loss of state capital, SCIC reports to the Prime Minister of the Government of Vietnam for consideration and decision on the execution of selling state capital at the enterprise.

See more related contents at Circular 83/2018/TT-BTC effective from October 15, 2018.

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