Rights and Responsibilities of Subordinate Units of the Ministry of National Defense Regarding State-Owned Enterprises

Article 6 of Circular 157/2019/TT-BQP stipulates the rights and responsibilities of the units under the Ministry of National Defense regarding enterprises wholly owned by the State and State-invested capital in joint-stock companies and limited liability companies with two or more members as follows:

Illustrative image (source: internet)

Firstly: Propose to the Ministry of National Defense the decision on matters related to enterprises wholly owned by the State, specifically:

- Reorganize, change ownership, dissolve, propose bankruptcy for enterprises; establish, reorganize, dissolve branches, representative offices, subsidiaries of the enterprise;- Issue, amend, supplement the Charter and Financial Regulation of the enterprise;- Approve the Members' Council or the company's Chairman's decisions on strategy, business production plans, and 5-year development plans for the enterprise;- Approve the charter capital of the enterprise (including adjustments to charter capital during operations);- Change the legal representative of the enterprise;- Policy on capital contribution, increase or decrease in capital contribution, transfer of investment capital of the enterprise in joint-stock companies, limited liability companies with two or more members; reception of enterprises voluntarily participating as subsidiaries, affiliates of the enterprise;- Investment projects outside the enterprise with a value exceeding the stipulated amount in point a clause 4 Article 28 of the Law on Management and Use of State Capital Invested in Production and Business in Enterprises and the stipulated amount in the enterprise's charter;- Investment projects, construction, purchase, sales of fixed assets of the enterprise with a value exceeding the stipulated amount in point a clause 1 Article 24 of the Law on Management and Use of State Capital Invested in Production and Business in Enterprises; lease, mortgage, pledge contracts for fixed assets with a value exceeding the stipulated amount in point a clause 1 Article 26 of Decree 91/2015/ND-CP, as amended and supplemented in clause 9 Article 1 of Decree 32/2018/ND-CP; plans for liquidating and selling fixed assets as per the regulations in clause 2 Article 27 of Decree 91/2015/ND-CP and the enterprise's charter;- Capital mobilization plans for each project with a mobilization level exceeding the stipulated amount in point a clause 3 Article 23 of the Law on Management and Use of State Capital Invested in Production and Business in Enterprises and the enterprise's charter;- Capital mobilization plans from foreign organizations or individuals as per the regulations in point b clause 3 Article 11 of Decree 10/2019/ND-CP;- Investment policy abroad in accordance with clause 6 Article 11 of Decree 10/2019/ND-CP.

Secondly: Decide under authority or propose to the Ministry of National Defense to appoint, re-appoint, remove, accept resignation, suspend duties, transfer, rotate, train, raise, demote, strip military rank, promote, demote salary scales, classify salaries, commend, and discipline the Chairman of the Members' Council, members of the Members' Council, the company's Chairman, the General Director, Director, Controller, and other management positions in enterprises wholly owned by the State as per the personnel regulations in the People's Army of Vietnam and legal provisions.

Thirdly: Decide on matters for enterprises wholly owned by the State under management:

- Approve the annual business production and construction plans of the enterprise;- Issue the Activity Regulations of the Controller at the enterprise;- Approve salary funds, remuneration, bonus, and other benefits of enterprise managers; recruitment plans; manage salaries, bonuses, and other benefits for employees in enterprises wholly owned by the State as per regulations from the Government of Vietnam and guidelines from the Ministry of National Defense;- Approve financial reports, profit distribution plans, annual fund allocations of the enterprise as proposed by the Members' Council or the company's Chairman;- Evaluate the completion level in the management and operation of enterprise managers, Controllers under authority;- Supervise, inspect, and evaluate the activities of enterprises under their management as per authority.

Fourth: Regarding State capital invested by the Ministry of National Defense in joint-stock companies and limited liability companies with two or more members under management:

- Propose to the Ministry of National Defense the decision under authority on the investment to increase capital, additional State capital investment, the transfer of State shares, and capital contributions in joint-stock companies and limited liability companies with two or more members; issue Regulations on the activities of representatives of State capital;- Propose to the Ministry of National Defense the appointment, removal, re-appointment, commendation, discipline, salary decisions, responsibility allowances, bonuses, and other benefits of the State capital representative as per the regulations of the Law on Management and Use of State Capital Invested in Production and Business in Enterprises and related provisions from the Government of Vietnam on representatives of State capital holding management positions in enterprises where the State holds over 50% of the charter capital; on labor, salary, remuneration, and bonuses for companies with controlling shares or capital contributions from the State, applicable laws, and personnel regulations in the People's Army of Vietnam;- Require the representative of State capital to perform the tasks stipulated in Article 48 of the Law on Management and Use of State Capital Invested in Production and Business in Enterprises and the regulations in clause 5 Article 13 of Decree 10/2019/ND-CP; promptly assess and provide feedback to report to the Ministry of National Defense to resolve issues within the responsibility of the representative of State capital;- Monitor the recovery of investment capital, profit, and dividends shared from joint-stock companies and limited liability companies with two or more members;- Inspect, supervise, and report to the Ministry of National Defense on the operational evaluation results of the representative of State capital.

More details can be found in Circular 157/2019/TT-BQP effective from December 1, 2019.

Thu Ba

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