Rights and responsibilities of the representative of state capital share in enterprises in Vietnam

Specifically, according to Article 48 of the Law on management and utilization of state capital invested in the enterprise’s manufacturing and business activities 2014 of Vietnam, the representative of state capital share in enterprises shall have the following rights and responsibilities:

- Ask for the advice from the owner’s representative agency before raising opinions, casting votes and making decision at the Shareholders' General Council, meeting of the Board of Directors, Board of Members, on the following issues:

+ Scope of businesses, objectives, tasks, strategy and plan for investment and development, and plan for production and business;

+ Introduction and revision of the charter; increase or reduction in the charter capital; election, dismissal, discharge, commendation, reward and penalties for members of the Board of Directors, Board of Members, General Director or Director, Deputy Director General or Vice Director;

+ Distribution of profits and setting up of annual funds in the enterprise;

+ Reorganization, dissolution or bankruptcy;

+ Other issues managed under the delegated authority of the Shareholders’ General Council, Board of Directors and Board of Members.

- Make on-time reports on any loss incurred by joint-stock companies or multiple-member limited liability companies during their operations, failure to ensure payment competence, to complete assigned tasks as well as other violations.

- Submit the quarterly, annual and on-demand reports on manufacturing and business activities, financial status, and recommend solutions at the request of the owner’s representative agency and the representative of state capital share.

- Request joint-stock companies and multiple-member limited liability companies to pay in their distributable profits and dividends in proportion to the share of state capital invested in such companies to the State Budget.

- Be deprived of the right to continue to act as the representative if that person does not fully exercise the delegated powers or assume the delegated responsibilities or does not meet the requirements for a representative any more.

- Bear legal responsibility for any violation causing any loss on or damage to the state capital.

- Exercise the rights and assume the responsibilities in accordance with regulations laid down in the charter of joint-stock companies and multiple-member limited liability companies, the enterprise law and other relevant laws.

View powers and responsibilities of the representative of corporate capital share at the Law on management and utilization of state capital invested in the enterprise’s manufacturing and business activities 2014 of Vietnam, effective from July 01, 2015.

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