Steps for Restructuring State-Owned Enterprises to Convert into Joint Stock Companies

17:45, 11/07/2024

Recently, the Ministry of Finance issued Circular 69/2018/TT-BTC providing guidance on the restructuring of state-owned enterprises that do not meet the conditions for equitization as stipulated in Decree 126/2017/ND-CP on the conversion of state-owned enterprises and one-member limited liability companies with 100% charter capital invested by state-owned enterprises into joint-stock companies.

Procedure for restructuring state-owned enterprises into joint-stock companies as specified in the Annex attached to Circular 69, includes the following steps:

1. Formulate the restructuring plan

- Implement the plan to convert the state-owned enterprise into a joint-stock company- Establish the Equitization/Restructuring Steering Committee and the Working Group.- Prepare relevant documents and dossiers.- Approve the equitization cost estimate, and decide on the selection of an equitization consultant.- Organize inventory, address financial issues, and determine the enterprise's value according to the provisions of Decree 126/2017/ND-CP.- Decide on the proposal for the Debt Trading Company’s participation in the restructuring process.- Develop a restructuring plan to be submitted for approval by the owner’s representative agency.

2. Organize the implementation of the restructuring plan

3. Complete the conversion to a joint-stock company

- Organize the first General Meeting of Shareholders and register the enterprise.- Conduct the final accounting and transfer procedures between the enterprise and the joint-stock company.

Refer to Circular 69/2018/TT-BTC effective from October 01, 2018.

- Thanh Lam -

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