Timing for Handling Finance, Land, and Assets during the Equitization of Enterprises in 2019

Article 8 of Circular 155/2019/TT-BQP stipulates the handling of finance, land, and assets when transforming state-owned enterprises and single-member limited liability companies (entirely invested by state-owned enterprises under the Ministry of National Defense) into joint-stock companies at the following two points in time:

Illustrative image (source: internet)

First: At the time of determining the enterprise value

- The enterprise shall handle finances at the time of determining enterprise value (before the consulting organization determines the enterprise value) as stipulated in Articles 14, 15, 16, 17, 18, 19, and Article 20 of Decree 126/2017/ND-CP; Clauses 2, 3, and 4 of Article 7 of Circular 41/2018/TT-BTC dated May 4, 2018;- Regarding the land area being managed and used within the planned land for defense purposes: The enterprise shall develop a land use plan and report to the Minister of National Defense for consideration and decision before the equitization decision and carry out procedures to exclude the land from the defense land plan as stipulated in Clause 2 of Article 6 of Circular 155 and the relevant laws.- After completing the equitization, based on the approved land use plan, the enterprise shall manage and use the allocated land in accordance with state and Ministry of National Defense regulations;- The inventory, classification, and determination of the land use rights value shall be carried out in accordance with Clause 1 of Article 13 and Article 30 of Decree 126/2017/ND-CP.

Second: At the time of officially transforming into a joint-stock company

- The enterprise shall handle finances at the official time of transformation into a joint-stock company as stipulated in Clauses 1, 2, and 3 of Article 8 of Circular 41/2018/TT-BTC;- Carry out the transfer and handling of debts and excluded assets not included in the enterprise value in accordance with Circular 55/2019/TT-BTC dated August 21, 2019, of the Ministry of Finance;- The handling of the enterprise's assets during the equitization process must ensure transparency and compliance with the regulations of the State and the Ministry of National Defense.

+ In the case of assets related to defense equipment, report to the General Staff to recover 100% of weapons, ammunition, and specific military equipment to the superior agency or unit of the enterprise for management.

+ For enterprises directly managed by the Ministry of National Defense, recovery should be carried out at the strategic warehouses of the Ministry of National Defense upon the decision of the General Staff;

- Equitized enterprises where the State holds 50% or more of the charter capital are allowed to use a military license plate vehicle for command purposes;- Equitized enterprises where the State holds less than 50% of the charter capital are not allowed to use military license plates from the date the joint-stock company is issued the initial business registration certificate.

More details can be found in Circular 155/2019/TT-BQP, effective from December 1, 2019.

Thu Ba

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