Vietnam: New points on transformation of wholly state-owned enterprises into multiple-member limited liability companies

According to Decree No. 10/2019/NĐ-CP of Vietnam’s Government, after carrying out the transformation of wholly state-owned enterprises into multiple-member limited liability companies, the owner's representative agency shall implement the following rights and responsibilities:

- Appeal to the Prime Minister to make the decision on transformation of enterprises established under the Prime Minister’s decision.

- Make the decision on transformation of enterprises, except cases specified above.

- Make the decision on selection of valuation consulting and auctioning service providers; approve the results of determination of corporate value.

- Approve the plan for corporate transformation or appeal to the Prime Minister to seek his approval of the plan for transformation of enterprises established under the Prime Minister’s decision.

- Cooperate with related bodies in approving the final financial accounts and the final accounts of corporate transformation expenses and the final accounts of funds for employee severance packages and the final accounts of revenues generated from the corporate transformation.

- Assign the representative for the state capital contribution portion in a transformed enterprise; deal with difficulties, complaints or denunciations related to corporate transformation.

- Instruct, inspect and supervise the process for corporate transformation.

View more details at Decree No. 10/2019/NĐ-CP of Vietnam’s Government, effective from March 15, 2019.

- Thanh Lam -

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