Vietnam: Tasks of the Board of Innovation and Business Development in organizing the sale of a business

Specifically, according to Clause 1 Article 37 of the Decree No. 128/2014/NĐ-CP of Vietnam’s Government, tasks of the Board of Innovation and Business Development in case the of selling wholly State-owned enterprises are specified as follows:

- Develop a plan to sell the enterprise; notify all employees in the enterprise and on the mass media as prescribed in Article 9 of this Decree of the sale of the enterprise;

- Direct and supervise the Innovation Board at the enterprise in performing the tasks specified in Article 18;

- Supervise the valuation consulting organization in determining the enterprise value, determining the starting price for reporting to the agency or organization deciding on the sale of the enterprise for approval;

- Supervise the process of organizing the auction; organize the direct sale and propose the selling price (in case of direct sale), propose the enterprise seller to approve the enterprise auction result;

- Make a contract to sell the enterprise and report it to the Minister, the President of the provincial People's Committee and the Board of members of the parent company for decision;

- Instruct, inspect and supervise the Innovation Board at the enterprise to recover the enterprise's assets and return the assets that the enterprise rents, borrows, or keeps on behalf of; recover debt and pay debts of the enterprise; hand over the property, books and related documents to the buyer as agreed in the business purchase and sale contract;

- Urge the payment, ensure payment on time; manage mortgage records and carry out sales procedures when buyers violate payment commitments;

- Handle within its jurisdiction the issues arising from the sale of the business.

View more details at the Decree No. 128/2014/NĐ-CP of Vietnam’s Government, effective from March 01, 2015.

Ty Na

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