What rights does the direct owner's representative at a 100% state-owned enterprise have?

According to the provisions of Clause 2, Article 4 of Circular 157/2019/TT-BQP, the Members' Council and the Chairperson of the company shall act as the direct representative of the owner at enterprises in which the State holds 100% of the charter capital established or managed by the Ministry of National Defense.

Illustration (source: internet)

The rights and responsibilities of the Members' Council and the Chairperson of the company are stipulated in Article 12 of Circular 157 as follows:

- The Chairperson of the Military Industry - Telecommunications Group exercises the rights and responsibilities of the direct owner representative as stipulated in Article 14 of Decree 10/2019/ND-CP, the Group's Charter, relevant laws, and the Cadre Management Regulations in the Vietnam People's Army.- The Members' Council and the Chairperson of the company under the Ministry of National Defense shall propose to the Minister of National Defense:

- Deciding the reorganization, ownership transformation, dissolution, and proposal for bankruptcy of the enterprise;- Issuing and amending the Charter; deciding and adjusting the charter capital;- Approving the strategy, business production plan, 5-year development investment plan, and the annual business production plan of the enterprise;- Deciding the salary fund, remuneration, and reward fund for the enterprise managers and Supervisors according to the regulations applicable to a one-member limited liability company wholly owned by the State;- Approving the capital mobilization plan, investment projects, construction, purchase, and sale of fixed assets, outward investments, and overseas investments of the enterprise with values exceeding the decentralized level for the Members' Council and the Chairperson of the company as regulated by law and the enterprise's Charter;- Allocating capital to implement state capital investment in enterprises upon authorized approval; deciding on the transfer of investment capital by the enterprise in joint-stock companies or limited liability companies with two or more members when the transfer value is lower than the book value of the enterprise after offsetting the capital loss provision;- Deciding the policy on capital contribution, increase, decrease in capital contribution, investment capital transfer by the enterprise in joint-stock companies or limited liability companies with two or more members; deciding the policy on accepting joint-stock companies or limited liability companies with two or more members as subsidiaries or affiliates of the enterprise;- Approving financial reports, profit distribution plans, and annual fund allocations of the enterprise.

- The Members' Council and the Chairperson of the company managed by the unit under the Ministry of National Defense shall report to and seek approval from the immediate superior management authority or the Minister of National Defense on the above-stated matters.- The Members' Council and the Chairperson of the company shall report and propose to the Communist Party enterprise committee to request the higher authority to appoint, reappoint; dismiss, accept resignations; transfer, rotate; rank, promote military ranks, assign salaries, raise salaries, offer salary allowances, reward, discipline; and retire for the Members' Council, Chairperson of the company, General Director, Director, Supervisors, and other management positions according to the Cadre Management Regulations in the Vietnam People’s Army and relevant laws.- The Members' Council and the Chairperson of the company shall proactively decide and take responsibility for decisions within their authority as regulated in the Law on Management and Use of State Capital Invested in Production and Business in Enterprises, the Law on Enterprises, relevant laws, the enterprise's Charter, and the Cadre Management Regulations in the Vietnam People’s Army.- Report periodically as regulated or unexpectedly upon request to the Ministry of National Defense (through the Economic Department/Ministry of National Defense and the superior unit) on the business production situation of the company or unexpected issues related to business production activities and unit construction.

More details can be found in Circular 157/2019/TT-BQP effective from December 1, 2019.

Thu Ba

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE