Upcoming: More State-Owned Enterprises

This is one of the notable contents of the Draft Amended Law on Enterprises 2020, which is still in the period for public consultation.

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To be specific:, according to Clause 8 Article 4 this Draft, State-owned enterprises include enterprises in which the State holds more than 50% of the charter capital, total shares with voting rights.

8. State-owned enterprises include enterprises in which the State holds more than 50% of the charter capital, total shares with voting rights as stipulated in Article 87a of this Law.

According to the current regulations, state-owned enterprises only include enterprises in which the State holds 100% of the charter capital. It can be seen that the Draft has expanded the concept of state-owned enterprises compared to the Law on Enterprises 2014.

At the same time, the Draft also supplemented Article 87a on state-owned enterprises, in the direction of clearly listing enterprises in which the State owns 100% of the charter capital and enterprises with controlling shares or capital contributions by the State.

To be specific:, Enterprises in which the State holds 100% of the charter capital include:

- Single-member limited liability companies in which the State holds 100% of the charter capital are the parent companies of state-owned economic groups, the parent company of state-owned corporations, the parent company in a parent-subsidiary group;

- Single-member limited liability companies that are independent companies in which the State holds 100% of the charter capital.

Enterprises in which the State holds more than 50% of the charter capital or total shares with voting rights include:

- Limited liability companies with 2 or more members, joint-stock companies in which the State holds more than 50% of the charter capital, total shares with voting rights as the parent company of economic groups, state-owned corporations, or in the parent-subsidiary groups.

- Limited liability companies with 2 or more members, joint-stock companies that are independent companies in which the State holds more than 50% of the charter capital, total shares with voting rights.

Nguyen Trinh

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