Forms of disciplinary action imposed upon and levels of violation of the representatives of state ownership interests in Vietnam

Forms of disciplinary action imposed upon and levels of violation of the representatives of state ownership interests in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. Who is the representative of the state ownership interests?

Representative of the state ownership interests in an enterprise refers to a person designated by a representative agency to represent part or all of state stakes in the ownership of an enterprise to carry out all or a number of rights, responsibilities and obligations of a state shareholder or member contributing capital to the enterprise in accordance with laws.     

(Clause 4, Article 3 of Decree 159/2020/ND-CP)

2. Forms of disciplinary action imposed upon and levels of violation of the representatives of state ownership interests in Vietnam

- Forms of disciplinary action imposed upon representatives of state ownership interests shall include: Reprimand, caution, early discharge from office and compulsory termination of term of office.

- Levels of violation shall be determined as follows:

+ Violations that cause less serious consequences are violations causing less minor harm, impacts inside the enterprise, and effects on the reputation of the enterprise;

+ Violations that cause serious consequences are violations causing huge harm, impacts outside the enterprise, negative public opinions and reduction in the reputation of the enterprise;

+ Violations that cause extremely serious consequences are violations causing great harm, impacts on the entire society, public annoyance and loss of the reputation of the enterprise;

+ Violations that cause specially serious consequences are violations causing extremely great harm, total impacts on the entire society, extreme public annoyance and loss of the reputation of the enterprise.

In addition to the above-mentioned grounds, the level and extent of a violation shall also be determined by the physical damage measured by the specific amount as determined by the representative agency or according to the regulations of the enterprise.

(Clause 2 and 3, Article 58 of Decree 159/2020/ND-CP)

3. Cases of exemption from disciplinary liabilities of representatives of state ownership interests in Vietnam

According to Clause 2, Article 59 of Decree 159/2020/ND-CP, exemption from disciplinary liabilities of executives of state enterprises, comptrollers, representatives of state ownership interests is as follows:

- Obtaining certification of civil act capacity from a competent agency in case of breach of violation against law;

- Having to comply with the superior authority's decision.

Where there are grounds to believe that the decision is illegal, it shall be obliged to promptly report it in writing to the authority having competence in issuing decisions;

In cases where the competent authority still decides the enforcement of disciplinary action, this decision on enforcement must be made in writing and the executor must comply with it, but not responsible for the consequences of that enforcement and, at the same time, report to his/her immediate superior of the authority having competence in issuing decisions, then this authority having competence in issuing decisions shall be held responsible before law for their decision;

- Being certified by a competent authority that the violator commits the violation in an urgent situation, due to a force majeure event or an objective obstacle in accordance with the Civil Code when performing the assigned tasks;

- Committing violation, but now passing away.

Nguyen Ngoc Que Anh

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