Standards and conditions for EVN's controllers

Standards and conditions for EVN's controllers (Internet image)

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

1. Supervisory Board and controllers of Vietnam Electricity

- The Supervisory Board of EVN (Vietnam Electricity) consists of 03 controllers appointed and established by the decision of the owner's representative agency. The term of controllers shall not exceed 03 years, and they may be reappointed but may be appointed for no more than 02 terms.

- Rights and responsibilities, working regime of the Control Board, dismissal, salary, remuneration, bonus, and other relevant contents shall comply with the law on enterprises and relevant laws.

(Article 51 of Decree 26/2018/ND-CP)

2. Standards and conditions for Vietnam Electricity's controllers

Criteria and conditions for Controllers specified in Article 52 of Decree 26/2018/ND-CP include:

- Being trained in one of the majors in finance, accounting, auditing, law, or business administration and having at least 03 years of working experience; The head of the Supervisory Board must have at least 05 years of working experience related to finance, accounting, auditing, law, or business administration.

- Not an employee of EVN.

- Not being the spouse, biological father, adoptive father, natural mother, adoptive mother, biological child, adopted child, biological brother, biological sister, biological brother, brother-in-law, brother-in-law, sister-in-law, sister-in-law of the following subjects :

+ The head, deputy head of the agency representing the owner of EVN;

+ Member of the Member Council of EVN;

+ Deputy General Director and Chief Accountant of EVN;

+ Other controllers of EVN.

- Not being the concurrent director or General Director of another enterprise.

- Not being concurrently a Controller, a member of the Members' council, or a member of the Board of Directors of an enterprise that is not a state-owned enterprise.

- Other standards and conditions as prescribed by relevant laws.

3. Rights and responsibilities of controllers of Vietnam Electricity

3.1. Rights of controllers of Vietnam Electricity

- Participating in meetings of EVN's Members' Council, formal and informal consultations, and exchanges of the owner's representative agency with EVN's Member Council; giving the owner the right to question EVN's Board of Members, members of EVN's Members' Council, and EVN's General Director about plans, projects, development investment programs, and other decisions in the management and administration of EVN.

- Reviewing accounting books, reports, contracts, transactions, and other documents of EVN; inspecting the management and operation of EVN's Members' Council, members of EVN's Members' Council, and EVN's General Director when deeming it necessary or at the request of the owner's representative agency.

- Reviewing and assessing the current situation of business activities, the financial status of EVN, the operational status, and the effectiveness of internal governance regulations of EVN.

- Requesting members of the Board of Directors of EVN, the EVN General Director, the EVN Deputy General Director, EVN's chief accountant, and other managers report and provide information on anything within the scope of management, investment, and business activities of EVN.

- Requesting EVN managers to report on the financial status, status, and business results of the subsidiary when deeming it necessary to perform the tasks prescribed by law and this Charter.

- In case it is discovered that members of the Board of Members of EVN, the General Director of EVN, and other managers violate the regulations on their rights, obligations, and responsibilities or are in danger of violating such regulations; or detecting violations of the law, contravention of regulations on economic management, contrary to this Charter, or regulations on internal governance of EVN, they must immediately report to the representative agency of the owner of EVN, other members of the Supervisory Board, and related individuals.

- Proposing the owner's representative agency establish an audit unit to advise and directly support the Control Board in performing the assigned rights and obligations.

- Exercising other rights in accordance with relevant laws and this Charter.

(Clause 1, Article 53 of Decree 26/2018/ND-CP)

3.2. Responsibilities of controllers of Vietnam Electricity

- Complying with the law, the Charter of EVN, the decision of the representative agency of the owner, and professional ethics in exercising the rights and obligations specified in this Charter and relevant laws.

- Exercising the assigned rights and obligations honestly, carefully, and best to protect the interests of the State and the legitimate interests of the parties at EVN.

- Loyalty to the interests of the State and EVN; must not use information, know-how, or business opportunities, abuse their positions or the assets of EVN for personal gain or to serve the interests of other organizations and individuals.

- Other obligations as prescribed by relevant laws and this Charter.

- In case of breach of obligations specified at Points a, b, c and d, Clause 2, Article 53 of Decree 26/2018/ND-CP, causing damage to EVN, the controller must be personally or jointly liable for such damage; Depending on the nature and seriousness of the violation and the damage, they may also be disciplined, administratively sanctioned, or examined for penal liability in accordance with the law.

- Any income and other benefits that the Controller directly or indirectly obtains due to the breach of the obligations specified at Points a, b, c, and d, Clause 2, Article 53 of Decree 26/2018/ND-CP, must be returned to EVN.

- In case a Controller is found to have violated his/her obligations in exercising his/her assigned rights and obligations, another member of the Control Board is obliged to report in writing to the agency representing the owner; request the cessation of violations, and have solutions to remedy the consequences.

(Clause 2, Article 53 of Decree 26/2018/ND-CP)

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