Working regulations of the Board of Controllers of state-owned enterprises in Vietnam

Working regulations of the Board of Controllers of state-owned enterprises in Vietnam (Internet image)

1. Working regulations of the Board of Controllers of state-owned enterprises in Vietnam

The working regulations of the Board of Controllers of state-owned enterprises according to Article 106 of the Law on Enterprises 2020 is as follows:

- The Chief Controller shall prepare monthly, quarterly and annual working plans of the Board of Controllers; assign specific tasks to each Controller.

- Controllers shall perform their assign tasks independently; propose other tasks where necessary.

- The Board of Controllers shall hold a meeting at least once a month to evaluate and approve the monthly operation reports before they are submitted to the state ownership representative body; discuss and approve operation plans of the next month.

- A decision of the Board of Controllers will be ratified when it is voted for by the majority of the participating members. Dissenting opinions shall be fully and accurately recorded and reported to the state ownership representative body.

2. Rights the Board of Controllers of state-owned enterprises in Vietnam

The rights the Board of Controllers of state-owned enterprises in Vietnam according to Article 105 of the Law on Enterprises 2020 are as follows:

- Participate in meetings of the Board of Members, official and unofficial discussions between the state ownership representative body with the Board of Members; question the Board of Members, its members, the company’s President and the Director/General Director about the plans, projects, development programs and other decisions in management and administration of the company.

- Examine accounting books, reports, contracts, transactions and other documents of the company; inspect the management and administration by the Board of Members and its members, the company’s President and Director/General Director where necessary or at the request of the state ownership representative body.

- Request the Board of Members and its members, the company’s President and Director/General Director, Deputy Directors/Deputy General Directors, chief accountant and other executives to submit reports or provide information about the company’s management, investment and business operation.

- Request the company’s executives to submit reports on the subsidiary companies’ finance and business performance if they are necessary for performance of their duties prescribed by law and the company's charter.

- Request the state ownership representative body to establish an audit unit which will advise and assist the Board of Controllers in performance of its rights and obligations.

- Other rights and obligations prescribed by the company's charter.

3. Obligations of the Board of Controllers in Vietnam

Obligations of the Board of Controllers in Vietnam according to Article 104 of the Law on Enterprises 2020 are as follows:

* The Board of Controllers has the following obligations:

- Supervise the implementation of the company’s business plans and development strategy;

- Supervise and evaluate the company’s business performance and finance;

- Supervise and evaluate the performance of the Board of Members and its members, the company’s President and Director/General Director;

- Supervise and evaluate the compliance to the company’s internal audit, risk management, reporting regulations and other rules and regulations;

- Supervise the legitimacy, systematic organization and honesty of accounting tasks, accounting records, financial statements, their annexes and relevant documents;

- Supervise the company’s contracts and transactions with relevant parties;

- Supervise execution of major projects; sales and purchases; other large-scale contracts and transactions; unusual contracts and transactions of the company;

- Prepare and send evaluation reports and proposals of the matters specified in Points a, b, c, d, dd, e and g of Clause 1 of Article 104 of the Law on Enterprises 2020 to the state ownership representative body and the Board of Members;

- Perform other obligations demanded by the state ownership representative body, prescribed by the company's charter.

* The state ownership representative body shall decide and pay the Controllers’ salaries, bonuses and other benefits.

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