Outstanding policies coming into force from the beginning of August, 2017

1. Depositors’ insurance payout raised to VND 75 million

Decision No. 21/2017/QD-TTg on insurance payout limits promulgated by the Prime Minister is coming into force as of August 05, 2017. This Decision stipulates that:

- Total insurance payout for all insured deposits of an individual at an insured institution shall be raised to VND 75 million (presently, VND 50 million as prescribed in the Decree No. 109/2005/ND-CP). />
- This insurance payout includes principals and interests.

Thus, if a credit institution is declared insolvent or bankrupt, the depositor may receive an insurance payout of up to VND 75 million.

2. As of 2020, Chairperson of the Management Board is prohibited from holding the position of General Director

The Decree No. 71/2017/ND-CP providing guidance on company management applicable to public companies is coming into force as of August 01, 2017 and the Circular No. 121/2012/TT-BTC dated July 26, 2012 is abrogated.

According to this Decree, there is change in capacity of members of the Management Board of a public company. To be specified:

- As of August 01, 2020, Chairperson of the Management Board is prohibited from holding the position of Director (or General Director) of a public company (presently, a Chairperson of the Management Board is still allowed to hold the position of Director (or General Director) of a public company provided it is approved at the Annual General Meeting of Shareholders).

- As of August 01, 2019: a member of the Management Board of a public company is not allowed to act as a member of the Management Boards of more than 05 other companies.

In addition to the said regulations, this Decree also introduces the following noticeable contents:

- Information about incomes of Director and other managers must be specified in separate parts in the Company’s annual financial statements and reported at the Annual General Meeting of Shareholders.

- The General Meeting of Shareholders is authorized to approve the internal regulations on company management formulated by the Management Board.

3. Teachers at University Preparation Colleges shall work 45 weeks per year

This noticeable content is provided for in the Circular No. 15/2017/TT-BGDDT (which is coming into force as of August 01, 2017) on amendments to Regulation on working regime for teachers of upper secondary schools promulgated under the Circular No. 28/2009/TT-BGDDT dated October 21, 2009.

According to this Circular, teachers of university preparation colleges shall work 42 weeks (equivalent to working period of teachers of elementary schools, lower and upper secondary schools). Where:

- There are 28 weeks for teaching and educational activities according to training plan in an academic year;

- 12 weeks for attending training/ retraining courses and carrying out scientific research activities, etc. and other activities as defined in the training plan in an academic year;

- 01 week for preparation for a new academic year and 01 remaining week for summing up results of an academic year.

Additionally, this Circular also provides for teaching periods of teachers of university preparation colleges. To be specific:

- A teacher is required to teach at least 12 periods per week.

- The minimum teaching periods of a head teacher of class or female teacher who has a child under the age of 12 months is reduced by 3 periods per week.

- Such minimum teaching periods of a teacher cum head of a functional department or deputy head of a functional department shall be reduced by 3 periods per week or 1 period per week respectively.

4. 05 methods of publishing of reports on state budget by state budget estimate units

The Circular No. 61/2017/TT-BTC providing guidance on publishing of reports on state budget by state budget estimate units is coming into force as of August 01, 2017.

According to this Circular, the publishing of reports on state budget and the status of state budget estimates, and state budget statements by state budget estimate units may be performed by adopting one of the following methods:

- Announcement at meetings or posting at offices of relevant agencies or units;

- Issuing publications;

- Sending written notifications to relevant agencies, units and individuals;

- Announcement by means of mass media.

- Publishing on websites (the budget estimate unit that has a website available must publish reports on state budget on its website).

The Circular No. 61/2017/TT-BTC nullifies the Circular No. 21/2005/TT-BTC and is applied as of the budget year 2017.

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