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THE
PRIME MINISTER OF GOVERMENT
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SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom – Happiness
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No.169/2007/QD-TTg
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Hanoi, November 08, 2007
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DECISION
ON PROMULGATING THE REGULATION OF SUPERVISING STATE ENTERPRISES SUFFER
LOSSES, OPERATE NON-EFFECT
THE PRIME MINISTER OF GOVERNMENT
Pursuant
to the Law on Organization of the Government of December 25, 2001;
Pursuant to the Law on State Enterprises of November 26, 2003;
Pursuant to the Enterprise Law of November 29, 2005
Pursuant to the Govermental Decree
No.199/2004/ND-CP, of December 03, 2004, on promulgatingthe regulation of
financial management of state companies and managament of state capital
invested in other enterprises
Pursuant to the Govermental Decree No.132/2005/ND-CP, of October 10, 2005
on conducting rights and duties of state owner with state companies and the
Govermental Decree No.86/2006/ND-CP, of August 21, 2006 on supplementing and
amending some articles of the Decree No.132/2005/ND-CP, of October 10, 2005;
At the proposal of the Financial Minister
DECIDES:
Article 1. Promulgating together with this
Decision the Regulation of supervising state enterprises suffer losses, operate
non-effect.
Article 2. This Decision take effect after 15
days its publication in the Official Gazette.
Điều 3. The ministers, the heads of the
ministerial-level agencies, the heads of the Government-attached agencies and
the presidents of the provincial/municipal People’s Committees, organizations
assigned mission of the representative of state enterprises owners ,
presidents of the managing boards of state economic Corporation,
presidents of managing board, presidents of member council, presidents of
company, general directors, directors of state enterprises shall have
responsibility to implement this Decree./.
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FOR. PRIME MINISTER
VICE PRIME MINISTER
Nguyen Sinh Hung
REGULATION
ON SUPERVISING STATE ENTERPRISES SUFFER LOSSES, OPERATE NON-EFFECT
(Attached together with the Decision No. 169/2007/QD-TTg, of November 08,
2007 of the Prime Minister)
I. GENERAL PROVISIONS
Article 1. The purpose of supervising
1. To determine the reasons cause losses in business, operate
non-effect, have measure to help enterprises overcome shortcomings, raise
effect of using capital, effect of business operation.
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Article 2. Objects of supervising
1. Enterprises which state own 100% charter capital icluding:
a) Independent State company;
b) General State Company (General Company invested and established by
state, Ganeral company invested and established by companies, by mother-company
by corporations such as mother-company);
c) Member companies account independently 100% state capital under
general state company;
d) One member Limited Liability State Company.
2. Enterprises provided in clause 1 this
article when falling into one of the following cases, shall be object of
supervising:
a) Being taken losses for two
consecutive years;
b) Being taken losses for one year but
loss 30% owner capital or more;
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d) Having coefficient of capacity of paying maturity debt fewer
than 0.5.
3. State enterprises operate in finance, bank, insurance, securities
shall not be object of applying this Regulation.
4. Yearly, representative of owner publish the list of enterprises
belong to case must supervise according to this Regulation.
Article 3. State enterprises take losses, operate non-effect
must conduct supervising according to provisions of this Regulation, at the
same time must conduct suppervising according to provisions of the Regulation
of supervising and evaluating effect of operation of state enterprises which
promulagated attached together with the Decision No.224/2006/QD-TTg, of October
06, 2006, of the Prime Minister of Goverment
II. SPECIFYING PROVISIONS
Article 4. Norm of supervising
1. Norm of supervising:
a) Production, value of main products, goods, services producted,
consumed, in inventory
b) Turnover of business, other income;
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d) Getting profit and rate of getting profit on state capitla;
dd) Effect of using capital and assets;
e) Debts ang capacity of paying debts;
g) Works of management, executive of administrator council, general
director, director.
2. The Finance Ministry guided norm of reporting provided in this
article.
Article 5. Mode of supervising
1. Quarterly, yearly, state enterprises
belong to object of supervising according to this regulation, shall make report
of supervising with norms proovided in clause 1, article 4 of this Regulation,
financial report according to provision of laws, send them to the
representative of owner and the financial agency at the same level. The
administrator Council or general director, director (if company have not
administrator council) shall take responsibility on exact, honest of report.
2. Representative of owner
coordinate with financial agency at the same level to base on report of
enterprises to conduct analysing, evaluating the resutlt of business operation,
management of enterprises and timely, bring out recomendations for enterprises.
The analysing, evaluating and recommending shall concentrate in the
following problems:
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b) Situation of supplying, using materials, goods; implementation of
technical and economical norm, labour norm;
c) Situation of loans, paying debt;
d) Mission of enterprise management.
3. To representative for owner to coordinate with financial agency at
the same level for operation of inspectation enterprises aiming to determine
honest, exact of norm in quarterly, yearly reports of enterprises; mission of
business management of general directors, directors of enterprises; mission of
management on production, business, labour, finance of enterprises.
Inspectation shall conduct one time every year and must obey provisions of laws
on inspectation. To finish inspection, must have reports, conclusions of
inspected content and bring out recommendations for enterprises to
improving the business effect of enterprises.
Article 6. Handling enterprises belong to case of
supervising according to this Regulation
1. Enterprises in the supervising list that two consecutive years have not still
taken losses, conducted fully regimes of reporting, suppervising acording to
this Regulation and the Redulation on supervising
and evaluating effect of operation of state enterprises which promulagated
attached together with the Decision No.224/2006/QD-TTg, of October 06, 2006, of
the Prime Minister of Goverment, shall be taken out of the supervising list
according to this Regulation.
2. Enterprises which don’t conduct regimes of reporting,
suppervising, their managers shall be blamed or warned and shall not be
commended and rewarded, not be rasing the salary grade or scale according to
provisions; case of repeating offences, their managers shall be taken down
salary grade or dismissed.
3. Enterprises which don’t conduct regimes of reporting, suppervising
or don’t conduct recommendations, solves of owners when implement supervising
make them continue taking losses, their managers shall be dismissed, replaced.
4. Enterprises after conducting of supervising according to this
Regulation for two consecutive years have still suffered losses, must implement to convert owner form or
dissolve, bankruptcy according to provisions.
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Article 7. Responsibility of operating
implementation
1. The Financial Ministry preside and ministries, ministerial-level
agencies, authorities of economical, technical section for guiding and
inspecting implementation of this Regulation.
2. The ministers, the heads of the ministerial-level agencies,
the heads of the Government-attached agencies and the presidents of the
provincial/municipal People’s Committees, organizations assigned mission
of the representative of state enterprises owners , presidents of the
managing boards of state economic Corporation, presidents of managing
board, general directors, directors of state enterprises shall have
responsibility to implement this Regulation./.
FOR
THE PRIME MINISTER
DEPUTY PRIME MINISTER
Nguyen Sinh Hung