Decision No. 152/2005/QD-TTg dated June 20, 2005 of the Prime Minister ratifying the organisation and operation charter of the state capital investment corporation
ATTRIBUTE
Issuing body: | Prime Minister | Effective date: | Known Please log in to a subscriber account to use this function. Don’t have an account? Register here |
Official number: | 152/2005/QD-TTg | Signer: | Phan Van Khai |
Type: | Decision | Expiry date: | Known Please log in to a subscriber account to use this function. Don’t have an account? Register here |
Issuing date: | 20/06/2005 | Effect status: | Known Please log in to a subscriber account to use this function. Don’t have an account? Register here |
Fields: | Organizational structure |
THE PRIME MINISTER OF GOVERNMENT | SOCIALIST REPUBLIC OF VIET NAM |
No.152/2005/QD-TTg | Hanoi, June 20,2005 |
DECISION
RATIFYINGTHE ORGANISATION AND OPERATION CHARTER OFTHESTATECAPITAL INVESTMENTCORPORATION
THE PRIME MINISTER
PursuanttotheLawonOrganisationoftheGovernmentofDecember25,2001;
PursuanttotheStateEnterpriseLawofNovember26,2003;
PursuanttotheGovernment’sDecreeNo.86/2002/ND-CPofNovember5,2002definingthefunctions,tasks,powersandorganisationalstructuresoftheministriesandministerial-levelagencies;
PursuanttotheGovernment’sResolutionNo.151/2005/QD-TTgofJune20,2005,ontheestablishmentoftheStateCapitalInvestmentCorporation;
AttheproposaloftheMinisterofFinance,
DECIDES:
Article 1.- To ratify the organisation and operation Charter of the State Capital Investment
Corporation,issuedtogetherwiththisDecision.
Article 2.-ThisDecisiontakeseffect15daysafteritspublicationin“CONGBAO”.
Article3.-Theministers,theheadoftheministerial-levelagencies,theheadsoftheGovernment- attached agencies, the presidentsof the People’s Committees of the provinces andcentrally-run cities,theManagingBoardandgeneraldirectoroftheStateCapitalInvestmentCorporationshall havetoimplementthisDecision.
| PRIME MINISTER |
ORGANISATION AND OPERATION CHARTER
OFTHESTATECAPITAL INVESTMENTCORPORATION
(IssuedtogetherwiththePrimeMinister’sDecisionNo.152/2005/QD-TTgof June20,2005)
ChapterI
GENERAL PROVISIONS
Article1.-ThestateCapitalInvestmentCorporationisaspecialeconomicorganisationoftheState, whichwasestablished under the Prime Minister’s Decision No. 151/2005/QD-TTg of June20, 2005,tomanage,investanddealintheStatecapitalatenterprisesandinthedomainsprovidedforbylaw.
The State Capital Investment Corporation operates under the State Enterprise Law, the relevant lawsandprovisionsofthisCharter.
Article 2.-Nameandheadoffice
1. Name:
Vietnamesename:TongCongTyDauTuvaKinhDoanhVonNhaNuoc Internationaltransactionname:StateCapitalInvestmentCorporation. Abbreviation:SCIC
2. TheStateCapitalInvestmentCorporation (hereinaftercalled theCorporation forshort)is headquarteredinHanoicity;hasitsmembercompanies,branchesandrepresentativeofficesinanumberofregionsathomeandabroad.
3. TheCorporationhasthelegalpersonstatusunderVietnameselaw,organisesconcentrated bookkeepingcost-accounting,hasitsownsealandisentitledtoopenaccountsattheStatetreasuries,domestic and foreign commercialbanksin accordancewith the provisions oflaw.
Article 3.-Chartercapital
1. TheCorporationisgrantedinitialcapitalbytheStateforitsestablishmentandoperation.ItschartercapitalatthetimeofestablishmentisVND5,000(fivethousand)billionandshall be supplementedgraduallyinthecourseofitsoperation.
2. in case of increaseor decrease of its charter capital, the Corporationmustmakecorrespondingadjustmentinitsbusinessregistrationcertificateandmakeannouncementin accordancewiththeprovisionsoflaw.
Article 4.-Organisationstructure,managementandadministrationapparatus
Theorganisationalstructure,managementandadministrationapparatusoftheCorporationconsist oftheManagingBoard,theControlBoard,thegeneraldirector,deputygeneraldirectors,thechief accountantand functional assisting divisionsbased at the Corporation,member companies, branchesandrepresentativeofficesathomeandabroad.
Article 5.- The Finance Ministry performsthe Statemanagement of the Corporation’s finance accordingtoitscompetence;exercisesanumberofrightsandperformsanumberofobligationsof theownertowardtheCorporationunderthePrimeMinister’sdecentralization.
Theministries,branches,provincesandcentrally-runcities performtheStatemanagementofthe Corporationaccordingtotheirfunctionsandcompetence.
ChapterII
FUNCTIONS, TASKS, POWERS AND OBLIGATIONS OF THE STATE CAPITAL INVESTMENT CORPORATION
Article 6.-FunctionsandtasksoftheCorporation
1. ToreceiveandexercisetherightstorepresenttheowneroftheStatecapitalinvestedinthe State-run one-memberlimited liability companies, limited liability companiesoftwo ormoremembersandjoint-stockcompaniesconvertedfromindependentStatecompaniesor newlysetupones.
2. To invest and deal in the State capitalin economic branchesanddomains at homeandabroadinordertoachievethefollowingobjectives:
- PreservinganddevelopingtheStatecapital,efficientlyusingcapitalsources.
- Creatingadrivingforcefordevelopment,raisingoperationalcapacityandcompetitiveness ofenterprisesinvestedwiththeStatecapital.
3. Toinvest andmanage investment capital of the Corporation in the nationaleconomic branchesanddomainsaccordingtotheState-assignedtasks.
4. To organisethemobilisation of domestic and foreign capital sources according to the provisionsoflawonStatecompanies.
5. To provide such financial services asinvestmentconsultancy,financialconsultancy,equitizationconsultancy,consultancyontheownershipconversionofenterprises,reception of entrustedinvestment capital sources from domesticand foreign organisationsandindividuals.
6. Toperformtaskofinternationalcooperationinthe fieldofcapitalinvestment.
7. Toprovideservicesofsupportingenterprisesinaccordancewiththeprovisionsof law.
Article 7.–RightsandobligationsoftheCorporation
1. ToactastherepresentativeoftheowneroftheStatecapitalattheenterprisesinvestedwith capitaloftheCorporation.
2. To possessand use its capitaland assets for investmentand obtainment of its legitimateinterests.
3. Todisposeofitscapitalandassets.TomanageanduseitsassetsassignedbytheStateorleasethem accordingtotheprovisionsoflawandthisCharter.
4. Toselectanddecidefieldsofcapitalinvestmentonthemarketprinciples,ensuringfutureefficiencyandprofitability. If unfruitfully performing tasks assignedby the Prime Minister, the Corporationmay implementappropriatepreferentialpoliciesandbefinanciallysupportedbytheState.
5. Tojoindomesticandforeigninvestorsin contributing capitaland assetstojointventuresandassociationsinformofbuyingoutpartorwholeofothercompanies,investingintheestablishmentofnewenterprises,signingofbusinesscooperationcontractsandotherformsasprovidedforbylaw.
6. To increase or reduce its capital invested inenterprises or domains according to the provisionsoflaw,chartersofenterprisesandthisCharter.
7. Tomobilizecapitalforbusinessin formofissuingbondsorpromissory notes;to borrowcapitalfromcreditinstitutionsandotherfinancialinstitutionsunderlawprovisionsandtake responsibilityfortheefficientuseofthemobilizedcapital.
8. Toreceiveentrustedinvestmentcapitalsourcesfromdomesticorforeignorganizationsandindividuals,andtake responsibilityforthemanagement oftheuseofsuchcapital sources.
9. TopreserveanddeveloptheState-assignedcapital,totakeresponsibilityforthelossofthe Statecapitalundertheprovisionsoflaw.
10.Toensurepublicityandtransparencyinreportingonitsbusinessandfinancialactivitiestocompetentauthoritiesaccordingtoregulations.
11.To exercise other rights and performother obligations according to the provisions of the StateEnterpriseLawandthisCharter.
Article 8.–RightsandobligationsoftheCorporationtowarditscapitalinvestedinenterprises
1.Forone-memberlimitedliabilitycompanies:
a. ToexercisetherighttorepresenttheowneroftheStatecapitalandresponsiblefor thedebts andother asset-relatedobligationsof the companies within the capitalamountsithasinvestedinsuchcompanies;
b. To decideon the contentsof, amendments and supplement to, the charter of thecompanies;
c. To decideon the organizationalmanagerial structure ofthe companies, appoint , dismiss or demotemanagerial officials of thecompaniessuch as theManaging Boardmembersanddirectors(generaldirector)ofthecompanies;
d. Todecideoninvestment theadjustmentofchartercapitalofthecompanies;
e. Tosupervise,monitorandassessbusinessactivitiesofthecompanies;
f. Todecideoninvestmentprojectsorsaleofassetsofavalueequaltoorlargerthan 50%ofthetotalassetvaluerecordedinthecompanies’accountingbooks;
g. Todecideontheuseofafter-taxprofit;
h. Todecideonthere-organizationofthecompanies;
i. Toexerciserotherrightsandperformsotherobligationsaccordingtotheprovisions oftheEnterpriseLawandchartersofthecompanies.
2. Forjointventuresandlimitedliabilitycompaniesoftwoormoremembers:
a. To take responsibility for the debts and other asset-related obligations of the companieswithinitscapitalamountsalreadycontributedtosuchcompanies;
b. Toenjoythedividedafter-taxprofitsintheproportiontoitscapitalcontributedto thecompanies;
c. TobeentitledtonominateitspersonstotheMembersCouncils,joinindiscussion,makingsuggestionandvotingonissuesfallingunderthecompetentoftheMembers Councils;
d. Tohaveanumberofvotesinproportiontoitscontributedcapital;
e. Toexaminethememberregisters,accountingbooks,annualfinancialstatementsand other documents of the companies andreceive excerpts orcopies of these documents;
f.Toenjoypartoftheremainingvalueofassetsofthecompanies,whichshallbedividedinproportiontoitscontributedcapitaluponthedissolutionorbankruptcyof suchcompanies;
g. To be given priority tocontributemore capital to the companies whensuch companiesincreasetheirchartercapital;tobeentitledtotransferpartorwholeofits contributedcapitalundertheprovisionsoftheEnterpriseLaw;
h. ToexerciseotherrightsandperformotherobligationsforbytheEnterpriseLawand chartersofthecompanies.
3. Forjoint-stockcompanies:
The Corporation shall exercise the rights and perform the obligationsof a shareholder in proportiontoitscapitalcontributedtothejoint-stockcompanies:
a. Toattendandvoteonallissuesfallingunderthecompetenceoftheshareholders’ congress;
b. To take responsibility for the debts and other asset-related obligations of the companieswithinitscapitalamountsalreadycontributedtothecompanies;
c. TobeentitledtotransferitssharesundertheprovisionsoftheEnterpriseLawand chartersofthecompanies;
d. Toreceivedividendsatthelevelsdecidedbythe shareholders’congress;
e. To be given priority to purchase new shares offered for sale correspondingto the proportionofcommonsharesofeachshareholderinacompany;
f. To nominate itspersons to the Managing Boards and Control Boards of the companies according tothe provisions of the Enterprise Law and charters of thecompanies;
g. Toreceivepartoftheremainingassetsinproportiontothenumberofsharesatthe companiesupontheirdissolutionorbankruptcy;
h. ToexerciseotherrightsandperformotherobligationsforintheEnterpriseLawand chartersofthe joint-stockcompanies.
ChapterIII
ORGANISATIONAL STRUCTURE AND MANAGERIAL APPARATUS OF THE STATE CAPITAL INVESTMENT CORPORATION
Section1.MANAGINGBOARDOFTHEORPORATION
Article 9-Themanagingboard
ThemanagingboardisabodydirectlyrepresentingtheStateownershipintheCorporation,decides onallmattersrelatedtothedeterminationandrealizationofitstargets,tasksandbenefits,except formatters falling underthe deciding competence of thePrime Ministerand the decentralizedmanagementagencies.
TheManagingBoardshalltakeresponsibilitybeforethePrimeMinisterandlawforalloperations anddevelopmentoftheCorporation.
Article10.-TasksandpowersoftheManagingBoard
1.Toreceive,manageandefficientlyusecapital,land,naturalresourcesandotherresourcesassignedbytheStatetothe Corporation.
2. To submit to thePrime Minister for approval and organize the realization of targets, strategiesanddevelopmentorientationsoftheCorporation.
3. To decide on the long term andmedium term plans of the Corporation after they arecommentedbytheFinanceMinistry.
4. Toapproveannualbusinessinvestmentplansattheproposalofthegeneraldirectorofthe Corporation.
5. To decide and decentralize its powerto thegeneral director to decideon investmentandmanagementoftheStatecapitalatenterprisesinvestedwithcapitaloftheCorporation;tomobilizecapital,invest,liquidateandsaleassetsoftheCorporation
ItshalltakeresponsibilityforallinvestmentactivitiesoftheCorporationandmaydecentralizeits powertothegeneraldirectortodecideoninvestmentonacase-by-casebasis.
6. Todecideontheschemesonpayroll,salaryandbonusregime,organizationalstructureandmanagerial apparatusof the Corporation, training plan andestablishment ofmembercompanies, branches and representative offices at home and abroad. To decentralize its powertothegeneraldirectortoperformtheabove-mentionedtasks.
7. Tobeentitledtouseoffices,professionaldivisionsanddepartmentsoftheCorporation;to setupsectionsadvisingandassistingitinperformingitstasks.ThefunctionsandtasksofthesesectionsshallbedecidedbytheManagingBoard.Toinviteanumberofdomesticand foreignconsultantsandadvisers.
8. To submit to thePrimeMinister for decision the addition, replacement,dismissal,commendationordiscipliningofitsmembers.
9. Todecide on appointment or signing ofcontracts with, replacement,dismissal or disciplining of the general director of the Corporation after getting thePrimeMinister’sconsent.
10.Todecideonappointment,dismissal,demotionof,andregimeofsalariesandbonusesfor,thedeputygeneraldirectorsandchiefaccountantattheproposal ofthegeneral director.
11.Todecentralizeitspowertothegeneraldirectortoappoint,dismissordemote,anddecide ontheregimeofsalariesandbonusesfor,otherpostsinthe Corporation.
12.ToapprovetheannualfinancialstatementsoftheCorporation;plansontheuseofafter-tax profits andhandling of losses in thecourseof business at the proposal of the general director;toapproveannualandperiodicalreportsonthemanagementanduseoftheState capitalatenterprisesinvestedwithcapitaloftheCorporation.
13.ToinspectandsupervisetheCorporation intheperformanceofitsfunctions andtasksin strictaccordancewiththe provisionsoflawandthisCharter.
14.To submit to the PrimeMinister for approval theCharterof the Corporationand amendmentsthereto.
15.To request thegeneral director to reportandtakehandlingmeasures incase ofdetectingsignsofviolatinglaworthisCharter.
16.ToelaborateandsubmittotheFinanceMinistryforapprovalthefinancialregulationofthe Corporation
17.To decide on nomination or replacement of theCorporation’s representatives whoareinvolvedintheadministrationofenterprisesinvestedwithcapitaloftheCorporationatthe proposalofthegeneraldirector.
18.To nominate its representatives to attendmeetings of theDirectorateandmeetings of the Corporationwhendeemingnecessary.
19.Toexerciseotherrightsandperformothertasksaccordingtotheprovisionsoflawandthis Charter
Article11.- Membership, appointment,dismissaland replacement ofmembersofthe Managing Board
1. ThemanagingBoardconsistsofachairman,vicechairmanandmembers.Ithasfull-timeandpart-timemembers. The chairman of theManaging Board andthehead of Control Boardmustbefull-timemembers.Othermembersofthe ManagingBoardmayconcurrently hold leading positions inthe Directorate. The Managing Board consists of 7members atmost.ItcomprisesleadersoftheFinanceMinistryandanumberofministriesandbranches who have experience in,and knowledge about, finance, capital investmentand enterpriseadministration.
2. Criteria and conditions formembers of the Managing Board shall comply with the provisionsofArticle31oftheStateEnterpriseLaw
3. ThePrimeMinistershalldecideonappointment,dismissalorreplacement,disciplineofthechairman,vicechairmanandmembersoftheManagingBoard.
4. AtermofofficeofmembersoftheManagingBoardshallnotexceed5years.Attheendoftheirterm,membersoftheManagingBoardmaybe reappointed.
5. MembersoftheManagingBoardshallbedismissedinthefollowingcases:
a. Havingbeenconvictedundercourt’sjudgmentsordecisionswhichhavetakenlegal effect;
b. Havingnocapacityand/orqualificationstoundertaketheassignedtasks,havinglost theircivilactcapacityorhavingrestrictedcivilactcapacity;
c. Beingdishonestwhileperformingtheirdutiesorexercisingtheirpowersorabusing their positions or powersto seek profits for themselves or others; untruthfully reportingontheCorporation’sfinancialsituation;
d. ViolatingtheprovisionsoflawandthisCharter.
6. MembersoftheManagingBoardshallbereplacedinthefollowingcases:
a. Theyresign;
b. Theyare subjecttodecisionsontransferorarrangementtonewposts;
c. Theirhealthfailsthemintakingupthejobs.
Article12.-ChairmanoftheManagingBoard
1. Thechairman ofthe Managing Board operates on a full-time basis and shall notconcurrentlybethegeneraldirectorofthe Corporation
2. ThechairmanoftheManagingBoardhasthefollowingpowerandtasks:
a.To sign on behalf of theManagingBoardforreceptionofcapital,land, naturalresourcesandotherresourcesassignedbytheStatetothe Corporation;
b. To organizetheperformance of tasks of the Managing Board according to the provisionsofArticle10ofthisCharter
c. TosignonbehalfoftheManagingBoarddocumentsfallingunderthecompetence oftheManagingBoard;
d. Tomonitorand supervise the implementation of resolutions anddecisions of the Managing Board; tohavethe right to suspend decisionsof the general directors, whicharecontrarytoresolutionsanddecisionsoftheManagingBoard;
e. In case ofnecessity, to authorize a vice chairman or amember of theManaging Boardtoperform anumberof tasks falling underhis/her competence. The authorizedpersonshallbeanswerabletothechairman oftheManagingBoardfor theauthorizedtasks;
f. TohaveotherrightsasprovidedforbylawandauthorizedbythePrimeMinister.
Article13.-WorkingregimeoftheManagingBoard
1. The Managing Boardworkscollectivelyandmeetsat least once a quarter. In case of necessity,itmayconveneextraordinarymeetingsattherequestofitschairman,thegeneral directorormorethan50%ofthetotalnumberofitsmembers.
2. MeetingoftheManagingBoardshallbeconductedwhentheyareattendedbyatleasttwp- thirdsofitsmembersdirectlyorviatelecommunicationsystem.Incaseswhereamemberisabsent.He/shemayauthorizeinwritinghis/herrepresentativetoattendameetingsandvote ontheauthorizedissuesonhis/herbehalf.ResolutionanddecisionsoftheManagingBoard shallbe adoptedwhen they are voted for bymore than50% of the total number of the ManagingBoardmembers;incaseswherethevotesforandagainstareequal,thevotingsidewiththechairman’sopinionsshallprevail.
3. Procedures forconvening and organizingmeetings of the Managing Board shall comply with the provisions of the State Enterprise Law andworking regulation of the Managing Board. Resolutions and decisions of the Managing Board shall be binding on the entire Corporation.
4. Membersof theManagingBoardhavetheright torequest thegeneral director, thechiefaccountantand/ormanagerial offices of the Corporation to supply informationand documentsonfinancialandoperationsituation oftheCorporationanditsdependentunits.
5. ExpensesfortheoperationoftheManagingBoard,theControlBoard,experts,advisersandassisting sections of the Managing Board shall be accountedinthe Corporation’smanagement costs. The general director of the Corporation shall ensurenecessaryconditionsandmeansforoperationoftheManagingBoardanditsassistingsections.
Article14.-Salaries,allowancesandbonusesformembersoftheManagingBoard
1. Full-timemembersoftheManagingBoardshallenjoysalaries,allowancesandbonuses correspondingtothebusinessresultsandefficiencyoftheCorporation.
2. Part-time membersof theManaging Board shall enjoy allowances and bonuses correspondingtothebusinessresultsandefficiencyoftheCorporation
Article15.-IndividualsrelateddirectlytomembersoftheManagingBoard,includingtheirfathers,mothers, spouses,offsprings and siblings,must not hold the positions of chief accountantand cashierofthe Corporation.
Section2.CONTROLBOARDOF THECORPORATION
Article16.-theControlBoard
1. The Control Board is set up by the Managing Board toassist the Managing Board in supervisingoperationsoftheCorporation.
TheControlBoardconsistsofbetween3and5membersoperatingonafull-timebasis.Theheadof theControlBoardisamemberoftheManagingBoard.
2. A term ofoffice of the Control Boardmembers shall not exceed 5years. At theend of his/herterm,eachmembermaybereappointed.
3. CriteriaandconditionsformembersoftheControlBoardshallcomplywiththeprovisions ofClause4,Article37oftheStateEnterpriseLaw.
4. TheControlBoardoperatesaccordingtheRegulationapprovedbytheManagingBoardand hasthe followingresponsibilitiesandpowers:
a. Tosupervisethemanagementandadministrationofbusinessactivities,executionof theCharteroftheCorporationaswellasresolutionsanddecisionsoftheManaging Board;
b. Toevaluateperiodical andannualfinancialreportsofthe Corporation;
c. Toperform othertasksat therequestoftheManagingBoard.
5. The expenses for theoperation (including salaries and bonuses) ofthe Control Board are decided bythe Managing Board andaccounted on the Corporation’s business costs. The generaldirectorshallhave tocreateworkingconditionsfortheControlBoard.
Section 3. GENERAL DIRECTOR,DEPUTYGENERALDIRECTORS, CHIEF ACCOUNTANT, ASSISTING APPARATUS,MEMBERCOMPANIES,BRANCHESAND REPRESENTATIVEOFFICESOFTHECORPORATION.
Article17.-Thegeneraldirector,deputygeneraldirectors,chiefaccountantandassistingapparatus
1. Thegeneral directoris the Corporation’s representative at lawwho administer the Corporation’s activities underits Charter aswell as resolutionsand decisions of the Managing Board; and take responsibility before law fortheexercise of given rightsand performanceofassignedtasks,
2. Thedeputy general directors assistthe general director in administering the Corporation underthe latter’s assignment orauthorization; and take responsibility beforethegeneral directorfortheassignedorauthorizedtasks.
3. ThechiefaccountanthasthetaskofassistingthegeneraldirectorinorganizingthefinancialandaccountingworkoftheCorporation;andtakesresponsibilitybeforethegeneraldirector forthe assignedorauthorizedtasks.
4. Professional divisions of the Corporationhavethe functions of the advising and assistingtheManagingBoardandthegeneraldirectorinperformingtasksoftheCorporation.
Article 18.- Selection, appointment, dismissal of, signingandtermination of contracts with, the generaldirector,deputygeneraldirectorsandchiefaccountant
1. Thegeneraldirectorisappointedby,orsignscontractwith,theManagingBoardafterbeingapprovedbythePrimeMinister.ThegeneraldirectormaybeamemberoftheManaging Board.
2. Thedeputygeneraldirectorsandchiefaccountantareappointedby,orsigncontractswith,theManagingBoard,whichmayalsoterminatesuchcontractsattheproposalofthegeneral director.
3. Thegeneraldirectorshallbedismissedorhavehis/herworkingcontractterminatedahead oftimeinthe followingcases:
a. Havingbeenconvictedunderacourt’sjudgmentordecisionswhichhastakenlegal effect;
b. Being dishonestwhile performing his/her duties or exercising his/her powers or abusinghis/her positions or power to seek profits for him/herself or for others; untruthfullyreportingonthefinancialsituationoftheCorporation;
c.Failingtofulfillhis/hertasksorachievethetargetsassignedbyhis/herappointerorhirer;
d. Havinglistcivilactcapacityorrestrictedcivilactcapacity;
e. ViolatingtheprovisionsoflawandthisCharter.
4. Thegeneraldirectorshallbereplacedinthefollowingcases:
a. He/sheresigns;
b. Thereisadecisiononhis/hertransferorarrangementtonewpost;
c. His/herhealthfailshim/hertotakeupthejob.
Article19.-Tasksandpowersofthegeneraldirector
1. Toelaborate strategies,medium-, long-term and annualplans of the Corporation tobe reportedtotheManagingBoard;toorganizetheimplementationofsuchplansaftertheyareapprovedbycompetentauthorities.
2. To submit to the Managing Board foe promulgating or to promulgate legal documents guidingtheassignedtasksaccordingtodecentralization.
3. TotakeresponsibilitybeforetheManagingBoardforthemanagementandefficientuseofthe Corporation’s capital, assets and other resources within theambit of his/her vested powers.
4. Todecideoninvestmentprojects,assetspurchaseorsalecontracts,borrowingcontractsand other economiccontracts according to thedecentralization and authorization by the ManagingBoard.
5. To report tothe Managing Board regularlyor irregularly on the business results of the Corporation; to publicizefinancialstatements according to the provisions ofthe financial regimeandthisCharter.
6. To request theManaging Boardto appoint,dismiss,demote, signor terminate contracts with,commendorreward,discipline,ordecideonthelevelsofsalary,bonusandallowance of, the deputy generaldirectorsand chief accountant of the Corporation,nominate representativesofthe Corporation’scapitalportionatenterprises.
7. To decide on selection of, signing ortermination of contracts with, orappointment, dismissal, commendation or rewarding, disciplining of, aswell as salary, bonusandallowancelevelsfor,otherpositionsundertheManagingBoard’sdecentralization.
8. To elaborate the Corporation’s plans on salaries and bonuses and report them to the ManagingBoardforapprovalandimplementationorganization.
9. To exercise therights and responsibilities relatedto business, financialandpersonnelmanagementtowardattachedunitsaccordingtotheManagingBoard’sdecentralization,the financialmechanism andprovisionsofthisCharter.
10.TohaveotherrightsandtasksprovidedforbytheStateEnterpriseLaw,theCharterofthe CorporationanddecisionsoftheManagingBoard
Article20.-RelationshipbetweentheManagingBoardandthegeneraldirectorinthemanagementandadministrationoftheCorporation
1. Tasksandpowersof theManaging Board and thegeneral director shall complywith the provisionsofthisCharter.
In the course of organizing the implementation ofthe Managing Board’s resolutionsand decisions, ifdetectingissuesunbeneficialto theCorporation,thegeneraldirectorshallreport them tothe Managing Board forconsiderationand adjustmentthereof. Incaseswhere the ManagingBoarddoesnotadjustssuchresolutionsordecisions,thegeneraldirectorshallstill have to execute thembut have the right toreserve his/her opinions and propose the FinanceMinistertoconsideranddecideaccordingtohis/hercompetence.
2. ThegeneraldirectorshallhavetoperiodicallyreporttotheManagingBoardonthebusiness situationoftheCorporation.Incaseofnecessity,thechairmanoftheManagingBoardshall request the general director to report directly to the Managing Board or nominateits representativestoattendmeetingsoftheCorporation.
3. The Managing Boardshalldecentralize its powersto the general directortoperform the Corporation’s tasks andtakeresponsibility for suchdecentralization.Thegeneral director shallbeanswerabletotheManagingBoardforthedecentralizedtasks.
4. Thechairman of the Managing Boardand thegeneraldirector may apply necessarymeasures inemergency casesaccording to the provisions of law, and at the same time, report themimmediately to the Managing Board and competent State agencies for settlement.
Article21.-AssistingapparatusoftheCorporation
TheCorporation’sassistingapparatusconsistsoffunctionalandprofessionaldivisions,setupbythe ManagingBoardattheproposalofthegeneraldirector.
Thegeneraldirector shalldecideon the appointment and dismissalof leaders of functional and professionaldivisionsundertheManagingBoard’sdecentralization,anddefinethefunctionsand tasksofeachdivision,tobesubmittedtothe ManagingBoardforapproval.
Article22.-Membercompaniesandbranches
Membercompaniesaswellas domestic andoverseas branchesoftheCorporation aredependent cost-accountingunits,organizedbyregioninsuitabilitywiththescope,managementdemandand operationsofthe Corporationand set up by the Managing Board at the proposal of the general director.Eachmembercompany or branch has adirector, deputy directors and professional sections.Thegeneraldirectorappoints directors anddeputy directorsofmember companies or branchesundertheManagingBoard’sdecentralization.
TheregulationsonorganizationandoperationofmembercompaniesandbranchesshallbedecidedbythegeneraldirectoroftheCorporation.
Article23.-Representativeoffices
DomesticandoverseasrepresentativeofficesoftheCorporationareitsdependentunits,setupby the Managing Board at the proposalof thegeneraldirector forthe performance of a number of tasksassignedbythegeneraldirectorandnot directlyinvolvedinbusinessactivities.
Article24.- Selection, appointment, dismissal ofleadingofficials of functional and professional divisions,membercompanies,branchesandrepresentativeofficesoftheCorporation.
The selection, appointment anddismissal ofleading officials of functional and professional divisionsoftheCorporationaswellasitsmembercompanies,branchesandrepresentativeoffices shallcomplywiththedecentralizationbytheManagingBoardandthegeneraldirector.
Article25.-NominationofrepresentativesoftheCorporation’scapitalportionsatenterprises.
ThenominationofrepresentativesoftheCorporation’scapitalportionstojointhemanagingboards orthepresidenciesofone-membercouncilsormanagingboardsoftow-ormore-memberlimited liabilitycompanies; themanaging boards ofjointventuresor joint-stock companies with capital contributedby theCorporationshallcomplywiththeprovisionsoftheStateEnterpriseLawand thisCharter.
ChapterIV
CAPITAL, FUNDS AND ASSETS OF THE STATE CAPITAL INVESTMENT CORPORATION
Article26.-WorkingcapitaloftheCorporation
1.State-ownedcapital:
a. InitialStatebudgetallocate;
b. Statecapitalsupplementedintheoperationprocess;
c. StatecapitalinvestedinotherenterprisesandassignedtotheCorporation;
d. Non-refundableaidsources;
e. Capitalsupplementedfromafter-taxprofitsinthebusinesscourse.
2. Mobilizedcapital:
a. Bondissuance;
b. Borrowings from creditandfinancialinstitutions;
c. Othermobilizedcapitalsources.
3. Capital sources entrusted forinvestment by domestic and foreign organizationsandindividuals.
Article27.-TheManagingBoardoftheCorporationshalltakeresponsibilityformanagement,safe andefficientuseofcapitalsourcesoftheCorporation
TheCorporationhastherighttochangeitscapitalstructureandassetsinsuitabilitywithitscapital investmentandbusinessdemand.
Article28.-TheCorporationshalltakemeasurestopreservetheStatecapitalattheCorporation,makedeductions for setting upthe riskreserves tocover objective losses inthecourse of investmentandbusinessoftheCorporation.
Thedeductionforsettingup,managementanduseofriskreservesshallcomplywiththeprovisionsoftheGovernment’sDecreeNo.199/204/ND-CPofDecember3,2004,issuingtheRegulationonfinancialmanagementofStatecompaniesandmanagementoftheStateCapitalinvestedinotherenterprisesandthe financialregulationoftheCorporation.
Article29.- Themanagementofconstructioninvestment,procurement,liquidation,saleof assets andmanagement of cost ofthe Corporation shall comply with the financialregulation of the CorporationandlawprovisionsfoeStatecorporations.
ChapterV
CAPITAL INVESTMENT
Article30.-Capital investmentprinciples
TheCorporationshall investanddeal incapitalonthefollowingprinciples:
1. Toconcentrateinvestmentinkeyandstrategicbranchesanddomains,whichplaytherole ofadrivingforcetoboost theeconomicdevelopment.
2. Topayattentiontoinvestmentinfruitful andhighlyprofitablebranchesanddomains.
3. ToreduceinvestmentinbranchesanddomainswhichtheStateneednottocontrolaswellas branches and domainswhich are capableof attracting resources from other economic sectors.
Article31.-Formsofinvestment
1. Investmentinprojectstosetupnewenterprises.
2.Investment inmakingcapitalcontributionsto jointventures,associationsor joint-stockcompanieswithotherenterprises(includingStatecorporations).
3. Investmentinbuyingpartofassetsorbuyingoutotherenterprises.
4. Investment insecuritiesmarket by purchasing, selling shares, bonds and other financialinstruments.
5. Associationwith,orentrustmentto,financialinstitutionsandinvestmentfunds.
Article32.-Capital investmentbases
1. Forinvestmentinstrategicandkeybranchesanddomains,whichplaytheroleofadriving forcetoboosttheeconomicdevelopment,thebasesareasfollows:
a. Strategiesandplanningsforbranchordomaindevelopment,decidedbycompetent authorities;
b. Branches and domains where the Stateneeds toinvest100% ofcapital or hold dominant sharesunderthePrimeMinister’sdecision;
c. Investment projects, production and business plans approved by competent authorities.
2. For investment in fruitful and highlyprofitable branchesand domains, thebases areas follow:
a. Theefficiencyofinvestmentprojects;
b. Theefficiencyofproductionandbusinessplans;
c. Theefficiencyofplansonownershipconversionorequitizationofenterprises.
3. Forthereductionofinvestmentinenterprises,thebasesareasfollow:
a. CriteriaandlistsofclassifiedcompanieswheretheStateholdsnodominantshares underthePrimeMinister’s Decision;
b. Theproductionandbusinessaswellasfinancialsituationofenterprises.
Article33.-Competencetodecideoncapitalinvestment
1. TheCorporationhastheright:
a. To decideon investment projects, investmentmode,capitalleveland investmentterm for each project andenterprisewithin the capital amountmanaged by the Corporation;
b. To decide on reduction of the Corporation’s capital portion at otherenterprises throughcapitaltransferandsale ofshares.
2. ThePrimeMinistershalldecideoninvestmentinthefollowingcases:
a. The investment level falls beyond thedeciding competence of the Corporation as providedforbylaw;
b. Investmentinriskyprojects,domainsorareas;
c. Investment in projects in unprofitable branches or domainswhichneeds theState preferentialpoliciesorfinancialsupport.
Article34.- The investment order, procedures and forms shall comply with the Regulation on capitalinvestmentdecidedbythegeneraldirectorafterbeingapprovedbytheManagingBoard.
ChapterVI
OTHER OPERATIONS OF THE STATE CAPITAL INVESTMENT CORPORATION
Article35.-Financialconsultancy
The Corporationmay enter into consultancycontracts on the provision of financial services to customers;andenjoychargesasagreedwithcustomers.
Article36.-Investmententrustment
TheCorporationmay beentrustedby domestic andforeign organizations orindividualstomake investmentsandenjoycommissionsunderentrustmentcontracts.
Article37.-Internationalcooperation
1. To coordinate with concernedpartiesin organizing investment cooperation forums toexchangeexperienceinthecourse ofbusinessadministrationandenterprisemanagement.
2. To conduct negotiation, conclusion and receptionof aids and financialassistances fromforeigncountriesandinternationalorganizationswhenauthorizedunderlawprovisionsandefficientlymanagetheuseofcapitalsources
3. Tojoinineconomicforumsandinternationalinvestmentforums.
4. Otheractivitiesasprovidedforbylaw.
Article38.-Otheroperations
In itscapacity as the representative of the owner of theState capitalinvested in enterprises,the Corporationmayperformthefollowingjobs:
1. Summingup informationand aspirations of enterprises so asto report themtothe Prime MinisterandStateagenciesforappropriatesolutionsoncontrolmechanismandpolicies.
2. Contributingitsopinionsinthenegotiationprocess,supplyinginformationonthesituationand developments of realization ofcommitments on international economicintegration, opportunitiesandchallenges,solutionstocompetitionandovercomingofdisadvantagesofenterprises.
3. Representingenterprises invested with theState capitalto participate in the process of draftingtheStatemechanismsandpoliciesrelatedtotheoperationsoftheenterprises.
4. Organizingprogramsinsupportofenterprisessuchastrainingcourses,workshops,inviting domestic and international consultants to discourse ontopics relatedto enterprise developmentandinvestment.
5.Organizing,coordinatingtheparticipationindomesticand internationalforumson therelatedcontents.
ChapterVII
FINANCE OF THE STATE CAPITAL INVESTMENT CORPORATION
Article39.-TheCorporation inan independenteconomiccost-accounting unit,havingfinancialautonomyandfollowingtheconcentratedbookkeepingcost-accountingregime.TheCorporation’s
accounting,accounting-reporting.Financialreportingandstatisticalreportingregimesshallcomply withitsfinancialregulationtobe promulgatedbytheMinisterofFinance.
Article40.-AfiscalyearoftheCorporationbeginonJanuary1(calendaryear)andendsattheend ofDecember 31 the sameyear. The first fiscalyear beginsonthe dateofthe grant of the Corporation’sbusinessregistrationcertificateandendsonDecember31thesameyear.
Annually,the Corporationhas to elaborate financial revenue and expenditure plan strictly accordingtoregulation,reportittotheManagingBoardforapprovalandtotheFinanceMinistry forsupervisionandmonitoring.
Article41.-FinancialresultsoftheCorporationmeanthedifferencebetweenitstotalrevenuesandtotalexpenditures.
After fulfilling tax obligations andother financial obligations under law provisions, theCorporation’sremainingprofitsaredistributedasfollows:
1. Appropriationforsettingupthefinancialprovision
2. Appropriationforsettingupthedevelopmentinvestmentfund.
3. Appropriationforsettinguptherewardandwelfarefunds.
4. AppropriationforsettinguptherewardfundfortheleadershipsoftheCorporationauditsattachedunits.
5. The remainder (if any) shall be supplementedto the developmentinvestment fund of the Corporation
Theappropriation levels and percentages, the management and use of the above-saidfunds shall complywiththefinancialregulationoftheCorporation.
Article42.-Attheyearend,theCorporationshallmakereportsonfinalsettlementofitsfinancial revenues and expenditures to be submitted to the Managing Board forapproval and sent to the FinanceMinistry
Article43.-TheCorporationshallfollowtheprescribedauditingandfinancialpublicityregime.
Article44.-SalariesandincomesoflaborersintheCorporation Incomesoflaborersinclude:
- Salaries;
- Bonusesfortheircontributionstotheaddedvalueofenterprisesandinvestmentcapital;
- Otherallowancesandsubsidiesasprovidedfor;
TheCorporation’sManagingBoardshallspecifythemechanismofsalaryandbonuspaymentto laborersinthe Corporation.
ChapterVIII
MANAGEMENT OF OPERATIONS OF THE STATE CAPITAL INVESTMENT CORPORATION
Article45.-TheGovernmentshallunifytheorganizationofexerciseoftherightsandobligations
oftheStateownertowardtheCorporation.
Article46.-ThePrimeMinister
1. Todecideontheestablishment anddissolutionoftheCorporation.
2. Toappoint,dismiss,commend,rewardordisciplinemembersoftheManagingBoard.
3. ToapprovetheCorporation’sorganizationandoperationcharter.
4. Todecideondevelopmentobjectives,strategiesandorientationoftheCorporation.
5. ToapproveplanningsfordevelopmentofkeybranchesanddomainswheretheStateneeds toconcentrateinvestment.
TodecideontheCorporation’soverseacapitalinvestmentundertakingswithregardstoproject inregionsexposedtohighrisks;todecideonprojectsofbigcapitalvaluethatfallbeyondthe competenceoftheCorporation.
6. Todecideonprojectsofsocialnature,whichneedtheState’sfinancial support.
Article47.-TheFinanceMinistryshallexerciseStatefinancialmanagementovertheoperationsof theCorporationaccordingtoitscompetence
1. To promulgate accounting, auditingand financial reporting regimes and other documents relatedtotheCorporationaccordingtoitscompetence.
2.ToissuefinancialregulationoftheCorporation.
3. Tograntandsupplementchartercapitalof,providefinancialsupportsfor,theCorporation underthePrimeMinister’sdecision.
4. Tosupervisethe Corporation’sfinancial operations.
5. TonominateitsrepresentativestotheCorporation’sManagingBoard.
Article48.- TheFinanceMinistershallexercise a number of the owner’s rights and obligations towardstheCorporationunderthePrimeMinister’sauthorization.
1. ToadopttheCorporation’slong-termandmedium-termplansfortheManagingBoardto organize theimplementation thereof. To inspect and superviseoperationsof the Corporation.
2. Tosubmit tothePrimeMinisterfordecision;
a. TheestablishmentordissolutionoftheCorporation;
b. TheappointmentoftheManagingBoardmembers.
3. To consider and decide on investment plans for listsof risky investments, investments projectsofsocialnatureandoverseasinvestmentprojects.Inspecialcases,tosubmitthem tothePrimeMinisterfordecision.
4. ToattendmeetingsoftheManagingBoardandtheDirectorate.
5. To request theManaging Board and thegeneraldirector to report irregularly on matters relatedtooperationsoftheCorporation.
6. Toperform othertasksunderthePrimeMinister’sAuthorization.
Article49.-TheCorporation’srelationshipwithministries,branchesandlocalities
1. The relevantministries and branches shallperform the Statemanagementof the Corporationaccording to their specialized management functions under the provisions oflaw.
2. ThePeople’sCommitteesoftheprovincesandcentrally-runcitiesshallperformtheStatemanagement of the Corporation in its observance of the regulations on administrativemanagementintheirrespectivelocalitiesaccordingtotheprovisionsoflaw.
Article50.- The Corporation’s relationship with domestic and foreign enterprises and economic organizationsshallcomplywiththeprovisionsoftheStateEnterpriseLaw,theEnterpriseLaw,the Law on Foreign Investment inVietnam,the other law provisions and investment cooperation contracts.
Article51.-LaborersintheCorporationshallhavetherightsandobligationsprovidedforbylaw.
Article52.- Political, Socio-politicalorganizations in the Corporation shall operate according to their respective organizationand operationcharters under the provisions ofthe Constitutionand law.
ChapterIX
IMPLEMENTATION PROVISIONS
Article 53.- Themanaging Board, thegeneral director, individualsand units in the Corporation shallhavetoimplementthisCharter.
Article54.-TheCorporationshallbaseitselfontheStateEnterpriseLaw,theEnterpriseLaw,its Charterand relevantprovisions toissueRegulationonorganization and operationofits attached units.
Article55.-Incaseofamendmentsand/orsupplementstothisCharter,theCorporation’sManaging Boardshallsubmitthem tothePrimeMinisterfordecision.
VIETNAMESE DOCUMENTS
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