Decision No. 16/2006/QD-TTg dated January 19, 2006 of the Prime Minister approving the scheme on forming Sai Gon industry corporation operating after the parent - subsidiary company model

DECISION

APPROVING THE SCHEME ON FORMING SAI GON INDUSTRY CORPORATION OPERATING AFTER THE PARENT - SUBSIDIARY COMPANY MODEL

THE PRIME MINISTER

Pursuant to the Law on Organization of the Government dated December 25, 2001;

Pursuant to Law on Enterprises No. 13/1999/QH10 dated June 12, 1999;

Pursuant to Law on State Enterprises No. 14/2003/QH11 dated November 26, 2003;

Pursuant to Decree No. 153/2004/ND-CP dated August 9, 2004 of the Government on the organization and management of the State corporations and the transformation of the State corporations and independent State companies into ones operating after the parent - subsidiary company model;

At the proposal of the President of the Peoples Committee of Ho Chi Minh city,

DECIDES:

Article 1.

To approve the Scheme on forming Sai Gon Industry Corporation operating after the parent - subsidiary company model:

1. Sai Gon Industry Corporation shall do business in multiple branches, namely manufacturing and trading in tobacco; investment in development of the mechanical engineering, electromechanical and electronic industries in their subsidiary companies and associated companies acting as a core in the implementation of planning for the development of the industrial sector in Ho Chi Minh city.

2. The parent company - Sai Gon Industry Corporation shall be a State-owned company, formed on the basis of re-organizing Ben Thanh Tobacco Company under the Industrial Department of Ho Chi Minh city.

3. Subsidiary companies shall be joint stock companies where the parent company contributes dominant capital, including:

- Thong Nhat Rubber Company,

- Sai Gon Plastic Joint Stock Company,

- Huu Nghi Trading and Industrial Joint Stock Company,

- The Electronics Joint Stock Company - TIE,

- The Electromechanics Company LIDICO,

- Sai Gon Electronics Company - SAGEL

- Sai Gon Informatics and Electronics Company.

4. Joint venture companies and companies where the parent company contributes non-dominant capital:

- The machinery Manufacturing Joint Stock Company SINCO,

- Ben Thanh Rubber Company,

- Do Thanh Plastic Joint Stock Company.

5. Sai Gon Industry Corporation shall operate after the parent-subsidiary company model and carry out the cost - accounting regime according to the provisions of law, the Regulation on organization and operation and the Financial Regulation approved by the competent State agencies. The managerial apparatuses of the Corporation shall include the Management Board, the General Director, the deputy general directors, the chief accountant and assisting apparatus.

Article 2.

Task assignment

1. The president of the Peoples Committee of Ho Chi Minh city:

- To decide on forming parent company   Sai Gon Industry Corporation, the forming of subsidiary companies and associated companies specified in Article 1 of this Decision shall comply with current stipulations.

- To approve the Regulation on organization and operation of the parent company - Sai Gon Industry Corporation.

2. The Minister of Finance shall approve the Financial Regulation of the parent company - Sai Gon Industry Corporation at the proposal of the Peoples Committee of Ho Chi Minh city.

Article 3.

This Decision takes effect 15 days after its publication in CONG BAO.

The president of the Peoples Committee of Ho Chi Minh city, the Minister of Finance and the heads of the concerned agencies shall have to implement this Decision.