Decision No. 69/2001/QD-TTg dated May 03, 2001 of the Prime Minister on the sale of preferential shares of industrial processing enterprises to raw material growers and sellers

DECISION

ON THE SALE OF PREFERENTIAL SHARES OF INDUSTRIAL PROCESSING ENTERPRISES TO RAW MATERIAL GROWERS AND SELLERS

THE PRIME MINISTER

Pursuant to the Law on Organization of the Government of September 30, 1992;

Pursuant to the Governments Decree No. 44/1998/ND-CP of June 29, 1998 on transforming State enterprises into joint-stock companies;

In order to combine the interests of raw material growers with the equitized industrial processing enterprises, thus stabilizing raw materials sources and improving business efficiency of the enterprises;

At the proposal of the Minister of Finance,

DECIDES:

Article 1.-Enterprises which directly use agricultural and forestry products for their production activities, when conducting the equitization, may sell their shares at the preferential prices raw material growers and sellers.

Article 2.-Raw material growers and sellers are individuals engaged in agricultural and/or forestry production, who fully meet the conditions prescribed in Articles 5 and 6 of this Decision.

Article 3.-Raw materials sold to industrial processing enterprises mentioned in this Decision include products of annual and perennial plants in agricultural production.

Article 4.-For State enterprises with closed production and business process, from agricultural production to processing, when conducting the equitization of the processing sections therein, persons who simply gather agricultural and/or forestry raw materials for sale to the enterprises shall not be governed by this Decision.

Article 5.-Raw material growers and sellers entitled to purchase shares at preferential prices are those who directly grow raw materials and have sold them to the enterprises for more than 3 years, up to the time of equitization of enterprises.

Article 6.-In cases where raw material growers are State enterprises which effect contract assignment, those who directly undertake the contracts shall be the subjects entitled to purchase shares of such industrial processing enterprises at preferential prices.

Article 7.-Raw material growers and sellers, who are entitled to purchase shares at preferential prices and share-selling processing enterprises shall have to effect the sale and purchase of raw materials being agricultural and/or forestry products through economic contracts according to the provisions of the legislation on contracts.

Article 8.-For individuals who directly produce and also gather raw materials for supply to the processing enterprises, the amount of gathered raw materials shall not be calculated for the determination of the volume of preferential shares.

Article 9.-The volume of shares to be sold at preferential prices by the State to raw material growers and sellers shall be based on:

1. The area of land lawfully assigned and actually used to grow raw materials for sale to the processing enterprises.

2. The volume of raw materials stably sold to the processing enterprises.

Article 10.-The value of State preferences in each share sold to raw material growers and sellers shall reduce by 30% as compared to those sold to other subjects prescribed in Article 14 of the Government’s Decree No. 44/1998/ND-CP of June 29, 1998. The total value of the preferential shares sold to all raw material growers and sellers shall not exceed 10% of State capital value at the enterprises. The preferential level prescribed in this Article shall not be calculated into the value of preferential shares to be sold to the laborers of the enterprises as prescribed in Article 14 of the Governments Decree No. 44/1998/ND-CP of June 29, 1998.

Article 11.-Before effecting the sale of preferential shares under this Decision, the industrial processing enterprises shall have to work out their equitization plans in strict accordance with the provisions of the Governments Decree No. 44/1998/ND-CP of June 29, 1998, clearly stating the basis for determination of share volume, the ration of preferential shares and the total value of preferential shares to be sold to the laborers of the enterprises and raw material growers and sellers.

Article 12.-The directors of the equitized State enterprises shall determine the stable land area for raw materials growing and individuals entitled to purchase shares at preferential prices as prescribed in this Decision.

Article 13.-The competence to approve the equitization plans and the decisions on transforming State enterprises into joint-stock companies of enterprises that sell preferential shares to raw material growers and sellers shall comply with the provisions of the Governments Decree No. 44/1998/ND-CP of June 29, 1998 and relevant supplementary documents.

Article 14.-This Decision takes effect 15 days after its signing.

The ministers, the heads of the ministerial-level agencies, the heads of the agencies attached to the Government, the presidents of the Peoples Committees of the provinces and centrally-run cities and the managing boards of corporations established by the Prime Minister shall have to implement this Decision.