Decree No. 71/2013/ND-CP of July 11, 2013, on investment of state capital in enterprises and financial management of enterprises of which 100% charter capital is held by the State

THE GOVERNMENT 

Decree No. 71/2013/ND-CP of July 11, 2013, on investment of state capital in enterprises and financial management of enterprises of which 100% charter capital is held by the State

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

Pursuant to the November 29, 2005 Law on Enterprises;

Pursuant to the November 29, 2005 Law on Investment;

At the proposal of the Minister of Finance;

The Government promulgates the Decree on investment of state capital in enterprises and financial management of enterprises of which 100% charter capital is held by the State.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

This Decree provides the investment of state capital in enterprises and financial management of enterprises of which 100% charter capital is held by the State.

Article 2. Subjects of application

1. This Decree is applicable to:

a/ Single-member limited liability companies of which 100% charter capital is held by the State, which are established by the Prime Minister or ministries, ministerial-level agencies, government-attached agencies (below referred to as line ministries), or People’s Committees of provinces or centrally run cities (below referred to as provincial-level People’s Committees), including:

- Single-member limited liability companies that are parent companies of economic groups or of state corporations; and parent companies in the parent company-subsidiary company model;

- Independent single-member limited liability companies.

b/ Authorized representatives of enterprises of which 100% charter capital is held by the State and representatives of the state capital invested in other enterprises;

c/ Organizations and individuals related to the investment of state capital in and financial management of enterprises of which 100% charter capital is held by the State, and the management of state capital invested in other enterprises.

2. The parent companies defined at Point a, Clause 1 of this Article shall formulate and issue regulations on financial management of subsidiary companies of which 100% charter capital is held by the parent companies in accordance with this Decree’s provisions on financial management and other provisions.

3. Enterprises of which 100% charter capital is held by the State operating in the fields with financial particularities shall comply with separate regulations of the Government or the Prime Minister applicable to such particularities, and other provisions of this Decree.

Article 3. Interpretation of terms

In this Decree, the terms below are construed as follows:

1. Enterprise means a single-member limited liability company of which 100% charter capital is held by the State defined at Point a, Clause 1, Article 2 of this Decree.

2. State capital at an enterprise means the capital directly invested from the state budget and concentrated funds of the State when establishing an enterprise, and supplemented during its business operation; amounts payable to the budget but permitted to be retained; sources of the development investment fund at the enterprise; enterprise arrangement support fund; state capital transferred from other places; value of the rights to use land and national natural resources assigned by the State and recorded as capital increase of the enterprise; and other assets assigned by the State to the enterprise in accordance with law.

3. Equity of an enterprise means the capital formed from the sources specified in Clause 2 of this Article, undistributed profit and exchange rate differences recorded in financial statements of the enterprise in accordance with law.

4.  State capital invested in other enterprises means the state capital contributed to joint-stock companies and limited liability companies with two or more members with line ministries or provincial-level People’s Committees acting as their owners.

5. Capital of an enterprise means the equity of and capital raised by an enterprise.

6. Capital of an enterprise invested in other enterprises means the capital of an enterprise which is invested in subsidiary companies and associate companies.

7. Authorized representative of the state capital invested in other enterprises means the individual authorized in writing by the owner to exercise the rights and perform the responsibilities and obligations of the owner at other enterprises.

8. Authorized representative of the capital of an enterprise invested in other enterprises means the individual authorized in writing by an enterprise to exercise the rights and perform the responsibilities and obligations of the enterprise at other enterprises.

The authorized representatives mentioned in Clauses 7 and 8 of this Article are collectively referred to as representatives.

9. Managers means the chairperson and members of the Members’ Council or the company president, the controller, the director general or director, deputy director general or deputy director, and the chief accountant (except for director general or director, deputy director general or deputy director, and chief accountant working under labor contracts).

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