Decree No. 86/2006/ND-CP dated August 21, 2006 of the Government amending and supplementing a number of articles of the Government's Decree No. 132/2005/ND-CP dated October 20, 2005, on exercise of rights and performance of obligations of the state owner to state companies

DECREE

AMENDING AND SUPPLEMENTING A NUMBER OF ARTICLES OF THE GOVERNMENT'S DECREE NO. 132/2005/ND-CP OF OCTOBER 20, 2005, ON EXERCISE OF RIGHTS AND PERFORMANCE OF OBLIGATIONS OF THE STATE OWNER TO STATE COMPANIES

THE GOVERNMENT

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

Pursuant to the November 26, 2003 Law on State Enterprises;

At the proposal of the Minister of Planning and Investment,

DECIDES:

Article 1.- To amend and supplement a number of articles of the Government's Decree no. 132/2005/ND-CP of October 20, 2005, on exercise of rights and performance of obligations of the state owner to state companies, as follows:

1. To amend and supplement Point d, Clause 2 of Article 5 as follows:

"d/ To decide on the reorganization, dissolution or ownership transformation of state companies of special importance named in the Appendix to this Decree at the proposal of their management boards and based on the opinions of branch-managing ministries, the Ministry of Finance and the Ministry of Planning and Investment."

2. To amend and supplement Clause 1 of Article 6 as follows:

"1. The Prime Minister shall approve long-term objectives, strategies and plans as well as business lines of state companies of special importance named in the Appendix to this Decree at the proposal of their management boards and based on the opinions of branch-their management ministries and the Ministry of Planning and Investment; approve the objectives and strategies of the Vietnam Petroleum Corporation and the Vietnam Pharmacy Corporation at the proposal of branch-managing ministries and based on the opinions of the Ministry of Planning and Investment.

Ministers of branch-managing ministries shall direct and inspect the implementation of the above-said long-term objectives, strategies and plans which have been approved by the Prime Minister."

3. To amend and supplement Clauses 2 and 2 of Article 7 as follows:

"1. The Prime Minister shall approve the charters, and amendments and/or supplements to the charters of state companies of special importance named in the Appendix to this Decree at the proposal of their management boards and based on the opinions of branch-managing ministries, the Ministry of Finance and the Ministry of Planning and Investment.

On a case-by-case basis, the Prime Minister shall authorize ministers of branch-managing ministries to approve amendments and/or supplements to the charters of state companies specified in this Clause.

2. Ministries and provincial-level People's Committees shall approve the charters, and amendments and/or supplements to the charters of state companies established under their respective decisions and state companies established under the Prime Minister's decisions, which do not fall into the cases specified in Clause 1 of this Article."

4. To add the following paragraph to the end of Clause 1 of Article 8:

"1. On a case-by-case basis, the Prime Minister shall authorize the Minister of Finance to decide to invest capital in order to create the charter capital and adjust it in the course of operation of state companies established under his decisions at the proposal of their management boards and based on the opinions of branch-managing ministries."

5. To amend and supplement Clause 1 of Article 11 as follows:

"1. The Prime Minister shall:

a/ Decide on the appointment, dismissal, demotion, commendation and disciplining of chairmen and members of their management boards of state companies of special importance named in the Appendix to this Decree at the proposal of branch-managing ministries and based on the evaluation opinions of the Ministry of Home Affairs.

Branch-managing ministries shall be responsible for the implementation of the nomination process and procedures, as well as criteria, qualities and capabilities of officials they nominate to the Prime Minister for appointment.

The Ministry of Home Affairs shall evaluate the implementation of the nomination process and procedures, criteria and conditions of officials nominated by branch-managing ministries to the Prime Minister.

b/ Allow the management boards of state companies to decide on the appointment, dismissal, contract signing, commendation or disciplining of general directors of their state companies specified at Point a of this Clause at the proposal of such management boards and based on the evaluation opinions of branch-managing ministries.

c/ Allow ministers of branch-managing ministries to appoint, dismiss, commend or discipline general directors (directors) of state companies without managing boards, which are established under the Prime Minister's decisions."

6. To add the following paragraph to the end of Clause 2 of Article 12 as follows:

"The Prime Minister shall authorize ministers of branch-managing ministries to decide on the wages and wage rise or wage-based allowances of chairmen and members of the management boards of state companies of special importance named in the Appendix to this Decree."

Article 2.- Implementation effect

This Decree shall take effect 15 days after its publication in "CONG BAO." To annul the consultation mechanism provided for in Article 24 of the Government's Decree No. 49/2000/ND-CP of September 12, 2000, on organization and operation of commercial banks, and previous regulations which are contrary to this Decree.

Article 3.- Organization of implementation

Ministers, heads of ministerial-level agencies, heads of government-attached agencies, presidents of provincial/municipal People's Committees, and the management boards of state companies named in the Appendix to this Decree shall have to implement this Decree.