Decree No. 116/2015/ND-CP dated November 11, 2015 of the Government amending, supplementing a number of articles of the Decree No. 59/2011/ND-CP dated July 18, 2015 of the Government on transformation of enterprises with 100% state capital into joint-stock companies
SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
Hanoi, November 11, 2015
AMENDING, SUPPLEMENTING A NUMBER OF ARTICLES OF THE DECREE NO. 59/2011/ND-CP DATED JULY 18, 2015 OF THE GOVERMENT OF TRANSFORMATION OF ENTERPRISES WITH 100% STATE CAPITAL INTO JOINT-STOCK COMPANIES
Pursuant to the December 25, 2001 Law on Organization of the Government;
Pursuant to the June 29, 2006 Securities Law;
Pursuant to the November 26, 2005 Law on Enterprises;
Pursuant to the November 26, 2014 Law on Management and use of state capital to invest on business production in enterprises;
At the proposal of the Minister of Finance,
>> See also: Consultancy service on wage regulation of enterprise
The Government promulgates the Decree amending, supplementing a number of the Decree No. 59/2011/ND-CP dated July 18, 2015 of the Government on transformation of enterprises with 100% state capital into joint-stock companies.
Article 1. To amend, supplement a number of articles of the Decree No. 59/2011/ND-CP dated July 18, 2015 of the Government on transformation of enterprises with 100% state capital into joint-stock companies as follows:
1. To amend, supplement Clause 2 Article 12 as follows:
“2. Agencies competent to decide on equitization plans shall select equitization consultancy organizations in accordance with law. For economic corporations, State corporations and some enterprises operating in specific fields or sectors (insurance, banking, post and telecommunications, aviation, coal mining, petroleum exploitation or mining of other rare and precious minerals), if equitization plans are under the competence of the Prime Minister, Ministers, heads of ministerial-level agencies or government-attached agencies, chairpersons of provincial-level People’s Committees shall decide on equitization consultancy organizations (selecting consultancy organizations to determine the value of the enterprise, consultancy to build equitization plans).”
2. To amend, supplement Clause 1 Article 17 as follows:
“1. Reserves for inventory price decreases, losses from financial investments, bad receivable debts, warranties for products, goods and construction or installation works; and exchange rate differences shall be used to offset losses under current regulations; any remaining amounts shall be included into the value of state capital portions in equitized enterprises.
For reserves for warranties for products, goods, construction or installation works, from the time of determining valuation enterprises to the time of officially transforming into joint stock company (for contracts signed and the time for warranties is still valid), equitized company shall be deducted and retained at joint stock company according to contracts signed to implement the warranties of products, goods, construction or installation works. The equitized company shall set up the detailed list of each kind of products, goods, construction or installation works together with the equitization dossier. When the time for warranties is expired, if the provision still remains, the balance shall be submitted to the Enterprise Reorganization Assistance Fund within 30 days since the expiration day as stated in the contract.
>> See also: Consultancy for developing regulations for enterprises