THE GOVERNMENT
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SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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No: 87/2007/ND-CP
Hanoi , May 28, 2007
 
DECREE
PROMULGATING THE REGULATION ON THE EXERCISE OF DEMOCRACY IN JOINT-STOCK COMPANIES AND LIMITED LIABILITY COMPANIES
THE GOVERNMENT
Pursuant to the December 25, 2001 Law on Organization of the Government;
After reaching agreement with the Vietnam General Confederation of Labor;
At the proposal of the Minister of Home Affairs,
DECREES:
Article 1.- To promulgate together with this Decree the Regulation on the exercise of democracy in joint-stock companies and limited liability companies.

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Article 2.- This Decree takes effect 15 days after its publication in "CONG BAO." Previous regulations on the exercise of democracy which are contrary to the Regulation promulgated together with this Decree are annulled.
Article 3.- Ministers, heads of ministerial-level agencies, heads of government-attached agencies and presidents of provincial/municipal People's Committees shall implement this Decree.
Managing Boards, Members' Councils, presidents, general directors and directors of joint-stock companies and limited liability companies shall implement this Decree.
 
 
ON BEHALF OF THE GOVERNMENT
PRIME MINISTER


Nguyen Tan Dung
 
REGULATION
ON THE EXERCISE OF DEMOCRACY IN JOINT-STOCK COMPANIES AND LIMITED LIABILITY COMPANIES
(Promulgated together with the Government's Decree No. 87/2007/ND-CP of May 28, 2007)
Chapter I
GENERAL PROVISIONS
Article 1.- Scope and subjects of application

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1. This Regulation provides for the exercise of democracy in joint-stock companies and limited liability companies set up and operating under the 2005 Enterprise Law (below collectively referred to as companies).
2. This Regulation applies to Managing Boards, Members' Councils, presidents, general directors and directors of joint-stock companies and limited liability companies (below collectively referred to as company managers); grassroots trade union executive committees or provisional trade union executive committees; and laborers in joint-stock companies and limited liability companies.
Article 2.- Purposes of the exercise of democracy in companies
1. To create conditions for laborers to know, comment and decide on, and supervise issues related to their rights, interests, obligations and responsibilities.
2. To raise responsibilities and obligations of company managers towards laborers; to create conditions for companies' political and socio-political organizations to operate according to law in the exercise of laborers' right to democracy.
3. To establish harmonious and stable labor relations, contributing to limiting and preventing labor disputes in the course of production and business.
Article 3.- Rights and obligations of company managers and laborers
1. Company managers and laborers are obliged to strictly perform labor contracts and collective labor agreements and observe companies' internal rules and regulations and current provisions of law related to their rights and obligations.
2. Laborers may participate in supervising the implementation of mechanisms and policies related to their lawful and legitimate interests as well as their obligations in accordance with law.
3. Laborers may join political organizations, socio-political organizations or socio-professional organizations in accordance with law.
Article 4.- Rights and responsibilities of trade unions in the promotion of laborers' democracy
1. The trade union of a company represents and protects the lawful rights and interests of the company's laborers and labor collective, is responsible for organizing activities for laborers to exercise their right to know, participate in, inspect, supervise, and decide on, issues directly related to them.
2. The head of the trade union of a company or the person authorized by the company's trade union executive committee may be invited to attend meetings of the company's Shareholders' Meeting or Members' Council and may comment on issues related to the lawful and legitimate rights and interests of the company's labor collective.
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