The legal status of the company’s President in State-owned Enterprises in Viet Nam
State-owned enterprises may be organized with a company’s president. Viet Nam Law on Enterprises has regulations on the legal status of the company’s president in State-owned Enterprises. Let’s find out this issue with Lawyer X through the following situation: “Dear Lawyer! I want to know about how is a State-owned Enterprises organized with a president of the company? What are rights and obligations of the company’s president in State-owned Enterprises in Viet Nam? Thanks for answering me!”
Legal grounds
Law on Enterprises
What are state-owned enterprises?
State-owned enterprises shall be limited liability companies or joint stock companies, including:
– Wholly state-owned enterprises (100% of charter capital of which is held by the State). Wholly state-owned enterprises include:
+ Single-member limited liability companies 100% of charter capital of which is held by the State that are parent companies of state-owned corporations or parent companies in groups of parent company – subsidiary companies;
+ Independent single-member limited liability companies 100% of charter capital of which is held by the State.
– Partially state-owned enterprises (over 50% of charter capital or voting shares is held by the State, except the enterprises specified in Point a Clause 1 of Article 88 of Law on Enterprises). Partially state-owned enterprises include:
+ Multiple-member limited liability companies and joint stock companies over 50% of charter capital or voting shares of which is held by the State that are parent companies of state-owned corporations or parent companies in groups of parent company – subsidiary companies;
+ Independent multiple-member limited liability companies and joint stock companies over 50% of charter capital or voting shares of which is held by the State.
Organizational structure
The state ownership representative body shall decide whether to apply one of the two models below to organize the state-owned enterprise as a single-member limited liability company:
– A company with a President, Director/General Director and Board of Controllers;
– A company with a Board of Members, Director/General Director and Board of Controllers.
The company’s President
– The company’s President shall be designated by the state ownership representative body as prescribed by law and has up to 02 terms of office of up to 05 years each, unless he/she has worked for the company for more than 15 consecutive years before the first designation. The requirements, dismissal of the company’s President shall comply with Article 93 and Article 94 of Law on Enterprises.
Requirements to be satisfied by the Company’s President
+ To become a member of the Board of Members, a person shall satisfy the following requirements:
+ He/she is not one of the persons specified in Clause 2 Article 17 of Law on Enterprises.
+ He/she has professional qualifications and experience of busines administration or experience of the company’s business lines.
+ He/she is not a relative of the head or deputies of the state ownership representative body; any of the members of the Board of members, the Director/General Director, the Deputy Director/General Director, the chief accountant or Controllers of the company.
+ He/she is not an executive of the member enterprise.
+ A member of the Board of Members other than the President may concurrently hold the position of Director/General Director of the company or another company that is not a member enterprise under a decision of the state ownership representative body.
+ He/she has never been discharged from the position of President of the Board of Members, member of Board of Members, the company’s President, Director/General Director, Deputy Director/General Director of a state-owned enterprise.
+ He/she satisfies other requirements specified in the company’s charter.
– The company’s President shall perform the rights and obligations of the state ownership representative at the company in accordance with the Law on Management and use of State Investment in Enterprises; other rights, obligations and responsibilities prescribed in Article 92 and Article 97 of Law on Enterprises; specificially:
Rights and Obligations of the company’s President:
+ Decide the matters prescribed in the Law on Management and use of State Investment in Enterprises;
+ Decide establishment, reorganization, dissolution of the company’s branches, representative offices and dependent units;
+ Decide the company’s annual business plan, policies on market development, marketing and technology;
+ Organize internal audits and decide establishment of the company’s internal audit unit;
+ Other rights and obligations prescribed by the company’s charter, Law on Enterprises and relevant laws.
Responsibilities of the Company’s president
+ Comply with the company’s charter, decisions of the company’s owner and regulations of law.
+ Exercise and perform their rights and obligations in an honest and prudent manner to protect the lawful interests of the company and the State.
+ Be loyal to the interests of the company and the State; do not abuse their power and position or use the enterprise’s information, secrets, business opportunities and assets for personal gain or serve any other organization’s or individual’s interests;
+ Promptly and fully notify the company of the enterprises that they own or have shares/stakes or that their related persons own, jointly own or have separate controlling shares/stakes. These notifications shall be retained at the company’s headquarters.
+ Implement resolutions of the Board of Members.
+ Take personal responsibility when performing the following actions: Take advantage of the company’s name to violate the law;Do business or conduct transactions that do not serve the company’s interests and cause damage to other organizations and individuals; Pay debts before they are due while the company is facing financial risks.
+ The member who discovers another member’s violation shall send a written notification to the state ownership representative body, request the violator to stop the violation and implement remedial measures.
– The Presidents’ salaries and allowances shall be recorded as the company’s administrative expenses.
– The company’s President shall employ the company’s administration and assistance apparatus to perform his/her rights and obligations. Where necessary, the company’s President may discuss with domestic and foreign counsels before making important decisions under his/her jurisdiction. The counseling costs shall be specified in the company’s financial management regulations.
– The decisions within the President’s jurisdiction mentioned in Clause 2 of Article 99 Law on Enterprises shall be made in writing and bear the President’s signature, even if the President concurrently holds the position of Director/General Director.
– A President’s decision takes effect from the day on which it is signed or on the effective date written therein, unless it is subject to approval by the state ownership representative body.
– In case the President is not present in Vietnam for more than 30 days, he/she shall authorize another person in writing to perform some of his/her rights and obligations. Written notification of the authorization shall be sent to the state ownership representative body. Other cases of authorization shall comply with the company’s rules and regulations.
Services of Lawyer X
Prestigious professional services: Firstly, the team of consultants and consultants for many years in the field of civil status, and customer support.
On-time: Certainly, with the motto “Get your lawyer right at your fingertips”, we ensure the service always performs on time. The rights and interests of customers always come first.
Cost: Besides, Lawyer X’s service costs are highly competitive; depending on the nature of the particular case. So, we want our guests to have the best possible service experience. Therefore, costs which guaranteed to be the most suitable and economical for customers.
Confidentiality of client information: Finally, all personal information of clients Lawyer X will be 100% confidential.
If you need any further information, please contact LSX Law firm: at +84846175333 or Email: [email protected]
Frequently asked questions
The company’s President shall be designated by the state ownership representative body as prescribed by law and has up to 02 terms of office of up to 05 years each unless he/she has worked for the company for more than 15 consecutive years before the first designation.
A President’s decision takes effect from the day on which it is signed or on the effective date written therein, unless it is subject to approval by the state ownership representative body.
The Presidents’ salaries and allowances shall be recorded as the company’s administrative expenses.
Conclusion: So the above is The legal status of the company’s President in State-owned Enterprises in Viet Nam. Hopefully with this article can help you in life, please always follow and read our good articles on the website: lsxlawfirm.com
