List of regulations that state-owned enterprises need to have according to the latest legal regulations?

List of regulations that state-owned enterprises need to have according to the latest legal regulations?

According to current regulations, state-owned enterprises need to have the following documents:

– Enterprise charter according to Article 24 of the Law on Enterprises 2020.

– Internal audit regulations, risk management and prevention regulations, reporting regulations, internal administration regulations (can be combined to issue 1 regulation) according to general requirements on state-owned enterprises in the 2020 Enterprise Law.

– Financial regulations (including financial regulations of subsidiaries) as required by Article 42 of Decree 91/2015/ND-CP and legal documents on taxes.

– Regulations on management and use of fixed assets (Clause 1, Article 25 of the Law on Management and Use of State Capital Invested in Production and Business at Enterprises 2014).

– Regulations on management of receivables (Point a, Clause 1, Article 26 of the Law on Management and Use of State Capital Invested in Production and Business at Enterprises 2014).

– Regulations on management and use of funds (Point a, Clause 1, Article 32 of Decree 91/2015/ND-CP).

– Labor regulations (Article 118 of the 2019 Labor Code).

– Collective labor agreement (Article 75 of the 2019 Labor Code, is not required to be issued but when issued, it must be sent to the Department of Labor for registration).

– Bonus regulations (Clause 2, Article 104 of the 2019 Labor Code and Clause 2, Article 32 of the Law on Management and Use of State Capital Invested in Production and Business at Enterprises 2014).

– Grassroots democracy regulations at the workplace (Article 48 Decree 145/2020/ND-CP).

– Regulations on evaluating the level of work completion of employees according to Point a, Clause 1, Article 36 of the 2019 Labor Code (this is not a mandatory regulation, but businesses should consider promulgating to serve the evaluation of employees and as a basis to unilaterally terminate the labor contract when the employee does not perform the job well).

– Regulations on management and use of public assets assigned by the State according to Clause 3, Article 138 Decree 151/2017/ND-CP and Article 7 Circular 144/2017/TT-BTC (Must only be established when the enterprise has public assets assigned by the state).- Regulations on contractor selection applied uniformly in state-owned enterprises (previously, in Clause 2, Article 3 of the 2013 Bidding Law, amended by Point b, Clause 1, Article 99 of the 2020 Public-Private Partnership Investment Law, state-owned enterprises are required to promulgate this regulation. However, from January 1, 2024, the 2023 Bidding Law takes effect and is no longer required. State-owned enterprises must issue regulations that only require state-owned enterprises to implement themselves on the basis of ensuring publicity, transparency, economic efficiency and accountability =>> This issue, enterprises should consider and re-evaluate whether it is necessary to issue applicable regulations or not).

– In addition, depending on the specific operations and management of the enterprise, there will be additional regulations.

Can one person be the head of the control board of many state-owned enterprises?

Can one person be the head of the control board of many state-owned enterprises, then Clause 2, Article 103 of Enterprise Law 2020 as follows:

Board of Supervisors, Controllers

1. Based on the size of the company, the owner’s representative agency decides to establish a Supervisory Board with from 01 to 05 Controllers, including the Head of the Supervisory Board. The term of office of a Controller shall not exceed 05 years and may be reappointed but shall not exceed 02 consecutive terms at that company. In case the Supervisory Board has only 01 Controller, that Controller is also the Head of the Supervisory Board and must meet the standards of the Head of the Supervisory Board.

2. An individual can simultaneously be appointed as Head of the Supervisory Board and Controller of no more than 04 state-owned enterprises.

…

Accordingly, one person can simultaneously be appointed as Head of the Supervisory Board and Controller of no more than 04 state-owned enterprises.

What standards must the Head of the Supervisory Board of multiple state-owned enterprises (no more than 4) simultaneously ensure?

The Head of the Supervisory Board of multiple state-owned enterprises (no more than 4) must ensure the standards specified in Clause 3, Article 103 of the Law on Enterprises 2020 as follows: following:

– Have a university diploma or higher in one of the majors in economics, finance, accounting, auditing, law, business administration or a major suitable to the business activities of the enterprise and have at least 03 years of working experience; The Head of the Supervisory Board must have at least 5 years of working experience;

– Must not be a company manager or manager at another enterprise; Must not be a Controller of an enterprise that is not a state-owned enterprise; not an employee of the company;

– Not a person related to the family of the head or deputy of the head of the company’s owner representative agency; member of the company’s Board of Members; Company President; Director or General Director; Deputy Director or Deputy General Director, Chief Accountant; Other controllers of the company;

– Other standards and conditions specified in the Charter of state-owned enterprises.