Is the representative of state capital in an enterpri...

Is the representative of state capital at an enterprise required to is legal content that readers often need to check carefully before implementing it in practice. This article has been systematized by ANT Legal in an easy-to-understand way, helping individuals and businesses understand the main issues, common risks and appropriate solutions.

Is the representative of state capital at an enterprise required to be a civil servant or public employee?

The concurrent holding of other titles and positions of the representative of state capital is stipulated in Clause 3, Article 7 of the Resolution Decree 159/2020/ND-CP as follows:

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Concurrent responsibilities for managers of state-owned enterprises, Controllers and representatives of state capital
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2. The concurrent holding of other titles and positions of Controllers is regulated as follows:
a) Head of the Supervisory Board, Controllers must not be company managers or managers at other enterprises; Must not be a Controller of an enterprise that is not a state-owned enterprise; not an employee of the company;
b) An individual can simultaneously be appointed as Head of the Supervisory Board, Controller of no more than 04 state-owned enterprises.
3. The concurrent holding of other titles and positions of a representative of state capital is regulated as follows:
a) A full-time state capital representative can only participate in representing state capital at 01 enterprise;
b) A part-time state capital representative can participate in representing state capital at another enterprise with the same owner representative agency, but not more 03;
c) The representative of state capital must not concurrently represent the state capital at an enterprise other than the owner’s representative agency;
d) The representative of state capital must not be an officer, civil servant, or public employee.

Thus, it can be seen that according to the above regulations, the representative of state capital in an enterprise cannot be an officer, civil servant, or public employee.

What conditions must be met to be appointed as a representative of state capital at an enterprise?

Pursuant to Article 46 of Decree 159/2020/ND-CP stipulates, to be appointed as a representative of state capital at an enterprise, the following conditions must be met:

(1) Ensure general standards according to regulations of the Party and State and specific standards according to regulations of competent authorities.
(2) Have verified personal records and background, have a declaration of assets and income according to regulations.
(3) Must be old enough (in months) to serve the end of the term of the Board of Members and the Board of Directors of the enterprise appointed to represent the state capital.
(4) Have enough health to complete assigned tasks.
(5) Not in the cases prohibited from holding positions according to the provisions of law.
(6) Not within the disciplinary period, being investigated, prosecuted, tried, serving a prison sentence, or implementing a disciplinary decision.

In case the enterprise is under inspection or examination by a competent authority, the competent authority shall discuss with the inspection and examination agency about human resources before appointing a representative of state capital.

What does the dossier to appoint a representative of state capital at an enterprise include?

According to the provisions of Article 48 of Decree 159/2020/ND-CP, the dossier to appoint a representative of state capital at an enterprise includes the following documents:

(1) Proposal on the request to appoint a representative for state capital at the enterprise signed by the head of the competent agency or organization.
(2) Curriculum vitae declared by the individual according to the prescribed form,
+ Confirmed by competent authority,
+ Have a 4×6 cm color photo, taken within the last 6 months.
(3) Self-criticism of the person appointed to represent state capital at the enterprise (during the last 3 years of work).
(4) Comments and assessments of the leadership and party committee of the agency or organization managing the person proposed to be the representative of state capital.
(5) Conclusion of the competent party committee on the political standards of the person appointed to represent state capital at the enterprise.
(6) Comments from the Party Committee of the place of residence for yourself and your family.
In case your place of residence is different from your family’s place of residence, you must get comments from the Party Committee where you reside and where your family resides.
(7) Declaration of assets and income according to the prescribed form.
(8) Copies of diplomas and certificates as required by the standards for positions and appointments.
In case personnel have a diploma issued by a foreign educational institution, it must be recognized in Vietnam according to regulations.
(9) Health certificate issued by a competent medical facility within 6 months.
(10) A commitment to comply with the owner’s policies, resolutions, and directions and to perform the roles, responsibilities, and obligations of the representative of the state capital to the owner approved by the owner’s representative agency.

Note on Applying Current Legal Regulations

This article belongs to the Business & M&A group and is presented for reference purposes, helping readers understand the legal issue at an overview level before preparing a dossier or carrying out a transaction.

Legal regulations may vary depending on the timing, locality, type of dossier and specific circumstances. If you need to determine the exact legal basis applicable to your case, you should contact ANT Legal’s lawyers at 0966.475.966 for review and advice before proceeding.

Common Legal Risks to Note

Applying legal instruments that have been amended, supplemented or replaced.
Preparing an incomplete set of documents, materials or necessary evidence.
Misunderstanding the conditions, procedure, timeline or competent authority.
Signing, submitting a dossier or carrying out a transaction before fully assessing legal risks.

How Can ANT Legal Support You?

ANT Legal can review the specific circumstances, examine the dossier, identify the applicable legal basis, advise on an appropriate handling plan and represent clients in working with individuals, organizations or competent authorities where necessary.

For prompt advice, you may contact a lawyer at 0966.475.966.

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Is the representative of state capital in an enterprise required to be a civil servant or public employee?