If a one-member limited liability company with 100% charter capital cannot be preserved by the State, the Director will be dismissed?

What kind of company is a one-member limited liability company with 100% charter capital held by the State?

Regulations on a single-member limited liability company with 100% charter capital held by the State are stipulated in Clause 2 of Article 88 Law on Enterprises 2020 as follows:

State-owned enterprises

1. State-owned enterprises are organized and managed in the form of limited liability companies or joint stock companies, including:

a) Enterprises in which 100% of charter capital is held by the State;

b) Enterprises in which the State holds more than 50% of charter capital or the total number of voting shares, except for enterprises specified in Point a, Clause 1, Article this.

2. Enterprises with 100% charter capital held by the State as prescribed in Point a, Clause 1 of this Article include:

a) Single-member limited liability companies with 100% charter capital held by the State that are parent companies of state-owned economic groups, parent companies of state-owned corporations, parent companies in the group of parent companies – subsidiaries;

b) Liability companies One-member limited liability company is an independent company with 100% charter capital held by the State.

…

According to the above regulations, a one-member LLC with 100% charter capital held by the State includes:

+ Parent company of a state economic group, parent company of a state corporation, parent company in a parent company – subsidiary group.

+ A one-member limited liability company is an independent company with 100% charter capital held by the State.

Can a Director of a single-member limited liability company with 100% charter capital held by the State concurrently be Director of another company?

Can the Director of a single-member limited liability company with 100% charter capital held by the State concurrently be Director of another company, according to the provisions of Article 101 of the Law on Enterprises 2020 as follows: following:

Standards and conditions of Director and General Director

1. Not subject to the provisions of Clause 2, Article 17 of this Law.

2. Have professional qualifications and experience in business administration or in the company’s field, industry or business.

3. Not be a person related to the family of the head or deputy of the head of the owner’s representative agency; Member of the Board of Members, Chairman of the company; Deputy General Director, Deputy Director and Chief Accountant of the company; Company controller.

4. Never been dismissed as Chairman of the Board of Members, member of the Board of Members, President of the company, Director or General Director, Deputy Director or Deputy General Director at the company or at another state-owned enterprise.

5. Must not concurrently be Director or General Director of another enterprise.

6. Other standards and conditions specified in the company charter.

Accordingly, the Director of a one-member LLC with 100% charter capital held by the State must meet the standards and conditions specified in Article 101 above.

There is a condition that one cannot concurrently be the Director or General Director of another enterprise.

Therefore, the Director of a one-member LLC with 100% charter capital held by the State cannot concurrently be the Director of another company.

If a one-member limited liability company with 100% charter capital held by the State cannot preserve capital, the Director will be dismissed?

In cases where a single-member limited liability company with 100% charter capital held by the State is considered for removal, it is stipulated in Clause 2, Article 102 of the Law on Enterprises 2020 as follows: following:

Removal and dismissal of the Director, General Director and other managers of the company, Chief Accountant

1. The Director or General Director is dismissed in the following cases:

a) No longer meets the standards and conditions prescribed in Article 101 of this Law;

b) There is an application for resignation.

2. The Director or General Director is considered for dismissal in the following cases:

a) The enterprise fails to preserve capital according to the provisions of law;

b) The enterprise fails to complete annual business plan goals;

c) The enterprise violates the law;

d) Does not have sufficient qualifications and capacity meet the requirements of the enterprise’s development strategy and new business plan;

dd) Violating one of the rights, obligations and responsibilities of the manager specified in Article 97 and Article 100 of this Law;

e) Other cases specified in the company’s Charter.

3. Within 60 days from the date of the decision to dismiss or dismiss, the Board of Members or the President of the company shall consider and decide to select and appoint another person to replace him.

4. Cases of dismissal or dismissal of Deputy General Directors, Deputy Directors, other managers of the company, and Chief Accountant shall be prescribed by the Company’s Charter.

Thus, in case a one-member limited liability company with 100% charter capital held by the State cannot preserve capital according to the provisions of law, the Director may be considered for dismissal.

And within 60 days from the date of the dismissal decision, the Board of Members or the Company President shall consider and decide to select and appoint another person to replace him.