Is it necessary to go through auction when selling assets of a company with over 51% state capital? Does the law have regulations on this issue?

If a company has over 51% state capital, is it necessary to conduct an auction when selling assets?

Pursuant to Point h, Clause 1, Article 4 of the 2016 Law on Asset Auctions, regulations on the form of auction Prices are as follows:

– Assets that are required by law to be sold through auction, including:

+ State assets according to the provisions of law on management and use of state assets;

+ Assets have established ownership by the entire people according to the provisions of law;

+ Assets are land use rights according to the provisions of land law;

+ Security assets according to the provisions of law on secured transactions;

+ Assets for judgment enforcement according to the provisions of law on civil judgment enforcement;

+ Assets that are exhibits and means of administrative violations are confiscated for state funds, assets are distrained to ensure the implementation of decisions on sanctioning administrative violations according to the provisions of law on handling administrative violations;

+ Assets are national reserves according to the provisions of law on national reserves;

+ Fixed assets of the enterprise according to the provisions of law on management and use of state capital invested in production and business at the enterprise;

+ Assets of enterprises and cooperatives declared bankrupt according to the provisions of bankruptcy law;

+ Road infrastructure assets and the right to collect fees for using road infrastructure assets according to the provisions of law on management, use and exploitation of road traffic infrastructure;

+ Assets are mineral exploitation rights according to the provisions of the law on minerals;

+ Assets are the rights to use and own ownership of planted production forests according to the provisions of law on forest protection and development;

+ Asset is the right to use radio frequencies according to the law on radio frequencies;

+ Assets are bad debts and collateral assets of bad debts of organizations whose charter capital is 100% owned by the State established by the Government to handle bad debts of credit institutions according to the provisions of law;

+ Other assets that the law requires must be sold through auction.

– Assets owned by individuals or organizations that voluntarily choose to sell through auction according to the order and procedures specified in this Law.

Thus, at point h, it is clearly stated that the assets that must be auctioned include the fixed assets of the enterprise. Specifically, in your case, the temporary (bridge crane) is subject to the auction. However, later in this article you will learn more about your case.

How are fixed assets managed and used?

Pursuant to Article 25 of the Law on Management and Use of State Capital Invested in Production and Business at Enterprises 2014, regulations on management and use of fixed assets are as follows:

– Enterprises develop, promulgate, and implement regulations on management and use of fixed assets.

– Enterprises have the right to lease, mortgage, and pledge fixed assets according to the principles of efficiency, capital preservation and development; Sell ​​and liquidate fixed assets that are damaged, technically outdated, have no need for use, cannot be used or are used ineffectively to recover capital.

Thus, according to the above regulations, businesses have the right to sell and liquidate their fixed assets in a normal way while still ensuring compliance with the provisions of current law.

How to liquidate and sell fixed assets?

In addition, based on Clause 1, Article 27 of Decree 91/2015/ND-CP (Phrases “State-owned enterprise” is replaced by Clause 2, Article 6, Decree 140/2020/ND-CP) stipulating the liquidation and sale of fixed assets as follows:

– Enterprises with 100% charter capital held by the State have the right to proactively sell and liquidate fixed assets that are damaged, technically outdated, have no need for use or cannot be used for revenue purposes. Capital recovery is based on the principles of openness, transparency, and capital preservation in accordance with current law.

Therefore, according to the above regulations, our company is not a 100% state-owned enterprise, so it will not be required to apply this regulation. You can choose another form.