Can State-owned enterprises use compensation money for assets assigned to be managed by the State when the State recovers land for investment?

Can State-owned enterprises use compensation money for assets assigned to be managed by the state when the state recovers land for investment?

State-owned enterprises can use compensation money for assets assigned to be managed by the state when the state recovers land for investment purposes, based on Article 18c Decree 47/2014/ND-CP, supplemented by Clause 4, Article 4 Decree 01/2017/ND-CP as follows:

Handling assets assigned to be managed by the State when recovering land and in cases where land is recovered but compensation for land is not received

1. When the State recovers land, an organization suffers damage to property assigned by the State for management and use and must relocate to a new facility, that organization may use property compensation money to invest in the new facility according to an investment project approved by a competent authority.

2. Organizations that are allocated land by the State with collection of land use fees, lease land with one-time payment of land rent for the entire lease period and the paid land use fees and land rent originate from the state budget, and organizations that are allocated land by the State without collecting land use fees when the State recovers the land, will not be compensated for the land but will be supported in money if they have to relocate to a new facility decided by a competent state authority; The maximum support level must not exceed the land compensation level.

3. The Ministry of Finance guides the management, allocation, and settlement of support amounts specified in this Article.

And based on Clause 1, Article 6, Circular 80/2017/TT-BTC stipulates:

Management and use of compensation amounts for assets assigned to be managed and used by the State and support amounts in cases where organizations have land recovered but are not compensated for the land (guidelines for Article 18c of Decree No. 47/2014/ND-CP of the Government – supplemented in Clause 4, Article 4 of Decree No. 01/2017/ND-CP)

1. For state-owned enterprises whose land is recovered and must be relocated to a new facility

a) The property compensation amount specified in Clause 1, Article 18c of Decree No. 47/2014/ND-CP is managed and used in accordance with the law on enterprises.

b) The support amount specified in Clause 2, Article 18c of Decree No. 47/2014/ND-CP is paid to the state budget (central budget for enterprises whose land is recovered under central management; local budget for enterprises whose land is recovered under local management).

c) Amount paid to the state budget according to the provisions at point b This clause is prioritized for arrangement in state budget expenditure estimates according to the provisions of law on state budget, law on public investment and relevant laws to spend on implementing investment projects approved by competent agencies and persons.

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Accordingly, if you are a state-owned enterprise that suffers damage to assets assigned by the State to manage and use and have to relocate to a new facility, you can use the asset compensation money to invest in the new facility according to an investment project approved by a competent authority.

The compensation amount for this property is managed and used according to the provisions of law on enterprises.

Whose responsibility is it to organize and evaluate the results of implementing plans, business plans, and investment plans of state-owned enterprises?

According to Point a, Clause 2, Article 100 of the 2020 Enterprise Law, organizing the implementation and evaluating the results of implementing plans, business plans, and investment plans of state-owned enterprises are the rights and obligations of the Director or General Director of this enterprise.

In addition, the Director or General Director is responsible for managing the company’s daily activities and has the following rights and obligations:

– Organize and evaluate the results of implementing resolutions and decisions of the Board of Members, the Chairman of the company and the agency representing the company’s owner;

– Decide on the company’s daily affairs;

– Issue the company’s internal management regulations approved by the Board of Members or the Company’s President;

– Appoint, hire, dismiss, dismiss, and terminate labor contracts for company managers, except for positions under the authority of the Board of Members or the President of the company;

– Signing contracts and transactions on behalf of the company, except for cases falling under the authority of the Chairman of the Board of Members or the Company President;

– Prepare and submit quarterly and annual reports to the Board of Members or the Chairman of the company on the results of implementing business plan goals; financial reports;

– Propose the allocation and use of after-tax profits and other financial obligations of the company;

– Labor recruitment;

– Propose a plan to reorganize the company;

– Other rights and obligations according to the provisions of law and the company’s Charter.

What are the standards and conditions of Directors and General Directors of state-owned enterprises?

To become a Director and General Director of a state-owned enterprise, you need to meet the standards and conditions prescribed in Article 101 of the 2020 Enterprise Law as follows: following:

(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 business field, industry or profession.

(3) Not a person related to the family of the head or deputy 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) Have never been dismissed from the position of 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 the Director or General Director of another enterprise.

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