Can the younger brother of the Director of a State-owned Enterprise become a member of the Board of Members of that enterprise?

What is a person with family relations?

Pursuant to Clause 22, Article 4 of the Law on Enterprises 2020, the concept of “Person with family relations” is explained as follows. following:

“Article 4. Explanation of terms

[…]

22. People with family relations include: wife, husband, biological father, biological mother, adoptive father, adoptive mother, father-in-law, mother-in-law, father-in-law, mother-in-law, biological child, adopted child, son-in-law, daughter-in-law, biological brother, biological sister, biological brother, brother-in-law, sister-in-law, sister-in-law, biological brother of the wife, biological brother of the husband, wife’s biological sister, husband’s biological sister, wife’s biological sister, husband’s biological sister.

[…]”

Accordingly, “Persons with family relations” include: wife, husband, biological father, biological mother, adoptive father, adoptive mother, father-in-law, mother-in-law, father-in-law, mother-in-law, biological child, adopted child, son-in-law, daughter-in-law, biological brother, biological sister, biological brother, brother-in-law, brother-in-law, sister-in-law, younger brother-in-law, wife’s biological brother, husband’s biological brother, wife’s biological sister, husband’s biological sister, wife’s biological sister, husband’s biological brother.

Regulations on Board of Members in State-owned Enterprises?

Pursuant to Article 91 of the Law on Enterprises 2020, regulations on the Board of Members in State-owned Enterprises are as follows:

“Article 91. Board of Members

1. The Board of Members, on behalf of the company, exercises the rights and obligations of the company in accordance with the provisions of this Law and other relevant laws.

2. The Board of Members includes the Chairman and other members, numbering no more than 07 people. Members of the Board of Members are represented by agencies. appoint, dismiss, dismiss, reward, discipline on behalf of the owner.

3. The term of office of the Chairman and other members of the Board of Members shall not exceed 05 years. An individual may be appointed as a member of the Board of Members for no more than 02 terms at a company, unless he or she has worked for more than 15 years continuously at that company before being appointed for the first time.

Accordingly, the Board of members in a State-owned enterprise includes the Chairman and other members, numbering no more than 7 people. Members of the Board of members are appointed, dismissed, demoted, rewarded and disciplined by the owner’s representative agency. The term of office of the Chairman and other members of the Board of Members shall not exceed 05 years. Members of the Board of members may be reappointed. An individual may be appointed as a member of the Board of Members for no more than 02 terms at a company, unless he or she has worked for more than 15 years continuously at that company before being appointed for the first time.

How are the regulations on the rights and obligations of members of the Board of Members in State-owned Enterprises implemented?

Pursuant to Article 96 of the Law on Enterprises 2020, the regulations on the rights and obligations of members of the Board of Members in State-owned Enterprises are implemented as follows:

“Article 96. Rights and obligations of members of the Board of Members in State-owned Enterprises Board of members

1. Attend meetings of the Board of Members, discuss, propose, and vote on issues under the authority of the Board of Members.

2. Check, review, look up, copy, and extract records and monitor contracts, transactions, accounting books, financial reports, minutes of Board of Members meetings, and other papers and documents of the company. company.

3. Other rights and obligations according to the provisions of the company’s Charter, this Law and other relevant laws.”

Accordingly, members of the Board of Members in a State-owned enterprise have the following rights and obligations:

– Attend meetings of the Board of Members, discuss, propose, and vote on issues within the authority of the Board of Members.

– Check, review, look up, copy, extract records and monitor contracts, transactions, accounting books, financial reports, minutes of meetings of the Board of Members, other papers and documents of the company.

– Other rights and obligations according to the provisions of the company charter, this Law and other relevant laws.

Can the younger brother of the Director of a State-owned Enterprise become a member of the Board of Members in that enterprise?

According to Article 93 of the Law on Enterprises 2020, the standards and conditions for members of the Board of Members in State-owned Enterprises include:

– Not subject to provisions in Clause 2, Article 17 of this Law.

– Have professional qualifications and experience in business administration or in the field, industry or profession of the enterprise.

– 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; Director, Deputy Director or General Director, Deputy General Director and Chief Accountant of the company; Company controller.

– Not a member business manager.

– Except for the Chairman of the Board of Members, other members of the Board of Members may concurrently be the Director or General Director of that company or another company that is not a member enterprise according to the decision of the owner’s representative agency.

– Have never been dismissed from the position of Chairman of the Board of Members, member of the Board of Members or Chairman of the company, Director, Deputy Director or General Director, Deputy General Director of a state-owned enterprise.

– Other standards and conditions specified in the company charter.

Thus, the younger brother of the Director of a State-owned enterprise cannot become a member of the Board of Members of that enterprise because he does not meet the conditions specified in Clause 3, Article 93 of the Law on Enterprises 2020.