If a state-owned enterprise fails to complete its annual plan targets, will the Chairman of the Board of Members be dismissed?

If a state-owned enterprise fails to complete the annual plan target, the Chairman of the Board of Members will be dismissed?

In case the Chairman of the Board of Members of a state-owned enterprise is dismissed, it is stipulated in Clause 2, Article 94 of the Law Enterprise 2020 is as follows:

Removal and dismissal of members of the Board of Members

…

2. The Chairman and other members of the Board of Members are dismissed in the following cases:

a) The company fails to complete the annual plan goals and targets, fails to preserve and develop investment capital as required by the owner’s representative agency without explaining objective reasons or explains the cause but is not approved by the owner’s representative agency;

b) Convicted by the Court and Court judgments and decisions have come into legal effect;

c) Dishonesty in exercising rights and obligations or abusing position or position, using company assets for personal gain or serving the interests of other organizations or individuals; Untruthfully reporting the company’s financial situation and production and business results.

According to the above regulations, in case a state-owned enterprise fails to complete the annual plan targets, at the request of the owner’s representative agency, but the Chairman of the Board of Members cannot explain the objective reason or explains the reason but is not approved by the owner’s representative agency, the Chairman may be dismissed.

What rights and obligations does the Chairman of the Board of Members of a state-owned enterprise have?

Pursuant to Clause 2, Article 95 of the Law on Enterprises 2020, the Chairman of the Board of Members of a state-owned enterprise has the following rights and obligations:

(1) Develop quarterly and annual operating plans of the Board of Members.

(2) Prepare the agenda, content, and documents of the Board of Members meeting or collect opinions from the Board of Members members.

(3) Convene, chair and chair a meeting of the Board of Members or organize a gathering of opinions from members of the Board of Members.

(4) Organize the implementation of decisions of the owner’s representative agency and resolutions of the Board of members.

(5) Organize supervision, directly monitor and evaluate the results of implementing strategic goals, the company’s performance results, and the management and administration results of the Director or General Director of the company.

(6) Organize and publicize information about the company according to the provisions of law; Responsible for the completeness, timeliness, accuracy, honesty and systematicity of published information.

What actions is the Chairman of the Board of Members of a state-owned enterprise personally responsible for?

The acts for which the Chairman of the Board of Members of a state-owned enterprise will be personally responsible are specified in Article 97 of the Law on Enterprises 2020 as follows:

Responsibilities of the Chairman and other members of the Board member

1. Comply with the company charter, decisions of the company owner and legal regulations.

2. Exercise rights and obligations honestly, carefully, and best to ensure maximum legitimate interests of the company and the State.

3. Loyal to the interests of the company and the State; Do not abuse your position or position and use information, know-how, business opportunities, or other company assets for personal gain or to serve the interests of other organizations or individuals.

4. Timely, fully and accurately inform the enterprise about the enterprise in which it owns or has shares or controlling capital contribution and the enterprise in which its related person owns, jointly owns or separately owns shares or controlling capital contribution. This notice is gathered and kept at the company’s headquarters.

5. Comply with resolutions of the Board of Members.

6. Take personal responsibility when performing the following acts:

a) Taking advantage of the company’s name to commit acts that violate the law;

b) Conducting business or other transactions that do not serve the interests of the company and cause damage to other organizations and individuals;

c) Paying undue debts when financial risks may occur to the company.

7. In case a member of the Board of Members discovers that another member of the Board of Members has committed a violation in exercising assigned rights and obligations, he/she is responsible for reporting in writing to the owner’s representative agency; request the violating member to stop the violation and remedy the consequences.

Thus, the Chairman of the Board of Members of a state-owned enterprise will be personally responsible for performing the following acts:

– Taking advantage of the company’s name to commit illegal acts.

– Conducting business or other transactions that do not serve the company’s interests and cause damage to other organizations and individuals.

– Paying undue debts when financial risks may occur to the company.