Is it mandatory for the Chairman of the Fixed Asset Liquidation Council to be the General Director?

Is it mandatory for the Chairman of the Fixed Asset Liquidation Council to be the General Director to be hired?

Is it mandatory for the Chairman of the Fixed Asset Liquidation Council to be the General Director to be hired? 27 Decree 91/2015/ND-CP, Clause 2 Article 6 Decree 140/2020/ND-CP stipulates:

Liquidation and sale of fixed assets

4. Order and procedures for liquidation and sale of assets:

a) The Chairman of the Board of Members or the President of the company decides to establish a Council for liquidation and sale of fixed assets at enterprises with 100% charter capital held by the State. Council members include: General Director or Director, Chief Accountant, relevant department heads; Representative of the Executive Committee of the grassroots trade union at the enterprise and a number of experts knowledgeable about the technical features of fixed assets (if necessary). The tasks of the Council for liquidation and sale of fixed assets of the enterprise include:

First of all, the above regulations currently only apply to enterprises where the State holds 100% of charter capital (in your case, it only holds 80% so it does not apply).

At the same time, the regulations only mention that the composition of the Liquidation Council includes the Director or General Director, but does not require the Director or General Director to be the Chairman of the Asset Liquidation Council.

The selection of who will hold the position of Chairman of the Liquidation Council will be decided by the Chairman of the Board of Members or the Chairman of the company. In short, your company’s case does not require the Director or General Director to be the Chairman of the Fixed Asset Liquidation Council.

How is the investment, construction, and procurement of fixed assets of enterprises with 100% charter capital held by the State carried out?

The investment, construction, and procurement of fixed assets of enterprises with 100% charter capital held by the State are carried out according to Article 23 of Decree 91/2015/ND-CP, clause 2 Article 6 Decree 140/2020/ND-CP, Clause 8 Article 1 Decree 32/2018/ND-CP as follows:

(1) Investment, construction, and procurement of fixed assets of enterprises with 100% charter capital held by the State are carried out in accordance with the provisions of Article 24 of the Law on Management and Use of State Capital Invested in Production and Business at Enterprises. In which:

– For investment and purchase of fixed assets carried out by enterprises, the construction investment process must comply with the provisions of construction law, bidding law and other relevant provisions of law.

– For investment and procurement of external fixed assets for use (including means of transport serving production, business and service activities), enterprises must comply with the provisions of the law on bidding and other relevant provisions of law.

– For investment, procurement, and use of vehicles (cars) to serve the work of leadership positions and general work, enterprises must ensure compliance with standards and norms of procurement and use to ensure publicity, transparency, savings, and efficiency according to the regulations of the Prime Minister.

(2) Enterprises with 100% charter capital held by the State in business lines have separate regulations on investment, construction, procurement, management, and use of fixed assets according to specialized fields. In addition to implementing the provisions of this Decree, they must also comply with the provisions of specialized laws.

Enterprises with 100% charter capital held by the State manage and use such fixed assets. Which?

Enterprises with 100% charter capital held by the State manage and use fixed assets as prescribed in Article 25 of Decree 91/2015/ND-CP, Clause 2, Article 6 of Decree 140/2020/ND-CP as follows:

(1) enterprises with 100% actual charter capital held by the State as follows: currently manages and uses fixed assets in the course of business activities according to the provisions of Article 25 of the Law on Management and Use of State Capital Invested in Production and Business at Enterprises. In which:

– Enterprises with 100% charter capital held by the State are responsible for developing, promulgating, and implementing Regulations on management and use of the enterprise’s fixed assets.

– Depending on the management requirements for each type of fixed asset, the fixed asset management regulations issued by the enterprise must clearly stipulate the coordination between departments and the responsibilities of each department and individual. involved in monitoring and managing the use of enterprise assets.

(2) Enterprises with 100% charter capital held by the State shall lease, mortgage, and mortgage fixed assets according to the provisions of Article 26 of this Decree.