What is an enterprise with state capital? Who has the authority to reward and discipline representatives at state-owned enterprises?

1. What is an enterprise with state capital?

Enterprise with state capital is specified in Clause 3 Article 2 Decree 159/2020/ND-CP as follows:

Applicable subjects

1. State ownership representative agency.

2. Enterprises with 100% charter capital held by the State.

3. Enterprises in which the State holds more than 50% of charter capital or total voting shares; enterprises in which the State holds no more than 50% of the charter capital or the total number of voting shares (hereinafter referred to as enterprises with state capital).

4. Persons holding titles and positions at enterprises with 100% charter capital held by the State (hereinafter referred to as managers of state-owned enterprises), including:

a) Chairman of the Board of Members;

b) Company President (for companies without a Board of Members);

c) Members of the Board of Members member;

d) General Director;

Thus, according to regulations, an enterprise with state capital is an enterprise in which the State holds more than 50% of the charter capital or the total number of shares with voting rights;

Or an enterprise in which the State holds no more than 50% of the charter capital or the total number of shares with voting rights decision.

2. Who has the authority to reward and discipline representatives at state-owned enterprises?

The authority to reward and discipline representatives at state-owned enterprises is specified in Clause 3, Article 6 Decree 159/2020/ND-CP as follows:

Authority of the owner’s representative agency

…

2. For enterprises with 100% charter capital held by the State under the establishment authority of the owner’s representative agency:

a) Decide on evaluation, planning, appointment, reappointment, transfer, rotation, acceptance of resignation, dismissal, reward, discipline, and retirement of the Chairman of the Board of Members, President of the company, members of the Board of Members, and Controllers;

b) Give opinions before the Board of Members or the President of the company decides on planning, appointment, reappointment, transfer, rotation, acceptance of resignation, dismissal, reward, discipline, and retirement of the General Director and Director;

c) Approve the policy at the request of the Board of Members on the appointment of Deputy General Director and Deputy Director.

3. For enterprises with state capital:

Decide to evaluate, appoint, re-appoint, and dismiss representatives of state capital, reward, discipline, and retire representatives of state capital.

Accordingly, the owner’s representative agency has the authority to decide on the evaluation, appointment, re-appointment, dismissal of representatives of state capital, reward, discipline, and retirement of representatives of state capital of enterprises with state capital.

3. How is the concurrent holding of other titles and positions of a representative of state capital?

The concurrent holding of other titles and positions of the representative of state capital is stipulated inClause 3 Article 7 Decree 159/2020/ND-CP as follows:

Concurrent responsibility for managers of state-owned enterprises, controllers and representatives of state capital

…

2. The concurrent holding of other titles and positions of the Controller is regulated as follows:

a) Head of the Supervisory Board or Controller must not be a company manager or manager at another enterprise; Must not be a Controller of an enterprise that is not a state-owned enterprise; not an employee of the company;

b) An individual can simultaneously be appointed as Head of the Supervisory Board and Controller of no more than 04 state-owned enterprises.

3. Concurrent holding of other titles and positions of the representative of state capital is regulated as follows:

a) A full-time state capital representative may only participate in representing state capital at 01 enterprise;

b) Part-time representatives of state capital can participate in representing state capital at other enterprises with the same owner’s representative agency, but not more than 03;

c) Representatives of state capital cannot concurrently represent state capital at enterprises other than the owner’s representative agency;

d) Representatives of home equity The state is not a cadre, civil servant, or public employee.

Thus, the concurrent holding of other titles and positions of the representative of the state capital is specifically regulated as follows:

– The representative of the full-time state capital can only participate in representing the state capital at 01 enterprise;

– The representative of the non-specialized state capital can participate State capital representative at another enterprise with the same owner representative agency, but not more than 03;

– State capital representative cannot concurrently represent state capital at another enterprise with the owner’s representative agency;

– State capital representative is not an officer, civil servant, or public employee.