In what cases does the state invest in additional capital in joint stock companies? What are the main contents of the investment plan to supplement state capital in joint stock companies?

1. In what cases does the state invest additional capital in joint stock companies?

Pursuant to Clause 1, Article 12 of Decree 91/2015/ND-CP stipulates as follows:

Scope of investment to supplement state capital invested in joint stock companies, limited liability companies with two or more members up

1. The State invests additional capital to maintain the ratio of shares and contributed capital of the State in joint stock companies and limited liability companies with two or more members in one of the cases specified in Article 16 of the Law on Management and Use of State Capital Invested in Production and Business at Enterprises.

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At the same time, based on Clause 1, Article 16 of the Law on Management and Use of State Capital Invested in Production and Business at Enterprises. 2014 regulates:

Scope of additional investment of state capital in joint stock companies and limited liability companies with two or more members

1. Investing additional state capital to continue maintaining the ratio of shares and capital contributions of the State in joint stock companies and limited liability companies with two or more members in one of the following cases:

a) Failing to attract Vietnamese and foreign investors to enterprises providing essential public products and services for society;

b) Necessary to maintain for implementation national defense and security tasks.

2. The Government regulates in detail the additional investment of state capital to continue to maintain the ratio of shares and contributed capital of the State in joint stock companies and limited liability companies with two or more members specified in Clause 1 of this Article.

Thus, according to regulations, the state invests additional state capital to continue to maintain the ratio of state shares in joint stock companies when falling into one of the following cases here:

(1) Failing to attract Vietnamese and foreign investors to businesses providing essential public products and services for society;

(2) Necessary to maintain to perform national defense and security tasks.

2. In what cases must the National Assembly decide on investment policies for additional investment of state capital?

The authority to decide on additional investment of state capital in joint stock companies is specified in Clause 3, Article 17 of the Law on Management and Use of State Capital Invested in Production and Business at Enterprises 2014 as follows:

Authority to decide Additional investment in state capital in joint stock companies and limited liability companies with two or more members

1. The Prime Minister decides on additional investment of state capital in joint stock companies and limited liability companies with two or more members converted from enterprises he decided to establish.

2. The owner’s representative agency decides to invest additional state capital in joint stock companies and limited liability companies with two or more members that are converted from enterprises that they decided to establish or are assigned to manage according to the provisions of this Law, except for enterprises specified in Clause 1 of this Article.

3. In case of additional investment of state capital in a joint stock company or limited liability company with two or more members with an additional capital equivalent to the capital of a nationally important project, the Prime Minister decides on additional investment after the National Assembly decides on the investment policy.

Thus, according to regulations, in the case of additional investment of state capital in a joint stock company with an additional capital equivalent to the capital of a nationally important project, the Prime Minister The Prime Minister decides on additional investment after the National Assembly decides on the investment policy.

3. What are the main contents of a plan for additional investment of state capital in a joint stock company?

Pursuant to Clause 1, Article 18 of the Law on Management and Use of State Capital Investment in Production and Business at Enterprises 2014, the representative of the state capital is responsible for reporting to the agency representing the owner the plan for additional investment of state capital to maintain the State’s shareholding ratio in the joint stock company. part.

The plan for additional investment of state capital in a joint stock company must have the following main contents:

(1) Assessment of the financial status and results of production and business activities of the joint stock company;

(2) Plan to increase the charter capital of the joint stock company;

(3) Objectives, necessity, economic efficiency, social efficiency of additional investment in state capital;

(4) Level of additional investment capital to maintain the ratio of shares and capital contribution of the State in joint stock companies.