The Corporation registers promotions for security companies. Subsidiary company?

1. Can the Corporation register promotions for its subsidiaries?

Pursuant to Clause 1 and Clause 2, Article 196 of the Law on Enterprises 2020, stipulates as follows:

“Article 196. Rights, obligations and responsibilities of the parent company towards its subsidiaries

1. Depending on the legal type of the company Subsidiary companies and parent companies exercise their rights and obligations as members, owners or shareholders in relation to subsidiaries according to the corresponding provisions of this Law and other relevant laws.

2. Contracts, transactions and other relationships between parent companies and subsidiaries must be established and implemented independently and equally according to the conditions applicable to independent legal entities. established.

…”

Accordingly, the parent company and the subsidiary company are only a capital contribution relationship but are essentially two independent legal entities, with their own legal status, and are two separate traders. Therefore, if a subsidiary produces goods, that subsidiary can register for promotion, but the parent company cannot register for promotion with the state agency for the subsidiary.

2. How is reporting the results of promotion programs regulated?

Pursuant to Clause 2, Article 21 of Decree 81/2018/ND-CP stipulates on reporting results of promotion programs as follows:

– Within 45 days from the date of expiry of the prize award period of the promotion program in the form specified in Article 13 of this Decree and other forms as prescribed in Clause 9, Article 92 of the Commercial Law, the trader implementing the promotion program must have a written report to the competent state management agency (where registered and confirmed) on the results of the promotion program according to Form No. 07 Appendix promulgated together with this Decree. In case it is necessary to deposit 50% of the value of the prize without a winner into the state budget, within 07 working days from receiving the trader’s report, the state management agency shall issue a decision to collect and pay 50% of the announced value of the prize without a winner of the promotion program according to Form No. 08 Appendix issued with this Decree. Within 15 working days from receiving the decision on collection and payment from the state management agency, the trader is responsible for paying 50% of the announced value of the prize without a winner of the promotion program according to the decision.

+ Within 10 days from the date of payment to the state budget, the trader is responsible for sending a written report according to Form No. 09 Appendix issued with this Decree to the management agency. State authorities issue collection and payment decisions. Documents and documents related to the report on promotion results must be stored and responsible by the trader in accordance with the provisions of law to serve the work of inspection, examination and supervision.

+ Traders conduct promotions in the forms specified in Clause 8, Article 92 of the Commercial Law, Article 8, Article 9, Article 10, Article 11, Article 14 and the cases specified in Point a Clause 2 Article 17 This Decree does not require reporting on promotional results.

3. When to terminate the implementation of promotional programs?

Pursuant to Article 22 of Decree 81/2018/ND-CP stipulating the termination of promotional programs as follows:

Traders conducting promotions are not allowed to terminate the implementation of promotional programs before the deadline announced or confirmed by a competent state management agency, except in the cases prescribed set below:

– In case of force majeure, the termination of the promotion program ahead of time must be publicly announced to customers and the competent state management agency on commerce.

– In case the trader running the promotion runs out of the quantity of promotional goods or services or the goods or services used for promotion, issue all the evidence of winning prizes announced or approved by the management agency. The state confirms that the termination of the promotion program can only be done after the trader notifies the competent state management agency and must fully ensure the rights of customers who have participated in the program.

– In case the state management agency requests to terminate the implementation of all or part of the trader’s promotion program, the termination of the program must be publicly announced by the trader in one of the prescribed ways. in Article 98 of the Commercial Law, on the trader’s website (if there is a website) and must ensure that the trader will fully implement commitments to customers who participate in that promotion program; except in cases where the promotion program uses goods or services banned from business, goods or services restricted from business, goods not yet permitted for circulation, services not yet permitted to be provided for promotion, or uses alcohol or beer for promotion to people under 18 years of age, or uses cigarettes, alcohol, or medicinal drugs for promotion (except in the case of using medicinal drugs for promotion for drug traders) in any form. Traders are required by state management agencies to stop implementing promotional programs when:

+ Violates the provisions of Article 100 of the Commercial Law and Article 3 of this Decree;

+ Fails to implement or implements incorrectly or incompletely the contents of the promotion program regulations registered at the competent state management agency on commerce.