Guarantees principles borrow capital from credit institutions for state enterprises
An enterprise may provide guarantees for its subsidiaries to borrow capital from credit institutions must not exceed the subsidiary’s equity capital is the important contents prescribed at the Law No. 69/2014/QH13 passed by the National Assembly on November 26, 2014.
Accordingly, the total value of guarantees provided for a subsidiary in which the enterprise holds 100% of charter capital must not exceed the subsidiary’s equity capital stated in its quarterly or annual financial statement nearest to the time of guarantee provision. The total value of guarantees provided for a subsidiary in which the enterprise holds more than 50% of charter capital must not exceed the actual value of the enterprise’s capital contribution at such subsidiary at the time of guarantee provision.
From July 01, 2015, enterprises with 100% charter capital held by the State shall propose competent state agencies to promulgate the charters and financial regulations of the enterprises in accordance with this Law; such promulgation shall be completed before January 1, 2016. The charters and financial regulations of enterprises with 100% charter capital held by the State which are promulgated before the effective date of this Law remain effective through December 31, 2015.
Also in accordance with this Law, basing on the task performance by enterprise managers; remuneration of part- time enterprise managers shall be determined based on their tasks and working time but must not exceed 20% of salaries of full-time enterprise managers. Bonuses of enterprise managers shall be approved by agencies representing the owner based on the production and business effectiveness and ranking of enterprises as well as their task performance, and deducted from after-tax profits of enterprises.
Besides, the Law also prescribes that enterprises shall promptly publish on their websites the contents related to their operation. Agencies representing the owner shall promptly publish on their websites the investment, management and use of state capital in enterprises established under their decisions or assigned to them for management. The Ministry of Finance shall promptly publish on its website the Government’s report on the investment, management and use of state capital in enterprises nationwide after the Government presents this report to the National Assembly.
This Law takes effect on July 01, 2015.