Decision No. 106/2004/QD-BCN On the transfer of Hue Leather Factory under Saigon Leather Import-Export Company to Hue Leather Joint Stock Company

Pursuant to …;

Regarding the conversion of the Hue Leather Factory under the Saigon Leather Import-Export Company into the Hue Leather Joint Stock Company

THE MINISTER OF INDUSTRY

Pursuant to Decree No. 55/2003/NĐ-CP dated May 28, 2003 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Industry;

Pursuant to Decree No. 64/2002/NĐ-CP dated June 19, 2002 of the Government on the conversion of state-owned enterprises into joint-stock companies;

Considering the proposal of the Saigon Leather Import-Export Company (Document No. 344/BDM&PTDN dated September 23, 2004), the Privatization Plan for the Hue Leather Factory, and the Appraisal Report on the Plan by the Enterprise Reform and Development Board of the Ministry dated September 30, 2004;

At the proposal of the Enterprise Reform and Development Board and the Director of the Personnel and Organization Department,

DECISION:

Article 1. Approves the Privatization Plan for the Hue Leather Factory under the Saigon Leather Import-Export Company (a subordinate enterprise of the Ministry of Industry) comprising the following main points:

1. Capital structure:

The authorized capital of the joint stock company is 410,000,000 VND (Four hundred ten million VND).

The percentage of shares sold to employees of the factory: 100.00%;

The value of one share: 100,000 VND.

2. The actual value of the Hue Leather Factory at the valuation date of December 31, 2003 for privatization (Decision No. 2305/QĐ-TCKT dated August 31, 2004 of the Ministry of Industry) is 6,472,977,240 VND. Of this amount, the actual value of the State's share in the factory is 409,165,760 VND.

3. Benefits for employees of the factory.

A total of 4,036 preferential shares were sold to 46 employees of the factory with a preferential value of 121,080,000 VND.

4. Regarding privatization costs, retraining of employees, and surplus labor resolution of the factory, the Saigon Leather Import-Export Company shall handle the procedures, report to the Ministry of Industry and relevant state authorities for approval in accordance with current regulations.

Article 2. Converts the Hue Leather Factory under the Saigon Leather Import-Export Company into the Hue Leather Joint Stock Company,

- International trade name: HUE LEATHER AND FOOTWEAR JOINT STOCK COMPANY;

- Abbreviation: HLF.,JSC;

- Head office: No. 266 Dien Bien Phu Street, Hue City, Thua Thien-Hue Province.

Article 3. The joint stock company engages in the following business activities:

- Producing, processing, and manufacturing leather, faux leather, plastic fabric, rubber products for domestic consumption and export;

- Operating tourism, hotel, restaurant services, import and export activities serving the production and business operations of the company;

- Engaging in other businesses in accordance with the provisions of the law.

Article 4. The Hue Leather Joint Stock Company is a legal entity under Vietnamese law from the date of registration; it may use its own seal and open bank accounts in accordance with the law; organize and operate according to the Articles of Association of the joint stock company and the Enterprise Law.

Article 5. The Saigon Leather Import-Export Company shall organize the sale of shares and convene the first General Meeting of Shareholders of the Hue Leather Joint Stock Company in accordance with current regulations.

The General Director and Chief Accountant of the Saigon Leather Import-Export Company are responsible for managing the operations of the factory until the transfer of all capital, assets, labor, and facilities to the Board of Directors and General Manager of the joint stock company.

Article 6. The Standard Measurement Quality Control Department shall be responsible for organizing and guiding the implementation of the Regulations adopted herein.

The Heads of the Ministry's Office, Inspectorate, Departments, and Bureaus, the General Director of the Saigon Leather Import-Export Company, the Director of the Hue Leather Factory, and the Chairman of the Board of Directors and General Manager of the Hue Leather Joint Stock Company are responsible for implementing this Decision.