Circular No. 11/2023/TT-BTC guides on the Management Board and standards, conditions for appointing and dismissing members of the Management Board in public service units under the financial sector.

CIRCULAR

Guidelines on the Board of Management and standards, conditions for appointing and dismissing members of the Board of Management
in public service units under the financial sector
in a public service unit under the finance sector

Pursuant to Decree No. 87/2017/NĐ-CP dated July 26, 2017 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Decree No. 120/2020/NĐ-CP dated October 7, 2020 of the Government stipulating the establishment, restructuring, and dissolution of public service units;

Pursuant to Decree No. 60/2021/NĐ-CP dated February 21, 2021 of the Government stipulating the mechanism of financial autonomy of public service units;

The Minister of Finance issues this Circular guiding on the Board of Management and standards, conditions for appointing and dismissing members of the Board of Management in public service units under the financial sector.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular guides on the functions, tasks, powers, organizational structure, operational regulations, and relationships between the Board of Management in public service units with the heads of public service units and superior management agencies; standards, conditions for appointing and dismissing members of the Board of Management, including the Chairman of the Board of Management in public service units under the financial sector (hereinafter referred to as the Board of Management).

Article 2. Applicability

1. Public service units under the financial sector established according to Article 2 of Decree No. 120/2020/NĐ-CP dated October 7, 2020 of the Government stipulating the establishment, restructuring, and dissolution of public service units (hereinafter referred to as Decree No. 120/2020/NĐ-CP).

2. Agencies, units, and individuals related to the establishment and operation of the Board of Management in the financial sector.

Article 3. Principles and Conditions for Establishing the Management Board

Principles and conditions for establishing the Board of Management shall be implemented in accordance with Clause 1 and Clause 2 of Article 7 of Decree No. 120/2020/NĐ-CP.

Chapter II

TASKS, POWERS AND ORGANIZATIONAL STRUCTURE OF THE BOARD OF MANAGEMENT

Article 4. Tasks and powers of the Board of Management

The functions, tasks, and powers of the Board of Management shall be implemented in accordance with Clause 3 of Article 7 of Decree No. 120/2020/NĐ-CP.

Article 5. Structure and Term of Office of the Management Board

1. The composition of the Board of Management includes:

a) Representatives of the superior management agency of the public service unit, including representatives of ministries, ministerial-level agencies, government agencies, organizations established by the Government or the Prime Minister that are not public service units, provincial People's Committees, and direct superior management agencies (if any).

b) The head of the public service unit.

c) Civil servants of the public service unit.

d) Representatives of related organizations and units.

2. The number of members of the Board of Management ranges from five to eleven people, including the Chairman of the Board of Management, Secretary of the Board of Management, and other members of the Board of Management. Depending on the requirements of the tasks, the Board of Management may have a Vice-Chairman of the Board of Management. The number and composition of members of the Board of Management of each specific public service unit shall be decided by the head of the competent authority approving the self-management proposal of the public service unit.

The Chairman of the Board of Management shall be selected and appointed by the head of the competent authority approving the self-management proposal of the public service unit from among the leaders representing the public service unit or the superior management agency of the public service unit.

The Vice-Chairman of the Board of Management (if any), Secretary of the Board of Management, and other members of the Board of Management shall be appointed by the head of the competent authority approving the self-management proposal of the public service unit.

3. The term of office of members of the Board of Management shall not exceed five years.

Article 6. Duties and Authorities of the Chairman of the Management Board

1. Direct and organize the implementation of the duties and authorities of the Management Board as prescribed in this Circular.

2. Decide and direct the implementation of the agenda program and operational plan of the Management Board.

3. Convene meetings of the Management Board; chair meetings and organize voting at meetings.

4. Sign documents within the authority of the Management Board as prescribed.

5. Ensure that members of the Management Board receive full, objective, accurate, and sufficient time to discuss issues that the Management Board must consider.

6. Assign tasks and supervise the performance of tasks by members of the Management Board.

7. Perform the duties of a member of the Management Board and other duties and authorities as prescribed by law and the organizational and operational regulations of the unit.

8. Be responsible for the implementation of their duties and authorities.

Article 7. Duties and Authorities of the Deputy Chairman of the Management Board (if any)

1. Manage the activities of the Management Board when authorized by the Chairman of the Management Board.

2. Sign documents of the Management Board according to the authorization of the Chairman of the Management Board.

3. Perform the duties of a member of the Management Board and other duties and authorities as prescribed by law and the organizational and operational regulations of the unit and assigned by the Chairman of the Management Board.

Article 8. Duties and Authorities of the Secretary of the Management Board

1. Compile information on the activities of the unit to report to the Chairman of the Management Board; prepare the agenda, content, documents, send meeting invitations, and serve as secretary for Management Board meetings; draft, complete, store, and manage documents of the Management Board.

2. Prepare reports and explanatory documents for state management agencies and related agencies according to the tasks and functions of the Management Board.

3. Perform the duties of a member of the Management Board and other duties and authorities as prescribed by law and the organizational and operational regulations of the unit and assigned by the Chairman of the Management Board.

Article 9. Duties and Authorities of Members of the Management Board

1. Strictly implement the provisions of the Operational Regulations of the Management Board and the public service unit, perform tasks assigned by the Chairman of the Management Board and other tasks as prescribed by law; fully participate in Management Board meetings and be responsible for the implementation of their duties and authorities.

2. Discuss and contribute opinions during Management Board meetings; vote on the contents of Management Board decisions as prescribed.

3. Monitor and supervise the implementation of Management Board decisions and have the right to propose opinions on the activities of the public service unit.

4. Receive and access information and documents serving the work of the Management Board as prescribed; enjoy benefits and policies as prescribed by law and the financial regulations of the public service unit.

5. Perform other tasks as prescribed.

Chapter III

AUTHORITY, PROCEDURE, AND FORMALITIES FOR THE ESTABLISHMENT AND COMPLETION OF THE MANAGEMENT BOARD

Article 10. Authority to Establish and Appraisal Agency for Management Board Establishment Documents

1. Authority to establish the Management Board and approve its operational regulations

a) The Minister, Head of a ministry-level agency, Head of an agency under the Government, and the head of an organization established by the Government or the Prime Minister which is not a public service unit decides or delegates the establishment and approval of the operational regulations of the Management Board in units under the management of the ministry, ministry-level agency, agency under the Government, or organization established by the Government or the Prime Minister which is not a public service unit, in accordance with the delegation of civil servant and cadre management and financial management authority of the agency or unit.

b) The People's Committee of a province decides to establish and approve the operational regulations of the Management Board in public service units under the management of the provincial People's Committee as prescribed.

2. Appraisal Agency

a) The Cadre and Civil Servant Organization Department or the Cadre and Civil Servant Organization Board of the authority with the power to establish and approve the operational regulations of the Management Board is the leading appraisal agency for the establishment of the Management Board in public service units under the management of ministries, ministry-level agencies, agencies under the Government, or organizations established by the Government or the Prime Minister which are not public service units.

b) The specialized agency advising on state management in the field of organizational structure at all levels of People's Committees is the appraisal agency for the establishment of the Management Board in public service units under the management of People's Committees at various levels according to the delegation of the provincial People's Committee.

Article 11. Documents, Procedures, and Formalities for Establishing the Management Board

1. The public service entity shall report to the competent authority deciding on the establishment of the Management Board (through the reviewing agency) its proposal to establish the Management Board, the composition of the Management Board members, and seek opinions on the personnel for the Chairperson, Vice-Chairperson (if any), and Secretary of the Management Board.

The application documents for establishing the Management Board include:

a) A document proposing the establishment of the Management Board.

b) A project for establishing the Management Board.

c) A draft Regulation on the operation of the Management Board, which clearly defines the relationship between the Management Board and the head of the public service entity and the superior management agency.

d) Relevant documents proving compliance with the conditions stipulated in Article 3 of this Circular.

d) Opinions of related agencies and units (if any).

The procedures for establishing the Management Council shall be carried out in accordance with the provisions of Clause 6, Article 7 of Decree No. 120/2020/NĐ-CP.

2. The reviewing agency shall review the contents regarding the necessity, number, composition, membership, standards of Management Board members; functions, tasks, powers, and the Regulation on the operation of the Management Board, and other relevant contents.

The reviewing agency shall report to the competent authority deciding on the establishment of the Management Board its proposal to establish the Management Board, the composition of the Management Board members, and the proposed personnel for the Chairperson, Vice-Chairperson (if any), and Secretary of the Management Board.

3. After the competent authority approves the proposal to establish the Management Board and its composition, the public service entity shall propose specific personnel for the Management Board and report to the competent authority deciding on the establishment.

4. Based on the provisions of Clause 1, Clause 2, and Clause 3 of this Article, the document proposing the establishment and the content of the report from the reviewing agency, the competent authority shall consider and decide to establish the Management Board by issuing a Decision to establish the Management Board.

Article 12. Contents of the Project for Establishing the Management Board

The contents of the project include:

1. Necessity and legal basis.

2. Proposed plan for the number, composition, and personnel of the Management Board.

3. Specific tasks of the Management Board.

4. Recommendations of the agency drafting the project for establishing the Management Board.

5. Other contents (if any) to be implemented according to the specialized laws and guidelines of the sectoral management ministry.

Article 13. Improving the Management Board

1. Improving the Management Board during the term

At least three months before the end of the term, the incumbent Chairperson of the Management Board shall convene a meeting of the Management Board to propose to the superior management agency to improve the Management Board for the next term.

2. Improving members of the Management Board during the term

In case the Management Board is missing members (resigned, retired, deceased, transferred to another job unsuitable for the structure of the Management Board), the Chairperson of the Management Board shall convene a meeting of the Management Board, select replacement members based on the composition of the missing members, and report to the competent authority for approval.

In case the Chairperson of the Management Board is missing (dismissed, resigned, retired, deceased, transferred to another job unsuitable for the structure of the Management Board), the Vice-Chairperson of the Management Board (if any) or the Secretary of the Management Board shall report to the competent management authority to appoint personnel for the Chairperson of the Management Board in accordance with regulations.

In case the Chairperson of the Management Board, Vice-Chairperson of the Management Board, and Secretary of the Management Board are missing, the head of the public service entity shall report to the competent authority to appoint personnel for the Chairperson of the Management Board, Vice-Chairperson of the Management Board (if any), and Secretary of the Management Board in accordance with regulations.

The time limit for organizing the replacement of Management Board members is sixty days from the date of the vacancy.

Chapter IV

STANDARDS AND CONDITIONS FOR APPOINTMENT, REMOVAL OF MEMBERS OF THE MANAGEMENT BOARD

Article 14. Criteria for members and authority to appoint members of the Management Board

1. Criteria for Management Board members

a) Possess good political qualities, moral conduct, and discipline awareness.

b) Have sufficient health to fulfill assigned tasks and responsibilities.

c) Hold a bachelor's degree or higher.

d) Not be in the period of implementing disciplinary decisions or under investigation for disciplinary actions according to the law.

d) Age ensuring eligibility for at least one term of office (five years).

2. Standards for the Chairman of the Management Board

a) Meet the standards for members of the Management Board.

b) Having management experience or expertise in the field of activity of the public service unit.

3. Appointment of Management Board members

The Chairman and other members of the Management Board shall be appointed by the head of the competent authority approving the self-governance proposal of the public institution.

Article 15. Removal of the Chairman and Members of the Management Board

1. Conditions for Removal Include One of the Following Situations:

a) A written request from the individual wishing to cease participation as a member of the Management Board.

b) Being restricted in civil capacity.

c) Health not sufficient to perform assigned tasks, having been on leave for more than six months without recovery of work capacity.

d) They are convicted by a court with a legally effective judgment.

đ) More than 50% of the total number of Management Board members make a written request for removal.

e) Retirement, resignation, transfer to other work, or reassignment by a competent authority not in accordance with the provisions of Clause 1 and Clause 2, Article 5 of this Circular.

g) Being ranked as non-completed two consecutive years.

h) Other violations as stipulated in the organizational and operational regulations of the unit.

2. Procedure and Formalities for Removal of the Chairman and Members of the Management Board

In cases where there is a lawful proposal for the removal of the Chairman of the Management Board, the Vice-Chairman of the Management Board (if any) or the Secretary of the Management Board shall chair the meeting to resolve the matter; the meeting must ensure the ratio and composition of participants, voting ratio according to the provisions of the law, Point a, Clause 2, Article 16 and Clause 1, Article 18 of this Circular. In cases of simultaneous removal of the Chairman of the Management Board, the Vice-Chairman of the Management Board, and the Secretary of the Management Board, the head of the public service unit shall report to the competent authority specified in Clause 3, Article 14 of this Circular to decide on organizing the meeting.

The Management Board is responsible for reviewing and submitting to the competent authority specified in Clause 3, Article 14 of this Circular the removal of Management Board members and the removal of the Chairman of the Management Board, and sending the application file for the competent authority to issue a decision. The application file includes: (1) A report detailing the reasons for removal; (2) Minutes of the Management Board meeting; (3) Any related documents (if any).

Chapter V

ACTIVITIES OF THE MANAGEMENT BOARD

Article 16. Principles of operation and working relations of the Management Board

1. The Management Board operates according to the Organizational and Operational Regulations approved by the competent authority.

2. Principles of operation of the Management Board

a) The Management Board implements the principle of collective discussion, democracy, transparency, voting, and majority decision-making. In case of equal votes, the decision is made according to the side with the Chairman's vote.

b) The Management Board performs its duties and powers within the scope of its authority.

c) The representative of the superior administrative agency of the public service unit in the Management Board works under the concurrent position system.

3. Relationship between the Management Board and the head of the public service unit

a) The Management Board decides issues within its jurisdiction based on the head of the public service unit's proposal.

b) The head of the public service unit is the legal representative of the public service unit, manages and directs the activities of the unit, implements the resolutions of the Management Board, and is responsible for the results of implementing the resolutions before the Management Board and the law.

4. Relationship between the Management Board and the superior administrative agency

a) The Management Board is responsible to the superior administrative agency and reports to it on the results of performing the assigned duties and powers.

b) The superior administrative agency approves or provides comments on matters within its jurisdiction upon the proposal of the Management Board.

Article 17. Rules of Operation of the Management Board

1. The Chairman of the Management Board shall issue the Rules of Operation of the Management Board based on the contents approved in the establishment dossier of the Management Board.

2. The Rules of Operation of the Management Board shall include the following main contents:

a) General provisions.

b) Functions, tasks, and authorities of the Management Board.

c) The number, structure, and term of office of the Management Board.

d) The operational mechanism of the Management Board.

d) Tasks and powers of members of the Management Board; appointment, supplementation, replacement, removal, and disciplinary measures for members of the Management Board.

e) Work relationships.

g) Other provisions ensuring the operation of the Management Board in accordance with the law.

3. In cases where it is necessary to amend or supplement the Rules of Operation, the Management Board shall submit the amended Rules of Operation to the competent authority that established the Management Board for comments before making a decision to issue them.

Article 18. Operational Regime of the Management Board

1. Meetings of the Management Board

a) The Management Board shall convene at least once every three months and may convene extraordinary meetings upon written request from more than 30% of the total number of Management Board members or upon the request of the Chairman of the Management Board or the head of the public service unit.

b) A meeting of the Management Board shall be considered valid when at least two-thirds of the Management Board members are present.

c) Resolutions of the Management Board shall be adopted when more than 50% of the total number of Management Board members listed agree. All meetings must be recorded in minutes, with opinions and signatures of attending members. In case a meeting is not organized, written opinions of all Management Board members must be collected to reach a consensus on the resolution. The Chairman of the Management Board shall sign and issue the resolution, sending it to Management Board members and the superior supervisory agency within no later than fifteen working days from the date of the meeting.

2. The Management Board may use the seal and organizational structure of the public service unit to implement its tasks.

3. Regarding delegation of management authority

a) When the Chairman of the Management Board cannot work during the period specified in the organization and operation regulations of the unit, they shall have the responsibility to delegate in writing to the Vice-Chairman of the Management Board (if any) or the Secretary of the Management Board to assume the responsibilities of the Chairman of the Management Board.

b) The delegation document must be notified to Management Board members, sent to the superior supervisory agency, and publicly announced within the unit. The delegation period shall not exceed six months.

4. The remuneration and allowances of Management Board members shall be specifically stipulated in the internal expenditure regulations of the public service unit.

5. Reporting System of the Management Board:

Annually or at any time upon request, the Chairman of the Management Board reports to the competent authority on the results and effectiveness of the organization's activities.

Chapter VI

IMPLEMENTATION

Article 19. Effective Date

This Circular takes effect from March 31, 2023.

Article 20. Responsibility for Implementation

1. Ministries, ministerial-level agencies, government agencies, organizations established by the Government or the Prime Minister that are not public service units, provincial People's Committees with public service units in the financial sector, and related agencies, organizations, and individuals shall be responsible for implementing this Circular.

2. In cases where the legal normative documents cited in this Circular are amended, supplemented, or replaced by other legal normative documents, the provisions of those amended, supplemented, or replacing documents shall apply.

3. During implementation, if there are difficulties, please report to the Ministry of Finance for guidance and resolution./.