Decision No. 14/2006/QD-NHNN on amending and supplementing certain provisions of the Regulations on the organization and operation of the Board of Directors, Supervisory Board, General Director (Director) of non-bank credit institutions issued together with Decision No. 516/2003/QD-NHNN dated May 26, 2003 of the Governor of the State Bank of Vietnam.

Pursuant to …;

Regarding the Amendment and Supplement to Certain Provisions on the Organization and Operation

of the Board of Directors, Supervisory Board, General Director (Director) of Non-Bank Credit Institutions issued together with Decision No. 516/2003/QĐ-NHNN

dated May 26, 2003 of the Governor of the State Bank of Vietnam

Based on the Law on Credit Institutions No. 02/1997/QH10 dated December 12, 1997; the Law Amending and Supplementing Certain Provisions of the Law on Credit Institutions No. 20/2004/QH11 dated June 15, 2004;

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GOVERNOR OF THE STATE BANK OF VIETNAM

Pursuant to the Law on the State Bank of Vietnam No. 01/1997/QH10 dated December 12, 1997, and the Law Amending and Supplementing Certain Provisions of the Law on the State Bank of Vietnam No. 10/2003/QH11 dated June 17, 2003;

Based on Decree No. 16/2001/NĐ-CP dated May 2, 2001 of the Government on the Organization and Operation of Financial Leasing Companies; Decree No. 65/2005/NĐ-CP dated May 19, 2005 of the Government amending and supplementing certain provisions of Decree No. 16/2001/NĐ-CP dated May 2, 2001 of the Government on the organization and operation of financial leasing companies;

Pursuant to Decree No. 52/2003/ND-CP dated May 19, 2003, issued by the Government, detailing the functions, tasks, powers, and organizational structure of the State Bank of Vietnam;

Based on Decree No. 79/2002/NĐ-CP dated October 4, 2002 of the Government on the organization and operation of finance companies;

Pursuant to the proposal of the Head of the Department of Banks and Non-Bank Credit Institutions.

Amending and supplementing certain provisions of the Regulations on the organization and operation of the Board of Directors, Supervisory Board, General Director (Director) of Non-Bank Credit Institutions issued together with Decision No. 516/2003/QĐ-NHNN dated May 26, 2003 of the Governor of the State Bank of Vietnam, as follows:

Pursuant to …;

Article 1. 1. Delete Clause 3 of Article 1

2. Amend Clause 4, Clause 6 of Article 3 as follows:

"4. Has been a member of the Board of Directors or General Director (Director) of a business that has gone bankrupt, except in cases provided for by the law on bankruptcy."

"6. Belongs to the prohibited category according to the Enterprise Law; the Cadres and Civil Servants Ordinance; the Anti-Corruption Law."

3. Amend Clause 4 of Article 9 as follows:

"4. The Chairman of the Board of Directors shall not participate in the Board of Directors or manage another credit institution, except in cases provided for in Clause 5 of Article 37 of the Law on Credit Institutions."

4. Amend Clause 1 of Article 17 as follows:

"1. The Supervisory Board shall have a minimum of three members but not more than five, and at least half of the members must be full-time. The number of members of the Supervisory Board and full-time members shall be determined by the Chairman of the Board of Directors of the Holding Company, or the Chairman of the Board of Directors of the Credit Institution, or the Chairman of the Board of Directors of the foreign-invested non-bank credit institution and recorded in the Charter of the non-bank credit institution."

5. Amend Clause 3 of Article 21 as follows:

"3. The General Director (Director) shall not be permitted to be the General Director (Director) or Chairman of the Board of Directors of another credit institution, except in cases provided for in Clause 3 of Article 39 of the Law on Credit Institutions."

"2. The Chairman and members of the Board of Directors, the Head and members of the Supervisory Board, the General Director (Director) of non-bank credit institutions shall only perform their duties according to the positions they are appointed to or elected to after being approved by the Governor of the State Bank of Vietnam."

6. Amend Clause 2, Article 25 as follows:

7. Amend the term "internal audit" in Clause 3 of Article 2; Point m of Clause l of Article 13; Clause 1, Clause 4, Clause 6 of Article 19 to "internal control".

This Decision shall take effect fifteen days from the date of publication in the Official Gazette.

Article 2. The Chief of the Office, Heads of the Department of Banks and Non-Bank Credit Institutions, Heads of relevant units under the State Bank of Vietnam, Governors of the State Bank of Vietnam Branches in provinces and centrally-administered cities, Chairmen and members of the Board of Directors, Heads and members of the Supervisory Board, General Directors (Directors) of non-bank credit institutions are responsible for implementing this Decision./.

Article 3. The Director of the Office, the Head of the Department of Banks and Non-Bank Financial Institutions, the Heads of relevant units under the State Bank of Vietnam, the Governors of the State Bank of Vietnam Branches in provinces and centrally governed cities, the Chair and members of the Board of Directors, the Heads and members of the Supervisory Board, and the General Managers (Directors) of non-bank financial institutions are responsible for implementing this Decision./.