Circular No. 157/2019/TT-BQP guides the rights and responsibilities of the State capital representative towards state-owned enterprises with 100% state capital or enterprises where the state capital is invested, established or managed by the Ministry of National Defense.

CIRCULAR

Guidelines on the exercise of rights and responsibilities of the representative of the owner towards enterprises in which the State holds 100% of the charter capital and the State's share capital in enterprises established or managed by the Ministry of National Defense

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Pursuant to the Law on Management and Use of State Capital for Investment in Production and Business at Enterprises dated November 26, 2014;

Pursuant to the Enterprise Law dated November 26, 2014;

Pursuant to Decree No. 10/2019/NĐ-CP dated January 30, 2019 of the Government on the exercise of rights and responsibilities of state-owned enterprise representatives;

Pursuant to Decree No. 164/2017/NĐ-CP dated December 30, 2017 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of National Defense;

At the proposal of the Director of the Economic Department of the Ministry of National Defense;

The Minister of National Defense issues this Circular guiding the exercise of rights and responsibilities of the State's representative of the owner towards enterprises in which the State holds 100% of the charter capital and the State's share capital in enterprises established or managed by the Ministry of National Defense,

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular guides the exercise of rights and responsibilities of the State's representative of the owner towards:

1. Enterprises in which the State holds 100% of the charter capital, established or managed by the Ministry of National Defense.

2. The State's share capital invested in joint-stock companies and limited liability companies with two or more members by the Ministry of National Defense.

Article 2. Applicability

1. Agencies and units entrusted by the Ministry of National Defense to implement the rights and responsibilities of the State's representative of the owner towards enterprises in which the State holds 100% of the charter capital and the State's share capital in enterprises established or managed by the Ministry of National Defense.

2. Enterprises in which the State holds 100% of the charter capital established or managed by the Ministry of National Defense.

3. Direct representatives of the owner at enterprises in which the State holds 100% of the charter capital established or managed by the Ministry of National Defense.

4. Representatives of the State's share capital at joint-stock companies and limited liability companies with two or more members managed by the Ministry of National Defense.

5. Other agencies, units, organizations, and individuals related to the implementation of the rights and responsibilities of the representative of the owner.

Article 3. Principles for organizing the implementation of the rights and responsibilities of the representative of the owner

1. The Ministry of National Defense directly implements or assigns, decentralizes, and delegates authority to subordinate units and functional agencies to assist the Ministry of National Defense in implementing the rights and responsibilities of the State's representative of the owner.

2. Members of the Board of Directors or the Chairman of the company, representatives of the State's share capital shall implement the rights and responsibilities of the representative of the owner according to the provisions of the law, the Articles of Association of the enterprise, and the Regulations on cadre work in the Vietnam People's Army.

Chapter II

IMPLEMENTATION OF THE RIGHTS AND RESPONSIBILITIES OF THE STATE'S REPRESENTATIVE OF THE OWNER

Article 4. Representative of the owner

1. The Ministry of National Defense is the agency representing the owner for enterprises in which the State holds 100% of the charter capital and the State's share capital in enterprises established or managed by the Ministry of National Defense according to the provisions of the Law on Management and Use of State Capital Invested in Production and Business Activities in Enterprises and other relevant laws.

Subordinate units of the Ministry of National Defense: General Staff, General Departments, Military Regions, Military Services, Arms Forces, Corps, Border Guard Command, Capital Command of Hanoi implement the rights and responsibilities of the agency representing the owner according to the decentralization of the Ministry of National Defense stipulated in Article 6 of this Circular.

2. Members of the Board of Directors, the Chairman of the company are direct representatives of the owner at enterprises in which the State holds 100% of the charter capital, established or managed by the Ministry of National Defense.

3. Representatives of the State's share capital are individuals authorized in writing by the Ministry of National Defense to implement the rights and responsibilities of the State's representative of the owner towards the State's share capital in joint-stock companies and limited liability companies with two or more members.

Article 5. Rights and responsibilities of the Ministry of National Defense

1. Assist the Government and the Prime Minister in exercising the rights and responsibilities of the State's representative owner towards the Military Industry - Telecommunications Corporation according to the provisions of the Law on Management and Use of State Capital for Production and Business at Enterprises, Decree No. 10/2019/ND-CP dated January 30, 2019 of the Government on the Implementation of the Rights and Responsibilities of the State's Representative Owner (hereinafter referred to as Decree No. 10/2019/ND-CP), Decree No. 05/2018/ND-CP dated January 5, 2018 of the Government on the Charter and Operation Regulations of the Military Industry - Telecommunications Corporation, and related laws.

2. Bear responsibility for reporting to the Government and the Prime Minister the contents prescribed in Clause 2, Article 5 and Article 6 of Decree No. 10/2019/ND-CP.

3. Decide and bear responsibility for implementing the rights and responsibilities of the agency representing the State's owner as stipulated in Decree No. 10/2019/ND-CP and relevant laws concerning the objects prescribed in Clause 2, Clause 3, and Clause 4, Article 2 of this Circular.

Article 6. Rights and responsibilities of units under the Ministry of National Defense towards enterprises in which the State holds 100% of the charter capital and the State's investment capital in joint-stock companies and limited liability companies with two or more members assigned to manage

1. Propose the Ministry of National Defense to decide on matters concerning enterprises in which the State holds 100% of the charter capital, specifically:

a) Organizing restructuring, ownership transfer, dissolution, and bankruptcy proposal of enterprises; establishing, reorganizing, and dissolving branches, representative offices, and dependent units of enterprises;

b) Issuing, amending, and supplementing the Charter and Financial Regulations of enterprises;

c) Approving for the Board of Members and the Chairman of the company to decide on the strategy, production and business plans, and five-year development investment plans of enterprises;

d) Approving the charter capital of enterprises (including adjustments to the charter capital during operation);

đ) Changing the legal representative of enterprises;

e) Initiating capital contributions, increasing or decreasing capital contributions, transferring investment capital of enterprises investing in joint-stock companies and limited liability companies with two or more members; accepting enterprises voluntarily joining as subsidiaries or associated companies of the enterprise;

g) Investment projects outside enterprises with values exceeding the limits specified in Point a, Clause 4, Article 28 of the Law on Management and Use of State Capital for Production and Business at Enterprises and the enterprise's charter;

h) Investment, construction, purchase, and sale of fixed assets of enterprises with values exceeding the limits specified in Point a, Clause 1, Article 24 of the Law on Management and Use of State Capital for Production and Business at Enterprises; leasing, mortgaging, or pledging contracts of fixed assets with values exceeding the limits specified in Point a, Clause 1, Article 26 of Decree No. 91/2015/ND-CP dated October 13, 2015 of the Government on State Capital Investment and Management and Use of Capital and Assets at Enterprises (abbreviated as Decree No. 91/2015/ND-CP), amended and supplemented in Clause 9, Article 1 of Decree No. 32/2018/ND-CP dated March 8, 2018 of the Government; liquidation and sale plans of fixed assets according to Clause 2, Article 27 of Decree No. 91/2015/ND-CP and the enterprise's charter;

i) Capital-raising plans for each project with amounts exceeding the limits specified in Point a, Clause 3, Article 23 of the Law on Management and Use of State Capital for Production and Business at Enterprises and the enterprise's charter;

k) Plans for raising capital from foreign organizations and individuals as stipulated in Point b, Clause 3, Article 11 of Decree No. 10/2019/ND-CP;

l) Initiatives for overseas investments as stipulated in Clause 6, Article 11 of Decree No. 10/2019/ND-CP;

2. Appoint, reappoint, dismiss, approve resignation, terminate position, suspend duties, transfer, rotate, train, promote, demote, strip military ranks, increase pay grades, decrease pay grades, rank pay, commend, and discipline the Chairman of the Board of Members, Board of Members members, Chairman of the company, General Director, Director, Supervisor, and other management positions at enterprises in which the State holds 100% of the charter capital according to the Cadre Work Regulation in the Vietnam People's Army and relevant laws.

3. Decide on matters concerning enterprises in which the State holds 100% of the charter capital assigned to manage:

a) Approving annual production and business plans and unit construction plans of enterprises (to be sent to the Economic Department of the Ministry of National Defense, the Finance Department of the Ministry of National Defense, and the Planning and Investment Department of the Ministry of National Defense for monitoring and supervision);

b) Issuing the Operating Regulations of Supervisors at enterprises;

c) Approving the wage fund, remuneration, bonuses, and other benefits of enterprise managers; recruitment plans; managing wages, bonuses, and other benefits of workers at enterprises in which the State holds 100% of the charter capital according to the Government's regulations and guidance from the Ministry of National Defense;

d) Approving annual financial reports, profit distribution plans, and reserve fund establishment plans of enterprises upon proposals from the Board of Members or the Chairman of the company;

đ) Evaluating the performance of enterprise managers and supervisors in their management and operation duties according to their authority;

e) Implementing supervision, inspection, and evaluation of the activities of enterprises under their management according to their authority.

4. For the State's investment capital in joint-stock companies and limited liability companies with two or more members assigned to manage:

a) Proposing the Ministry of National Defense to decide within its authority on increasing capital investment, supplementary state capital investment, transferring shares, and state capital contributions in joint-stock companies and limited liability companies with two or more members; issuing the Operating Regulations of state capital representatives.

b) Propose the Ministry of National Defense to appoint, dismiss, relieve from duty, reward, discipline, determine salaries, responsibility allowances, bonuses, and other benefits for state capital representatives in accordance with the Law on Management and Use of State Capital for Production and Business Investment at Enterprises and Government regulations concerning state capital representatives holding management positions in enterprises where the State holds more than 50% of the charter capital; regarding labor, salaries, remuneration, bonuses for companies with controlling shares or contributions from the State, relevant laws, and the Cadre Work Regulation of the Vietnam People's Army;

c) Require state capital representatives to perform tasks stipulated in Article 48 of the Law on Management and Use of State Capital for Production and Business Investment at Enterprises and Clause 5 of Article 13 of Decree No. 10/2019/NĐ-CP; review and promptly provide comments to report to the Ministry of National Defense to resolve issues within the responsibilities of state capital representatives;

d) Monitor the recovery of investment capital, profits, dividends distributed from joint-stock companies, limited liability companies with two or more members;

đ) Inspect, supervise, and report to the Ministry of National Defense the results of evaluating the activities of state capital representatives;

Article 7. Responsibilities of the Economic Department/Ministry of National Defense

1. Take the lead in advising and consolidating assistance to the Ministry of National Defense in exercising rights and responsibilities of the state owner representative agency towards enterprises where the State holds 100% of the charter capital and state capital invested in enterprises established or managed by the Ministry of National Defense according to the law and this Circular;

2. Take the lead and coordinate with related agencies in advising the Ministry of National Defense to decide or submit to competent authorities for decision on major contents and policies for enterprises where the State holds 100% of the charter capital, established or managed by the Ministry of National Defense:

a) Submit to the Government for issuance, amendment, and supplementation of the Charter and salary management mechanism of the Parent Company - Military Industry and Telecommunications Group;

b) Submit to the Prime Minister for approval of restructuring plans; production and business strategies, five-year development investment plans; policies on establishing, reorganizing, and dissolving branches, representative offices, and dependent units of the Military Industry and Telecommunications Group;

c) Issue and amend the Charter;

d) Approve restructuring plans; production and business strategies, and five-year development investment plans of enterprises;

đ) Approve annual business plans; annual wage funds, remuneration funds, annual bonus funds for enterprise managers and Supervisors for enterprises directly managed by the Ministry of National Defense;

e) Decide on investment projects abroad; projects investing capital outside enterprises, including: Contributing capital to establish other enterprises; contributing capital through business cooperation contracts without forming new legal entities; purchasing shares, contributing capital to other enterprises; purchasing entire other enterprises in accordance with the Law on Management and Use of State Capital for Production and Business Investment at Enterprises, other relevant laws, and the Enterprise Charter;

g) Decide on contributing capital, increasing or decreasing capital contributions, transferring investment capital of enterprises in joint-stock companies, limited liability companies with two or more members; decide on receiving joint-stock companies, limited liability companies with two or more members as subsidiaries or associated companies of enterprises;

h) Decide on transferring investment capital of enterprises in joint-stock companies, limited liability companies with two or more members when the transfer value is lower than the book value of the enterprise after deducting loss provisions for investment capital;

i) Approve the completion level of tasks in management and operation by enterprise managers and Supervisors within the authority of the Minister of National Defense;

3. Supervise and inspect the implementation of restructuring plans; production and business strategies, five-year development investment plans; annual business plans; recruitment of labor, implementation of wage and bonus systems of enterprises; provide opinions on supervision, inspection, and audit by authorized agencies and organizations on investment, management, and use of state capital at enterprises where the State holds 100% of the charter capital;

4. Evaluate business conditions; consolidate and report on the implementation of production and business strategies, five-year development investment plans, and annual business plans of enterprises; annual wage, remuneration, and bonus funds for enterprise managers, Supervisors, and workers for enterprises where the State holds 100% of the charter capital;

5. Take the lead in advising and proposing the Ministry of National Defense to decide within its authority on matters concerning state capital invested by the Ministry of National Defense in joint-stock companies, limited liability companies with two or more members, specifically:

a) Increase capital, transfer state shares, contributions in joint-stock companies, limited liability companies with two or more members; issue the Operation Regulations of state capital representatives;

b) Require state capital representatives to perform tasks stipulated in Article 48 of the Law on Management and Use of State Capital for Production and Business Investment at Enterprises and Clause 5 of Article 13 of Decree No. 10/2019/NĐ-CP;

c) Consolidate and report on production and business situations, financial conditions, and propose solutions based on reports from state capital representatives submitted to the Ministry of National Defense; provide written comments on issues within the reporting and seeking opinion responsibilities of state capital representatives;

d) Inspect, supervise, and evaluate the activities of state capital representatives.

6. Cooperate with agencies and units to assist the Ministry of National Defense in performing other functions of the representative body of the owner for state-owned enterprises holding 100% of the charter capital and the state's share capital invested in enterprises established or managed by the Ministry of National Defense.

Article 8. Responsibilities of the Financial Department/Ministry of National Defense

1. Take the lead in advising and proposing to the Ministry of National Defense to decide or report to the competent authority to decide on matters concerning state-owned enterprises holding 100% of the charter capital established or managed by the Ministry of National Defense:

a) Issuing financial regulations in accordance with the Government's provisions on state investment in enterprises and management and use of capital in enterprises;

b) Deciding on the amount of charter capital and adjusting the charter capital of the enterprise after receiving approval from the Ministry of Finance;

c) Reviewing the documents and plans for supplementing the charter capital of the enterprise; coordinating with the Ministry of Finance to implement the supplementation of the charter capital of the enterprise according to regulations, suitable for each source of supplementary charter capital;

d) Providing capital to implement state investment in enterprises after being approved by the competent authority;

đ) Approving specific plans for raising capital in accordance with the law on management and use of state capital invested in production and business at enterprises;

e) Approving financial reports, profit distribution plans, and annual fund allocations of the enterprise;

g) Supervising, inspecting, and auditing the management, use, preservation, and development of capital; providing opinions on supervision, inspection, and auditing by other authorized agencies and organizations regarding state capital investment activities at enterprises;

h) Evaluating and classifying enterprises in accordance with the law on management and use of state capital invested in production and business at enterprises;

i) Approving and settling investment capital for completed projects.

2. Take the lead in advising and proposing to the Ministry of National Defense to decide on matters concerning the state's share capital invested in joint-stock companies and limited liability companies with two or more shareholders, specifically:

a) Coordinating with the Ministry of Finance to implement additional state investment in joint-stock companies and limited liability companies with two or more shareholders after obtaining authorization to invest additionally;

b) Monitoring the withdrawal of capital, recovery of investment capital, and receipt of profits and dividends from joint-stock companies and limited liability companies with two or more shareholders;

c) Monitoring and evaluating the effectiveness of state capital utilization, preservation, and development; proposing recommendations for handling related matters.

3. Coordinate with the Economic Department/Ministry of National Defense and other agencies and units assisting the Ministry of National Defense in performing other functions of the representative body of the owner for state-owned enterprises holding 100% of the charter capital and the state's share capital invested in enterprises established or managed by the Ministry of National Defense.

Article 9. Responsibilities of the Planning and Investment Department/Ministry of National Defense

1. Take the lead in advising and proposing to the Ministry of National Defense to decide or report to the competent authority to decide on matters concerning state-owned enterprises holding 100% of the charter capital established or managed by the Ministry of National Defense:

a) Approving investment projects, construction, purchase, and sale of fixed assets exceeding the threshold specified in point a, Clause 1, Article 24 of the Law on Management and Use of State Capital Invested in Production and Business at Enterprises, relevant laws, and the enterprise's articles of association;

b) Approving plans for liquidation, sale, and transfer of fixed assets and projects in accordance with the Law on Management and Use of State Capital Invested in Production and Business at Enterprises, relevant laws, and the enterprise's articles of association;

c) Deciding on development investment projects not delegated for investment decision-making as stipulated in Circular No. 101/2017/TT-BQP dated April 27, 2017 of the Ministry of National Defense on分级授权和委托投资决策；编制、审查和批准国防部内的投资项目。

2. Monitor, inspect investment, procurement, liquidation, sale, and transfer of fixed assets and projects; evaluate the effectiveness of investment projects of state-owned enterprises holding 100% of the charter capital.

3. Annually and at any time as required, compile and report to the Minister of National Defense on the progress and results of development investment projects of state-owned enterprises holding 100% of the charter capital.

4. Coordinate with the Economic Department/Ministry of National Defense and other agencies and units assisting the Ministry of National Defense in performing other functions of the representative body of the owner for state-owned enterprises holding 100% of the charter capital and the state's share capital invested in enterprises established or managed by the Ministry of National Defense.

Article 10. Responsibilities of the Military Forces Department/General Staff Department

1. Take the lead in reviewing, advising, and reporting to the General Staff Department for submission to the Ministry of National Defense:

a) Decisions on establishment, restructuring, ownership transfer, dissolution, and bankruptcy declaration for state-owned enterprises with 100% state capital, and limited liability companies with 100% state capital investment, which are established or managed by the Ministry of National Defense after approval by the Prime Minister of the Project Plan;

b) Decisions on establishment, restructuring, and dissolution of branches, representative offices, and dependent units of state-owned enterprises with 100% state capital, which are established or managed by the Ministry of National Defense.

2. Coordinate with the Economic Department/Ministry of National Defense and other agencies and units assisting the Ministry of National Defense to perform other functions of the state capital representative body for state-owned enterprises with 100% state capital and state capital investment in enterprises established or managed by the Ministry of National Defense.

Article 11. Responsibilities of the Cadre Department/Political Commissariat General

1. Take the lead in advising and proposing cadre work according to the Cadre Work Regulation in the Vietnam People's Army and relevant laws:

a) Planning, appointing, reappointing, dismissing, approving resignation, relieving from duty, suspending duties, transferring, rotating, training, promoting, demoting, stripping military ranks, increasing pay grades, reducing pay grades, classifying pay, rewarding, disciplining, and retirement for Chairmen of the Board of Directors, Board Members, Chairmen of Companies, General Managers, Directors, and other management positions in state-owned enterprises with 100% state capital established or managed by the Ministry of National Defense;

b) Appointing and removing state capital representatives at joint-stock companies and limited liability companies with two or more members.

2. Coordinate with the Economic Department/Ministry of National Defense and other agencies and units assisting the Ministry of National Defense to perform other functions of the state capital representative body for state-owned enterprises with 100% state capital and state capital investment in enterprises established or managed by the Ministry of National Defense.

Article 12. Rights and responsibilities of direct state capital representatives in state-owned enterprises with 100% state capital established or managed by the Ministry of National Defense

1. The Chairman of the Military Industry-Telecommunications Group implements the rights and responsibilities of the direct state capital representative as stipulated in Article 14 of Decree No. 10/2019/NĐ-CP, the Charter of the Group, relevant laws, and the Cadre Work Regulation in the Vietnam People's Army.

2. The Board of Directors and the Chairman of companies under the Ministry of National Defense propose to the Minister of National Defense:

a) Decisions on restructuring, ownership transfer, dissolution, and bankruptcy declaration for enterprises;

b) Issuing and amending the Charter; deciding and adjusting the registered capital;

c) Approving strategic plans, production and business plans, five-year development investment plans, and annual production and business plans of enterprises;

d) Deciding on the salary fund, remuneration, and bonus fund for enterprise managers and Supervisors according to regulations applicable to wholly state-owned limited liability companies;

đ) Approving funding mobilization plans, investment projects, construction, purchase, sale of fixed assets, investment projects outside the enterprise, and overseas investment projects of enterprises exceeding the authority level delegated to the Board of Directors and the Chairman of the company as stipulated by law and the enterprise's Charter;

e) Providing capital for state investment in enterprises after approval by the competent authority; deciding on the transfer of investment capital of enterprises in joint-stock companies and limited liability companies with two or more members when the transfer value is lower than the book value of the enterprise after deducting loss provisions;

g) Decide on contributing capital, increasing or decreasing capital contributions, transferring investment capital of enterprises in joint-stock companies, limited liability companies with two or more members; decide on receiving joint-stock companies, limited liability companies with two or more members as subsidiaries or associated companies of enterprises;

h) Approving financial reports, profit distribution plans, and annual reserve fund allocations of enterprises.

3. The Board of Directors and the Chairman of companies managed by subordinate units of the Ministry of National Defense report to their immediate superior management for decision-making within their authority or submit to the Minister of National Defense the contents specified in Clause 2 of this Article.

4. The Board of Directors and the Chairman of companies report and propose to the Party Committee of the enterprise for higher-level appointment, reappointment; dismissal, approval of resignation, removal from office; transfer, rotation; promotion of military rank, classification of pay, increase in pay grade, additional pay, reward, discipline; retirement for Board of Directors, Chairman of the Company, General Manager, Director, Supervisor, and other management positions according to the Cadre Work Regulation in the Vietnam People's Army and relevant laws.

5. The Board of Directors and the Chairman of companies independently decide and bear responsibility for decisions made within their authority as stipulated in the Law on Management and Use of State Capital Investment in Production and Business Activities of Enterprises, the Enterprise Law, relevant laws, the enterprise's Charter, and the Cadre Work Regulation in the Vietnam People's Army.

6. Regularly report or report promptly upon request to the Ministry of National Defense (through the Economic Department/Ministry of National Defense and superior units) on the operational status of production and business activities of the company or extraordinary events related to production and business activities and unit construction.

Article 13. Rights and responsibilities of the representative of state capital invested by the Ministry of National Defense at joint-stock companies and limited liability companies with two or more shareholders

1. The representative of state capital directly managed by the Ministry of National Defense shall report to and seek the opinion of the Ministry of National Defense before participating in discussions, voting, and making decisions at the General Meeting of Shareholders, meetings of the Board of Directors, and the Board of Members in accordance with the provisions of the law, the Charter of the enterprise, and the Cadre Work Regulations of the Vietnam People's Army on the following issues:

a) Objectives, tasks, and business sectors; restructuring, dissolution, and bankruptcy requirements for the enterprise;

b) The Charter and amendments and supplements to the Charter of the enterprise;

c) Matters related to increasing or decreasing the registered capital; timing and methods of raising capital; types of shares and total number of each type of shares that can be offered for sale; purchasing more than 10% of the total number of sold shares of each type;

d) Proposing candidates for election, recommending dismissal, removal, rewarding, and handling violations of members of the Board of Directors, Chairman of the Board of Directors, Chairman of the Board of Members, members of the Supervisory Board; proposing candidates for appointment, recommending dismissal, signing contracts, terminating contracts with the General Director (Director) of the enterprise; remuneration, salary, bonuses, and other benefits of members of the Board of Directors, members of the Board of Members, members of the Supervisory Board, General Director (Director) of the enterprise; number of members of the Board of Directors, members of the Supervisory Board, Deputy General Directors (Deputy Directors) of the enterprise;

đ) Strategic plans, production and business plans, and development investment plans;

e) Policies on capital contribution, holding, increasing, or decreasing capital of the enterprise at subsidiaries; establishing, restructuring, dissolving branches, representative offices; accepting enterprises voluntarily joining as subsidiaries or associated companies;

g) Policies on buying, selling assets, and loan contracts with values equal to or greater than 50% of the registered capital of the enterprise or another ratio smaller than that specified in the Charter of the enterprise; policies on foreign borrowing of the enterprise;

h) Financial reports, profit distribution, establishment and use of funds, annual dividend rates;

i) Recruitment systems; remuneration, salary, bonus systems of the enterprise;

k) Other matters according to the operational regulations of the state capital representative issued by the agency representing the owner and not contrary to the provisions of Article 48 of the Law on Management and Use of State Capital Invested in Production and Business Activities at Enterprises and relevant laws;

2. The representative of state capital managed by units under the Ministry of National Defense shall report to and seek the opinion of their immediate superiors on the contents stipulated in Clause 1 of this Article. Units under the Ministry of National Defense shall review, report to the Ministry of National Defense to resolve proposals and recommendations from the state capital representative.

3. Timely report to superiors about the operation of joint-stock companies and limited liability companies with two or more shareholders experiencing losses, unable to ensure payment capacity, failing to complete assigned tasks, and other violations.

4. Regularly every quarter and annually, and upon request of the agency representing the owner, the state capital representative shall compile and report on the situation of production and business operations, financial status, and propose solutions.

5. Require joint-stock companies and limited liability companies with two or more shareholders to pay into the state budget the corresponding profits and dividends distributed according to the state capital invested in the company.

6. Shall not continue to serve as a representative when failing to properly perform assigned rights and responsibilities or no longer meeting the criteria for a representative.

7. Shall bear personal responsibility before the Ministry of National Defense and the law for actions causing loss of state capital.

8. Perform other rights and responsibilities as prescribed by law and the Ministry of National Defense.

Chapter III

IMPLEMENTING PROVISIONS

Article 14. Effective Date

This Circular takes effect from December 1, 2019, replacing Circular No. 183/2013/TT-BQP dated October 9, 2013, of the Minister of National Defense on the delegation and decentralization of rights, responsibilities, and obligations of the state owner towards state-owned enterprises in the military and state capital managed by the Ministry of National Defense invested in enterprises.

Article 15. Implementation Organization

1. Functional agencies of the Ministry of National Defense shall, based on assigned tasks, coordinate with the Economic Department of the Ministry of National Defense to guide implementation, supervise, and inspect enterprises according to the division of responsibilities for the rights and responsibilities of the Ministry of National Defense.

2. Agencies and units assisting the Ministry of National Defense in performing the rights and responsibilities of the agency representing the owner according to this Circular shall have the responsibility to report and provide information to the Economic Department of the Ministry of National Defense for consolidation and reporting to the Ministry of National Defense.

3. The Inspectorate of the Ministry of National Defense shall take the lead and coordinate with the Economic Department, the Finance Department, the Planning and Investment Department, and the Legal Affairs Department of the Ministry of National Defense to submit to the Minister of National Defense for decision on the inspection plan for enterprises in compliance with the law and adherence to the regulations of the Ministry of National Defense.

4. Heads of main units under the Ministry of National Defense, members of the Board of Members, Chairmen of companies of enterprises holding 100% state capital, representatives of state capital, and related organizations and individuals are responsible for implementing this Circular.