Decision No. 200/2003/QĐ-BCN on the conversion of Gia Lam Textile Machinery Company to Gia Lam Textile Machinery Joint Stock Company

Pursuant to …;

Regarding the conversion of Gia Lam Sewing Machinery Company into Gia Lam Sewing Machinery 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 Vietnam Textile and Garment Corporation (Memorandum No. 2189 TTr/HĐQT dated November 14, 2003), the privatization plan for Gia Lam Sewing Machinery Company, and the appraisal report of the Enterprise Reform and Development Board of the Ministry dated November 19, 2003;

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

Pursuant to …;

Article 1. Approving the privatization plan for Gia Lam Sewing Machinery Company (a subsidiary enterprise under independent accounting of Vietnam Textile and Garment Corporation) as follows:

1. Capital structure:

The charter capital of the joint stock company is 6,900,000,000 VND (Six billion nine hundred million VND). Among which:

- Shareholding ratio sold outside the company: 10.04%.

- The proportion of shares sold to employees of the company: 49.00%;

The value of one share: 100,000 VND.

2. The actual value of Gia Lam Sewing Machinery Company at the time of December 31, 2002 for privatization (Decision No. 2798/QĐ-TCKT dated October 28, 2003 of the Ministry of Industry) is 19,493,507,976 VND. Among this, the actual value of the State-owned capital in the company is 6,897,588,869 VND.

3. Preferential treatment for employees of the Company.

The total number of preferential shares sold to 139 employees in the company is 30,515 shares with a preferential value of 915,450,000 VND.

4. Regarding the privatization costs and the resolution of surplus labor, the company shall process and report to Vietnam Textile and Garment Corporation and relevant state authorities for approval according to current regulations.

Article 2. Convert Gia Lam Sewing Machinery Company into Gia Lam Sewing Machinery Joint Stock Company,

- International trade name: GIALAM SEWING MACHINE JOINT STOCK COMPANY, abbreviated name: CKM;

- Main office: No. 104 Vu Xuan Thieu Street, Sai Dong Town, Gia Lam District, Hanoi City.

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

- Production, business, and import-export of various raw materials, equipment, and spare parts for the textile and garment industry, leather and footwear;

- Design and installation of technological and electrical equipment, cooling equipment for industrial and civil construction projects;

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

Article 4. Gia Lam Sewing Machinery Joint Stock Company is a legal entity under Vietnamese law from the date of registration for business operations, conducting independent economic accounting, using its own seal, opening bank accounts in accordance with the law, operating in accordance with the Company's Charter and the Law on Enterprises.

Article 5. Vietnam Textile and Garment Corporation is responsible for directing Gia Lam Sewing Machinery Company to organize the sale of shares and to organize the first General Meeting of Shareholders of the joint stock company in accordance with current regulations.

The Director and Chief Accountant of Gia Lam Sewing Machinery Company are responsible for managing the company's operations until the transfer of all capital, assets, labor, and land to the Board of Directors and General Manager of Gia Lam Sewing Machinery Joint Stock Company.

Article 6. This Decision takes effect fifteen days from the date of publication in the Official Gazette.

The Head of the Ministry’s Office, the Inspector General of the Ministry, the Heads of Departments and Bureaus under the Ministry, the Chairman of the Board of Directors, and the General Director of Vietnam Textile and Garment Corporation, the Director of Gia Lam Sewing Machinery Company, and the Chairman of the Board of Directors and the General Manager of Gia Lam Sewing Machinery Joint Stock Company are responsible for implementing this Decision./.