Circular No. 205/2014/TT-BTC amends and supplements certain Articles of Circular No. 127/2012/TT-BTC dated August 8, 2012, of the Ministry of Finance guiding standards, conditions, and procedures for recognizing organizations providing enterprise valuation services.

CIRCULAR

Amending and supplementing certain Articles of Circular No. 127/2012/TT-BTC dated August 8, 2012 of the Ministry of Finance guiding standards, conditions, and procedures for recognizing organizations providing enterprise valuation services.

Pursuant to Decree No. 59/2011/NĐ-CP dated July 18, 2011 of the Government on converting state-owned enterprises with 100% state capital into joint-stock companies;

Pursuant to Decree No. 189/2013/NĐ-CP dated November 20, 2013 amending and supplementing certain Articles of Decree No. 59/2011/NĐ-CP of the Government on converting state-owned enterprises with 100% state capital into joint-stock companies;

_____________________ 

Based on Decree No. 215/2013/ND-CP dated December 23, 2013 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Decree No. 89/2013/NĐ-CP dated August 6, 2013 of the Government detailing implementation of certain provisions of the Price Law on appraisal;

The Minister of Finance hereby issues this Circular amending and supplementing certain Articles of Circular No. 127/2012/TT-BTC dated August 8, 2012 guiding standards, conditions, and procedures for recognizing organizations providing enterprise valuation services.

Article 1. Amending and supplementing certain Articles of Circular No. 127/2012/TT-BTC dated August 8, 2012 of the Ministry of Finance guiding standards, conditions, and procedures for recognizing organizations providing enterprise valuation services (hereinafter referred to as Circular No. 127/2012/TT-BTC) as follows:

At the proposal of the Director of the Department of Financial Affairs of Banks and Financial Institutions,

1. Amending Point b Clause 1 Article 3 as follows:

"b) Having a business valuation process consistent with Decree No. 59/2011/NĐ-CP of the Government on converting state-owned enterprises with 100% state capital into joint-stock companies, Decree No. 189/2013/NĐ-CP amending and supplementing certain Articles of Decree No. 59/2011/NĐ-CP of the Government on converting state-owned enterprises with 100% state capital into joint-stock companies, related guiding documents, and any subsequent amendments and supplements;"

2. Amending Point d Clause 1 Article 3 as follows:

"d) Having at least three (03) appraisers who have been issued an appraisal card by the Ministry of Finance; Appraisers must be employees under an indefinite-term labor contract or a definite-term labor contract as stipulated in Point a and Point b Clause 1 Article 22 of the Labor Code No. 10/2012/QH13 with the valuation consulting organization;"

3. Amending Clause 4 Article 6 as follows:

"4. Valuation consulting organizations that fail to meet the requirements set forth in Clause 1 of this Article shall be handled as follows:

a) Being removed from the list of valuation consulting organizations when failing to meet the requirements set forth in Point a Clause 1 of this Article. If these organizations satisfy all the standards and conditions set forth in Points a, b, d, đ, and e Clause 1 of this Circular, they may re-register to become valuation consulting organizations in accordance with this Circular;

b) Being removed from the list of valuation consulting organizations when failing to meet the requirements set forth in Point b Clause 1 of this Article due to incomplete or late submission of annual reports. These organizations may re-register to become valuation consulting organizations in the following year if they meet the conditions set forth in this Circular;
c) Being removed from the list of valuation consulting organizations when failing to meet the requirements set forth in Point b Clause 1 of this Article due to non-submission of annual reports. These organizations may re-register to become valuation consulting organizations after a period of three (03) years if they meet the conditions set forth in this Circular."
4. Amending Clause 1 Article 7 as follows:

"1. Valuation consulting organizations shall automatically be removed from the list of valuation consulting organizations recognized by the Ministry of Finance in the following cases:

a) Revocation of the business license;

b) Bankruptcy or dissolution;
c) Change in business activities and no longer having the function of business activities as stipulated in Point a Clause 1 of this Circular;
d) Implementation of division, separation, merger, consolidation, or conversion without meeting the standards of valuation consulting organizations as stipulated in Points a, b, d, and đ Clause 1 of this Circular after such actions;
đ) Engaging in violations of laws with criminal indications as concluded by competent state authorities through inspection or audit;
e) During the period of suspension of business operations upon request of the business registration authority or other competent state authorities when the enterprise no longer meets the legal conditions."
5. Amending Point b Clause 1 Article 9 as follows:

"b) Content of the report shall be prepared according to the model of the annual activity report of the valuation consulting organization attached as Appendix 5 to this Circular, including the following main contents:

- Compliance with the standards and conditions of valuation consulting organizations as stipulated in Points a, b, d, đ, and e Clause 1 of this Circular;

- Situation and results of activities related to enterprise valuation consultancy during the reporting period;

- Comments of the authority deciding the privatization plan or the Privatization Steering Committee regarding the quality of consultancy services as stipulated in Article 11 of this Circular."

6. Amending Clause 4 Article 11 as follows:

"4. Provide written comments on the quality of services provided by the valuation consulting organization for each enterprise valuation consultancy contract within twenty (20) days after the contract ends, using the form attached as Appendix 4 to this Circular."

7. Amending Appendix 1 "Model Application Form for Becoming a Valuation Consulting Organization," Appendix 2 "List of Service Contracts Within the Scope of Business License," and Appendix 4 "Situation of Enterprise Valuation Consultancy Services Used by Affiliated Enterprises Undergoing Privatization" issued together with Circular No. 127/2012/TT-BTC to corresponding Appendices issued together with this Circular.

8. Supplementing Appendix 5 specifying the model of the Annual Activity Report of the Valuation Consulting Organization.

1. This Circular takes effect from February 9, 2015.

8. Add Appendix 5 providing the template for the Report on the results of the activities of appraisal consulting organizations.

Article 2. Effective Date

1. This Circular takes effect from February 9, 2015.

2. Enterprises removed from the list of appraisal consulting organizations due to non-compliance with the provisions at point b Clause 1 Article 6 Circular 127/2012/TT-BTC before this Circular takes effect are permitted to re-register to become appraisal consulting organizations prior to February 28, 2015. Based on the provisions of Circular 127/2012/TT-BTC and this Circular, the Ministry of Finance will announce the supplementary List of appraisal consulting organizations providing services to determine the value of shareholding enterprises for the year 2015 before March 31, 2015.

3. During the implementation process, if there are difficulties or obstacles, appraisal consulting organizations and related units shall promptly report to the Ministry of Finance for specific guidance./.