Decision No. 247/2003/QĐ-BCN on the conversion of Gas Tools Electric Company 1 to Gas Tools Electric Joint Stock Company 1

DECISION OF THE MINISTER OF INDUSTRY

Regarding the transformation of Gas Tools Company 1 into Gas Tools Joint Stock Company 1

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 the General Corporation of Electrical Engineering Equipment (Proposal No. 280/TT-HĐQT dated December 18, 2003), the privatization plan for Gas Tools Company 1, and the verification report on the plan by the Enterprise Reform and Development Board of the Ministry dated December 19, 2003;

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

DECISION:

Article 1. Approves the privatization plan for Gas Tools Company 1 (an independent accounting member enterprise of the General Corporation of Electrical Engineering Equipment) which includes the following main points:

1. Capital structure:

The charter capital of the joint stock company is 11,000,000,000 VND (Eleven billion VND). Of this amount:

State shareholding ratio: 51.04%;

Shareholding ratio sold to employees of the company: 48.96%.

Value of one share: 100,000 VND.

2. The actual value of Gas Tools Company 1 at the time of privatization on April 30, 2003 (Decision No. 2627/QĐ-TCKT dated October 13, 2003 of the Ministry of Industry) is 17,359,845,274 VND. Among this, the actual value of the state capital in the company is 9,102,657,226 VND.

3. Preferential treatment for employees of the Company.

The total number of preferential shares sold to 683 employees of the company is 53,857 shares with a preferential value of 1,615,710,000 VND. Among these, the number of preferential shares sold on credit to six poor employees is 650 shares, valued at 45,500,000 VND.

4. Regarding the privatization costs, retraining of employees, and surplus labor resolution, the company will process and report to the General Corporation of Electrical Engineering Equipment and relevant state agencies for approval according to current regulations.

Article 2. Transform Gas Tools Company 1 into Gas Tools Joint Stock Company 1,

International trading name: ELECTRICAL DEVICES JOINT STOCK COMPANY No 1, abbreviated name: VINAKIP;

Main office: Xuân Khanh ward, Sơn Tây town, Hà Tây province.

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

Production and business of high voltage, medium voltage, and low voltage circuit breakers, control devices, lighting equipment, and electrical protection devices;

Installation of power transmission lines up to 35 kV; construction and installation of infrastructure;

Import and export of electrical materials and equipment;

Business of various types of electrical materials and equipment serving production and business activities of the company;

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

Article 4. Gas Tools Joint Stock Company 1 is a legal entity under Vietnamese law from the date of registration for business operation, independently accounting for economic activities, using its own seal, opening bank accounts in accordance with the law, operating according to the Company's Articles of Association and the Law on Enterprises.

Article 5. The General Corporation of Electrical Engineering Equipment is responsible for directing Gas Tools Company 1 to organize the sale of shares and to organize the first shareholders' meeting of the joint stock company in accordance with current regulations.

The Director and Chief Accountant of Gas Tools Company 1 are responsible for managing the company's operations until the transfer of all capital, assets, employees, and land to the Board of Directors and General Manager of the joint stock company.

Article 6. This Decision takes effect fifteen days after its 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, the General Director of the General Corporation of Electrical Engineering Equipment, the Director of Gas Tools Company 1, and the Chairman of the Board of Directors and the General Director of Gas Tools Joint Stock Company 1 are responsible for implementing this Decision./.