Directive No. 27/2001/CT-TTg On the Implementation of the Conversion of State-owned Enterprises and Enterprises of Political Organizations and Political-Social Organizations into Joint Stock Companies with One Member

DIRECTIVE

Regarding the implementation of the conversion of state-owned enterprises and enterprises of political organizations and socio-political organizations,

enterprises of political organizations and socio-political organizations

thành công ty trách nhiệm hữu hạn một thành viên ||| to become a limited liability company with a single member

On September 14, 2001, the Government issued Decree No. 63/2001/NĐ-CP on the conversion of state-owned enterprises and enterprises of political organizations and socio-political organizations into Limited Liability Companies with One Member. This is a new and complex issue, involving the scope of enterprises operating in business sectors where the State, political organizations, and socio-political organizations decide to retain 100% capital. At the same time, it relates to the adjustment of authorities and obligations of many state agencies, political organizations, socio-political organizations, and enterprise management bodies. To ensure positive and solid implementation of Decree No. 63/2001/NĐ-CP, effectively addressing issues arising during and after the conversion process, the Prime Minister requests ministries, ministerial-level agencies, government-affiliated agencies, provincial people's committees under the central government, and state-owned holding companies to immediately implement the following tasks:

1. Disseminate, internalize, explain, and promote the viewpoints, policies, and objectives of the Party and the Government regarding the conversion of state-owned enterprises and enterprises of political organizations and socio-political organizations into Limited Liability Companies with One Member down to managers and workers within these enterprises.

2. Conduct classification and arrangement of state-owned enterprises according to the spirit of Resolution No. 3 of the Ninth Central Committee of the Communist Party of Vietnam; develop plans for converting state-owned enterprises engaged in business activities that require the State to hold 100% capital into Limited Liability Companies with One Member as stipulated in Decree No. 63/2001/NĐ-CP.

3. Coordinate with the Ministry of Finance, the Ministry of Labor, Invalids and Social Affairs, the Ministry of Planning and Investment, and the State Bank of Vietnam to address financial, asset, debt, labor issues of enterprises, and procedures and formalities for conversion.

4. To achieve the set requirements, it is necessary to proceed in two stages:

a) From November 2001 to December 2002:

Ministries of Industry, Construction, Transport, Agriculture and Rural Development, Trade; Hanoi City, Ho Chi Minh City; Holding Companies of Electricity, Coal, Postal and Telecommunications, Maritime, Aviation, Import-Export Construction, Import-Export Fisheries shall coordinate with the Steering Committee for Enterprise Reform and Development and the Working Group to select some state-owned enterprises with favorable conditions to pilot the conversion into Limited Liability Companies with One Member.

By the end of 2002, ministries, provincial people's committees under the central government, and state-owned holding companies with state-owned enterprises converted into Limited Liability Companies with One Member shall organize interim reviews, evaluate results, and draw lessons for the next phase.

b) From 2003 to 2005:

After conducting interim reviews and drawing lessons from the 2001-2002 period, ministries, ministerial-level agencies, government-affiliated agencies, provincial people's committees under the central government, and state-owned holding companies must complete the conversion of enterprises by the end of 2005 in accordance with the progress of reform and restructuring of state-owned enterprises.

5. Specific tasks of some ministries and state agencies are as follows:

a) The Ministry of Planning and Investment shall guide registration procedures for Limited Liability Companies with One Member.

b) The Ministry of Finance shall guide financial issues during and after the conversion process.

c) The Ministry of Labor, Invalids and Social Affairs shall guide labor and wage issues for workers.

d) The Civil Service Department of the Government, in coordination with the Ministry of Labor, Invalids and Social Affairs, shall guide labor and wage policies for positions appointed in Limited Liability Companies with One Member converted from enterprises with 100% state capital.

The issuance of guiding documents mentioned above must be completed before December 31, 2001.

6. The Working Group implementing the conversion of state-owned enterprises and enterprises of political organizations and socio-political organizations into Limited Liability Companies with One Member shall be responsible for coordinating and urging relevant agencies to issue guiding documents for the implementation of Decree No. 63/2001/NĐ-CP according to the tasks assigned in Point 5 of this Directive.

Ministers, heads of ministerial-level agencies, heads of government-affiliated agencies, chairmen of provincial people's committees under the central government, and boards of directors of state-owned holding companies are responsible for regularly reporting quarterly plans, programs, and results of converting state-owned enterprises and enterprises of political organizations and socio-political organizations into Limited Liability Companies with One Member to the Ministry of Planning and Investment, the Steering Committee for Enterprise Reform and Development, and the Working Group for consolidation and submission to the Prime Minister.

The Minister of Planning and Investment and the Head of the Working Group implementing the conversion of state-owned enterprises and enterprises of political organizations and socio-political organizations into Limited Liability Companies with One Member shall be responsible for monitoring the implementation of this Directive.