Decision No. 27/2006/QĐ-BCN On the establishment of the Parent Company - Vietnam Electricity Equipment Joint Stock Corporation

Pursuant to …;

Regarding the establishment of the Parent Company - Vietnam Electrical Equipment Corporation

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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. 153/2004/NĐ-CP dated August 9, 2004 of the Government on the organization, management of state-owned holding corporations and the transformation of state-owned holding corporations and independent state-owned companies into parent company - subsidiary models;

Pursuant to Decision No. 127/2006/QĐ-TTg dated May 31, 2006 of the Prime Minister approving the project to transform the Vietnam Technical Electrical Equipment Corporation into an organization and operation model of parent company - subsidiary and pilot the Board of Directors of the corporation signing contracts with the General Director;

Considering the proposal of the Board of Directors of the Vietnam Technical Electrical Equipment Corporation (Proposal No. 08/VEC/TTr-HĐQT dated April 5, 2006);

At the suggestion of the Head of the Personnel and Cadres Department,

DECISION:

Article 1. Establish the Parent Company - Vietnam Electrical Equipment Corporation based on restructuring the Office of the Vietnam Technical Electrical Equipment Corporation and the State-owned Joint Stock Limited Company for Electrical Measurement Equipment.

1. The Parent Company - Vietnam Electrical Equipment Corporation is a state-owned enterprise, having its own legal personality, seal, emblem, charter of organization and operation, bank accounts at the State Treasury and banks; directly implementing production and business activities and investing capital in subsidiaries and associated companies; responsible for preserving and developing state capital within the company and in subsidiaries and associated companies; responsible for inheriting all legal rights, obligations, and legitimate interests of the Vietnam Technical Electrical Equipment Corporation.

2. The parent company has:

a) Name: Vietnam Electrical Equipment Corporation;

b) International trade name: VIET NAM ELECTRICAL EQUIPMENT CORPORATION;

c) Abbreviation: VEC;

d) Product brand name: EMIC

e) Main office: No. 41 Hai Ba Trung Street, Hoan Kiem District, Hanoi City;

f) Registered capital: 500,442 billion VND (Five hundred billion, four hundred forty-two million VND).

3. The management structure of the parent company includes: Board of Directors, Supervisory Board, General Director, Deputy General Directors, Chief Accountant, and supporting staff.

4. The main business of the parent company:

a) Trading and importing/exporting industrial and household electrical equipment, materials, and spare parts;

b) Designing, manufacturing, trading, and repairing single-phase, three-phase (with direct current and alternating current) electrical measuring devices at low, medium, and high voltage levels;

c) Consulting, designing, and constructing electrical installation projects, industrial and residential construction projects;

d) Real estate trading, hotel services, tourism, and office leasing;

e) Engaging in other businesses as prescribed by law.

Article 2. Subsidiaries are joint stock limited companies with controlling stakes, organized and operated according to the relevant laws corresponding to each company's legal form, including:

1. Vietnam-Hungary State-owned Joint Stock Limited Company for Electrical Machine Manufacturing.

2. State-owned Joint Stock Limited Company for Electrical Equipment.

3. State-owned Joint Stock Limited Company for Electrical Wire and Cable.

4. State-owned Joint Stock Limited Company for Electrical Machinery Manufacturing - Hanoi.

5. Material and Construction Company.

6. Electric Instrument Joint Stock Company No. 1.

7. Hanoi Transformer Manufacturing and Electrical Materials Joint Stock Company.

Article 3. The Board of Directors of the Vietnam Electrical Equipment Corporation shall be responsible for:

1. Drafting the Charter of Organization and Operation of the Parent Company and the Pilot Regulation of the Board of Directors signing contracts with the General Director at the Parent Company to submit to the Minister of Industry for approval;

2. Drafting the Financial Regulations of the Parent Company to submit to the Minister of Finance for approval;

3. Directing the drafting of plans for the shareholding transformation of subsidiaries to submit to the Minister of Industry for decision in accordance with the timeline specified in Decision No. 127/2006/QĐ-TTg dated May 31, 2006 of the Prime Minister to transform the entire corporation into a shareholding corporation at an appropriate time, specifically:

a) In 2006-2007, convert to joint stock companies:

- Vietnam-Hungary State-owned Joint Stock Limited Company for Electrical Machine Manufacturing.

- State-owned Joint Stock Limited Company for Electrical Equipment.

- State-owned Joint Stock Limited Company for Electrical Wire and Cable.

- Material and Construction Company.

b) In 2008-2009, convert to joint stock companies:

- State-owned Joint Stock Limited Company for Electrical Machinery Manufacturing - Hanoi.

Article 4. This Decision takes effect fifteen days after its publication in the Official Gazette.

The Heads of the Ministry’s Office, Inspectorate, Departments, and Bureaus, the Board of Directors, General Director of the Vietnam Technical Electrical Equipment Corporation, the Board of Directors, General Director of the Vietnam Electrical Equipment Corporation, the Board of Directors, and General Director of the State-owned Joint Stock Limited Company for Electrical Measurement Equipment, and the Heads of related units are responsible for implementing this Decision./.