Directive No. 272/TTg on promptly completing the organization and restructuring of industrial unions and state corporations

DIRECTIVE

ON URGENCY TO COMPLETE THE ORGANIZATION AND REORGANIZATION OF ENTERPRISE GROUPS AND HOLDING COMPANIES

On March 7, 1994, the Prime Minister issued Decisions No. 90/TTg and No. 91/TTg on continuing to reorganize state-owned enterprises and piloting the establishment of some holding companies under the business group model. However, the implementation over the past more than one year has been too slow, failing to meet the prescribed time schedule. To urgently complete the organization and reorganization of enterprise groups and holding companies (hereinafter referred to as holding companies), the Prime Minister instructs ministries, sectors, and People's Committees of provinces and centrally-administered cities to carry out the following tasks:

I.  ON REORGANIZING AND RESTRUCTURING CURRENT HOLDING COMPANIES:

1. Ministries, sectors, and People's Committees of provinces and centrally-administered cities need to quickly complete the overall plan for the restructuring of holding companies under their management and submit it to the Prime Minister for approval before May 31, 1995. This plan must be simultaneously sent to the State Planning Committee and the Central Steering Committee for Enterprise Renewal for review prior to the Prime Minister's decision to approve.

The overall plan must carefully consider the holding companies that need to be restructured again and present measures to resolve all holding companies that do not meet the conditions for restructuring.

a) For holding companies that need to be restructured again: There must be a proposal for each holding company, clearly stating the objective necessity to restructure again, meeting the capital condition of not less than 100 billion VND, having at least five member units, and obtaining the agreement of the member units to join the holding company.

b) For holding companies that do not meet the conditions for restructuring again: Clearly state the handling methods already, currently, and will be carried out for each holding company.

2. Ministries, sectors, and People's Committees of provinces and centrally-administered cities shall implement based on the plan approved by the Prime Minister, ensuring the following schedule:

a) Complete the establishment of holding companies before August 31, 1995.

To ensure this schedule, the Prime Minister authorizes the heads of agencies proposing the restructuring of holding companies to issue decisions on restructuring holding companies, select and decide on the appointment of members of the Board of Directors (including Chairman and General Director) and approve the Charter of organization and operation of the holding company.

b) Resolve all holding companies that do not meet the conditions for restructuring again before September 30, 1995.

II. ON PILOTING THE ESTABLISHMENT OF HOLDING COMPANIES UNDER THE BUSINESS GROUP MODEL:

1. To ensure that the holding companies piloted under the business group model established in this round enter into operation no later than July 1, 1995 (including the holding companies: Electricity, Coal, Steel, Oil and Gas, Cement, Maritime, Civil Aviation, Postal and Telecommunications, Rubber, Coffee, Foodstuffs, Textile-Fashion, Paper, Tobacco), relevant ministries and sectors need to carry out the following tasks:

a) Ministers managing these holding companies need to urgently submit to the Prime Minister for signing the Decision to establish the holding company, appointing the Board of Directors (including Chairman and General Director) of the holding company before May 20, 1995.

b) The State Planning Committee shall base on the contents of the Law on State-Owned Enterprises adopted by the National Assembly on April 20, 1995 to urgently draft a model Charter on the organization and operation of state-owned holding companies and submit it to the Prime Minister for issuance before May 30, 1995.

c) The Boards of Directors of holding companies shall base on the model Charter to draft the Charter on the organization and operation of their holding companies and submit it to the Prime Minister for issuance before June 30, 1995.

2. Ministers of important economic and technical sectors should consider and select from among the holding companies with conditions for restructuring to propose to the Prime Minister for consideration the establishment of a few additional holding companies under the business group model in the next round. This proposal can be included in the overall plan for the restructuring of holding companies mentioned in point 1, Section I of this Directive.

The above are urgent tasks that need to be carried out to ensure the early completion of the organization and reorganization of state-owned holding companies, creating conditions for holding companies to quickly stabilize their organization and operate effectively. The Prime Minister requests ministers, heads of ministerial-level agencies, heads of government agencies, and Chairmen of People's Committees of provinces and centrally-administered cities to strictly implement this Directive. During the implementation process, if new issues arise, they must promptly report to the Prime Minister for guidance on resolution.