Decision No. 40/2001/QD-BCN on transferring the Viet Hung Garment Workshop under the Viet Tien Garment Corporation into the Viet Hung Joint Stock Company.

DECISION OF THE MINISTER OF INDUSTRY

Regarding the transfer of the Việt Hưng Garment Workshop under Việt Tiến Garment Company to Việt Hưng Joint Stock Company

Pursuant to the Government Decree No. 44/1998/NĐ-CP dated June 29, 1998 on the conversion of state-owned enterprises into joint stock companies;

THE MINISTER OF INDUSTRY

Pursuant to the Government Decree No. 74/CP dated November 1, 1995 on the functions, tasks, powers, and organizational structure of the Ministry of Industry;

Considering the proposal of the Vietnam Textile - Garment Corporation (Proposal No. 972/TTr-HĐQT dated August 10, 2001), the Plan for the Conversion of the Việt Hưng Garment Workshop under Việt Tiến Garment Company into Việt Hưng Joint Stock Company, and the Minutes of the Evaluation Meeting on the Plan dated August 21, 2001 of the Ministry of Industry's Enterprise Reform and Development Board;

Upon the recommendation of the Ministry of Industry's Enterprise Reform and Development Board and the Director of the Personnel and Organization Department,

Approves the plan for the conversion of the Việt Hưng Garment Workshop under Việt Tiến Garment Company (a member enterprise of the Vietnam Textile - Garment Corporation) into Việt Hưng Joint Stock Company, including the following main points:  

DECISION: 

Article 1. 1. Charter capital structure. The charter capital of the joint stock company is: 13,000,000,000 VND (thirteen billion VND), of which: State shareholding ratio: 26.00%, Employee shareholding ratio within the enterprise: 33.92%, Shareholding ratio sold to other entities outside the enterprise: 40.08%. Value of one share: 100,000 VND.

2. The actual value of the Việt Hưng Garment Workshop under Việt Tiến Garment Company (Decision No. 508/QĐ-HĐQT dated August 1, 2001 of the Chairman of the Board of Directors of the Vietnam Textile - Garment Corporation) at the time of 00:00 on March 31, 2001 for the purpose of conversion into shares is: 5,162,846,660 VND, of which: the actual value of the state capital portion in the workshop is: 4,616,194,250 VND.

3. A total of 26,440 preferential shares will be sold to 490 employees of the Việt Hưng Garment Workshop under Việt Tiến Garment Company with a preferential value of 793,200,000 VND.

Approves the proposal of the Vietnam Textile - Garment Corporation, allowing the use of part of the proceeds from the sale of state-owned shares of the Việt Hưng Garment Workshop under Việt Tiến Garment Company for the costs of share conversion and retraining of employees. Việt Tiến Garment Company shall follow the prescribed procedures, report to the Vietnam Textile - Garment Corporation for review and decision in accordance with state regulations.

Transfer the Việt Hưng Garment Workshop under Việt Tiến Garment Company to Việt Hưng Joint Stock Company from October 1, 2001,

Article 2. Name in Vietnamese: Việt Hưng Joint Stock Company, Name in English: VIETHUNG JOINT-STOCK COMPANY, Abbreviation: VHC, Head office located at: Trung My Tay Ward, National Highway 22, District 12, Ho Chi Minh City.

Việt Hưng Joint Stock Company engages in the following business activities (at the time of conversion to a joint stock company):

Article 3. Production and trading of garment products, Direct import and export, Other appropriate business activities in accordance with the law.

Việt Hưng Joint Stock Company is a legal entity under Vietnamese law, operates according to its registration certificate, maintains independent economic accounting, uses its own seal, opens bank accounts in accordance with the law, and operates in accordance with the Company's Articles of Association and the Enterprise Law.

Article 4. The Vietnam Textile - Garment Corporation is responsible for directing Việt Tiến Garment Company and the Việt Hưng Garment Workshop to organize the Founding Shareholders' Meeting.

Article 5. The General Director and Chief Accountant of Việt Tiến Garment Company are responsible for managing the operations of the Việt Hưng Garment Workshop until it is handed over to the Board of Directors and General Manager of Việt Hưng Joint Stock Company.

This Decision takes effect fifteen days after the date of signature. Any previous decisions that conflict with this Decision are hereby repealed.

Article 6. The Head of the Ministry's Office, the Inspector General, the Heads of Departments and Bureaus under the Ministry, the Chairman of the Board of Directors and General Director of the Vietnam Textile - Garment Corporation, the General Director of Việt Tiến Garment Company, the Chairman of the Board of Directors and General Manager of Việt Hưng Joint Stock Company are responsible for implementing this Decision./.

The Head of the Ministry’s Office, the Inspector General of the Ministry, the Heads of Departments under the Ministry, the Chairman of the Board of Directors and the General Director of the Vietnam Textile and Garment Corporation, the General Director of Viet Tien Garment Joint Stock Company, the Chairman of the Board of Directors and the Director of Viet Hung Joint Stock Company are responsible for implementing this Decision./.