Decree No. 86/2006/ND-CP Amending and Supplementing Certain Articles of Decree No. 132/2005/ND-CP dated October 20, 2005 of the Government on the Implementation of Rights and Obligations of State Owners towards State-owned Enterprises

DECREE

Amending and supplementing certain articles of Decree No. 132/2005/NĐ-CP dated October 20, 2005 of the Government on the implementation of rights and obligations of state owners towards state-owned companies

___________________

THE GOVERNMENT

Pursuant to the Law on Organization of the Government dated December 25, 2001;

Pursuant to the State-Owned Enterprise Law promulgated on November 26, 2003;

Considering the proposal of the Minister of Planning and Investment.

DECREE:

Article 1.||| Amending and supplementing certain articles of Decree No. 132/2005/NĐ-CP dated October 20, 2005 of the Government on the implementation of rights and obligations of state owners towards state-owned companies, specifically as follows:

1. Amend and supplement Point d Clause 2 Article 5 as follows:

"d) Deciding the restructuring, dissolution, and ownership conversion of particularly important state-owned companies listed in the appendix attached to this Decree upon the proposal of the Board of Directors and the opinion of the Ministry managing the sector, the Ministry of Finance, and the Ministry of Planning and Investment."

2. Amending and supplementing Clause 1 of Article 6 as follows:

"1. The Prime Minister approves the objectives, strategies, long-term plans, and business sectors of particularly important state-owned companies listed in the appendix attached to this Decree upon the proposal of the Board of Directors and the opinion of the Ministry managing the sector and the Ministry of Planning and Investment; approves the objectives and strategies of Vietnam Oil and Gas Corporation and Vietnam Pharmaceutical Corporation upon the proposal of the Ministry managing the sector and the opinion of the Ministry of Planning and Investment.

The Minister managing the sector shall direct the implementation and monitor the execution of the approved objectives, strategies, and long-term plans."

3. Amend and supplement Clause 1 and Clause 2 of Article 7 as follows:

"1. The Prime Minister approves the Articles of Association, and approves amendments and supplements to the Articles of Association of particularly important state-owned companies listed in the appendix attached to this Decree upon the proposal of the Board of Directors and the opinions of the Ministry managing the sector, the Ministry of Finance, and the Ministry of Planning and Investment.

Depending on specific circumstances, the Prime Minister may delegate the Minister managing the sector to approve amendments and supplements to the Articles of Association of state-owned companies as stipulated in this clause.

2. Ministries and People's Committees of provinces shall approve the Articles of Association, and approve amendments and supplements to the Articles of Association of state-owned companies established by themselves and those established by the Prime Minister not falling under the provisions of Clause 1 of this Article."

4. Supplementing the end of Clause 1, Article 8 as follows:

"1. Depending on specific circumstances, the Prime Minister may delegate the Minister of Finance to decide on capital investment to form the registered capital and adjust the registered capital during operation for state-owned companies established by the Prime Minister upon the proposal of the Board of Directors and the opinion of the Ministry managing the sector."

5. Amend and supplement Clause 1 of Article 11 as follows:

"1. The Prime Minister:

a) Decides on the appointment, dismissal, removal, commendation, and disciplinary action against the Chairman and members of the Board of Directors of particularly important state-owned companies listed in the appendix attached to this Decree upon the proposal of the Ministry managing the sector and the assessment of the Ministry of Home Affairs.

The Ministry managing the sector is responsible for implementing the procedures, standards, qualities, and capabilities of cadres proposed for appointment to the Prime Minister.

The Ministry of Home Affairs shall review the implementation of the procedures, standards, and conditions for cadre appointments proposed by the Ministry managing the sector to the Prime Minister.

b) Approves the Board of Directors' decision to appoint, dismiss, enter into contracts, commend, and discipline General Managers of state-owned companies mentioned in sub-clause a of this clause upon the proposal of the Board of Directors and the assessment of the Ministry managing the sector.

c) Approves the Minister managing the sector's decision to appoint, dismiss, commend, and discipline General Managers (Directors) of state-owned companies without a Board of Directors established by the Prime Minister."

6. Supplementing the end of Clause 2, Article 12 as follows:

"The Prime Minister delegates the Minister managing the sector to decide on salaries, salary increments, and allowances for the Chairman and members of the Board of Directors of particularly important state-owned companies listed in the appendix attached to this Decree."

Article 2. Effective Date

This Decree takes effect 15 days after its publication in the Official Gazette. Abolishing the mechanism stipulated in Article 24 of Decree No. 49/2000/NĐ-CP dated September 12, 2000 of the Government on the organization and operation of commercial banks and other previous regulations that conflict with this Decree.

Article 3.Implementation

Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairmen of provincial People's Committees, municipal People's Committees directly under the Central Government, and Boards of Directors of state-owned companies listed in the appendix attached to this Decree are responsible for implementing this Decree./.