Decision No. 94/2004/QĐ-BCN On the conversion of Hung Yen Textile Company into Hung Yen Textile Joint Stock Company

DECISION OF THE MINISTER OF INDUSTRY

Regarding the conversion of Hung Yen Garment Company

into Hung Yen Garment Joint Stock Company

 _____________________

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. 64/2002/NĐ-CP dated June 19, 2002 of the Government on the conversion of state-owned enterprises into joint-stock companies;

Considering the proposal of Vietnam Textile - Garment Corporation (Report No. 1614 TTr/HĐQT dated August 26, 2004), the Privatization Plan of Hung Yen Garment Company and the Appraisal Report of the Plan by the Department for Enterprise Reform and Development on August 27, 2004;

At the proposal of the Enterprise Reform and Development Board and the Director of the Personnel and Organization Department,

DECISION:

Article 1. Approves the Privatization Plan of Hung Yen Garment Company (a subsidiary under independent accounting of Vietnam Textile - Garment Corporation) including the following main points:

1. Capital structure:

The charter capital of the joint stock company is 13,500,000,000 VND (thirteen billion five hundred million VND). Of which:

- State shareholding ratio: 51.00%;

- The proportion of shares sold to employees of the company: 49.00%;

Value of one share: 100,000 VND.

2. The actual value of Hung Yen Garment Company at the time of December 31, 2003 for privatization (Decision No. 2025/QĐ-TCKT dated August 2, 2004 of the Ministry of Industry) is 94,310,299,536 VND. Among this, the actual value of the State's capital in the company is 9,630,101,925 VND.

3. Preferential treatment for employees of the Company.

The total number of preferential shares sold to 2,942 employees in the company is 66,150 shares with a preferential value of 1,984,500,000 VND.

4. Regarding privatization costs, retraining, and surplus labor resolution, the company shall process and report to Vietnam Textile - Garment Corporation and relevant state authorities for approval according to current regulations.

Article 2. Convert Hung Yen Garment Company into Hung Yen Garment Joint Stock Company,

International trade name: HUNG YEN GARMENT JOINT STOCK COMPANY;

Abbreviation: HUGACO;

Main office address: No. 83 Trung Trac Street, Minh Khai Ward, Hung Yen Town, Hung Yen Province.

Article 3. The joint stock company engages in the following business activities:

Producing various types of textile products;

Direct import and export;

Short-term industrial cutting and sewing training services; construction and operation of rental housing; laundry, printing, embroidery, and packaging production; transportation business;

Trading in raw materials and accessories for garments;

Engaging in other business activities as prescribed by law.

Article 4. Hung Yen Garment Joint Stock Company is a legal entity under Vietnamese law from the date of registration for business, independently accounting for economic activities, using its own seal, opening bank accounts according to legal provisions, operating according to the Company's Charter and the Law on Enterprises.

Article 5. Vietnam Textile - Garment Corporation is responsible for directing Hung Yen Garment Company to organize the sale of shares and to organize the first General Meeting of Shareholders of the joint stock company in accordance with current regulations.

Hung Yen Garment Joint Stock Company inherits all rights and obligations of Hung Yen Garment Company.

The General Director and Chief Accountant of Hung Yen Garment Company are responsible for managing the company's operations until the transfer of all capital, assets, labor, and land to the Board of Directors and General Director of the joint stock company.

Article 6. This Decision takes effect fifteen days from the date of publication in the Official Gazette.

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