Decision No. 995/TC-QĐ-TCDN amending and supplementing the "Financial Regulation Model for State-Owned Joint Stock Companies" issued together with Decision No. 838-TC/QĐ-TCDN dated August 28, 1996.

Pursuant to …;

Regarding the amendment and supplementation of the "Financial Regulation Model for State-Owned Corporations"issued together with Decision No. 838 TC/QĐ-TCDN dated August 28, 1996

______________

- Based on the Law on State-Owned Enterprises dated April 30, 1995;

Entrust the Accounting and Finance Department:

- Pursuant to Decree No. 178/CP dated October 28, 1994 of the Government on the tasks, powers, and organizational structure of the Ministry of Finance;

- Based on Decree No. 39/CP dated June 27, 1995 of the Government on the issuance of the Model Charter regarding the organization and operation of State-Owned Corporations;

- Based on Decree No. 59/CP dated October 3, 1996 of the Government promulgating the Financial Management Regulations and Business Accounting for State-Owned Enterprises;

Pursuant to …;

Article 1. - Amending and supplementing some articles in the "Financial Regulation Model for State-Owned Corporations" issued together with Decision No. 838 TC/QĐ/TCDN dated September 28, 1996 of the Minister of Finance according to the attached document "Regulation on the Amendment and Supplementation of the Financial Regulation Model for State-Owned Corporations".

Article 2. - This Decision takes effect from the date of signing; all previous regulations contrary to this Decision are abolished.

Article 3. - The Head of the Ministry of Finance's Office, the Director General of the State Capital and Asset Management Agency at Enterprises, the Chairman of the Board of Directors, and the General Director of State-Owned Corporations are responsible for implementing this Decision.

REGULATIONS

AMENDMENTS AND SUPPLEMENTS TO THE FINANCIAL REGULATIONMODEL

STATE CORPORATION

(Issued together with Decision No. 995 TC/QĐ/TCDN dated November 1, 1996 of the Minister of Finance)

Article 4. - Supplement: "When changing the registered capital, the Corporation must publicly announce the new registered capital according to the regulations of the Ministry of Finance. In cases where the registered capital is lower than the statutory capital requirement for the industries in which the Corporation operates, the competent authority deciding to establish the Corporation must provide additional registered capital to the Corporation or reduce the scope of business operations to be consistent with the current registered capital level."

Article 5, Clause 1: Remove the clause "... the provisions stipulated in Directive No. 138/CT dated April 23, 1991 of the Chairman of the Council of Ministers (now Prime Minister)."

Article 8. Supplement Clause 7: "In the case of purchasing shares, it must comply with the current laws."

Article 9. Remove the old Clause 2 and replace it with the new Clause 2 as follows:

"The following assets:
a) The entire or major part of the main production line. b) Assets with high value as defined by the Ministry of Finance; When leasing, pledging, or mortgaging, they must be reviewed and decided by the head of the agency that established the enterprise after being examined by the state capital and asset management agency at the enterprise. When selling to foreign organizations or individuals, it must be

Article 13. Remove the clause: "In the event of losses due to force majeure, the Board of Directors decides on handling after consulting the state capital and asset management agency at the enterprise and the agency that established the enterprise" and replace it with the clause "In the event of losses due to force majeure, the Board of Directors prepares a handling plan to report to the state capital and asset management agency at the enterprise. After exchanging opinions with the agency that established the corporation, the state capital and asset management agency at the enterprise decides on the handling plan or submits it to the Prime Minister for decision on the handling plan."

Article 14. Replace the old Clause 3 with the new Clause 3 as follows: "the difference between the value obtained (including the value of spare parts and scrap used for production and business of the enterprise) when liquidating assets with the remaining value of the assets and liquidation costs (if any) shall be accounted for in the enterprise's business results."

Supplement a new article after Article 15 called "Article 15B" as follows:
"If the Corporation directly manages capital, assets, and conducts business activities, it has the responsibility to preserve the state capital according to the following regulations:

1. Implement the prescribed system, manage, and use capital and assets according to the regulations of the State.

2. Purchase insurance for assets.

3. Account for the following reserve items as business expenses:

a) Reserve for reduction in inventory value: is the estimated reduction in material and goods inventory value expected to occur in the next business period.

b) Reserve for doubtful debts: is the estimated amount of receivables that cannot be recovered from the total receivables of the Corporation.

c) Reserve for reduction in value of securities investments in financial activities. The establishment and use of these reserves shall be in accordance with the regulations of the Ministry of Finance.