DECISION

ON PROMULGATING THE REGULATION OF SUPERVISING STATE ENTERPRISES SUFFER LOSSES, OPERATE NON-EFFECT

THE PRIME MINISTER OF GOVERNMENT

Pursuant to  the Law on Organization of the Government of December 25, 2001;
Pursuant to  the Law on State Enterprises of November 26, 2003;
Pursuant to the Enterprise Law of November 29, 2005
Pursuant to  the Govermental Decree No.199/2004/ND-CP, of December 03, 2004, on promulgatingthe regulation of financial management of state companies and managament of state capital invested in other enterprises
Pursuant to  the Govermental Decree No.132/2005/ND-CP, of October 10, 2005 on conducting rights and duties of state owner with state companies and the Govermental Decree No.86/2006/ND-CP, of August 21, 2006 on supplementing and amending some articles of the Decree No.132/2005/ND-CP, of October 10, 2005;
At the proposal of the Financial Minister

DECIDES:

Article 1. Promulgating together with this Decision the Regulation of supervising state enterprises suffer losses, operate non-effect.

Article 2. This Decision take effect after 15 days its publication in the Official Gazette.

Điều 3. The ministers, the heads of the ministerial-level agencies, the heads of the Government-attached agencies and the presidents of the provincial/municipal People’s Committees, organizations assigned mission of  the representative of state enterprises owners , presidents of the managing boards of state economic Corporation,  presidents of managing board, presidents of member council, presidents of company, general directors, directors of state enterprises shall have responsibility to implement this Decree./.

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FOR. PRIME MINISTER
VICE PRIME MINISTER




Nguyen Sinh Hung

REGULATION

ON SUPERVISING STATE ENTERPRISES SUFFER LOSSES, OPERATE NON-EFFECT
(Attached together with the Decision No. 169/2007/QD-TTg, of November 08, 2007 of the Prime Minister)

I. GENERAL PROVISIONS

Article 1. The purpose of supervising

1. To determine the reasons cause losses in business, operate non-effect, have measure to help enterprises overcome shortcomings, raise effect of using capital, effect of business operation.

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Article 2. Objects of supervising

1. Enterprises which state own 100% charter capital icluding:

a) Independent State company;

b) General State Company (General Company invested and established by state, Ganeral company invested and established by companies, by mother-company by corporations such as mother-company);

c) Member companies account independently 100% state capital under general state company;

d) One member Limited Liability State Company.

2. Enterprises provided in clause 1 this article when falling into one of the following cases, shall be object of supervising:

a) Being taken losses for two consecutive years;

b) Being taken losses for one year but loss 30% owner capital or more;

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d)  Having coefficient of capacity of paying maturity debt fewer than 0.5.

3. State enterprises operate in finance, bank, insurance, securities shall not be object of applying this Regulation.

4. Yearly, representative of owner publish the list of enterprises belong to case must supervise according to this Regulation.

Article 3. State enterprises take losses, operate non-effect must conduct supervising according to provisions of this Regulation, at the same time must conduct suppervising according to provisions of the Regulation of supervising and evaluating effect of operation of state enterprises which promulagated attached together with the Decision No.224/2006/QD-TTg, of October 06, 2006, of the Prime Minister of Goverment

II. SPECIFYING PROVISIONS

Article 4. Norm of supervising

1. Norm of supervising:

a) Production, value of main products, goods, services producted, consumed, in inventory

b) Turnover of business, other income;

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d) Getting profit and rate of getting profit on state capitla;

dd) Effect of using capital and assets;

e) Debts ang capacity of paying debts;

g) Works of management, executive of administrator council, general director, director.

2. The Finance Ministry guided norm of reporting provided in this article.

Article 5. Mode of supervising

1. Quarterly, yearly, state enterprises belong to object of supervising according to this regulation, shall make report of supervising with norms proovided in clause 1, article 4 of this Regulation, financial report according to provision of laws, send them to the representative of owner and the financial agency at the same level. The administrator Council or general director, director (if company have not administrator council) shall take responsibility on exact, honest of report.

2. Representative of owner coordinate with financial agency at the same level to base on report of enterprises to conduct analysing, evaluating the resutlt of business operation, management of enterprises and timely, bring out recomendations for enterprises.

The analysing, evaluating and recommending shall concentrate in the following problems:

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b) Situation of supplying, using materials, goods; implementation of technical and economical norm, labour norm;

c) Situation of loans, paying debt;

d) Mission of enterprise management.

3. To representative for owner to coordinate with financial agency at the same level for operation of inspectation enterprises aiming to determine honest, exact of norm in quarterly, yearly reports of enterprises; mission of business management of general directors, directors of enterprises; mission of management on production, business, labour, finance of enterprises. Inspectation shall conduct one time every year and must obey provisions of laws on inspectation. To finish inspection, must have reports, conclusions of inspected  content  and bring out recommendations for enterprises to improving the business effect of enterprises.

Article 6. Handling enterprises belong to case of supervising according to this Regulation

1. Enterprises in the supervising list that two consecutive years have not still taken losses, conducted fully regimes of reporting, suppervising acording to this Regulation and the Redulation on supervising and evaluating effect of operation of state enterprises which promulagated attached together with the Decision No.224/2006/QD-TTg, of October 06, 2006, of the Prime Minister of Goverment, shall be taken out of the supervising list according to this Regulation.

2. Enterprises which don’t conduct  regimes of reporting, suppervising, their managers shall be blamed or warned and shall not be commended and rewarded, not be rasing the salary grade or scale according to provisions; case of repeating offences, their managers shall be taken down salary grade or dismissed.

3. Enterprises which don’t conduct regimes of reporting, suppervising or don’t conduct recommendations, solves of owners when implement supervising make them continue taking losses, their managers shall be dismissed, replaced.

4. Enterprises after conducting of supervising according to this Regulation for two consecutive years have still suffered losses, must implement to convert owner form or dissolve, bankruptcy according to provisions.

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Article 7. Responsibility of operating implementation

1. The Financial Ministry preside and ministries, ministerial-level agencies, authorities of economical, technical section for guiding and  inspecting  implementation of this Regulation.

2. The ministers, the heads of the ministerial-level agencies, the heads of the Government-attached agencies and the presidents of the provincial/municipal People’s Committees, organizations assigned mission of  the representative of state enterprises owners , presidents of the managing boards of state economic Corporation,  presidents of managing board, general directors, directors of state enterprises shall have responsibility to implement this Regulation./.

FOR THE PRIME MINISTER
DEPUTY PRIME MINISTER



Nguyen Sinh Hung