Prohibited acts in management and investment of state capital in enterprises

National Assembly delegates vote to pass the Law on Management and Investment of State Capital in Enterprises. Photo quochoi.vn

Accordingly, the law clearly states that the principles of management and investment of state capital in enterprises must comply with the provisions of the law on management and investment of state capital in enterprises, the law on enterprises and other relevant laws; in accordance with international treaties to which the Socialist Republic of Vietnam is a member. The representative agency of the owner and the state management agency shall not directly intervene in the production, business and investment activities of the enterprise, the management and operation activities of the direct representative of the owner and other management positions as prescribed in the company charter.

State capital management in enterprises must be conducted through the direct owner's representative or the representative of the state capital portion; ensuring that enterprises produce and do business according to market mechanisms, equality, cooperation and competition in accordance with the law. The owner's representative agency, the direct owner's representative, the representative of the state capital portion shall be responsible for managing, monitoring and supervising state capital in enterprises, ensuring efficiency, preserving and developing state capital in enterprises according to the provisions of this Law; preventing and combating dispersion, waste and loss of capital and assets of the State and enterprises. At the same time, improving the effectiveness and efficiency of state management, supervision, inspection and examination by competent state agencies and accountability.

Notably, the Law also clearly states prohibited acts in the field of state capital management and investment in enterprises. Specifically, state capital investment in enterprises is not within the scope, subject and authority prescribed by law; improperly intervening in the functions, tasks and powers of the enterprise's production and business activities; improperly exercising the rights and responsibilities of the representative of state ownership in the management and investment of state capital in enterprises.

In addition, it is necessary to monitor, inspect and examine the management and investment of capital at enterprises that are not in accordance with the functions, tasks, powers and responsibilities as prescribed by law; intentionally report dishonestly or inaccurately as prescribed by law.

Besides, providing and using information of enterprises and representatives of state owners is not in accordance with the law.

The Law also stipulates the principles of capital mobilization and lending at enterprises in which the State holds 100% of the charter capital. Accordingly, enterprises are allowed to decide to mobilize capital according to the principle of self-borrowing and self-repayment in accordance with the provisions of law. The capital mobilization plan must ensure the ability to repay debts. Enterprises are allowed to decide to guarantee for companies in which the enterprise holds more than 50% of the charter capital to borrow capital from credit institutions, ensuring that the total value of the guarantees does not exceed the actual capital contribution value of the enterprise at the time of guarantee.

In addition, the enterprise is allowed to decide to lend capital to companies in which it holds more than 50% of the charter capital, ensuring that the total value of loans to each company does not exceed the actual capital contribution value of the enterprise at the time of lending. In case it exceeds the above level, the enterprise shall report to the owner's representative agency for consideration and approval...

The Board of Members, the Chairman of the Company, the person approving the capital mobilization and lending plan shall be responsible for their decisions, organizing the implementation, checking, supervising, ensuring that the mobilized capital and lending capital are used for the right purposes, effectively, and that debts are collected and paid within the agreed time limit. Credit institutions shall mobilize capital, lend capital and issue guarantees in accordance with the provisions of the law on credit institutions...

This Law comes into force from August 1, 2025.

Source: https://hanoimoi.vn/cac-hanh-vi-bi-nghiem-cam-trong-quan-ly-va-dau-tu-von-nha-nuoc-tai-doanh-nghiep-705532.html