Need to expand the scope of management to enterprises with less than 50% state capital

Kinhtedothi - On the afternoon of November 29, the National Assembly continued to discuss the Draft Law on Management and Investment of State Capital in Enterprises. The majority of delegates agreed with the contents presented in the submission and the verification report.

At the same time, delegates focused on discussing, analyzing and clarifying a number of contents: scope of regulation, subjects of application; application of the Law on Management and Investment of State Capital in Enterprises, international treaties; principles, management and investment of State capital, content of management of State capital invested in enterprises; prohibited acts in the field of management and investment of State capital in enterprises; tasks and powers of the Government , responsibilities of ministries, ministerial-level agencies and provincial People's Committees; decisions on personnel work; rights and obligations of representatives of capital owners in enterprises with State capital invested from over 50% to less than 100% of charter capital...

Delegate Bui Thi Quynh Tho (National Assembly Delegation of Ha Tinh Province) - Photo: Quochoi.vn

Participating in the discussion, delegate Bui Thi Quynh Tho (National Assembly Delegation of Ha Tinh province) said that the Draft Law applies to entities with more than 50% state capital, and does not regulate enterprises with less than 50% state capital.

However, with a joint stock company in which the State capital accounts for 49%, the remaining is divided among 5 other major shareholders, each owning less than 10% of the shares, delegates are concerned that if there is no regulation, it will be unclear who will be responsible for management, implementation, and monitoring; at the same time, how will the State capital in enterprises, profits, and sanctions for violations be managed?

From there, the delegates suggested that it is necessary to expand the scope of management for enterprises with less than 50% state capital, and stipulate the principle of managing the state's cash flow, where the state monitors and manages; management is only based on the equity ownership ratio. Only then can the principle of financial management be ensured.

Delegate Phan Duc Hieu (National Assembly Delegation of Thai Binh Province) - Photo: Quochoi.vn

Delegate Phan Duc Hieu (National Assembly Delegation of Thai Binh Province) said that the Draft Law has many unclear concepts that can easily cause confusion. Therefore, it is necessary to clarify the concepts: management of State capital invested in enterprises; State capital in enterprises, what is this capital and where is it located?

According to the delegate, if these concepts are not clear, there cannot be regulations on corresponding and appropriate management methods to perform the State management function, transparent with the business function of enterprises.

Commenting on the content of Article 12 of the Draft Law on Business Rights of Enterprises, delegate Phan Duc Hieu said that there are many "natural" regulations that enterprises must comply with. For example, complying with the provisions of the law on enterprises or complying with inspections and audits...

On that basis, the delegate proposed to rewrite Article 12 according to the principle that enterprises have the right to freely conduct business in the industries and fields identified in the Charter and what the law does not prohibit or restrict.

Delegate Hoang Van Cuong (National Assembly Delegation of Hanoi City)

Delegate Hoang Van Cuong (National Assembly Delegation of Hanoi) highly appreciated the principle stipulated in Article 5 of the Draft Law that State capital after being invested in an enterprise is the capital of the enterprise's legal entity.

According to the delegate, with this principle, the management and use of capital of enterprises, including enterprises with 100% state capital, is the right of the enterprise, managed according to the enterprise's charter, and it is impossible to impose a mechanism for managing state budget capital.

Therefore, delegate Hoang Van Cuong proposed to remove the provisions applying the Law on Public Investment on the authority to decide on capital investment of enterprises in Articles 25 to 32. This right must be given to enterprises to decide and take responsibility for themselves. At the same time, it is necessary to add the provision that "After investing capital in an enterprise, the State becomes a shareholder of the enterprise, owning shares according to the invested capital".

As a shareholder, the owner's representative body must appoint or hire a representative to exercise shareholder rights in the enterprise. At that time, the representative is responsible for managing the capital invested in the enterprise according to the State's investment objectives.

Delegates attending the working session on the afternoon of November 29 - Photo: Quochoi.vn

The owner's representative agency will assign tasks to the representative through planning targets that the enterprise must implement such as: preserving and developing investment capital or paying profits corresponding to the State's invested capital. For enterprises where the State holds controlling power, additional political tasks can be assigned to perform the State's regulatory role...

Delegate Hoang Van Cuong stated that to ensure that capital invested in the enterprise is managed and used for the right purposes and to prevent risks, the owner's representative agency must appoint an independent supervisory unit to monitor the activities of the enterprise and the owner's representative.

Regarding personnel work in Article 13 of the Draft Law, delegates proposed to only stipulate the requirements and principles for appointing representatives and supervisory departments of the owner's representative agency. The appointment of other management positions in the enterprise's management apparatus must be fully selected and decided by the person appointed as the owner's representative according to the standards for enterprise management staff prescribed by the Government.

Source: https://kinhtedothi.vn/can-mo-rong-pham-vi-quan-ly-voi-doanh-nghiep-co-duoi-50-von-nha-nuoc.html