Chapter IX
STATE MANAGEMENT OVER STATE ENTERPRISES
Article 87.- Contents of the State management over State companies
1. To promulgate, and organize the implementation of, legal documents on the State enterprises and other relevant legal documents.
2. To elaborate plannings and strategies for development of State companies according to the orientations and objectives of the strategies, plannings and plans for socio-economic development, branch development and territorial development.
3. To organize business registration for the State companies; to build up and store basic information on the State companies; to monitor and supervise business operation of the State companies after registration; to ensure that the State companies operate strictly under the conditions prescribed in the establishment decisions and business registrations according to law provisions.
4. To draw up plannings and organize the training, professional fostering, raising of business ethical qualities for managers of the State companies, the political and moral qualities as well as professional qualifications for officials performing the State management over the State companies; to train and build up the contingents of skilled workers.
5. To promulgate lists of products, financial management modes and preferential policies for public-utility products and services in each period.
6. To inspect and examine the implementation of law, policies and regimes of the State in the State companies; to settle complaints and denunciations and handle violations according to law provisions.
Article 88.- Agencies performing the State management over State companies
1. The Government shall exercise the uniform State management over State companies; prescribe the responsibility assignment and coordination among ministries, ministerial-level agencies, Government-attached agencies as well as the decentralization and coordination among the People’s Committees at all levels in performing the tasks of State management over the companies.
2. The ministries and ministerial-level agencies shall perform the State management over State companies according to their respective functions and domains put under their respective charge.
3. The provincial/municipal People’s Committees have the responsibilities:
a) To perform the State management over State companies within their respective localities according to law provisions;
b) To organize business registration; to inspect, examine and supervise activities of the State companies within their respective localities;
c) To guide and direct the People’s Committees of rural districts, urban districts, provincial capitals or towns in the coordinated performance of the State management over State companies.
Article 89.- Auditing and inspection of business activities of State companies
1. The annual financial statements of the State companies must be audited; the auditing regime shall comply with the law provisions on audit.
2. The inspecting agencies shall inspect business activities of the State companies strictly according to their functions and competence and comply with the law provisions on inspection.
The inspection of one matter or case shall be effected no more than once in a year against a State company. The inspection duration shall not exceed thirty days; in special cases, the inspection duration shall be extended under decisions of competent State bodies, but for not more than thirty days.
The irregular inspection shall be conducted only when there are grounds on law violations by companies.
When conducting inspection, there must be decisions of the competent persons; upon the termination of inspection, there must be records and conclusions on the inspection; heads of the inspection teams are responsible for the contents of the inspection records and conclusions.
The persons who issue inspection decisions in contravention of law or abuse the inspection to seek personal benefits, harassing for bribes and/or causing troubles for operations of the companies shall, depending on the nature and seriousness of their violations, be disciplined or examined for penal liability; if causing damage, they must pay compensations therefor according to law provisions.
Article 90.- State management over other State enterprises
1. The State management over State-run one-member limited liability companies, State-run limited liability companies with two or more members and State-run joint-stock companies shall comply with the provisions of the Enterprise Law and the Government’s regulations.
2. The State management over the joint-stock companies and the limited liability companies with the State’s dominant shares or contributed capital shall comply with the provisions of the Enterprise Law.
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