Chương VII Luật Thực hành tiết kiệm, chống lãng phí 2005: Thực hành tiết kiệm, chống lãng phí trong quản lý, sử dụng vốn và tài sản nhà nước tại doanh nghiệp

Chapter VII

THRIFT PRACTICE, WASTE COMBAT IN MANAGEMENT AND USE OF STATE CAPITAL AND PROPERTIES AT ENTERPRISES

Article 54.- Principles on thrift practice, waste combat in management and use of state capital and properties at enterprises

1. Enterprises with 100% state capital (herein after called state companies) must manage and use state capital and properties, observe the reporting and financial publicity regime under the provisions of law; draw up plans and measures to practice thrift and combat waste in the companies.

2. The State's capital at other enterprises must be strictly managed according to regulations. The investment, contribution, increase and reduction of investment capital must be considered on the basis of efficiency of investment capital, capital preservation and development capability. The recovered contributed capital and divided profits must be thriftily and efficiently used for proper purposes.

Article 55.- Management and use of capital and funds of state companies

1. State companies shall have to preserve and develop the state-allocated capital; observe the law-prescribed regimes of management and use of capital and funds of companies; enhance and raise their production and business efficiency.

2. State companies must appropriate, set up, manage and use funds for proper purposes strictly according to regimes promulgated by competent state bodies. It is strictly forbidden to appropriate and set up funds illegally.

Article 56.- Use of land in state companies

State companies shall have to determine the land use value and manage land according to regulations on management of state properties. Land must be used for proper purposes inscribed in the land assignment or land lease decisions and the land use right certificates issued by competent state bodies.

Article 57.- Procurement, management and use of fixed assets in state companies

1. The procurement, management and use of fixed assets in state companies must strictly comply with the provisions of law on financial management, investment and construction management and must be calculated on the basis of raising the machinery's or equipment's usability. It is strictly forbidden to procure obsolete and inefficient equipment and technologies; the procurement and equipment of cars for company leaders must not exceed the norms, criteria and regimes promulgated by competent state bodies.

2. State companies must clearly define the responsibilities of managers, users for each asset in the companies; observe the regime of maintenance and repair of assets according to technical process.

3. State companies must work out measures to renew and modernize technologies, improve techniques and managerial modes in order to raise the use efficiency of fixed assets; take initiative in transferring, selling or liquidating unnecessary, poor-quality, technically obsolete or unusably damaged assets under the provisions of law.

Article 58.- Procurement, management and use of supplies and other assets in state companies

1. State companies must take into account and determine the rational use and reserve demands of supplies and other assets on the basis of their production and business demands and the market supply capability.

2. State companies must formulate and strictly observe the norms on use of raw materials, fuels and materials and apply advanced measures suitable to their respective business, techno-economic characteristics as well as actual equipment conditions, ensuring thrift, lower expense and production costs and higher product quality.

Article 59.- Management and use of other expenditures in state companies

1. For labor costs, state companies must formulate the labor norms in order to build up wage unit prices and employ labor in the companies, taking measures to increase labor productivity and use labor efficiently.

2. For means, equipment and assets in service of managerial work, state companies must manage and use them strictly according to the norms, criteria and regimes as guided by competent state bodies.

3. For expenditures on commission, guest reception, meetings, transactions, state companies must formulate norms on efficient, thrifty and lawful expenditures. It is strictly forbidden to use public funds as presents or gifts in contravention of regulations.

4. For expenditures on rewards for technical, managerial and technological innovations and improvements, rewards for higher labor productivity, rewards for thrifty use of supplies and expenses, state companies must determine the reward levels on the basis of production and business efficiency and thrift practice results.

Article 60.- Responsibilities of chairmen of Managing Boards, general directors, directors of state companies

Chairmen of Managing Boards, general directors, directors of state companies shall have to manage and use their companies' capital and assets with efficiency; if causing waste due to their irresponsibility, they must pay compensations and be administratively sanctioned or disciplined.

Article 61.- Responsibilities of representatives of the State's contributed capital portions at enterprises

1. Representatives of the State's contributed capital portions at enterprises shall have to monitor and supervise the operation and business situation of the enterprises; if causing waste to enterprises and the State due to their irresponsibility, they must pay compensations and be administratively sanctioned or disciplined.

2. Representatives of the State's contributed capital portions must bear responsibility for the voted issues regarding decisions of enterprises where exists the State-contributed capital; periodically report on the use of the State's contributed capital to competent bodies or organizations.