Chapter III
RESTRUCTURING OF FORESTRY COMPANIES
Article 8. Maintenance, consolidation and development of wholly state-owned forestry companies
1. If 70% or above of total area of allocated or leased land of a forestry company is production forest area being rich and medium natural forest, and the sustainable forest management project of the company has been approved by the competent authority; beside, the company has been issued with international forest certificate of sustainable forest management; then the company will be maintained, consolidated, developed and restructured for business operation mission after being approved by the Prime Minister.
2. If 70% or above of total area of allocated or leased land of a forestry company is protective forest, special-use forest or production forest being natural forest and the sustainable forest management project of which has not been approved by a competent authority and has not been issued with international forest certificate of sustainable forest management, then the company will be maintained, consolidated, developed and restructured for the mission of manufacturing and supplying public products and services.
3. If 70% or above of total area of allocated or leased land of a wholly state-owned forestry company is protective forest, then the company shall be transformed into protective forest management board operating as a profitable public service provider. The management, protection and development of protective forest are according to protective forest management Regulations.
Article 9. Transformation of wholly state-owned forestry companies into joint-stock companies
1. The State shall hold controlling interest of forestry companies whose production forests are planted forests and at least 70% of land area, which is allocated or leased, is used for planting production forests in strategic areas, remote areas associated with assurance of national defense and security. When approving restructuring plans of Ministries, regulatory bodies, People’s Committees of provinces and state-owned corporations, the Prime Minister will decide the state holdings in each company.
2. The State shall not hold controlling interest or shall not hold any shares at all of the forestry companies other than those mentioned in Clause 1 of this Article.
Article 10. Foundation of multi-member limited liability companies
A multi-member limited liability company is founded based on the restructuring of wholly state-owned forestry companies in order to make a connection between the development of materials areas and local residents with the development of processing and market; corresponding to local planning, strategies and socio-economic development plans as well as to ensure employees’ interests.
Article 11. Dissolution of forestry companies
A forestry company shall be dissolved in one of the following cases:
1. It suffers a loss for three consecutive years because of subjective reasons with cumulative loss equal or more than ¾ of the state investment in the company.
2. The company allocates empty land or forests without being able to manage land and products on ¾ of the total area leased by or given to the company.
3. The company’s total area is smaller than 1000 hectares and dispersive, and the business operation is ineffective. In case the company’s area is smaller than 1000 hectares but concentrated and the business operation is effective, thus the company should be retained, its owner shall request a competent authority to consider.
Tìm kiếm
Nghị định 118/2014/NĐ-CP (Bản Word)
Nghị định 118/2014/NĐ-CP (Bản Pdf)