Chương 2 Nghị định 28-CP: Những nguyên tắc xác định giá trị doanh nghiệp, điều kiện và hình thức cổ phần hoá

Chapter II

PRINCIPLES FOR DETERMINING THE VALUE OF ENTERPRISES, CONDITIONS AND FORMS OF EQUITIZATION

Article 7.- A State enterprise to be selected for equitization must meet the following conditions:

1. Having a small and medium size (except for the enterprises to be equitized in the forms defined in Point 1, Article 9 of this Decree);

2. Not belonging to the enterprises in which the State needs to own 100% of the investment capital;

3. Having an effective business plan.

Article 8.- Principles for determining the value of an enterprise:

1. The value of an enterprise at the time of equitization is the actual value of the enterprise acceptable to both the seller and the buyer of the shares.

2. Bases for determining the actual value of the enterprise:

a) Statistics in the books of accounts of the enterprise at the time of equitization which have been verified by a lawful audit agency.

b) The advantage coefficients of the enterprise in terms of its geographical location, product prestige and practical business efficiency reflected through the ratio of profit against the average operative capital over the last three years before the enterprise is equitized.

c) The value of the land-use right calculated according to the Land Law and the documents guiding its implementation.

Article 9.- Equitization shall be conducted in the following forms:

1. Keeping intact the existing value of the enterprise and issuing shares as stipulated to attract more capital for the development of the enterprise.

2. Selling part of the existing value of the enterprise.

3. Detaching from the enterprise a component which meets the conditions for equitization.