Chương 4 Nghị định 64/2002/NĐ-CP: Chính sách đối với doanh nghiệp và người lao động trong doanh nghiệp cổ phần hóa

Chapter IV

POLICIES TOWARDS EQUITIZED ENTERPRISES AND LABORERS THEREIN

Article 26.- Policies towards equitized enterprises

1. They shall enjoy tax preferences under the Domestic Investment Promotion Law like newly-established enterprises, without having to carry out the procedures for being granted the investment preference certificates.

2. They shall be exempt from registration fee for the transfer of assets under their management and use to the joint-stock companies ownership.

3. They shall be allowed to continue dealing in the already registered business lines and be exempt from the fee for being granted the business registration certificates when they are transformed into joint-stock companies.

4. They shall be allowed to maintain the contracts for renting houses and/or architectural objects of State agencies and other enterprises or be given priority to re-purchase them at the market prices at the time of equitization in order to stabilize their production and/or business activities.

5. They shall enjoy the land use rights under the provisions of the Land Law in cases where their value already includes the land use right value.

6. They shall be allowed to continue borrowing capital from commercial banks, financial companies and other credit institutions of the State under the mechanisms and at the interest rates applicable to State enterprises.

7. They shall be allowed to maintain and develop welfare funds in kind, such as cultural facilities, clubs, health stations, sanatoriums and creches, so as to ensure welfare for the laborers in the joint-stock companies. These assets shall come under the laborers collective ownership and be managed by the joint-stock companies with the participation of the trade union organizations.

8. They shall be allowed to deduct from the proceeds from the sale of shares belonging to the State capital the actual, reasonable and necessary expenses for the process of transformation into joint-stock companies (including the expenses for hiring consultants and for valuation) at the levels set by the Finance Ministry. Where they are equitized in the form prescribed in Clause 1, Article 3 of this Decree, such expenses shall be deducted into the State capital amounts available at the enterprises.

Article 27.- Policies towards laborers in equitized enterprises

1. Laborers named on the regular lists of the equitized enterprises at the time the equitization is decided shall be sold by the State 10 shares at most for each year they have actually worked in the State sector with a 30% discount from the original face value of such shares. The value of each share is VND 100,000.

Where the equitization is effected in the form prescribed in Clause 1, Article 3 of this Decree, the preferential value granted to the laborers in the enterprises shall be deducted into the existing State capital portions at the enterprises.

The total preferential value, including the preferential value granted to the raw-material producers and suppliers, shall not exceed the value of the State capital portions at the enterprises, after subtracting the value of shares held by the State.

The laborers who own the shares bought at preferential prices shall be entitled to bequeath them and enjoy other rights of shareholders under the provisions of law and the joint-stock companies� organization and operation charters. Share certificates of this type of shares shall be the registered ones and can be transferred only 3 years after their purchase. In special cases where it is necessary to transfer such shares ahead of the aforesaid time limit, the consent of the companies� managing boards must be obtained. The joint-stock companies shall be given priority to re-purchase them at the market prices at the time of sale.

2. Poor laborers in the equitized enterprises shall be allowed to buy shares on credit at preferential prices, shall be granted a grace period of the first three years before making interest-free installment payments within seven subsequent years. The number of shares purchased on installment payments reserved for poor laborers must not exceed 20% of the total number of the State�s shares sold at preferential prices to laborers in the enterprises. The share certificates of this type of shares shall be registered ones. The owners of these shares can transfer them only three years after they have purchased them and paid up all debts to the State.

3. The laborers who have been transferred to work at the joint-stock companies shall be allowed to continue participating in social insurance and enjoying interests therefrom under current regulations.

4. The laborers eligible for retirement at the time of equitization shall have their interests settled according to current regulations.

5. The laborers who have lost or terminated there jobs at the time of equitization shall be paid job-loss or severance allowances according to law provisions.

6. After the State enterprises have been transformed into joint-stock companies, if due to the needs to reorganize business activities and/or renew technologies, which leads to the situation that the laborers who have been transferred from the State enterprises lose or terminate their jobs, including cases where they terminate their jobs voluntarily, they shall be settled as follows:

a/ Within 12 months as from the date the joint-stock companies are granted the business registration certificates, if the laborers who lose their jobs as a result of the restructuring fall into the subjects enjoying the policy towards laborers who are left redundant as a result of the re-arrangement of State enterprises under the Government�s Decree No. 41/2002/ND-CP of April 11, 2002, they shall be supported from the fund for support of redundant laborers.

The other laborers who also lose or terminate their jobs shall enjoy the job loss or severance allowances under the current provisions of the labor legislation and shall be supported by the fund for support of the arrangement and equitization of State enterprises.

b/ Where the laborers lose or terminate their jobs for four subsequent years, the joint-stock companies shall have to pay 50% of the total allowance amounts under the provisions of the Labor Code, the remainder shall be borne by the fund for support of the arrangement and equitization of State enterprises. Past the aforesaid time limit, the joint-stock companies shall have to pay fully the allowances to the laborers.

7. For the number of redundant laborers at the time of equitization who should be trained or retrained before they can be given new jobs in the joint-stock companies, the State shall support part of the funding for the joint-stock companies to organize training and retraining from the fund for support of the arrangement and equitization of State enterprises under the guidance of the Finance Ministry.