VI WHAT IS STATE CAPITAL IN ENTERPRISES? WHAT ARE THE PRINCIPLES OF MANAGEMENT AND INVESTMENT OF STATE CAPITAL IN ENTERPRISES?
What is state capital in enterprises? What are the principles of management and investment of state capital in enterprises? What are the 6 prohibited acts in the field of management and investment of state capital in enterprises according to the Law on Management and Investment of State Capital in Enterprises 2025? Let’s find out more with Pham Consult!
What is state capital in enterprises?
Pursuant to Clause 6, Article 3 of the Law on Management and Investment of State Capital in Enterprises 2025, it is stipulated as follows:
Explanation of terms
In this Law, the following terms are construed as follows:
- The direct owner’s representative is an individual appointed by a competent state agency to the Board of Members or Chairman of a company to exercise the rights and responsibilities of a state owner’s representative at an enterprise in which the State holds 100% of the charter capital.
- The representative of the state capital portion is an individual authorized in writing by the owner’s representative agency to exercise the rights and responsibilities of a state owner’s representative for the state capital invested in a joint stock company or a limited liability company with two or more members.
- The representative of the enterprise’s capital portion is an individual authorized in writing by the enterprise to exercise the rights and responsibilities of the enterprise for the enterprise’s capital invested in a joint stock company or a limited liability company.
- State capital in an enterprise is the value of the state capital determined according to the ratio of shares and capital contributions held by the State over the total equity of the enterprise.
- Enterprise capital includes the enterprise’s equity and capital mobilized by the enterprise.
Accordingly, State capital in an enterprise is the value of the state capital determined according to the ratio of shares and capital contributions held by the State over the total equity of the enterprise.
What are the principles of management and investment of state capital in enterprises?
According to Article 5 of the Law on Management and Investment of State Capital in Enterprises 2025, the principles of management and investment of state capital in enterprises are stipulated as follows:
(1) Comply with the provisions of the law on management and investment of state capital in enterprises, the law on enterprises and other relevant laws; in accordance with international treaties to which the Socialist Republic of Vietnam is a member.
(2) The owner’s representative agency and the state management agency shall not directly intervene in the production, business and investment activities of the enterprise, the management and operation activities of the direct owner’s representative and other management positions as prescribed in the Company Charter.
(3) State capital management at the enterprise must be through the direct owner’s representative or the representative of the state capital portion; ensuring that the enterprise produces and conducts business according to the market mechanism, equality, cooperation and competition in accordance with the law.
(4) The owner’s representative agency, the direct owner’s representative, and the representative of the state capital portion shall be responsible for managing, monitoring and supervising the state capital at the enterprise, ensuring the efficiency, preservation and development of the state capital at the enterprise in accordance with the provisions of this Law; preventing and combating the dispersion, waste and loss of capital and assets of the State and enterprises.
(5) Improve the effectiveness and efficiency of state management, supervision, inspection and examination by competent state agencies and accountability.
What are the 6 prohibited acts in the field of state capital management and investment in enterprises?
According to Article 9 of the Law on State Capital Management and Investment in Enterprises 2025, the following provisions are stipulated:
Prohibited acts in the field of state capital management and investment in enterprises
- Investing state capital in enterprises outside the scope, subjects and authority prescribed by law.
- Intervening improperly in the functions, tasks and powers of the enterprise’s production and business activities.
- Improperly exercising the rights and responsibilities of the representative of state ownership in the management and investment of state capital in enterprises.
- Supervising, checking and inspecting the management and investment of capital in enterprises not in accordance with the functions, tasks, powers and responsibilities as prescribed by law.
- Intentionally reporting dishonestly or inaccurately as prescribed by law.
- Providing and using information of enterprises and representatives of state owners not in accordance with the provisions of law.
Thus, 6 acts are strictly prohibited in the field of management and investment of state capital in enterprises, including:
– Investing state capital in enterprises not in accordance with the scope, subjects and authority as prescribed by law.
– Intervening in the wrong functions, tasks and powers in the production and business activities of enterprises.
– Improperly exercising the rights and responsibilities of representatives of state owners in the management and investment of state capital in enterprises.
– Supervising, checking and inspecting the management and investment of capital at enterprises not in accordance with the functions, tasks, powers and responsibilities as prescribed by law.
– Intentionally reporting dishonestly and inaccurately as prescribed by law.
– Providing and using information of enterprises and representatives of state owners not in accordance with the law.
