04 CASES OF ENTERPRISE SHALL BE KEPT UNDER SPECIAL FINANCIAL SUPERVISION
On June 25, 2013, the Government issues the Decree No. 61/2013/ND-CP on the issuance of regulations on financial supervision and performance assessment of financial information activity and disclosure to state-owned enterprises and state-capitalized enterprises.
Accordingly, in order to assess the actual performance of enterprises; responsively help enterprises overcome their weaknesses, achieve business targets and provide public services, raise the business efficiency and competitiveness, when the annual financial statement is made or during financial supervision, an enterprise shall be kept under special supervision if its finance or business falls into the cases such as the business is at a loss; the ratio of debt to equity exceeds the safety limits; the loss makes up at least 30% of the equity, or the accrued loss makes up more than 50% of the equity; the coefficient of capacity for repaying due debts is smaller than 0.5 and the report does not reflect the actual finance of the enterprise. When an enterprise is kept under special financial supervision, the owner shall issue a decision on special financial supervision. And the decision on special supervision shall be notified to the corporate finance authority at the same level. The Member Council (the Company President), General Director or Director of the enterprise under special supervision shall make a plan for restructuring the organization, business, and finance, then submitting it to the owner within 20 days from the day on which the decision on special supervision is made and monthly, quarterly, and annually send the owner and the corporate finance authority reports.
When an enterprise under special supervision eliminates all causes of special supervision for 02 consecutive years it shall be remove from the list of enterprises under special supervision. And the enterprises that are still at a loss after 02 years under special supervision, the procedure for ownership transfer, dissolution, or bankruptcy shall be initiated.
This Decree takes effect on August 15, 2013.
