GUIDANCE ON TRANSFER OF STATE CAPITAL IN THE STATE ENTERPRISE
On December 31, 2015, the Ministry of Finance issued the Circular No. 219/2015/TT-BTC guiding a number of contents of the Decree No. 91/2015/ND-CP dated October 13, 2015 on investment of state capital in enterprises and management and use of capital and assets at enterprises.
In accordance with the regulations on this Circular, as for transfer of state capital worth more than VND 10 billion upon the method of holding an open auction, it shall take place at the Stock Exchange. As for transfer of state capital worth less than VND 10 billion, financial intermediaries shall be hired to carry out auction sale or hold auctions on their own at the state-owned enterprises or conduct auction at the Stock Exchange.
External transfer of the state-owned enterprise’s capital invested in a joint-stock company is executed. In such cases, with regard to a listed or registered joint-stock company on the Up-com upon the agreed methods, if the transfer of state capital (or transfer of stocks) is carried out, the agreed selling price must not exceed the transaction price limit (the price fluctuation limit) on stock code transacted on the transfer date provided that it shall not lower than the price of stock determined in the company’s book value for the stock code listed/registered for transactions basing on total equity capital divided by the chartered capital of the joint stock company at the transfer time.
The remains of the enterprise’s earnings from external transfer of its invested capital (including transfer of rights certificates or rights of capital contribution) after deducting the value of invested capital, transfer expenses and stipulated tax payments is aggregated with income from its financial activities.
This Circular takes effect from February 15, 2016 and replaces the Circular No. 220/2013/TT-BTC dated December 31, 2013.
