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Fear of responsibility, enterprise leaders prolong the equitization progress

Summary

Updated on : 04-07-2017

VCN - On June 29th 2017 the Ministry of Finance held a press conference on some regulations on investing State capitals and managing and using capital assets in enterprises.

Still concern

According to Mr. Dang Quyet Tien, Deputy Director of the Department of Corporate Finance under the Ministry of Finance, until the first half of June, 2017, only 19 enterprises are approved equitisation plans by the competent authorities. The equitization progress is slower than last year and the planned. The capital divestment of State-owned enterprises is also slow.

According to Mr. Tien, besides objective factors such as large capital, difficulties in acceptance of the market, the main factors are due to hesitancy and concern of business leaders. The number of enterprises in equitization process have large capital and complicated, the equitization will engage in responsibility of the previous leadership, thus, these enterprises are afraid of doing this.

The leader of the Department of Cooperate Finance received a question from reporters on handling enterprises delaying listing of shares on the stock exchange. This question was mentioned many times before and the competent authorities promised to publicize and handle these businesses. However, currently, the list has not yet been announced.

Mr. Tien answered that currently the competent agencies has reviewed to ensure the truth to be publicized. According to him, some enterprises may submit insufficient dossiers and have legitimate reason regardless intention.

However, the Ministry of Finance directed the State Securities Commission to soon publicize enterprises delaying listing of shares on the stock exchange, possibly in June 2017. After being publicized, the inspection unit of State Securities Commission will follow the list to fine according to the law.

Devidens will be withdrawn

Regarding the State capital management in the enterprises, the representative of the Ministry of Finance said that the Minsistry has proposed to supplement the responsibility of the representative of the State capital in collecting shared dividends and profits into the State budget.

Particularly, the handling of dividends and profits, representatives of State capital in enterprises which have State share and state-owned capital must report and ask for approval of the representative agencies of the State capital owner. After the agencies has agreed with the MOF on the division of profits, the representatives comment, vote and decide at the General Meeting of Shareholders, the meeting of the Board of Directors and Council members.

The above proposal is a lesson from the bank requesting to raise capital to retain profit while the Ministry of Finance is requesting to withdraw. This story was mentioned last year when the Ministry of Finance "requested" dividends from Bank for Investment and Development of Vietnam (BIDV) and VietinBank.

According to him, this need to be clearly stipulated that the dividends and profits must be shared under approval of the representatives of State capital owners and the MOF. This is to avoid that some representatives of State capital in the enterprises voted for retaining profits to increase capital for the enterprise benefits while the State no longer want to retain those.
In other hand, some others only share dividends and profits for small share holders, but not for State share holders because the small share holders consist of “Chief Executive officer and director”.

Regarding the proposal of the MOF on sharing the dividends, Mr.Tien explained that it is the revenue for the State budget and the MOF has responsibility for controlling and using.

By Hong Van/Ngoc Loan