Provisions on expenses of equitization (equitization)
Sat, 06 Jan 2018 18:34:00 | Print | Email Share:
Name of recommendations: Provisions on expenses of equitization (equitization)
Status: Responded
Recommended by units: The Vietnam Electricity
Official letter: 0874/PTM - VP, dated: 2017-04-20
Recommended contents:
Article 12 of Circular 196/2011 / TT-BTC dated December 26, 2011 of the Ministry of Finance guiding the sale of shares for the first time and management and use of proceeds from equitization of SOEs converted into joint-stock companies stipulating the maximum total amount expenses of equitisation determined according to enterprises value on accounting books that not exceed VND 500 million for enterprises with the value of over VND 100 billion. However, in equitisation of enterprises with large total assets such as EVN's General Electric Corporations with total assets of VND 100,000 billion, the number of affiliated units is many (nearly 10 units), if calculating separately the evaluation package that has the potential to outstrip the maximum expense of equitisation. Please consider adjusting equitisation costs to be more suitable with sizes of the enterprises.
Responded by units: The Ministry of Finance
Official letter: 6117/BTC-CST, dated: 2017-05-11
Responded contents:
Article 12 of Circular No. 196/2011 / TT-BTC (Guiding the Decree No. 59/2011 / ND-CP) has also provided for an open equitization to estimates of equitisation expenses, specifically: If the equitization expenses exceed the prescribed level, the Equitization Steering Committee shall report such to the competent agency for consideration and making decision. At present, the draft decree replacing Decree 59/2011 / ND-CP also stipulates the equitization expenses approved by the ownership's representative office for statements and estimates.
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