State-owned groups and corporations will be managed and supervised tightly under a draft decree compiled by the Ministry of Planning and Investment.
The draft decree, which was released this week on the ministry's website for public comment, was aimed to better watch over the State-owned groups and corporations as the current law, passed in 2009, was outdated.
Under the draft decree, State-run groups and corporations would have to make public everything – from their project lists, bank loans and employee wages, to their total debts. The draft regulates in detail the obligation of information disclosure for State groups and corporations which will be responsible for the accuracy of information made public.
The drafters also proposed to set up a board of supervisors for the parent companies under State groups and corporations.
According to the draft decree, CEOs of State-owned groups and corporations would be dismissed if their enterprises made losses for two consecutive years or failed to meet the targets of return on equity (ROE) allocated over two consecutive years.
The draft decree was born in the context that many State groups and corporations operated inefficiently with big losses.-VNA
The draft decree, which was released this week on the ministry's website for public comment, was aimed to better watch over the State-owned groups and corporations as the current law, passed in 2009, was outdated.
Under the draft decree, State-run groups and corporations would have to make public everything – from their project lists, bank loans and employee wages, to their total debts. The draft regulates in detail the obligation of information disclosure for State groups and corporations which will be responsible for the accuracy of information made public.
The drafters also proposed to set up a board of supervisors for the parent companies under State groups and corporations.
According to the draft decree, CEOs of State-owned groups and corporations would be dismissed if their enterprises made losses for two consecutive years or failed to meet the targets of return on equity (ROE) allocated over two consecutive years.
The draft decree was born in the context that many State groups and corporations operated inefficiently with big losses.-VNA
