DATC to Preserve and Develop State Investment Capital

The Circular stipulates that DATC should maintain ownership, management and usage of procured debts and properties provided by the Circular and related laws. Each debt procured by DATC (by agreement or appointment) is regarded as a special commodity and the company should manage and pursue it.

 

Debts and properties received from wholly State owned enterprises (SOEs) will be guided by competent authorities. DATC pursues and operates in line with laws and current Circular.

 

The transfer of debts and properties into capital of restructured SOEs must be in conformity with related laws. For other enterprises, the transform must be based on agreements of company owners.

 

The use of debts and properties for capital procurement must be based on investment effectiveness approved by concerned authorities. Properties (excluding debts) should be evaluated by competent authorities in accordance with laws.

 

Upon receipt of debts and properties, DATC must follow guidance of related authorities and provisions of DATC statutes.

 

Companies with dominating capital shares within DATC should restructure debts into capital, and DATC should withdraw capital no less than 5 years from date of its official shareholder in company of non-DATC ownership. In exception cases, DATC must report to Finance Ministry for consideration in paper and exclude it from financial report.

 

The capital mobilisation must be based on strategy and 5-year plan as well as annual business plan of the company. It must ensure efficiency and debt solvency. Person approves capital mobilisation should be responsible for supervision of efficient use of capital.

 

Council of company will decide the use of capital in projects with no more than 50 per cent by shareholders in financial reports or beyond level applied to B group of public investment law.

 

The capital mobilization for business activities must ensure the payment less than 3 times the amount shown in quarterly or annual financial reports.

 

Debt payments in quarterly or annual reports should exclude expenses on bonus, welfare, R&D and be based on bonds and others with government sponsorship.

 

DATC capital resources should be used for business activities with efficiency, safety and in conformity with the law.

 

The use of capital is based on three principles: buying debts and properties for business activities in line with laws; supporting SOE restructuring; contributing capital for upgrading business activities. In addition, DATC must preserve and develop State capital at the company.

 

DATC must submit to Finance Ministry 6-month and annual reports on the development of the State capital.