Authority and method of adjusting charter capital of provincial development investment funds in Vietnam

Authority and method of adjusting charter capital of provincial development investment funds in Vietnam

Pursuant to the provisions of Clause 1, Article 3 of Circular 86/2021/TT-BTC, the authority to adjust the charter capital of provincial development investment funds is prescribed as follows:

1. The authority to make change in charter capital of a Fund shall be determined according to Clause 2 Article 35 of Decree No. 147/2020/ND-CP.

Pursuant to Clauses 2, 3 and 4 of Article 3 of Circular 86/2021/TT-BTC, method of adjusting charter capital of provincial development investment funds is prescribed as follows:

2. The adjusted amount of charter capital of a Fund shall be determined adopting the same methods as those for wholly state-owned enterprises. Particularly, an increase in charter capital shall be determined as follows:

a) With regard to the increase in charter capital for executing investment projects on formulation of assets serving the Fund’s operation and the increase in charter capital due to receipt of transferred assets, receipt of financial supports under State policies or due to asset revaluation, the Fund shall comply with relevant regulations applicable to wholly state-owned enterprises.

b) Based on the Fund's 05-year operating strategy or plan which has been approved the provincial People’s Committee, the increase in charter capital under that 05-year operating strategy or plan shall not exceed the planned increase in the Fund’s budget for giving loans or making investments.

3. The increase in charter capital of a Fund to meet the requirement laid down in Clause 1 Article 6 of Decree No. 147/2020/ND-CP shall not be determined according to Clause 2 of this Article but the Fund shall develop a plan to make additional contribution to charter capital, and submit it to the provincial People's Committee for submission to the provincial People’s Council for approval to meet the minimum charter capital as prescribed.

4. Each Fund shall determine its adjusted amount of charter capital and propose funding sources for making additional contribution to charter capital to the provincial People's Committee or Provincial People’s Council for issuing decision within their competence.

Best Regards!