Proposal to cancel the results of selling preferential shares at Nghe An Electrical Construction Joint Stock Company
Regarding the complaint of 274 former employees at Nghe An Electrical Construction Joint Stock Company about their resignation under Decree 41/CP in 2004 but not yet being able to buy preferential shares according to the Government's regulations, Nghe An Newspaper published a detailed article on May 3, 2011. Due to the complexity of the case, the Provincial People's Committee directed the establishment of an inter-sectoral working group to inspect and review the entire process of converting and equitizing enterprises at this unit.
Through inspection, the team determined the list of employees named in the enterprise at the time of enterprise restructuring, the Power Construction Joint Stock Company had 422 employees, of which 329 were employees with indefinite-term contracts, 30 were employees with contracts from 1-3 years, but when restructuring, the Company did not make a list of expected employees to buy preferential shares and deferred shares according to the regulations (step 3) guiding the conversion of state-owned enterprises into joint stock companies of the Ministry of Finance.
On the other hand, the Company had a number of meetings to solicit opinions on the plan to rearrange the workforce, resolve the redundant employee regime, and contribute to the new production and business plan; develop a plan to sell preferential shares to 157 employees to work at the Joint Stock Company, but the process of organizing learning and disseminating the equitization policy was not written and did not clearly state the content; there was no plan to sell preferential shares to all employees listed in the enterprise at the time of equitization (only announced the sale to the remaining employees but also sold incorrectly).
The inspection team also discovered that the Power Construction Joint Stock Company did not comply with the regulations on selling preferential shares to employees. Specifically, according to the regulations, employees who register to buy new shares will receive preferential shares (the par value of 1 share is 100,000 VND, if an employee buys 1 share, they will receive a preferential price of 30,000 VND but must deposit 70,000 VND into the Company to be recorded on the documents as 100,000 VND/share), but after the approval decision of the Provincial People's Committee, the Company sold preferential shares in the form of selling 30% of the preferential value to 141 employees (2 new employees did not participate in buying shares).
Therefore, the remaining total value of 621.5 million VND (70% of the state capital in the company) has not been sold to employees. The main responsibility for the above errors belongs to the individuals who were former members of the Innovation Board of the Power Construction Joint Stock Company.
The draft conclusion document dated May 9, 2011 of the Working Group proposed a solution to handle the existing problems in the equitization process of the Power Construction Joint Stock Company in Document No. 05/BC-CT dated January 17, 2011, in which it proposed that the functional departments, branches and the Provincial People's Committee provide support sources to sell preferential shares to 274 employees on leave at the time of equitization according to Decree 41/2002, the amount of 1,954 billion VND is illegal.
On that basis, the Working Group proposed that the Provincial Inspectorate and the Provincial People's Committee cancel the results of the sale of preferential shares to 141 employees at Nghe An Electrical Construction Joint Stock Company because the sale was not in accordance with legal regulations; establish an interdisciplinary Working Group including representatives of the Department of Industry and Trade, Planning and Investment, Labor, Invalids and Social Affairs to replace the former Provincial Enterprise Innovation Board (now dissolved) and the former members of the Company's Enterprise Innovation Board to review and make a list of employees who purchased preferential shares to submit to the Provincial People's Committee for amendment; recover the shares previously sold by the Electrical Construction Joint Stock Company to 141 people in violation of regulations; at the same time, establish and implement a plan to sell preferential shares to the number of employees approved by the Provincial People's Committee, amending in accordance with the procedures and provisions of law.
Nguyen Hai
