Business
State-owned group CEOs face dismissal for holding company losses
  • By Bích Diep | dtinews.vn | January 19, 2013 08:46 AM

CEOs of state-owned economic groups will be dismissed if they let their holding companies suffer losses for two consecutive years, according to a draft decree produced by the Ministry of Planning and Investment (MPI).

 

Many state-owned groups or corporations have let their holding companies accrue losses for many consecutive years 

Under the draft decree on state-owned corporations and groups, for a holding company which is a state-owned one-member limited firm, the Ministry of Planning and Investment or provincial People’s Committee will decide on the dismissal or early termination of an employment contract before schedule with its CEO.

The draft decree also stipulates CEOs which fail to attain their return on equity (ROE) target for two consecutive years would also face dismissal. In cases where the holding company makes both profit and losses, but can’t fulfill their set ROE goal, the CEO will also get the sack.

However, in cases where losses or ROE target failures have been approved by authorities; expected losses due to investment expansion and technological upgrades of the holding company, the CEO will not be subject to the dismissal.

The sack is also imposed on CEOs where a company goes bankrupt without official approval of the decision. CEOs who fail to fulfill tasks or targets set by their company Members’ Council or for continual violations of council resolutions will also be dismissed.

According to the draft decree, holding company charters must specifically regulate the standards and conditions to become a CEO, and such positions should not offer contracts for longer than five years.

Leave your comment on this story

 
 
 
 
 
   


nhantaidatviet.vnpt.vn