This is the content prescribed at the Decree No. 118/2014/ND-CP dated December 17, 2014 of the Government on restructuring, developing and improving the agriculture and forestry companies.
In particular. an agriculture company shall be dissolved if it suffers a loss for three consecutive years because of subjective reasons with cumulative loss equal or more than ¾ of the state investment in the company; allocates empty land or forests without being able to manage land and products on ¾ of the total area leased by or given to the company and its total area is smaller than 500 hectares and dispersive, and the business operation is ineffective.
Beside suffering a loss for three consecutive years because of subjective reasons with cumulative loss equal or more than ¾ of the state investment in the company and allocating the empty land or forests without being able to manage land and products on ¾ of the total area leased by or given to the company, the forestry company’s total area is smaller than 1000 hectares and dispersive, and the business operation is ineffective. In case the company’s area is smaller than 1000 hectares but concentrated and the business operation is effective, thus the company should be retained, its owner shall request a competent authority to consider.
For restructuring agriculture company, the Government affirms to wholly state-owned agriculture companies in strategic areas, border areas and remote areas associated with assurance of national defense and security will be maintained, consolidated, developed and restructured. The State shall hold the controlling interest of the wholly state-owned agriculture companies specialized in planting rubbers and processing rubber latexes in strategic areas and remote areas associated with assurance of national defense and security. At the same time, multi-member limited liability company is founded based on the restructuring of wholly state-owned agriculture companies in order to make a connection between the development of materials areas and local residents with the development of processing and market; corresponding to local planning, strategies and socio-economic development plans and to ensure employees’ interests as well.
This Decree takes effect on February 01, 2015.
