Illustrative image (Photo: VNA) Hanoi (VNA) – As the Law on Enterprises isno longer suitable due to heavy burdens of administrative procedures it placedon local firms, a revised bill is necessary to better the business climate andenhance the competitive edge of the economy, according to the Central Institutefor Economic Management (CIEM).
At a workshop held in Hanoi on February 28, CIEM Deputy Director Phan Duc Hieu saidthat there are a wide range of irrational regulations that bar market entry ofmany businesses, including administrative costs, human resources trainingcosts, and equipment purchase to satisfy legal regulations.
“A reform, though small, will create drastic impacts on the businesscommunity”, Hieu said, adding for the sake of local firms, the Governmentshould work to remove regulations that cause troubles to the businesses.
Besides ending the use of company seals in the legal system to reduce the costsand procedures for businesses, the Government should remove regulations on requiringenterprises to make periodic reports on labour use, he recommended.
Regarding the protection of minority shareholders, CIEM experts said that weakbusiness management capacity at joint stock firms is threatening the rights ofminority shareholders, who do not contribute in large part to the ownership ofa company and do no come close to have a controlling interest in the firm.
At a workshop held in Hanoi on February 28, CIEM Deputy Director Phan Duc Hieu saidthat there are a wide range of irrational regulations that bar market entry ofmany businesses, including administrative costs, human resources trainingcosts, and equipment purchase to satisfy legal regulations.
“A reform, though small, will create drastic impacts on the businesscommunity”, Hieu said, adding for the sake of local firms, the Governmentshould work to remove regulations that cause troubles to the businesses.
Besides ending the use of company seals in the legal system to reduce the costsand procedures for businesses, the Government should remove regulations on requiringenterprises to make periodic reports on labour use, he recommended.
Regarding the protection of minority shareholders, CIEM experts said that weakbusiness management capacity at joint stock firms is threatening the rights ofminority shareholders, who do not contribute in large part to the ownership ofa company and do no come close to have a controlling interest in the firm.
They said that under the amended law, even minorityshareholders must have the rights to order independent auditing, while sharesowned by major shareholders should be kept at 5 percent of the firm’s totalshares instead of the current 10 percent.
CIEM experts said that besides the Government’s efforts to give practical andeffective support to boost the business community development, local firmsshould make meticulous preparations to enter the market as well as improvetheir management capacity and make in a modern fashion and in line withinternational trend.
Particularly, there should be specific and full rules to protect minorityshareholders so as to prevent manipulation of major shareholders./.
CIEM experts said that besides the Government’s efforts to give practical andeffective support to boost the business community development, local firmsshould make meticulous preparations to enter the market as well as improvetheir management capacity and make in a modern fashion and in line withinternational trend.
Particularly, there should be specific and full rules to protect minorityshareholders so as to prevent manipulation of major shareholders./.
VNA
