DECISION

ISSUING THE REGULATION ON ORGANIZATION AND OPERATION OF PRIVATE UNIVERSITIES

THE PRIME MINISTER

Pursuant to the December 25, 2001 Law on Organization of the Government;
Pursuant to the June 14, 2005 Education Law;
Pursuant to the Government's Decree No. 75/2006/ND-CP of August 2, 2006, detailing and guiding the implementation of a number of articles of the Education Law;
At the proposal of the Minister of Education and Training,

DECIDES:

Article 1. To issue the Regulation on organization and operation of private universities.

Article 2. This Decision takes effect 45 days from the date of its signing.

This Regulation replaces the Regulation on organization and operation of private universities issued together with the Prime Minister's Decision No. 14/2005/QD-TTg of January 17, 2005.

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Article 3. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, presidents of provincial-level People's Committees and private universities shall implement this Decision.

FOR THE PRIME MINISTER
DEPUTY PRIME MINISTER




Nguyen Thien Nhan

REGULATION

ON ORGANIZATION AND OPERATION OF PRIVATE UNIVERSITIES
(Issued together with the Prime Minister's Decision No. 61/2009/QD-TTg of April 17, 2009)

Chapter I

GENERAL PROVISIONS

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1. This Regulation provides for the organization, management and operation of private universities.

Including their organization and personnel; lecturers, cadres, employees and learners; training, scientific research and international cooperation: finance; property; inspection, examination, commendation and handling of violations.

2. Private universities are founded by social organizations, socio-professional organizations, economic organizations or individuals that invest in the building of their material foundations and ensure funding for their operation with non-state budget capital. Private universities operate according to this Regulation, their charters and law.

Article 2. Status of private universities

1. A private university has the legal person status and a seal and may open accounts at banks and state treasuries.

2. Private universities have the same legal status, functions, tasks, obligations and interests as public universities in the national education system.

Article 3. Interpretation of terms

1. "Capital contribution" means the contribution of assets by a party to a university in order to become its owner. Assets for capital contribution may be in Vietnam dong (VND), gold, foreign currencies, land use right value (land), intellectual property right value or other property as stated in the Regulation on organization and operation of the university. Total value of assets contributed by individuals shall be converted into Vietnam dong at the exchange rate set by the State Bank at the time of capital contribution for the creation of university capital.

2. "Common owner" means the owner of assets under common ownership by integration contributed by organizations and individuals as well as assets increased in the university's operation process.

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4. "Contributed capital portion" means the proportion (in %) of capital amount contributed by an owner to the charter capital.

5. "Capital portion with voting right" means a contributed capital portion which entitles its owner to vote on issues falling within the deciding power of the Shareholders' General Meeting. Capital share with voting right of a private university shall be decided by the Shareholders' General Meeting.

6. "Founding member" means a person directly involved in proposing and preparing for the founding of a university right from the beginning; in formulating and approving the university's first Regulation on organization and operation, who has contributed a capital amount in accordance with regulations of the university.

7. "Share" means an equally divided part of the charter capital.

8. "Shareholder" means the owner of at least one share. A shareholder may be institutional or individual. Shareholders holding capital portions with voting right are called voting shareholders. Shareholders with capital portions insufficient to have the voting right are called ordinary shareholders.

9. "Permanent lecturers and cadres" mean those who work under long-term contracts (of one year or longer) at a university, who neither belong to the state payroll nor work under long-term contracts at other universities, other agencies or organizations; who get their salaries, insurance premiums and policy benefits paid by the university according to state regulations; and who have the rights and obligations of staff on the payroll of universities as provided for by law.

Article 4. State management of private universities

Private universities are subject to the state management of education by the Ministry of Education and Training; and to the territory-based administration by the People's Committees of the provinces or centrally run cities (below collectively referred to as provincial-level People's Committees) where they are headquartered.

Article 5. Party and mass organizations

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Socio-political organizations and social organizations shall be established and operate in private universities in accordance with the Constitution and law.

Article 6. Tasks and powers of private universities

Tasks and powers of private universities comply with their charters and other provisions of law.

A private university may not lend its name to any individual or organization to conduct illegal activities which fail to accord with its principles and purposes. It shall take responsibility for its illegal activities.

Article 7. Founding, termination, merger, division, split and dissolution

The founding, operation termination, merger, division, split and dissolution of private universities comply with the Prime Minister's Decision No. 07/2009/QD-TTg of January 15, 2009, on conditions and procedures for founding, operation termination, merger, division, split and dissolution of universities.

The founding of a private university requires at least 3 members (institutional or individual) to contribute charter capital, each of whom may contribute charter capital at not more than 2 private universities or colleges which must not exceed 51 % of the charter capital of each university.

Chapter II

ORGANIZATION AND PERSONNEL

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A private university has its organizational structure meeting the relevant requirements in its charter and suitable to its conditions and training scale at each of its development stages.

The organizational structure of a private university consists of:

1. The Board of Directors.

2. The rector and vice rectors.

3. The Control Board.

4. The Academic and Training Council.

5. Specialized departments (divisions).

6. University-run faculties and disciplines.

7. Faculty-run disciplines.

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9. Party and mass organizations.

Article 9. Shareholders' General Meeting

1. The Shareholders' General Meeting includes all voting shareholders and ordinary shareholders of whom the latter have no right to vote but may raise opinions at meetings.

2. The Shareholders' General Meeting has the following rights and tasks:

a/ To identify objectives and orientations for university construction and development: annual and periodical plans; the expansion, alteration, adjustment of training disciplines, scale and degrees, and orientations for scientific and technological activities in line with the university development strategy;

b/ To elect, dismiss, relieve from office members of the Board of Directors or the Control Board of the university; to settle requirements on the supplementation or replacement of members of the Board of Directors.

c/ To adopt annual financial statements of the university;

d/ To approve regulations on capital portions with voting right and other internal regulations of the university such as criteria for selection of members of the Board of Directors, the Control Board and the rector:

e/ To exercise other rights and perform other tasks according to the Regulation on organization and operation of the university.

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In case the Board of Directors seriously violates the Regulation on organization and operation of the university, the Control Board may convene an irregular meeting of the Shareholders' General Meeting and concurrently the Board of Directors thereof.

All costs of convening and organizing a meeting of the Shareholders' General Meeting shall be accounted into the operation funding of the university.

A meeting of the Shareholders' General Meeting shall be convened through sending written invitations, enclosed with a tentative agenda and related documents, to all shareholders at least 7 days before the meeting.

4. A meeting of the Shareholders' General Meeting shall be considered valid when attended by shareholders holding at least 51 % of total shares with voting right. A specific proportion shall be set in the Regulation on organization and operation of the university but must not be lower than the above-mentioned percentage.

5. Proceedings at meetings of the Shareholders' General Meeting must be recorded in writing and adopted right at the meetings, with signatures of their chairpersons and secretaries, for archive. Decisions of the Shareholders' General Meeting shall be adopted by voting or secret ballot at meetings. A Shareholders' General Meeting decision shall be considered valid when it is voted for by attending shareholders holding at least 51% of total shares with voting right. A specific proportion shall be set in the Regulation on organization and operation of the university.

Article 10. Board of Directors

1. The Board of Directors is the managing body and the sole representative of ownership of a private university; responsible for organizing the implementation of resolutions of the Shareholders' General Meeting and competent to decide on organizational, personnel, financial, property, planning and plan issues, and development investment plans and orientations of the university in accordance with law.

2. The Board of Directors shall be elected by the Shareholders' General Meeting of the private university and recognized by decision of the Minister of Education and Training. The Board of Directors has between 3 and 11 members, including the chairman; a deputy chairman (when necessary) and members. At least two-thirds of its members must possess university or higher degrees.

Members of the Board of Directors of a private university must be representatives of organizations or individuals that hold a necessary quantity of shares as required by that university.

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3. The Board of Directors of the first term of a private university is established based on nomination by the university's founding members and elected by secret ballot. From the second term, the establishment of the Board of Directors must comply with Clause 2 of this Article.

4. The Board of Directors shall meet once every three months. The convention of irregular meetings of the Board shall be decided by its chairman but must be agreed upon by at least one-third of its members. Resolutions of the Board of Directors shall be adopted through open voting at meetings. Resolutions of the Board of Directors shall be elaborated on the principle that each member of the Board has one voting card and all decisions will be effective only when they are approved by more than half of total members of the Board of Directors. In case the numbers of votes for and votes against are equal, the final decision will rest on the side with the opinion of the chairman of the Board of Directors.

5. The addition or change of members of the Board of Directors must be approved by secret ballot by the Shareholders' General Meeting.

In case the number of members of the Board of Directors decreases by more than one-third compared to the number set in the Regulation on organization and operation of the university, within 60 days after this happens, the chairman of the Board of Directors shall convene a meeting of the Shareholders' General Meeting in order to elect additional members to the Board of Directors.

6. Dismissal, relief from office of members of the Board of Directors

a/ A member of the Board of Directors shall be dismissed in the following cases:

- Violating law or committing serious violations of regulations of the Ministry of Education and Training, especially in the enrolment, training and management, which, however, are not serious enough for penal liability examination;

- Being dead or having restricted civil act capacity;

- Voluntarily resigning:

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- Other cases specified by the Regulation on organization and operation of the university.

b/ A member of the Board of Directors shall be relieved from office in one of the following cases:

- Being examined for penal liability;

- Having committed a serious violation of law which, however, is not serious enough for penal liability examination;

- Violating seriously the Regulation on organization and operation of the university and requested to be relieved from office by the Shareholders' General Meeting.

Article 11. Tasks and powers of the Board of Directors

The Board of Directors has the following tasks and powers:

1. To elaborate the university's Regulation on organization and operation for adoption by the Shareholders' General Meeting; to propose the Shareholders' General Meeting to consider, amend and supplement the university's rules and regulations when necessary or propose the addition, dismissal or relief from office of members of the Board of Directors.

2. To set the university's strategic orientations for development and direction of its organization and operation, to be submitted to the Shareholders" General Meeting at its meetings. To elaborate and issue the university's regulations on financial mechanisms and entitlements as well as revenue and expenditure norms in accordance with law and financial management regulations.

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4. To elect the university's rector and submit the election result to the Minister of Education and Training for consideration and issue of a recognition decision. To decide on appointment of vice rectors at the nomination of the rector and the Shareholders' General Meeting.

5. To approve the dismissal, relief from office of vice rectors; to propose competent authorities to dismiss the rector, the chairman and vice chairman of the Board of Directors according to regulations.

6. To approve the overall scheme on organizational apparatus, payroll and issues related to the university's organization and personnel at the proposal of the rector.

7. To identify basic principles to handle affairs related to training, scientific research, technological development, services, construction of material foundations and external relations of the university annually and in each period.

8. To monitor the leadership and administration by the rector and the Managing Board in order to ensure that all the university's activities are conducted in accordance with law; to abide by resolutions of the Shareholders' General Meeting and the Board of Directors.

9. To convene regular or extraordinary meetings of the Shareholders' General Meeting.

Article 12. Control Board

1. The Control Board of a private university consists of representatives of its institutional or individuals shareholders that hold a quantity of shares up to the level set in the university's regulations; is elected by the Shareholders' General Meeting, and has between 3 and 5 members, at least one of whom has a degree in accountancy. The head of the Control Board is elected directly by the Shareholders' General
Meeting.

The Control Board shall monitor operations of the university and take responsibility before the Shareholders' General Meeting for its performance according to regulations. The Control Board is also answerable to the Shareholders' General Meeting, the Board of Directors and permanent cadres, lecturers and employees of the university, for its reports and activities.

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3. A term of office of the Control Board coincides with that of the Board of Directors.

Article 13. Rights and tasks of the Control Board

The Control Board has the following rights and tasks:

1. To monitor and inspect activities of the university; its Board of Directors, rector, the Managing Board and organizations and units.

2. To examine the rationality and legality in the management and administration of the university, and the recording of accounting books and financial statements.

3. To appraise the university's annual financial statements; check details of issues related to the management and administration of the operation of the university.

4. To regularly notify the Board of Directors of its operation results and contents of its reports, conclusions and proposals before they are officially approved by the Shareholders' General Meeting.

5. To report to the Shareholders' General Meeting on the results of operation of the university at the meetings of the General Meeting.

6. To exercise other rights and perform other tasks according to the university's Regulation on organization and operation.

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8. In the course of performing its tasks, the Control Board shall ensure that its operations do not obstruct or interrupt operations of the Board of Directors of the university.

Article 14. Chairman of the Board of Directors

1. The chairman of the Board of Directors is head of the Board of Directors; elected by the Board of Directors and recognized by decision of the Minister of Education and Training. The chairman of the Board of Directors must possess university or higher degree.

The chairman of the Board of Directors may concurrently act as the rector if meeting the criteria set for university teachers and rectors.

2. The chairman of the Board of Directors has the following powers and tasks:

a/ To assume the prime responsibility for directing and running operations of the Board of Directors. To be responsible for preparing agendas, contents and documents of meetings of the Board of Directors; to have the right to convene meetings of the Board of Directors; and to assume the prime responsibility for resolutions and the implementation of resolutions of the Board of Directors;

b/ To sign and submit to the Minister of Education and Training for issuance a decision recognizing the rector of the university. To approve decisions to appoint vice rectors of the university at the proposal of the Board of Directors and approval of the Shareholders' General Meeting;

c/ When necessary, to sign decisions to nominate an acting rector of the university who may run the university for not more than 1 month pending the nomination of a rector according to regulations;

d/ To exercise other powers and perform other tasks according to the Regulation on organization and operation of the university.

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4. In case the chairman of the Board of Directors is absent for a certain period according to regulations of the private university, he/she must mandate the vice chairman (if any) of the Board of Directors or one of the remaining members of the Board of Directors to assume his/her responsibilities in that period. The mandate shall be made in writing and publicly notified, and concurrently reported to the educational administration agency and local competent management agency. The mandate period must not exceed 6 months and two successive mandates are not allowed.

The private university may nominate an acting chairman of the Board of Directors. The election and recognition of the acting chairman of the Board of Directors must comply with the principles applied to the election of the chairman of the Board of Directors. The time for recognition of the acting chairman of the Board of Directors must not exceed 6 months from the date of issue of the recognition decision and two successive recognitions of the same individual are not allowed.

Article 15. Rector

1. The rector of a private university shall meet qualifications for teachers in accordance with the Education Law; hold the academic title of associate professor or doctorate, have been involved in tertiary education administration for at least 5 years as chief of a discipline, division or section: have professional experience, capacity and prestige within the university; and be physically fit to undertake the assigned tasks, and other than a civil servant on the state payroll.

2. The rector of a private university shall be nominated by the Board of Directors on the principle of secret ballot with more than half of the votes being cast for; be approved by the Shareholders" General Meeting and recognized by decision of the Minister of Education and Training.

A term of office of the rector coincides with the term of the Board of Directors.

3. The rector of a private university is the university's representative in the implementation of assigned tasks; shall administer operations of the university and take responsibility for his/her decisions on all issues related to the university before the Board of Directors, the Ministry of Education and Training and law.

4. In addition, the rector of a private university has the following powers and responsibilities:

a/ To organize the implementation of resolutions of the Board of Directors;

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c/ To organize the mobilization, management and use of the university's resources, training, scientific and technological and other activities according to regulations, ensuring quality and compliance with law and plans already approved by the Board of Directors for development of the university;

d/ To organize accounting work and financial and property management according to law;

e/ To formulate cost estimates and annual financial settlements to be submitted to the Board of Directors for approval. To organize the implementation of financial plans according to regulations of the university. To periodically report to the Board of Directors and relevant management authorities on financial matters and operations of the university;

f/ To implement the laws on labor, salary, remuneration, insurance, tuition, commendation and disciplining of lecturers, cadres, employees and learners of the university;

g/ To implement regulations on enrolment, organize the management of training, tests, examinations, recognition of graduation and award of diplomas and certificates; to issue internal rules and regulations for administration of the university;

h/ To build up and organize scientific research, technology transfer and domestic and international cooperation activities;

i/ To organize the maintenance of order, security and safety in the university;

j/ To nominate vice rectors for consideration and appointment by the Board of Directors;

k/ To report to the Shareholders' General Meeting on the university's training activities according to regulations and to reserve his/her opinions on decisions of the Board of Directors for reporting to the Ministry of Education and Training or competent authorities for consideration and handling.

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1. Vice rectors of a private university must meet the criteria for teachers set in the Education Law and the university's charter; and possess university or higher degree and good health. Vice rectors are assistants to the rector. A vice rector in charge of training and scientific research must meet the requirements on academic title and degree as for the rector; be appointed under decision by the chairman of the Board of Directors after being approved by the Board of Directors by secret ballot with a majority of votes for.

2. A vice rector has the following powers and responsibilities:

a/ To assist the rector in managing and administering operations of the university, directly run a number of work domains and handle affairs assigned by the rector;

b/ When handling affairs assigned by the rector, the vice rector shall act on behalf of the rector and take responsibility before law and the rector for his/her performance;

c/ A term of office of the vice rector coincides with the term of office of the rector.

Article 17. Academic and Training Council

1. The Academic and Training Council of a private university consists of the rector, vice rectors, department heads, a number of division chiefs, representatives of professors, associate professors and principal lecturers of the university, and a number of scientists, education administrators and representatives of socio-economic organizations outside the university which are interested in. and knowledgeable about, tertiary education.

2. The Academic and Training Council is set up under decision of the rector and chaired by the rector. A term of office of the Council corresponds to the term of office of the rector.

3. The Academic and Training Council shall advise the rector on:

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b/ Training and retraining of the university's permanent lecturers, cadres and employees;

c/ Domestic and international cooperation in training and scientific research.

4. The Academic and Training Council shall meet at least once every 6 months or extraordinarily when convened by its chairman.

5. Members of the Academic and Training Council may propose plans of action of the Council. Conclusions of meetings of the Council must be notified to the university's departments and disciplines.

6. A term of office of the Academic and Training Council corresponds to the term of office of the rector.

Article 18. Divisions, departments and disciplines

The functions and tasks of divisions, departments or disciplines of a private university are the same as those of public universities. Depending on its training scale and tasks, the rector may propose the Board of Directors to organize divisions, departments and disciplines in a way to ensure effective operation of the university.

Heads and deputy heads of divisions, departments and disciplines shall be nominated by the rector and appointed by decision of the chairman of the Board of Directors.

Article 19. Scientific and technological institutions, training service establishments, and production and business establishments in a private university

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2. Production and business establishments in a private university shall be established based on its training tasks and operate in accordance with law.

3. Other organizations serving training:

a/ A private university has an information and documentation center to serve training, scientific and technological activities. The information and documentation center shall manage, supplement and supply information sources and materials on domestic and foreign sciences and technologies in the university's operation fields; collect and preserve books, journals, tapes, discs and theses which have been defended at the university, the university's publications and other archives; and guide and manage intellectual property work of the university. It shall operate according to regulations issued by the rector and the State's regulations;

b/ A private university also has training, scientific research and technological service establishments suitable to its development conditions.

Chapter III

LECTURERS, CADRES, EMPLOYEES AND LEANERS

Article 20. Lecturers

1. Lecturers of a private university must meet criteria on moral and professional qualifications and health conditions according to its charter and Point e, Clause 1 of Article 77, and Article 79 of the Education Law. Lecturers of a private university have responsibilities and powers as defined in Articles 70,71,72,73.74 and 75 of the Education Law and relevant laws.

2. Permanent lecturers of a private university will be recruited according to law; entitled to remunerations and wages, and to pay social insurance and health insurance premiums; enjoy benefits corresponding to their capital portions, and may join in activities of social and mass organizations in accordance with law.

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4. Lecturers of a private university shall strictly observe the Party's lines and policies and the State's law; fully abide by the university's charter and regulations of the Ministry of Education and Training, the Regulation on organization and operation of the university and regulations issued by the university.

5. Permanent lecturers of private universities who fully meet the set criteria may be considered for the award of "Outstanding Teacher". "People's Teacher", Professor or Associate Professor title and commemorative medals for the cause of education.

6. Guest lecturers of private universities have the same rights and duties as guest lecturers of public universities.

Article 21. Cadres, employees

1. Permanent cadres and employees of a private university are entitled to remuneration and salaries according to operation results of the university; may pay social and health insurance premiums, enjoy benefits corresponding to their capital portions and all other benefits during festive and new-year holidays as prescribed by law. They may also join in political, social and mass organizations in accordance with law.

2. Cadres and employees recruited for short-term jobs according to law are entitled to salaries according to the university's regulations and the minimum salary level set by the State; have health and social insurance premiums paid and other benefits assured by the university during their working duration at the university in accordance with law.

3. Cadres and employees of a private university shall strictly observe the Party's undertakings, line and policies and the State's law: fully abide by the charter of the university and regulations of the Ministry of Education and Training, the Regulation on organization and operation of the university and relevant regulations issued by the university.

Article 22. Tasks and rights of learners

Learners at a private university shall perform tasks and exercise rights provided for in the Education Law and the charter of the university.

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TRAINING SCIENTIFIC AND TECHNOLOGICAL ACTIVITIES, AND INTERNATIONAL COOPERATION

Article 23. Training activities

A private university shall organize the formulation of training programs, teaching and learning plans and organize the enrolment; manage the training process, assess the teaching and learning process; award diplomas and certificates and accredit the university education quality in accordance with its charter.

Article 24. Scientific and technological activities

A private university shall organize and conduct scientific and technological activities, provide scientific consultancy services, and carry out technology transfer, production and business activities in its training disciplines; set up research and development centers; organize the management of an information and documentation system; distribute scientific publications and documents for training activities in accordance with the Law on Science and Technology and the university's charter.

Article 25. International cooperation

A private university shall perform tasks of international cooperation in accordance with its charter.

Chapter V

FINANCE AND PROPERTY

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1. A private university shall operate on the principle of voluntary capital contribution, financial autonomy, self-balancing of revenue and expenditure, observance of the laws on accountancy, statistics and obligations towards the state budget, and other current relevant regulations

2. A private university may borrow capital from credit institutions for investment in the expansion of its material foundations, improvement of training quality, scientific research, production and service provision.

3. A private university will be allocated with funds by the State for performing tasks ordered by the latter.

Article 27. Financial sources

Financial sources of a university include:

1. Capital contributed by shareholders and financial sources added from annual operation results of the university.

2. Other financial sources, including:

a/ Tuitions and fees paid by learners in accordance with law;

b/ Revenues from cooperation activities in training, scientific research, technology transfer, trial production and other labor, production and service activities as prescribed by law;

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d/ Investments, aid, donations and gifts (in cash or kind) from domestic or foreign organizations and individuals;

e/ Loans provided by banks, credit institutions or individuals;

f/ Other lawful revenues.

Article 28. Expenditure items

1. Salaries, salary allowances, remuneration, bonuses and social and health insurance premium payments for laborers; expenses on training and retraining to raise qualifications of cadres, lecturers and employees of the university.

2. Expenses for learners, on scholarships and rewards.

3. Expenses on cultural, physical training and sports activities.

4. Expenses on teaching, learning, training, job training, scientific research, deployment and application of technology, and activities serving teaching and learning.

5. Expenses on administrative affairs.

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7. Expenses on depreciation of fixed assets.

8. Expenses on payment of loan principals and interests.

9. Expenses on humanitarian and charity activities.

10. Other expenses under the university's regulations (its internal expenditure rules), which are not in contravention of law.

Article 29. Management of finance and property

1. Finance and property of a private university are created from its revenue sources specified in Article 26 of this Regulation. Specific regulations on financial expenditure and property use must be issued by the Board of Directors in a transparent manner.

2. A private university shall report its annual financial activities to its managing agency and concerned local finance agency.

3. Annual cost estimates and financial settlements of a private university shall be submitted by the university's rector, approved by the Board of Directors and reported publicly at annual meetings (or conferences) of the Shareholders' General Meeting.

4. Annually, the university's property must be inventoried, revaluated and audited in accordance with law. The university may set a rapid depreciation rate for its fixed assets to recover capital, which, however, must not exceed the maximum depreciation rate prescribed by law for enterprises. It shall elaborate an internal spending regulation to serve as a legal basis for its financial management.

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a/ Assets invested or contributed by organizations and individuals;

b/ Assets increased from the university's operation results;

c/ Assets acquired from donation, presentation or assistance;

d/ Tuitions and fees collected from learners according to law.

6. Property ownership rights

Assets of a private university created from capital contributed by shareholders belong to private ownership of capital contributors in proportion to their shares. Assets acquired from donation, presentation or assistance or increased from the university's operation results come under common ownership of the private university. Assets under private or common ownership shall be protected by the State in accordance with law.

7. The private university shall observe financial publicity regulations and submit to financial inspection under state regulations and at the request of the Control Board. It is subject to inspection by financial agencies according to the law on the use of funds and the increase and decrease of its property or capital sources.

Article 30. Revenue and use of revenue

Total revenue of a private university may, after covering necessary expenses for its activities specified in Article 28 of this Regulation, be used for the following:

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2. Deduction for setting up the university's investment development fund and other funds according to resolutions of the Board of Directors and Shareholders' General Meeting.

3. Distribution to shareholders corresponding to their capital portions after covering expenses defined in Clauses 1 and 2 of this Article.

4. The levels of payment to laborers and profit distribution to capital-contributing members shall be decided by the Board of Directors based on resolutions of the Shareholders' General Meeting and in line with the Regulation on organization and operation of the university.

Article 31. Transfer of ownership rights and capital withdrawal

The ownership right transfer and capital withdrawal must ensure the development and stability of a university.

1. Capital-contributing shareholders may transfer or withdraw part or all of their contributed capital according to regulations approved by the Shareholders' General Meeting. Specific regulations on ownership right transfer and capital withdrawal in the university must comply with the Enterprise Law. The private university may take the initiative in formulating its financial regulations for adoption by the Shareholders' General Meeting before they are approved by the Board of Directors.

2. Shareholders may transfer part or the whole of their contributed capital to others according to the following provisions:

a/ A shareholder that wishes to transfer part or the whole of his/her capital portion shall, first of all, transfer that portion to other shareholders at a negotiable price at the time of transfer;

b/ The transfer may be made to persons other than the university's shareholders only when other shareholders of the university refuse to buy or do not buy up the transferred capital.

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Chapter VI

INSPECTION, EXAMINATION, COMMENDATION AND HANDLING OF VIOLATIONS

Article 32. Inspection, examination

1. A private university shall organize self-inspection of its operations according to current regulations.

2. A private university is subject to inspection and examination by competent state agencies in accordance with law.

Article 33. Commendation

Collectives and individuals (leaders, lecturers, cadres and employees) of a private university that make contributions to the cause of education and learners who record outstanding achievements in study and scientific research will be commended in accordance with law.

Article 34. Handling of violations

If a private university commits acts in violation of law or regulations of the Ministry of Education and Training; fails to meet training conditions or violate other regulations on environment, prestige of the education sector, the university or concerned locality, the Ministry of Education and Training shall, depending on the severity of its violation, consider and handle the violation according to regulations applicable to state management agencies in charge of education:

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2. To impose administrative sanctions, issues decisions annulling the recognition of the chairman of the Board of Directors or the rector in necessary cases, and propose legal and competent bodies to consider and handle violations beyond its competence.

3. To decide on definite or indefinite suspension of enrolment or training activities pending the handling.

4. To propose the Prime Minister to suspend the operation of. or dissolve, a private university.

Quyết định 61/2009/QĐ-TTg về Quy chế tổ chức và hoạt động của trường đại học tư thục do Thủ tướng Chính phủ ban hành