02-06-23 MTParners
The rights of enterprises are recognized and regulated in different legal documents from the Constitution to general laws (Civil Code, Civil Procedure Code) and specialized laws (Enterprise Law, Investment Law, Commercial Law…). But among them, the Enterprise Law is the legal document that regulates the most comprehensive, relatively complete and specific rights of enterprises. According to the provisions of Article 7 of the Enterprise Law 2020, enterprises have the following basic rights:
“Article 7. Rights of enterprises
The rights of enterprises can be divided into the following groups of rights:
1. GROUP OF RIGHTS IN BUSINESS ACTIVITIES
Basically, the rights in business activities include the rights: To freely do business in industries and trades that are not prohibited by law; Business autonomy and choice of form of business organization; actively choose the industry, trade, area, form of business; actively adjust the scale and industry, trade of business; Freely choose the form, method of mobilizing, allocating and using capital; Freely seek markets, customers and sign contracts; The right to export and import business; Actively apply science and technology to improve business efficiency and competitiveness; be protected intellectual property rights in accordance with the law on intellectual property.
– The right to freely do business in industries and trades that are not prohibited by law: The right to freely do business is a constituent part of the system of citizens’ freedoms. Along with the recognition of human rights, basic rights and obligations of citizens in Chapter 2 of the 2013 Constitution (from Article 14 to Article 49), Article 33 of the Constitution recognizes: “Everyone has the right to freely do business in industries and trades that are not prohibited by law”. Concretizing the Constitution, Clause 1, Article 7 of the Enterprise Law 2020 stipulates: enterprises have the right to “Freely do business in industries and trades that are not prohibited by law”. The right to freely do business of traders is understood as traders are allowed to carry out commercial activities that are not prohibited by law. Traders have the right to freely do business, but that does not mean that they are free to do business without government, without organization, but must do business within the framework of the law, respect the right to freely do business of other traders. Freedom within the framework of the law means that in addition to only being allowed to carry out business activities that are not prohibited by law, when exercising the right to freely do business, traders must comply with the legal conditions or have some corresponding obligations.
– Actively choose the industry, trade, area, form of business; actively adjust the scale and industry, trade of business: This is a right derived from the principle of free business. Enterprises actively choose the industry and trade of business that suits their capabilities and market needs. It can be any industry or trade, in any field that is not on the list of industries and fields that are prohibited by law. The choice depends entirely on the will of the enterprise. The adjustment of the industry and trade of business is also accepted by law at any time and also depends entirely on the will of the enterprise. In the course of business, enterprises have the right to choose the area, form of business, have the right to determine the scale of business. The law only stipulates the minimum capital to establish an enterprise in some industries and trades, but does not limit the development of capital as well as the scale of business of enterprises.
– Enterprises have the right to freely choose the form and method of mobilizing, allocating and using capital: In business, capital is an important factor, enterprises want to develop and expand the scale of business, they must mobilize capital from different sources. Enterprises have the right to choose the forms and methods of mobilizing capital that suit their specific conditions and in accordance with the law. In addition to the initial capital, enterprises can mobilize by increasing charter capital or creating additional capital by borrowing, issuing bonds as prescribed.
– Enterprises have the right to freely seek markets, customers and sign contracts: In a market economy, choosing customers to do business with is a particularly important issue. The law does not prohibit the choice of partners to trade and sign contracts. The transaction with whom depends on the will of the enterprise, the enterprise has the right to directly trade to sign contracts according to the principles of voluntariness, equality, mutual benefit and not contrary to law. This is also one of the tools for enterprises to have a position and exist in the business environment where competition is the main driving force of development.
– The right to export and import business: This is an important legal guarantee for enterprises to have a sufficiently wide and equal playing field to develop their business activities. According to the content of this right, enterprises have the right to directly consume their products and goods by exporting as well as importing goods from abroad to serve their business activities, in accordance with the business functions that have been determined in the Business Registration Certificate.
– Actively apply science and technology to improve business efficiency and competitiveness; be protected intellectual property rights in accordance with the law on intellectual property: Within the scope of the registered business industry, enterprises have the right to decide for themselves the issues arising in business activities.
2. GROUP OF RIGHTS TO ASSETS
Enterprises have the right to own, use and dispose of the assets of the enterprise. To exist and operate, enterprises must have assets and certain powers over those assets. Enterprises have the right to own, use and dispose of their assets to serve the activities of the enterprise. However, there are also certain differences in the exercise of asset powers among types of enterprises. Granting enterprises the right to own their assets creates conditions for types of enterprises to operate effectively in a market economy on the basis of self-determination and flexibility in the use of investment capital.
3. GROUP OF RIGHTS IN ENTERPRISE GOVERNANCE
Enterprises have the right to recruit, hire and use labor in accordance with the law on labor: Based on the business requirements, enterprises decide for themselves the number of laborers to recruit, hire, and prescribe the requirements for occupation and level of workers.
4. OTHER GROUP OF RIGHTS OF ENTERPRISES
The rights of enterprises are always under the management of the State. In order to ensure that the legitimate rights and interests of enterprises are not affected and that the management activities of the State do not have an abusive nature, the law on enterprises also stipulates for enterprises the rights to self-ensure their interests before the risks of being abused in the process of state administrative management. Those rights are the right to refuse requests from agencies, organizations or individuals for providing resources not in accordance with the law; The right to complain and participate in litigation in accordance with the law.
MT & Partners hope that the article will bring useful knowledge to our readers.
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