Can asset management officers represent a bankrupt enterprise when the enterprise has no legal representative in Vietnam?

Can asset management officers represent a bankrupt enterprise when the enterprise has no legal representative in Vietnam?

Pursuant to Article 16 of the Law on Bankruptcy 2014 stipulates rights and obligations of asset management officers and asset management enterprises as follows:

1. Manage and supervise the business operation and asset liquidation of the insolvent entities as follows:

a) Collect, verify and manage the documents and evidence related to the business operation of the entities.

b) Draw up lists of assets, creditors and debtors;

c) Preserve assets; prevent selling and/or giving asset without permission of the Judge; prevent dispersing and hiding assets; maximize the value of the entities’ asset on selling and/or liquidating;

d) Supervise the business operation of the entities according to the regulations of the Law;

dd) Hire an individual or an organization according to the regulations of the Law;

e) Advise the Judge on selling the entities’ assets in order to cover the cost of bankruptcy;

g) Sell the entities’ assets in accordance with the Judge’s decision in order to cover the cost of bankruptcy;

h) Valuate and liquidate assets according to the regulations of this Law; send reports to civil execution authorities and notifications to involving entities on the asset liquidation of an appointed individual or organization.

i) Send the collected money to the bank accounts held by the People’s Court or civil execution authorities

2. Represent the insolvent entity if the entity does not have any legal representative.

3. Make a report on assets, debts and the operation of the enterprise or cooperative participating in making plan for recovering the business operation of the insolvent entity.

4. Advise the Judge to do the followings:

a) Collect evidences;

b) Declare that a transaction is invalid and take back the entities’ assets which are illegally sold or given;

c) Take temporary emergency measures; impose administrative penalties; transfer dossier to competent authorities for imposing criminal penalties according to the regulations of the Law.

5. Receive payment and professional liability insurance according to the regulations of the Law.

6. Make a report on the performance of the tasks and powers at the request of the Judge and/or civil execution authorities; Take liability before the Judge, civil execution authorities and the Law for the performance of the tasks and powers.

Thus, the asset management officer may represent the enterprise or cooperative in case the enterprise or cooperative has no legal representative. Therefore, if your company currently does not have a legal representative to carry out the bankruptcy procedures, the asset management officer may represent your business to carry out the bankruptcy proceedings in Vietnam.

Can involved entities request asset management officers to collect documents and evidence in Vietnam?

According to Article 18 of the Law on Bankruptcy 2014, rights and obligations of involved entities are as follows:

1. Comply with the requests of the Judge, the asset management officers, the asset management enterprises and civil execution authorities according to the regulations of Law on bankruptcy;

2. Provide documents and evidences related to the bankruptcy settlement.

3. Request individuals, agencies and organizations keeping the documents and evidences related to their lawful rights and interests to provide the evidences to the People’s Court.

4. Request the Judge, asset management officer, asset management enterprise to collect and verify the documents and evidence which cannot provide or request for assess and valuate the assets; request the Judge to conduct an audit of the insolvent entities; request the Judge to convene the testifiers.

5. Be informed and allowed to record and make copy of the documents and evidences provided by other involving entities or collected by the Judge.

6. Request for employment, change and cancellation of the temporary emergency measures.

7. Receive eligibility notification for performing their rights and obligations.

8. Protect or employ a legal guardian to protect their lawful rights and interests.

9. Participate in the creditors’ meeting.

10. Request for replacing the asset management officers and/or asset management enterprises according to Article 46 of this Law.

11. Request the asset management officers and/or asset management enterprises to add more creditors and debtors into the lists of creditors and debtors.

12. Advise the asset management officers and/or asset management enterprises to take back the sums of money and/or assets of the debtors.

13. Present at the request of the asset management officers and/or asset management enterprise, at the summon of the People’s Court and comply with the decisions of the People’s Court during the bankruptcy settlement.

14. Participating in the management and liquidation of assets at the requests of the Judge, the civil execution authorities, asset management officers, the asset management enterprises.

15. Request for reconsidering the decision of the People’s Court according to the regulations of this Law.

16. In case an involved entity dies, his/her lawful heir shall perform the rights and obligations prescribed in this Article.

According to this Article, involved entities in bankruptcy proceedings may request the asset management officer to verify and collect documents and evidence which cannot provide or request for assess and valuate the assets in Vietnam.

Best Regards!