What is automatic time limit for expungement of conviction for corporate legal entity, and criminal sanctions for convicted corporate legal entities in Vietnam?

What is automatic time limit for expungement of conviction for corporate legal entity in Vietnam?

When receiving the sanctioning decision of the Court, what is automatic time limit for expungement of conviction for corporate legal entity? This is a question sent by Minh Bao - An employee of a company in Ho Chi Minh City.

Reply:

Article 89 of the 2015 Penal Code has the following provisions: A convicted corporate legal entity shall automatically have its conviction expunged if it does not commit any new criminal offence for 02 years from the day on which the primary punishments, additional punishments, other decisions of the judgment are served or from the expiration of the time limit for execution of the judgment.

Thus, the automatic time limit for expungement of conviction for commercial legal entities is 2 years in Vietnam.

Note: according to the law, it is provided that: An offending corporate legal entity may be exempt from punishment after the damage has been repaired and compensation has been paid.

Criminal sanctions for convicted corporate legal entities in Vietnam

Hello, I'm a student at the Faculty of Commercial Law. While researching the issues of legal entities, it is still unclear what criminal sanctions will be applied to convicted corporate legal entities? Please advise.

Reply:

In Article 33 of the 2015 Penal Code, there are penalties for sentences against business entities committing crimes:

1. Primary sentences:

b) Fine;

- Fine is imposed as a primary punishment or additional punishment against corporate legal entities committing criminal offences.

- The fine level depends on the nature and level of danger of the criminal offence with account taken of the offender's financial capacity and fluctuation of prices. Nevertheless, the fine must not fall under VND 50,000,000.

b) Suspension of operation;

- Suspension of operation means suspension of a corporate legal entity's activities in one or some fields in which the corporate legal entity harms human life, health, the environment, social security or order and the damage can be repaired in reality.

- The suspension period is from 06 months to 03 years.

c) Permanent shutdown.

- Permanent shutdown means termination of a corporate legal entity's activities in one or some fields in which the corporate legal entity causes damage or possibly harms life, health of many people, causes environmental emergencies or negatively impact social security or order and the damage cannot be repaired.

- A corporate legal entity is established for the sole purpose of committing the criminal offence shall have all of its activities permanently terminated.

2. Additional sentences:

a) Ban from operating in certain fields;

- Ban from certain fields shall be imposed if it is considered that the convicted corporate legal entity might harm human life, health or society if it keeps operating in such fields.

- The court shall decide the fields from which the convicted entity is banned.

- The duration of ban is from 01 to 03 years from the effective date of the judgment.

b) Prohibition from raising capital;

- Prohibition from raising capital shall be applied if it is considered that the convicted corporate legal entity might harm human life, health or society if it keeps operating in such fields.

- Types of prohibition from raising capital:

+ Prohibition from taking loans from banks, credit institutions and or investment funds;

+ Prohibition from issuance and securities offering;

+ Prohibition from raising capital from clients;

+ Prohibition from cooperation and association both in Vietnam and overseas;

+ Prohibition from establishing real estate trusts.

- The court shall decide on one or some of the types of prohibition specified in Clause 2 of this Article.

- The duration of prohibition from raising capital is from 01 to 03 years from the effective date of the judgment.

- Fine if no administrative penalties are imposed.

3. The corporate legal entity shall incur only one primary sentence for a criminal offence committed and possibly one or more additional sentences.

What are penalties for corporate legal entities committing crimes of possession and transport of banned goods in Vietnam? 

Please ask some issues related to criminal handling for commercial legal entities. May I ask what are penalties for corporate legal entities committing crimes of possession and transport of banned goods? Looking forward to hearing from you soon. Sincere thanks!

Ngoc Thien - Dong Nai

Reply:

Handling of corporate legal entities committing crimes of possession and transport of banned goods is specified in Clause 5, Article 191 of the Penal Code 2015, as amended and supplemented by the 2017 Penal Code Amendment Law, whereby:

5. Punishments incurred by a corporate legal entity that commits any of the offences specified in this Article:

a) A corporate legal entity that commits this offence in any of the circumstances specified in Clause 1 of this Article shall be liable to a fine of from VND 300,000,000 to VND 1,000,000,000;

b) A corporate legal entity that commits this offence in any of the circumstances specified in Points a, d, dd, e, g, h, i, k, l Clause 2 of this Article shall be liable to fine of from VND 1,000,000,000 to VND 3,000,000,000;

c) A corporate legal entity that commits this offence in any of the circumstances specified in Clause 3 of this Article shall be liable to a fine of from VND 3,000,000,000 to VND 5,000,000,000 or has its operation suspended for 06 - 36 months;

d) A corporate legal entity that commits this offence in the circumstances specified in Article 79 hereof shall be permanently shut down;

dd) The violating corporate legal entity might also be liable to a fine of from VND 50,000,000 to VND 200,000,000 , be banned from operating in certain fields or raising capital for 01 - 03 years.

Best Regards!