Decree 55: Enforcement of Judgments in Cases of Divided or Separated Commercial Legal Entities

Execution of judgments for divided or separated commercial legal entities (illustrative image)

The obligations of judgment execution in the case of divided or separated commercial legal entities are as follows:

- If the content and field of judgment execution are wholly assigned to a new commercial legal entity, that new commercial legal entity shall be responsible for fulfilling all the obligations of the judgment execution;

- If the content and field of judgment execution are assigned to various new commercial legal entities, then the new commercial legal entities shall execute according to the transferred obligations.

Decree 55/2020/ND-CP stipulates that the execution of judgments in the case of divided or separated commercial legal entities shall be carried out as follows:

- In the case where the commercial legal entity taking up the execution obligations is headquartered within the same province-level administrative unit or military zone as the commercial legal entity before being divided or separated, the criminal judgment execution agency that was executing the judgment for the commercial legal entity before the division or separation will continue organizing the execution according to the provisions of the Law on Criminal Judgment Execution and this Decree;

- In the case where the commercial legal entity taking up the execution obligations is headquartered outside the province-level administrative unit or military zone, the criminal judgment execution agency where the commercial legal entity taking up the execution obligations is headquartered shall set up the execution dossier and organize the execution according to the provisions of the Law on Criminal Judgment Execution and this Decree.

Additionally, the criminal judgment execution agency that was executing the judgment for the commercial legal entity before the division or separation has the responsibility to send copies of the execution dossier documents to the criminal judgment execution agency where the commercial legal entity taking up the execution obligations is headquartered to organize the judgment execution.

Note: The time already served by the commercial legal entity before the division or separation is counted towards the execution time of the commercial legal entities taking up the execution obligations.

For details, see Decree 55/2020/ND-CP , which comes into effect from July 15, 2020.

Thu Ba

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