Guidance on the Transfer of Seized Assets for Auction

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The transfer of attached assets for commercial legal entities to auction must comply with the provisions of Article 33 Decree 44/2020/ND-CP. Specifically:

- For assets attached for auction, the starting price is determined according to the provisions of Article 32 of this Decree. Within 20 working days from the date the asset is attached, the person who issued the enforcement decision must sign an auction sale contract with a professional auction organization; in case no auction sale contract can be signed with a professional auction organization, an Auction Council for the asset shall be established.

The auction of attached assets is conducted according to the provisions of the law on asset auctions.

- After signing the auction sale contract, the competent criminal enforcement agency shall proceed with the transfer of attached assets to auction. The transfer must be recorded in a minutes, clearly stating: Time of handover; transferor, transferee; signatures of both the transferor and transferee; quantity and condition of the assets. The handover dossier of the attached assets to the responsible auction agency includes: Enforcement decision to attach; relevant documents regarding legitimate ownership and use rights (if any); asset valuation document and handover minutes of the attached assets.

- In case the attached asset is bulky goods or in large quantities and the responsible auction agency has no storage place, after completing the transfer procedure, a contract for asset custody can be signed with the place currently holding the asset. The cost of implementing the custody contract is paid from the proceeds of the asset auction after the auction.

- For assets under joint ownership, when auctioned, priority is given to sell to co-owners first.

- If the auction proceeds exceed the amount to ensure the enforcement of judicial measures and enforcement costs, within 10 working days from the auction date, the competent criminal enforcement agency shall proceed with the procedure to return the difference to the enforced commercial legal entity, and the receipt shall be recorded in minutes.

More details can be found in: Decree 44/2020/ND-CP which came into force on June 1, 2020.

Le Hai

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