In which cases may insolvency practitioners refuse to manage and liquidate assets?

To be specific, Decree 22/2015/ND-CP stipulates that Trustees, asset management and liquidation enterprises must refuse to perform asset management and liquidation activities in the following cases:

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- Are related to enterprises or cooperatives that are insolvent according to the legal provisions on enterprises.

- When there is a basis to believe that the Judge conducting bankruptcy proceedings, or the civil enforcement authority has requested actions contrary to the provisions of law, principles of asset management and liquidation, or inconsistent with the Code of Ethics for Trustees.

- Other cases as stipulated by law.

In addition, Decree 22 stipulates that Trustees, asset management and liquidation enterprises may be replaced by a Judge's decision if they fall into one of the cases specified in Clause 1, Article 46 of the Bankruptcy Law. Trustees, asset management and liquidation enterprises shall be replaced by a Judge if they are temporarily suspended from the profession according to the provisions of Article 20 of this Decree.

In the case that Trustees, asset management and liquidation enterprises are replaced because they fall into one of the cases specified in Clause 1, Article 46 of the Bankruptcy Law, the refund of advance payments, the payment of fees for Trustees, asset management and liquidation enterprises, and the handover of work shall be carried out in accordance with Clauses 6, 7, and 8, Article 46 of the Bankruptcy Law.

In the case that Trustees, asset management and liquidation enterprises are replaced because they are temporarily suspended from practicing asset management and liquidation according to the provisions of Article 20 of Decree 22/2015/ND-CP, the Trustees, asset management and liquidation enterprises must refund all advance payments. They shall be compensated for the corresponding work already completed. Trustees, asset management, and liquidation enterprises shall hand over the work in accordance with Clauses 7 and 8, Article 46 of the Bankruptcy Law.

Details can be found at Decree 22/2015/ND-CP, effective from April 6, 2015.

Thu Ba

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