Principles for Enforcing Coercive Execution Against Commercial Legal Entities

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The criminal judgment enforcement agencies of the provincial-level Police, the military district-level criminal judgment enforcement agencies (hereinafter referred to as competent criminal judgment enforcement agencies), state management agencies of commercial legal entities, and other agencies, organizations, and individuals related to enforcement by compulsion. The principles of applying enforcement against commercial legal entities are stipulated in Article 3 of Decree 44/2020/ND-CP. Specifically:

1. Enforcement is only carried out when there is a written enforcement decision from the competent criminal judgment enforcement agency.

2. The decision to apply enforcement measures must be based on the penalties and judicial measures applied to the commercial legal entity, the content, nature, extent, conditions of execution of the enforcement decision, and the actual situation in the locality.

3. The duration of applying enforcement measures to ensure the execution of sentences shall not exceed the duration of the punishment execution according to the legally effective judgment or decision of the Court; the duration of ensuring the execution of judicial measures is determined when the judicial measures are fully executed.

4. A commercial legal entity may be subject to one or multiple enforcement measures at the same time if applying one enforcement measure is not sufficient to ensure the execution of the judgment.

5. Ensure the lawful rights and interests of the commercial legal entity, organizations, and individuals involved in the execution of the sentence enforcement.

In addition, the Decree also stipulates the enforcement measures applicable to commercial legal entities, including:

- Freezing accounts.- Distraining assets of equivalent value to the amount ensuring the enforcement of judicial measures (asset distraint).- Temporary seizure of documents, vouchers, electronic data storage devices; temporary seizure or retrieval of the seal of the commercial legal entity.

Within 03 working days from the date of issuing the enforcement decision, the competent criminal judgment enforcement agency must send the enforcement decision to the Court that issued the judgment enforcement decision, the same-level Procuracy, the state management agency related to the commercial legal entity, the commercial legal entity, the legal representative of the commercial legal entity, the National Business Registration Portal, and related organizations and individuals; in case of enforcement measures stipulated in clauses 2 and 3 of Article 4 of this Decree, the enforcement decision must also be sent to the Chairman of the commune-level People's Committee where the distrained assets, documents, vouchers, electronic data storage devices are located or where the seal is temporarily seized or retrieved 03 working days before the enforcement for coordination in execution.

More details can be found in Decree 44/2020/ND-CP, effective from June 1, 2020.

Le Hai

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