SBV Branch Supervises Asset Liquidation of Local PCF

The subjects of application of Circular 23/2018/TT-NHNN are QTDND: Organizations and individuals related to the reorganization, license revocation, and asset liquidation of QTDND.

Regarding the authority to approve the reorganization of QTDND, license revocation, and supervision of QTDND asset liquidation, the Circular stipulates: The Director of the State Bank of Vietnam (SBV) branches in provinces or centrally-run cities where QTDND is headquartered (hereinafter referred to as SBV branches) approves the reorganization, decides on license revocation for QTDND located in the area; the SBV branches supervise the process of asset liquidation of QTDND in the area.

Requirements for the reorganization of QTDND, as stipulated in Article 8 of the Circular, include:

The reorganization plan must be feasible, ensure the rights and obligations between the related parties, and be developed and approved as prescribed in Article 12 of this Circular.

QTDND carrying out the reorganization (including QTDND not subject to annual independent audits as prescribed by the SBV on independent audits for credit institutions) must have audited financial statements from the preceding year, except for QTDND under special control.

QTDND must comply with legal regulations regarding member capital contribution ratios; geographical scope of operation; scope and content of activities; standards for members of the Board of Directors, members of the Supervisory Committee, Director; safety limits, and ratio guarantees in operation, after reorganization.

The QTDND Reorganization Council has the responsibility to: Develop the reorganization plan; Propose the Board of Directors of QTDND to convene the Members' Congress to approve the reorganization plan and related reorganization procedures; Propose the organizational structure and personnel to be elected, appointed as Chairman and other members of the Board of Directors, Head and other members of the Supervisory Committee or full-time supervisors, and Director of QTDND after reorganization; On behalf of reorganizing QTDND, carry out reorganization procedures according to this Circular and take legal responsibility for the legality and accuracy of the documents in the application for reorganization approval.

Regarding the liquidation of QTDND assets, Circular 23 stipulates:

From the date the SBV branch has a decision to approve dissolution, QTDND must cease business activities recorded in the License.

Within 30 days from the date the SBV branch has a decision to approve dissolution, QTDND must establish a Liquidation Council and proceed with asset liquidation according to the approved asset liquidation plan, comply with Section 3, Chapter III of this Circular and relevant legal regulations; 30 days from the date of liquidation completion, the Liquidation Council must submit a written report on liquidation results and propose the conclusion of the liquidation (including proposals to conclude liquidation to carry out bankruptcy procedures according to the law) to the Liquidation Supervisory Committee, the commune People's Committee where QTDND is headquartered, and the SBV branch...

Source: cafef.vn

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