Seizure of Commercial Legal Entity's Assets Must Be Conducted During the Day

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Decree 44/2020/ND-CP stipulates that the organization and execution of property seizure for commercial entities must comply with the following principles:

1. The property seizure must be conducted during the daytime, from 08:00 to 17:00, except for public holidays, weekends as prescribed by law, and other special cases as regulated by the Government of Vietnam.

2. The competent criminal judgment execution agency shall preside over the seizure.

3. When executing the property seizure, the following parties must be present: the legal representative of the commercial entity, the organization or individual owning the seized property, the representative of the local authority where such property is located, and a witness. If duly summoned and notified, but the legal representative of the commercial entity, the organization, or the individual owning the seized property is absent, the seizure will still proceed with a record of absence in the presence of a representative of the local authority where the property is located and a representative of the state management agency regarding the commercial entity.

4. Only the property of the commercial entity being coerced corresponding to the amount of money needed for the enforcement of judicial measures and the costs for organizing the coercive enforcement will be seized.

5. Only seize the jointly-owned property of the commercial entity under coercion with other parties if the property is insufficient to enforce the Seizure Decision. In cases where there is a dispute over the property, the seizure will still proceed, and the co-owners must be explained their right to file a lawsuit following civil procedural law.

The competent criminal judgment execution agency shall publicly announce the time and venue of the seizure for the co-owners to be aware. After 90 days from the date of the seizure without any lawsuit filed, the seized property will be auctioned in accordance with the law on property auction.

Additionally, the Decree also stipulates that any Seizure Decision must be based on:

- The legally effective judgment or decision of the Court.- The minute recorded as prescribed in Article 5 of this Decree.- The commercial entity executing the judgment does not have an account or the amount in the account at credit institutions, the state treasury, securities companies, or the Vietnam Securities Depository does not suffice to ensure the enforcement of judicial measures.- Documents verifying the information about the assets of the commercial entity.

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

Le Hai

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