Our country is in the process of international integration, with large enterprises increasingly developing, while small enterprises face losses and are excluded from the business market, which is a common occurrence. To address these issues and create favorable conditions for small enterprises to integrate into the current development process, the Bankruptcy Law 2014 has added many new provisions that benefit enterprises. Below are some new regulations in this law.
Article table of contents
* Considering proposals and petitions under special procedures:
Within 15 days from the date the directly superior People's Court issues a decision to resolve a proposal or petition according to the above provisions, if there is a request to reconsider from participants in the bankruptcy procedure, a petition from the Supreme People's Procuracy, or a petition from the People's Court, the Chief Justice of the Supreme People's Court shall reconsider that decision when one of the following grounds is met:
A serious violation of bankruptcy law has occurred. New facts that could fundamentally change the content of the bankruptcy declaration decision are discovered that the People's Court or participants in the bankruptcy procedure could not have known when the People's Court issued the decision. In such cases, the Supreme People's Court may request the People's Court that issued the decision to transfer the bankruptcy case file to the Supreme People's Court for reconsideration and resolution.
Within 30 days from the date of receipt of the proposal or petition, the Chief Justice of the Supreme People's Court has the right to issue one of the following decisions: Reject the request for reconsideration and maintain the decision of the lower People's Court. Annul the decision declaring the enterprise or cooperative bankrupt issued by the lower court, decide on the request to reconsider the petition by the directly superior court, and transfer the bankruptcy case file to the lower court for re-resolution. The decision to resolve the proposal or petition by the Chief Justice of the Supreme People's Court is final and legally effective from the date of issuance (Article 113).
* Handling asset disputes before bankruptcy:
During the process of resolving the bankruptcy of an enterprise or cooperative, if a dispute arises over assets before the decision declaring the enterprise or cooperative bankrupt is made, the People's Court resolving the bankruptcy case must consider separating the disputed assets to resolve them in a different case according to civil procedure law.
After a judgment or decision on asset disputes according to the above regulations takes effect, the People's Court resolving the bankruptcy shall handle the assets as follows: Before the bankruptcy declaration decision, the assets obtained from the effective judgment or decision are merged with the enterprise's or cooperative's assets. After the bankruptcy declaration decision, the assets obtained from the effective judgment or decision are distributed according to the prior bankruptcy declaration decision.
The separation of disputed assets into another case as per the above provision is notified to the petitioner, the insolvent enterprise or cooperative, creditors, the same-level People's Procuracy, the civil enforcement agency, and the tax authority at the location of the main office of the enterprise or cooperative.
When an enterprise or cooperative is declared bankrupt, the trustee or asset management and liquidation enterprise represents the enterprise or cooperative in resolving asset disputes (Article 114).
* Handling asset disputes during bankruptcy proceedings:
During the process of asset liquidation following a decision declaring an enterprise or cooperative bankrupt, if there is a dispute or if execution is not possible, the executor, trustee, asset management and liquidation enterprise, and parties involved in the bankruptcy procedure may request the People's Court that resolved the bankruptcy case for reconsideration.
Within 10 working days from the date of receipt of the proposal from the executor, trustee, asset management and liquidation enterprise, or parties involved in the bankruptcy procedure, the People's Court must consider issuing one of the following documents: A document refusing to accept the proposal from the executor, trustee, asset management and liquidation enterprise, or parties involved in the bankruptcy procedure. Forward the proposal to a competent authority for consideration of overturning the decision declaring the enterprise or cooperative bankrupt according to the law.
If the executor, trustee, asset management, and liquidation enterprise, or parties involved in the bankruptcy procedure disagree with the refusal document, they have the right to request a competent authority to consider overturning the decision declaring the enterprise or cooperative bankrupt according to the law.
The trustee or asset management and liquidation enterprise represents the enterprise or cooperative in resolving asset disputes (Article 115).
* Handling assets of bankrupt enterprises:
After issuing a bankruptcy declaration decision, if a civil transaction is found to be invalid according to this Law, the trustee or asset management and liquidation enterprise has the right to request the People's Court to declare the transaction invalid, handle the consequences of the invalid transaction, and distribute the assets of the enterprise or cooperative according to the order of asset distribution stipulated in this Law.
If assets of the enterprise or cooperative that have not been distributed are discovered after the bankruptcy declaration decision, the People's Court that declared bankruptcy shall consider and decide on the distribution of assets according to the distribution order stipulated in this Law. The civil enforcement agency organizes the implementation of the asset distribution decision according to the above regulation (Article 127).
* Banning positions after enterprise bankruptcy:
Managers of enterprises or cooperatives declared bankrupt who intentionally violate the following regulations shall not be allowed to hold positions: Comply with the requirements of the judge, trustee, asset management and liquidation enterprise, and civil enforcement agency as per the bankruptcy law. The legal representative of the enterprise or cooperative, the private enterprise owner, the chairman of the Board of Directors of a joint-stock company, the chairman of the Members' Council of a limited liability company with two or more members, the owner of a single-member limited liability company, and the general partner of a partnership fail to submit a bankruptcy procedure request when the enterprise or cooperative becomes insolvent. Conceal, disperse, gift assets; pay unsecured debts, except for unsecured debt arising after the bankruptcy procedure begins and wages to employees; forfeit debt collection rights; convert unsecured debts into secured debts or partially secured by enterprise or cooperative assets.
The judge considers and decides on whether to prohibit the establishment of enterprises or cooperatives and prohibit holding managerial positions in enterprises or cooperatives for 3 years from the date the People's Court issues the bankruptcy declaration decision.
Previously, when declared bankrupt, the private enterprise owner, the general partner of a partnership, the director, the chairman and members of the Board of Directors, Members' Council of the enterprise, the head and members of the cooperative's management board were not allowed to establish enterprises or cooperatives or hold managerial positions in enterprises or cooperatives for a period of 1 to 3 years from the date the enterprise or cooperative was declared bankrupt (Article 130).
Source: Binh Phuoc Online
