Regulations on suspension and termination of operations of law-practicing organizations in Vietnam

Regulations on suspension and termination of operations of law-practicing organizations in Vietnam (Internet image)

1. Forms of law-practicing organizations in Vietnam

According to Clause 1, Article 32 of the Law on Lawyers 2006 (amended 2012), the forms of law-practicing organizations include:

- Lawyers' offices;

- Law firms.

2. Cessation of operations of law-practicing organizations in Vietnam

Cessation of operations of law-practicing organizations under Article 46 of the Law on Lawyers 2006 is as follows:

- Law-practicing organizations may cease their operations but must, at least 10 working days before the cessation or resumption of their operations, send reports thereon to provincial/municipal Justice Services, tax offices, statistical offices and bar associations of the localities where they register their operations and where their branches are located.

The cessation duration must not exceed two years.

- A report on cessation of operations of a law-practicing organization has the following principal contents:

+ The name of the law-practicing organization;

+ The serial number and date of the issue of its operation registration certificate;

+ The address of its head office;

+ The cessation duration, the dates of starting and ending the cessation;

+ The reasons for operation cessation;

+ The report on the payment of debts and the handling of legal service contracts already signed with clients and labor contracts already signed with its lawyers and staff members.

- Provincial/municipal Justice Services may request law-practicing organizations to cease their operations if detecting that the latter fail to meet the law-practicing conditions as provided for by law.

- During their operation cessation periods, unless otherwise agreed upon, law-practicing organizations shall fully pay tax debts, continue paying other debts and complete contracts already signed with laborers.

With regard to legal service contracts which have been signed with their clients but have not yet been completed, law-practicing organizations shall reach agreement with those clients on the performance of the contracts.

- When a law-practicing organization ceases its operations, its branches and transaction offices shall also cease their operations.

3. Termination of operations of law-practicing organizations in Vietnam

Termination of operations of law-practicing organizations under Article 47 of the Law on Lawyers 2006 is as follows:

- A law-practicing organization terminates its operations in the following cases:

+ It terminates its operations at its own will;

+ Its operation registration paper is withdrawn;

+ The chief of the lawyer's office, the director of the one-member limited liability law firm or all members of the law partnership or members of the limited liability law firm with two or more members have their law practice certificates withdrawn;

+ The law firm is merged or consolidated;

+ The chief of the lawyer's office or the director of the one-member limited liability law firm dies.

- When terminating its operations according to the provisions of Points a and d, Clause 1 of Article 47 of the Law on Lawyers 2006, within 30 days before terminating its operations, a law-practicing organization shall notify such in writing to the provincial/municipal Justice Services and the bar associations of the localities where it registers its operations and where it locates its branch(es).

Before terminating its operations, a law-practicing organization shall fully pay tax debts; pay all other debts; complete all procedures for termination of labor contracts already signed with its lawyers and staff members; and complete all legal service contracts already signed with its clients. If failing to complete legal service contracts signed with its clients, it shall reach agreement with the latter on the performance of those contracts.

- In case of termination of operations of a law-practicing organization according to the provisions of Points b and c, Clause 1 of Article 47 of the Law on Lawyers 2006, within 7 working days after withdrawing the operation registration paper and/or the law practice certificate, the concerned provincial/municipal Justice Service shall notify such in writing to the bar association(s) and the tax office(s) of the locality(ies) where that law-practing organization registers its operations and where it locates its branch(es).

Within 60 days after having its operation registration paper and/or law practice certificate withdrawn, a law-practicing organization shall fully pay tax debts; pay all other debts; complete procedures for termination of labor contracts already signed with its lawyers and staff members.

With regard to legal service contracts which have been signed with its clients but have not yet been completed, the organization shall reach agreement with its clients on the performance of those contracts.

- In case of operation termination under the provisions of Point e, Clause 1 of Article 47 of the Law on Lawyers 2006, within 7 working days after the chief of the lawyer's office or the director of the one-member limited liability law firm dies, the concerned provincial/municipal Justice Service shall issue a decision to withdraw the operation registration certificate of the office or the firm.

Within 7 working days after withdrawing an operation registration paper, the provincial/municipal Justice Service shall notify such in writing to the bar associations and the tax office(s) of the locality(ies) where the concerned law-practicing organization registers its operations and where it locates its branch(es).

The handling of property-related rights and obligations shall comply with the civil law.

Quoc Dat

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