Competence in bankruptcy settlement of the People’s Court in Vietnam

Competence in bankruptcy settlement of the People’s Court in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. Competence in bankruptcy settlement of the People’s Court in Vietnam

Competence in bankruptcy settlement of the People’s Court according to Article 8 of the Law on Bankruptcy 2014 is as follows:

- The People’s Court of central-affiliated cities and provinces (hereinafter referred to as provincial People’s Court) has the competence in bankruptcy settlement for enterprises and cooperatives registered in the province and for one of the following cases:

+ There are overseas assets or involving entities.

+ The insolvent entity has branches and/or representative offices located in district and/or cities of various provinces;

+ The insolvent entity has real estate in district and/or cities of various provinces;

+ The provincial People’s Court takes the bankruptcy cases under the management of the People’s Court of a district/city of the province due to their complicacy.

- The district People’s Court has the competence in bankruptcy settlement for enterprises and cooperatives of which the headquarters are located in the district and for the cases not mentioned in Clause 1 of Article 8 of the Law on Bankruptcy 2014.

- The Supreme People’s Court shall provide guidance on implementing Article 8 of the Law on Bankruptcy 2014.

2. Tasks and entitlements of Judges conducting bankruptcy procedures

Tasks and entitlements of Judges conducting bankruptcy procedures according to Article 9 of the Law on Bankruptcy 2014 are as follows:

- Collect and verify documents and evidences related to the request for initiation of bankruptcy process if necessary.

- Make the Decision on the initiation of bankruptcy process or the refusal to initiate bankruptcy process.

- Make the Decision on appointing or replacing the asset management officer and/or the asset management enterprise.

- Supervise the asset management officer and/or asset management enterprise.

- Decide to conduct an audit of the insolvent entity if necessary.

- Make the Decision on the liquidation of the assets of the insolvency entity after the Decision on the initiation of bankruptcy process in order to cover the cost of bankruptcy.

- Take temporary emergency measures according to the regulations of the law.

- Impose the prohibition against leaving the place on the representative of the insolvent entity and request the competent authorities to escort him/her according to the regulations of the Law.

- Convene the creditors' meeting.

- Make the Decision on approving the resolution of the creditors’ meeting on the plan to resume business operation.

- Make the Decision on suspending bankruptcy process.

- Make the Decision on the declaration of bankruptcy of the insolvent entity.

- Impose administrative penalties and/or request competent authorities to impose criminal penalties according to the regulations of the Law.

- Refer to the bankruptcy settlements for the prior similar cases with the guidance of the Supreme People’s Court.

- Must dismiss settling bankruptcy in one of the cases prescribed in Clause 1 Article 10 of the Law on Bankruptcy 2014.

+ The judge is an involved entity; a representative or a relative of an involved entity of the case;

+ The judge is participating in the case as a prosecutor, a asset management officer, the legal guardian of an involved entity, a valuator or a translator;

+ The Judge is a member of a group of Judges taking charge of the case and has connections of consanguinity with other judges;

+ The judge has once made the Decision on the declaration of bankruptcy for the case;

+ There is any evidence that the Judge is prejudiced.

- Perform other tasks and powers according to the regulations of the Law.

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