Conditions for a corporate legal entity to bear criminal responsibility in Vietnam

Conditions for a corporate legal entity to bear criminal responsibility in Vietnam (Internet image)

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

1. Conditions for a corporate legal entity to bear criminal responsibility in Vietnam

Conditions for a corporate legal entity to bear criminal responsibility in Vietnam under Article 75 of the Penal Code 2015 are as follows:

* A corporate legal entity shall only bear criminal responsibility if all of the following conditions are satisfied:

- The criminal offence is committed in the name of the corporate legal entity;

- The criminal offence is committed in the interests of the corporate legal entity;

- The criminal offence is under instructions or approval of the corporate legal entity;

- The time limit for criminal prosecution specified in Clause 2 and Clause 3 Article 27 of the Penal Code 2015 has not expired.

Time limits for criminal prosecution:

= 05 years for less serious crimes;

= 10 years for serious crimes;

= 20 years for very serious crimes;

= 20 years for extremely serious crimes.

The time limit for criminal prosecution begins from the day on which the crime is committed. During the time limit set out in Clause 2 of Article 27 of the Penal Code 2015, if the offender commits another crime for which the maximum sentence is over 1 year's imprisonment, the time limit for prosecution for the previous crime will be reset and begins from the day on which the new crime is committed.

* The fact that corporate legal entity has criminal responsibility does not exempt criminal responsibility of individuals.

2. Judicial measures taken against corporate legal entities committing criminal offences in Vietnam

Judicial measures taken against corporate legal entities committing criminal offences in Vietnam under Article 82 of the Penal Code 2015 are as follows:

- The Court may decide to take the following judicial measures against a corporate legal entity committing criminal offences:

= The judicial measures specified in Article 47 and Article 48 of the Penal Code 2015;

= Compulsory restoration of original state;

= Compulsory implementation of some measures for mitigation and prevention of consequences.

- The court may require the offending entity to restore the original state which was changed by its criminal offence.

- The court, on a case-by-case basis, may require the offending entity to implement one or some of the following measures for mitigation and prevention of consequences of the offence:

= Compulsory dismantlement of the work or part of the work that is not licensed or built against the license;

= Compulsory relief of environmental pollution or spread of disease;

= Compulsory removal from Vietnam’s territory or re-export of goods, vehicles taken into Vietnam’s territory against regulations of law or those temporarily imported but have not been re-exported as prescribed by law;

imported or transited goods that infringe intellectual property rights; counterfeit goods; vehicles, raw materials imported for manufacture or trading of counterfeit goods after the elements of violation have been removed;

= Compulsory destruction of goods or items that harm health of humans, animals, plants and the environment; obscene materials or other exhibits subject to destruction as prescribed by law;

= Compulsory removal of violation elements on the goods, goods labels, means of trading or items;

= Compulsory recall of violating products being sold on the market.

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