Number of members of the creditors’ representative board handling bankruptcy process in Vietnam

Number of members of the creditors’ representative board handling bankruptcy process in Vietnam (Internet image)

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

1. Number of members of the creditors’ representative board handling bankruptcy process in Vietnam

According to Article 82 of the Law on Bankruptcy 2014, a creditors’ representative board have 03 to 05 members that are elected in the creditors’ meeting including a President, a vice-President and member(s).

The creditors’ Representative board shall supervise the implementation of the Resolution of the creditors’ meeting and propose the implementation of the Resolution of the creditors’ meeting to the asset management officer and asset management enterprise on behalf of the creditors.

If the asset management officer and asset management enterprise do not accept such proposal, the creditors’ Representative board can send a written notification to the Judge in charge of the bankruptcy settlement.

2. Contents and sequence of creditors’ meetings in Vietnam

- A creditors' meeting shall be conducted as follows:

+ The appointed Judge shall declare the creditors’ meeting open;

+ The creditors’ meeting shall vote on the appointment of a Secretary made by the asset management officer and asset management enterprise to record the creditors' meeting in writing;

+ The asset management officer and asset management enterprise shall report the absence and presence of the participants in the creditors’ meeting according to the summonses of the People’s Court, reasons for absence and check the IDs of the participants in the creditors’ meeting.

+ The Judge shall announce the participants in the creditors’ meeting and the handling of written request for the initiation of the bankruptcy process to the creditors' meeting;

+ The asset management officer and asset management enterprise shall report the current conditions of business and finance of the insolvent entity; the result of the inventory of assets, list of creditors, list of debtors, and other necessary issues to the creditors’ meeting;

+ The owner or the legal representative of the insolvent entity shall give opinions about the report delivered by the asset management officer and asset management enterprise and propose the solutions to the reorganization of the business, the ability and deadline to pay the debts;

+ The creditors or representatives of the creditors shall present the requests for bankruptcy settlement, reasons, purposes and bases of such requests;

+ The involved entities of representatives of them shall give their opinions about their rights and obligations related to the handling of request for the initiation of bankruptcy process;

+ The witnesses shall give opinions; the assessors and representative of the price assessing agency shall present the assessment result, valuation result; other judicial assistant shall clarify the unclear issues or conflicts;

+ The asset management officer and asset management enterprise shall publish the written opinions, documents and evidences provided by the absentees.

+ The creditors' meeting shall discuss the report delivered by the asset management officer and asset management enterprise and opinions of the participants in the creditors' meeting;

+ The asset management officer, asset management enterprise and the participants in the creditors' meeting can request the Judge to give a Decision to replace the legal representative of the insolvent entity;

+ The creditors can establish their Representative board.

- The Resolution of the creditors’ meeting shall be passed when more than half of the unsecured creditors attend and representatives of at least 65% of the unsecured debts approve. The Resolution of the creditors’ meeting shall apply to every creditors.

(Article 81 of the Law on Bankruptcy 2014)

Nguyen Ngoc Que Anh

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