Regulations on the contents and sequence of creditors’ meetings in Vietnam

What are the regulations on the contents and sequence of creditors’ meetings in Vietnam? - Dinh Toan (HCMC)

Regulations on the contents and sequence of creditors’ meetings in Vietnam

(1) 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.

(2) 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.

Legal basis: Article 81 of the Law on Bankruptcy 2014

Regulations on the contents and sequence of creditors’ meetings in Vietnam

Regulations on the contents and sequence of creditors’ meetings in Vietnam (Internet image)

Regulations on resolutions of creditors’ meetings in Vietnam

- A creditors’ meeting can propose a Resolution including one of these conclusion:

+ Proposal to suspend the handling of the request for initiation of bankruptcy process (regarding cases prescribed in Clause 1 Article 86 of the Law on Bankruptcy 2014);

+ Proposal to allow the entity to resume its business operation;

+ Proposal to declare the entity bankrupt.

- A Resolution of a creditors’ meeting must include:

+ Date;

+ Names of the asset management officer and asset management enterprise;

+ Name and address of the person requesting the initiation of the bankruptcy process;

+ Name and address of the entity forced to file for bankruptcy;

+ Name and address of the relevant persons;

+ Opinions of participants in the creditors’ meeting;

+ Opinions of the asset management officer and asset management enterprise about the requests of the participants in the creditors’ meeting;

+ Conclusion of the creditors’ meeting and voting result.

- The Resolution of any creditors’ meeting must be signed by the Judge, asset management officer, representative of the asset management enterprise and announced in the creditors’ meeting.

- If the Resolution of any creditors’ meeting is not passed under the regulations of Clause 2 Article 81 of the Law on Bankruptcy 2014, the People’s Court shall declare the entity bankrupt.

Legal basis: Article 83 of the Law on Bankruptcy 2014

Mai Thanh Loi

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