Decree No. 22/2015/ND-CP dated February 16, 2015 of the Government detailing a number of articles of the Law on Bankruptcy regarding asset management officers and asset management and liquidation practice

Decree

Detailing a number of articles of the Law on Bankruptcy regarding asset management officers and asset management and liquidation practice[1]

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to the June 19, 2014 Law on Bankruptcy;

At the proposal of the Minister of Justice,

The Government promulgates the Decree detailing a number of articles of the Law on Bankruptcy regarding asset management officers and asset management and liquidation practice.

Chapter I

GENERAL PROVISIONS

Article 1.Scope of regulation and subjects of application

1. This Decree details a number of articles of the Law on Bankruptcy regarding asset management officers, asset management and liquidation firms, asset management and liquidation practice, asset management officer and asset management and liquidation firm expenses, and state management of asset management officers and asset management and liquidation firms.

2. This Decree applies to asset management officers, asset management and liquidation firms, state management agencies in charge of asset management officers, asset management and liquidation firms and other organizations and individuals involved in asset management and liquidation practice.

Article 2.Principles of asset management and liquidation practice

1. Compliance with the Constitution and law.

2. Observance of the professional code of ethics of asset management officers.

3. Guarantee of professional independence, honesty, transparency and impartiality.

4. Responsibility before law for practicing activities.

Article 3.Prohibited acts of asset management officers and asset management and liquidation firms

1. Prohibited acts of asset management officers:

a/ Leasing, lending or letting other individuals or organizations use their asset management officer practice certificates for practicing asset management and liquidation;

b/ Soliciting or receiving any sums of money or material benefits from parties involved in bankruptcy procedures or taking advantage of the capacity as asset management officers to earn benefits from individuals and organizations other than receivable asset management officer expenses prescribed by law;

c/ Taking advantage of their duties and powers to act in collusion with other individuals and organizations for self-seeking purposes;

d/ Disclosing information on organization and operation of insolvent enterprises or cooperatives which they know in the course of practice, unless such enterprises or cooperatives give their written consent to disclosure or otherwise provided by law;

dd/ Other acts in contravention of law and the professional code of ethics of asset management officers.

2. Prohibited acts of asset management and liquidation firms:

a/ Colluding with insolvent enterprises or cooperatives to falsify contents related to asset management and liquidation practice;

b/ Soliciting or receiving any sums of money or material benefits from parties involved in bankruptcy procedures or taking advantage of their duties and powers to earn benefits from individuals and organizations other than receivable asset management firm expenses prescribed by law;

c/ Letting other individuals and organizations use their names and enterprise registration certificates for practicing asset management and liquidation;

d/ Disclosing information on organization and operation of insolvent enterprises or cooperatives which they know in the course of practice, unless such enterprises or cooperatives give their written consent to disclosure or otherwise provided by law;

dd/ Other illegal acts.

Chapter II

ASSET MANAGEMENT OFFICERS

Article 4.Grant of asset management officer practice certificate

1. Persons specified in Clause 1, Article 12 of the Law on Bankruptcy and wishing to practice asset management and liquidation shall make dossiers of application for asset management officer practice certificates. Such a dossier must comprise:

a/ An application for an asset management officer practice certificate, made according to form TP-QTV-01 issued together with this Decree;

b/ A copy of the lawyer card, for lawyers; a copy of the auditor certificate, for auditors; or a copy of the bachelor degree, for law, economics, accounting, finance or banking bachelors;

c/ Documents proving the applicant’s at least 5 years’ experience in the trained field, with certification by the agency or organization where the applicant being a law, economics, accounting, finance or banking bachelor works;

d/ Two color photos of 3 cm x 4 cm size.

In case of necessity, the Ministry of Justice may request the applicant to submit his/her judicial record card.

2. Foreign lawyers who have licenses for practicing law in Vietnam granted in accordance with the law on lawyers or foreign auditors as prescribed by the law on audit and wish to practice asset management and liquidation shall make dossiers of application for asset management officer practice certificates. Such a dossier must comprise:

a/ An application for an asset management officer practice certificate, made according to form TP-QTV-02 issued together with this Decree;

b/ A copy of the license for practicing law in Vietnam granted by the Ministry of Justice, for foreign lawyers; or a copy of the auditor certificate granted by the Ministry of Finance, for foreign auditors;

c/ A resume (self-declared);

d/ Two color photos of 3 cm x 4 cm size.

3. An applicant shall send one dossier set by post or directly to the Ministry of Justice and pay a fee prescribed by law.

An applicant who submits his/her dossier directly to the Ministry of Justice shall produce the original of the document specified at Point b, Clause 1 or Point b, Clause 2 of this Article for comparison.

An applicant who sends his/her dossier by post to the Ministry of Justice shall produce the original of the document specified at Point b, Clause 1 or Point b, Clause 2 of this Article when requested.

Within 20 days after receiving a complete and valid dossier, the Ministry of Justice shall grant an asset management officer practice certificate, made according to form TP-QTV-08 issued together with this Decree, to the applicant. In case of refusal, it shall reply in writing to the applicant, clearly stating the reason.

Applicants whose applications for asset management officer practice certificates are rejected may lodge complaints or institute lawsuits in accordance with law.

4. Persons falling into one of the following cases are ineligible for grant of asset management officer practice certificates:

a/ They fail to fully meet the conditions for asset management practice prescribed at Points a and b, Clause 2, Article 12 of the Law on Bankruptcy;

c/ The cases specified in Article 14 of the Law on Bankruptcy.

Article 5.Re-grant of asset management officer practice certificates

1. Persons whose asset management officer practice certificates are lost or damaged and unusable may be considered for re-grant of such certificates.

2. A dossier of application for re-grant of an asset management officer practice certificate must comprise:

a/ An application for re-grant of asset management officer practice certificate, made according to form TP-QTV-03 issued together with this Decree;

b/ Two color photos of 3 cm x 4 cm size.

3. An applicant for re-grant of asset management officer practice certificate shall send one dossier set by post or directly to the Ministry of Justice and pay a fee prescribed by law. Within 15 days after receiving a complete and valid dossier, the Ministry of Justice shall re-grant the asset management officer practice certificate to the applicant.

Article 6.Revocation of asset management officer practice certificates

1. The Minister of Justice shall decide to revoke an asset management officer practice certificate if its holder falls into one of the cases specified in Clause 1, Article 15 of the Law on Bankruptcy.

2. When detecting or having grounds to believe that an asset management officer practice certificate holder falls into one of the cases specified in Clause 1, Article 15 of the Law on Bankruptcy, an individual, agency or organization may request in writing the Minister of Justice to revoke the practice certificate of such asset management officer.

3. Within 30 days after receiving a written request for revocation of an asset management officer practice certificate, the Minister of Justice shall consider and decide to revoke such certificate. Persons whose asset management officer practice certificates are revoked may lodge complaints or institute lawsuits in accordance with law.

A decision on revocation of an asset management officer practice certificate shall be sent to the person whose certificate is revoked, the people’s court and provincial-level Justice Department of the locality where the asset management officer has his/her transaction address or the asset management and liquidation firm where the person whose practice certificate is revoked works is located, and published on the website of the Ministry of Justice.

4. Asset management officers whose asset management officer practice certificates are revoked shall have their names deleted from the list of asset management officers and asset management and liquidation firms.

Article 7.Obligations of asset management officers in their practicing activities

1. To adhere to the principles of asset management and liquidation practice prescribed in Article 2 of this Decree.

2. To be liable for their professional activities in accordance with the law on bankruptcy.

3. To sign reports and documents on results of exercise of their rights and performance of their obligations in accordance with the law on bankruptcy.

4. To purchase professional liability insurance in accordance with law, for asset management officers practicing as individual practitioners.

5. To report on asset management and liquidation practice to provincial-level Justice Departments of localities where asset management and liquidation practice is registered under the guidance of the Ministry of Justice.

6. Other obligations prescribed by the Law on Bankruptcy and relevant laws.

Chapter III

ASSET MANAGEMENT AND LIQUIDATION PRACTICE

Article 8.Forms of practice by asset management officers

1. Forms of practice by asset management officers include:

a/ Practice as individual practitioners;

b/ Practice in asset management and liquidation firms, or by founding participating in the founding of, or working under contracts for, these firms.

2. At a time, an asset management officer practice certificate holder may only register either to practice asset management and liquidation at one asset management and liquidation firm or to practice as individual practitioners.

3. Asset management officers that register to practice as individual practitioners shall pay taxes in accordance with tax laws.

Article 9.Registration of asset management and liquidation practice as individual practitioners

1. Asset management officer practice certificate holders shall register to practice as individual practitioners with provincial-level Justice Departments of localities where they reside.

Persons registering to practice asset management and liquidation as individual practitioners must have transaction addresses.

2. An applicant for registration of asset management and liquidation practice as an individual practitioner shall send one dossier set by post or directly to the provincial-level Justice Department and pay the practice registration fee prescribed by law. A registration dossier must comprise:

a/ An application for registration of asset management and liquidation practice as an individual practitioner, made according to form TP-QTV-04 issued together with this Decree;

b/ A copy of the asset management officer practice certificate.

In case of necessity, the provincial-level Justice Department shall request the applicant to submit his/her judicial record card.

An applicant who submits his/her dossier directly to the provincial-level Justice Department shall produce the original of the document specified at Point b, Clause 2 of this Article for comparison.

An applicant who sends his/her dossier by post to the provincial-level Justice Department shall produce the original of the document specified at Point b, Clause 2 of this Article when requested.

3. Within 7 working days after receiving a complete and valid dossier, the provincial-level Justice Department shall decide to record the name of the applicant in the list of asset management officers and asset management and liquidation firms and notify such in writing to the applicant. In case of refusal to carry out registration, it shall reply in writing, stating the reason. The refused applicant may lodge a complaint or initiate a lawsuit in accordance with law.

Within 3 working days after deciding to record the name of the registration applicant in the list of asset management officers and asset management and liquidation firms, the provincial-level Justice Department shall send such list to the Ministry of Justice.

The document on recording of the name of the applicant in the list of asset management officers and asset management and liquidation firms is the proof of  his/her capacity to practice asset management and liquidation as an individual practitioner.

4. A registration applicant may practice asset management and liquidation after the provincial-level Justice Department decides to record his/her name in the list of asset management officers and asset management and liquidation firms. Asset management officers may practice asset management and liquidation throughout the Vietnamese territory.

When an asset management officer practicing as an individual practitioner terminates his/her practice, he/she shall notify such in writing to the provincial-level Justice Department. The provincial-level Justice Department shall decide to delete the name of such asset management officer from the list of asset management officers and asset management and liquidation firms and report it to the Ministry of Justice.

5. The following persons may not register to practice asset management and liquidation as individual practitioners:

a/ Those who fail to fully meet the conditions prescribed in Article 12 of the Law on Bankruptcy;

b/ Those who fall into one of the cases prescribed in Article 14 of the Law on Bankruptcy;

c/ Those who are currently banned from practicing asset management and liquidation under effective court judgments or decisions.

6. Lawyers and auditors may concurrently practice asset management and liquidation in accordance with the law on bankruptcy.

Article 10.Asset management and liquidation firms

1. Asset management and liquidation firms shall be established and operate in the forms prescribed in Clause 1, Article 13 of the Law on Bankruptcy. The establishment, organization, management and operation of asset management and liquidation firms must comply with the law on enterprises and law on bankruptcy.

2. Branches and representative offices of asset management and liquidation firms shall be established and operate in accordance with the law on enterprises.

An asset management and liquidation firm shall appoint at least one practicing asset management officer to practice in its branch.

Representative offices of asset management and liquidation firms may not practice asset management and liquidation.

Within 7 working days after obtaining a branch or representative office operation registration certificate, an asset management and liquidation firm shall send a written notice to the provincial-level Justice Department of the locality where it is headquartered. In case the firm establishes its branch or representative office in a province or centrally run city which is not where it is headquartered, it shall send a written notice to the provincial-level Justice Department of the locality where such branch or representative office is located.

3. Provincial-level Justice Departments shall make lists of branches and representative offices of asset management and liquidation firms based in their localities and post them on their e-portals and report such to the Ministry of Justice.

Article 11.General partners of asset management and liquidation partnerships, owners of asset management and liquidation private enterprises

1. General partners of asset management and liquidation partnerships who are asset management officers may not concurrently act as owners of asset management and liquidation private enterprises or general partners of other asset management and liquidation partnerships in order to practice asset management and liquidation, unless so consented by other general partners.

2. In case a general partner of a partnership specified at Point a, Clause 2, Article 13 of the Law on Bankruptcy or the owner of a private enterprise specified at Point b, Clause 2, Article 13 of the Law on Bankruptcy is changed, within 10 days after the change occurs, the partnership or private enterprise shall register asset management and liquidation practice for the new general partner or private enterprise owner. The registration order and procedures must comply with Clauses 2 and 3, Article 12 of this Decree. New general partners or private enterprise owners shall comply with Clause 1 of this Article.

Article 12.Registration of asset management and liquidation practice of asset management and liquidation firms

1. After obtaining an enterprise registration certificate, an asset management and liquidation firm that fully meets the conditions prescribed in Clause 2, Article 13 of the Law on Bankruptcy shall register asset management and liquidation practice with the provincial-level Justice Department of the locality where it is based.

Asset management and liquidation firms shall register asset management and liquidation practice for their practicing asset management officers. Persons falling into the cases specified in Clause 5, Article 9 of this Decree may not register asset management and liquidation practice in asset management and liquidation firms.

2. An asset management and liquidation firm shall send one dossier set for registration of asset management and liquidation practice by post or directly to the provincial-level Justice Department and pay the practice registration fee prescribed by law. Such a dossier must comprise:

a/ An application for registration of asset management and liquidation practice, made according to form TP-QTV-05 issued together this Decree;

b/ A copy of the enterprise registration certificate;

c/ Copies of asset management officer practice certificates of general partners and general director or director of the partnership specified at Point a, Clause 2, Article 13 of the Law on Bankruptcy and of other persons practicing asset management and liquidation in the partnership (if any); copies of asset management officer practice certificates of the owner of the private enterprise specified at Point b, Clause 2, Article 13 of the Law on Bankruptcy and of other persons practicing asset management and liquidation in the private enterprise (if any).

In case of necessity, the provincial-level Justice Department shall request the firm registering asset management and liquidation practice to submit judicial record cards of the persons specified at Point c, Clause 2 of this Article.

In case the firm submits the dossier for registration of asset management and liquidation practice directly to the provincial-level Justice Department, it shall produce the originals of the documents specified at Points b and c, Clause 2 of this Article for comparison.

In case the firm sends the dossier for registration of asset management and liquidation practice by post to the provincial-level Justice Department, it shall produce the originals of the documents specified at Points b and c, Clause 2 of this Article when requested.

3. Within 7 working days after receiving a complete and valid dossier, the provincial-level Justice Department shall decide to record the name of the firm in the list of asset management officers and asset management and liquidation firms and notify such in writing to the firm. In case of refusal to carry out registration, it shall reply in writing, stating the reason. The refused firm may lodge a complaint or initiate a lawsuit in accordance with law.

Within 3 working days after deciding to record the name of the firm in the list of asset management officers and asset management and liquidation firms, the provincial-level Justice Department shall send such list to the Ministry of Justice.

4. The asset management and liquidation firm may practice asset management and liquidation after the provincial-level Justice Department decides to record its name in the list of asset management officers and asset management and liquidation firms. In case the asset management and liquidation firm terminates its operation or asset management and liquidation practice, it shall notify such in writing to the provincial-level Justice Department. The provincial-level Justice Department shall decide to delete the name of such firm from the list of asset management officers and asset management and liquidation firms and report it to the Ministry of Justice.

Article 13.Obligations of asset management and liquidation firms in their practice

1. To manage their practicing asset management officers.

2. To take responsibility before law for professional activities of asset management officers they appoint under Clauses 2 and 3, Article 16 of this Decree.

3. Their at-law representatives shall examine and sign documents made by their practicing asset management officers.

4. To buy professional liability insurance for their practicing asset management officers in accordance with law.

5. To report to provincial-level Justice Departments where they have registered their asset management and liquidation practice on such practice under the guidance of the Ministry of Justice.

6. To perform other obligations prescribed by law.

Article 14.Making and announcement of lists of asset management officers and asset management and liquidation firms

1. Provincial-level Justice Departments shall make and announce lists of asset management officers and asset management and liquidation firms in their localities according to form TP-QTV-06 issued together this Decree. Such lists shall be posted on the e-portals of provincial-level Justice Departments and reported to the Ministry of Justice.

2. The Ministry of Justice shall make and announce the list of asset management officers and asset management and liquidation firms nationwide according to form TP-QTV-07 issued together this Decree. Such list shall be posted on the e-portal of the Ministry of Justice.

Article 15.Change in practice registration information of asset management officers and asset management and liquidation firms

1. When there is a change in his/her transaction address stated in the dossier for asset management and liquidation practice registration, an asset management officer practicing as an individual practitioner shall, within 7 days after such change occurs, send a written request for modification of the asset management and liquidation practice registration information by post or directly to the provincial-level Justice Department with which he/she has registered the practice.

Within 3 working days after receiving a written request for modification, the provincial-level Justice Department shall modify the information on the transaction address of the asset management officer in the list of asset management officers and asset management and liquidation firms.

2. When there is a change in the name, office address, representative office, branch, at-law representative or list of practicing asset management officers in an asset management and liquidation firm, such firm shall, within 7 working days after such change is made in the enterprise registration dossier in accordance with the law on enterprises, send a written request for modification of asset management and liquidation practice registration information by post or directly to the provincial-level Justice Department with which it has registered the practice.

Within 3 working days after receiving a written request for modification, the provincial-level Justice Department shall modify the information on name, office address, representative office, branch, at-law representative or list of practicing asset management officers in the firm in the list of asset management officers and asset management and liquidation firms.

In case the asset management and liquidation firm employs a new practicing asset management officer, it shall register such asset management officer’s practice. The order and procedures for practice registration for those added in the list of practicing asset management officers must comply with Clauses 2 and 3, Article 12 of this Decree.

3. Within 3 working days after a change is made in practice registration information under Clause 1 or 2 of this Article, the provincial-level Justice Department shall send a report on such change to the Ministry of Justice.

Article 16.Notices of participation in bankruptcy cases by asset management officers and asset management and liquidation firms

1. Within 7 working days after receiving a document on appointment from the judge carrying out bankruptcy procedures, an asset management officer practicing as an individual practitioner shall send a notice of participation in the bankruptcy case to the judge, specifying his/her name, number and date of grant of his/her practice certificate. In case of refusal to participate in the bankruptcy case, the asset management officer shall notify such in writing.

2. Within 7 working days after receiving a document on appointment from the judge carrying out bankruptcy procedures, an asset management and liquidation firm shall send to the judge a notice of appointment of one or several of its practicing asset management officers to represent it in participating in the bankruptcy case, specifying the name(s) and number(s) and date(s) of grant of asset management officer certificate(s) of appointed asset management officer(s). In case of refusal to participate in the bankruptcy case, the firm shall notify such in writing.

3. In case an asset management officer appointed by an asset management and liquidation firm under Clause 2 of this Article is suspended from practicing asset management and liquidation under Article 20 of this Decree, the asset management and liquidation firm shall, within 3 working days after the appointed asset management officer is suspended from practicing, appoint another practicing asset management officer in replacement.

In case the asset management and liquidation firm cannot appoint a practicing asset management officer to replace the suspended one, it shall notify such in writing to the judge carrying out the bankruptcy procedures for appointment of another asset management officer or another asset management and liquidation firm.

Article 17.Responsibility of asset management officers and asset management and liquidation firms to report to judgment enforcers; proposal on change of asset management officers or asset management and liquidation firms

1. When organizing the valuation of assets under Article 122 of the Law on Bankruptcy or sale of assets under Article 124 of the Law on Bankruptcy, asset management officers or asset management and liquidation firms shall report to judgment enforcers in the following cases:

a/ Selection of organizations for conducting valuation or auction of assets to sign contracts on valuation of assets or auction of assets;

b/ Change of asset valuation or auction organizations;

c/ Impossibility to select asset valuation or auction organizations;

d/ Unsuccessful auction of assets.

The reporting form is prescribed in Clause 2, Article 49 of the Law on Bankruptcy.

2. When receiving a report on selection or change of a valuation organization from an asset management officer or asset management and liquidation firm specified at Point a or b, Clause 1 of this Article, if detecting that the asset management officer or asset management and liquidation firm has committed an act in violation of the law on bankruptcy or law on asset valuation, leading to falsified results of the valuation, the judgment enforcer shall request the asset management officer or asset management and liquidation firm to conduct revaluation of assets, unless such asset management officer or asset management and liquidation firm has been changed under Clauses 1 and 2, Article 18 of this Decree.

Within 3 working days after receiving a report of an asset management officer or asset management and liquidation firm under Point c, Clause 1 of this Article, the judgment enforcer shall decide on selection of an asset valuation or auction organization.

Within 3 working days after receiving a report of an asset management officer or asset management and liquidation firm under Point d, Clause 1 of this Article, the judgment enforcer shall decide on asset liquidation.

3. In case a judgment enforcer detects that an asset management officer or asset management and liquidation firm has committed an act infringing upon asset-related rights and obligations prescribed by the law on bankruptcy or violating the professional code of ethics of asset management officers, he/she may propose the judge to change the asset management officer or asset management and liquidation firm.

Article 18.Change of asset management officers and asset management and liquidation firms

1. An asset management officer or asset management and liquidation firm may be changed under a judge’s decision if falling into one of the cases specified in Clause 1, Article 46 of the Law on Bankruptcy.

2. An asset management officer or asset management and liquidation firm may be changed by a judge if he/she/it is suspended from practicing asset management and liquidation under Article 20 of this Decree.

3. In case an asset management officer or asset management and liquidation firm is changed under Clause 1 of this Article, the refund of the advance for and payment of asset management officer or asset management and liquidation firm expenses, and handover of his/her/its work must comply with Clauses 6, 7 and 8, Article 46 of the Law on Bankruptcy.

In case an asset management officer or asset management and liquidation firm is changed under Clause 2 of this Article, he/she/it shall refund the whole advanced amount for asset management officer or asset management and liquidation firm expenses. The asset management officer or asset management and liquidation firm may receive funds for completed work. The asset management officer or asset management and liquidation firm shall hand over his/her/its work under Clauses 7 and 8, Article 46 of the Law on Bankruptcy.

Article 19.Cases in which asset management officers and asset management and liquidation firms shall refuse to conduct asset management and liquidation

An asset management officer or asset management and liquidation firm shall refuse to conduct asset management and liquidation in the following cases:

1. He/she/it is an affiliated person of the insolvent enterprise or cooperative in accordance with the law on enterprises.

2. There is a ground to believe that the judge carrying out bankruptcy procedures or civil judgment enforcement agency has made a request in contravention of law, principles of asset management and liquidation practice or the professional code of ethics of asset management officers.

3. Other cases prescribed by law.

Article 20.Suspension from practice of asset management officers and asset management and liquidation firms

1. An asset management officer shall be suspended from practice if falling into one of the following cases:

a/ He/she is examined for penal liability;

b/ He/she is subject to an administrative handling measure;

c/ As a lawyer, his/her right to use the lawyer practice certificate is deprived in accordance with the law on handling of administrative violations in the judicial field or he/she is disciplined in the form of suspending the membership in a bar association in accordance with the law on lawyers;

d/ As an auditor, his/her right to use the auditing practice registration certificate is deprived or he/she is suspended from auditing practice in accordance with the law on handling of administrative violations in the field of independent audit; as an auditor, his/her right to use the auditor certificate is deprived in accordance with law.

2. An asset management and liquidation firm shall be suspended from practice if falling into one of the following cases:

a/ As a partnership, it changes its general partners without satisfying the conditions prescribed at Point a, Clause 2, Article 13 of the Law on Bankruptcy; as a private enterprise, it changes its owner without satisfying the conditions prescribed at Point b, Clause 2, Article 13 of the Law on Bankruptcy;

b/ As a partnership, its general partner is suspended from practicing asset management and liquidation under Clause 1 of this Article, thus making the partnership fail to satisfy the conditions prescribed at Point a, Clause 2, Article 13 of the Law on Bankruptcy; or as a private enterprise, its owner is suspended from practicing asset management and liquidation under Clause 1 of this Article, thus making the private enterprise fail to satisfy the conditions prescribed at Point b, Clause 2, Article 13 of the Law on Bankruptcy.

3. The period of suspension from asset management and liquidation practice for the cases specified at Points a and b, Clause 1, and Clause 2, of this Article is 12 months at most. In case that suspension period expires but the reason for suspension still exists, the suspension period may be prolonged for another 12 months.

The period of suspension from asset management and liquidation practice for the case specified at Point c, Clause 1 of this Article must comply with the administrative sanctioning decision of a competent agency or the disciplining decision of the management board of the bar association.

The period of suspension from asset management and liquidation practice for the case specified at Point d, Clause 1 of this Article must comply with the administrative sanctioning decision of a competent agency.

4. The decision on suspension from asset management and liquidation practice may be cancelled ahead of time for an asset management officer or asset management and liquidation firm in the following cases:

a/ There is a decision on termination of investigation or termination of the case or a legally effective court judgment rules that the asset management officer is not guilty under Point a, Clause 1 of this Article;

b/ The asset management officer is no longer subject to the administrative handling measure prescribed by the law on handling of administrative violations under Point b, Clause 1 of this Article;

c/ As a partnership, the asset management and liquidation firm satisfies the conditions prescribed at Point a, Clause 2, Article 13 of the Law on Bankruptcy; as a private enterprise, the asset management and liquidation firm satisfies the conditions prescribed at Point b, Clause 2, Article 13 of the Law on Bankruptcy under Clause 2 of this Article.

5. Provincial-level Justice Departments may suspend asset management and liquidation practice, prolong or cancel the suspension period applicable to asset management officers and asset management and liquidation firms.

6. Decisions on suspension from asset management and liquidation practice, prolongation or cancellation of suspension shall be sent to asset management officers, asset management and liquidation firms, provincial-level people’s courts of localities where asset management officers practicing as individual practitioners have their transaction addresses, or to asset management and liquidation firms where suspended asset management officers practice are located, and to the Ministry of Justice, and posted on the e-portals of provincial-level Justice Departments.

Article 21.Asset management officer or asset management and liquidation firm expenses

1. Asset management officer or asset management and liquidation firm expenses shall be paid from the value of assets of insolvent enterprises or cooperatives. These expenses include remuneration for asset management officers or asset management and liquidation firms and other expenses.

2. Remuneration shall be calculated on the following grounds:

a/ Time used by asset management officers to perform their duties;

b/ Efforts of asset management officers in performing their duties;

c/ Results of the performance of duties of asset management officers.

3. Remuneration shall be calculated based on one of the following:

a/ Working hours of asset management officers;

b/ Package remuneration;

c/ Remuneration calculated in percentage of the total value of assets of the enterprise or cooperative declared bankrupt collected after the liquidation.

4. Specific remuneration levels shall be determined as follows:

a/ In case the people’s court that has issued the suspension decision carries out the bankruptcy procedures under Article 86 of the Law on Bankruptcy, the remuneration level shall be agreed between the judge carrying out the bankruptcy procedures and asset management officer or asset management and liquidation firm on the basis of considering and applying the grounds specified in Clause 2 and the methods specified in Clause 3 of this Article;

b/ For enterprises and cooperatives declared bankrupt under Clause 3, Article 80; Clause 4, Article 83; or Clause 7, Article 91, of the Law on Bankruptcy, the remuneration level shall be determined as follows:

c/ For enterprises and cooperatives declared bankrupt under Point b or c, Clause 1, Article 95 of the Law on Bankruptcy, the remuneration includes the remuneration amount determined for each case specified at Point b, Clause 4 of this Article plus the remuneration for supervision of business operations of enterprises in the course of implementation of business restoration plans by insolvent enterprises or cooperatives. The remuneration for supervision of business operations of enterprises shall be agreed between judges and asset management officers or asset management and liquidation firms based on the grounds specified in Clause 2 and the methods specified in Clause 3 of this Article;

d/ For enterprises or cooperatives that have completely implemented their business restoration plans under Point a, Clause 1, Article 95 of the Law on Bankruptcy, the remuneration level shall be agreed between judges carrying out bankruptcy procedures and asset management officers or asset management and liquidation firms based on the grounds specified in Clause 2 and the methods specified in Clause 3 of this Article.

5. In case the creditors’ meeting and asset management officers or asset management and liquidation firms reach another agreement on remuneration level under Clause 4 of this Article, the payable remuneration level must comply with such agreement.

6. In case of bankruptcy of credit institutions under Chapter VIII of the Law on Bankruptcy, remuneration for asset management officers or asset management and liquidation firms shall be determined under Points a and b, Clause 4 of this Article.

7. Other asset management officer or asset management and liquidation firm expenses include travel fares, accommodation expenses and other reasonable expenses for asset management and liquidation activities. The payment and finalization of other asset management officer or asset management and liquidation firm expenses must comply with current laws.

8. Judges carrying out bankruptcy procedures shall decide on levels of to-be-advanced amounts for asset management officer or asset management and liquidation firm expenses on a case-by-case basis. Asset management officers or asset management and liquidation firms receiving advanced amounts shall conduct payment and finalization in accordance with the law on finance and accounting.

Chapter IV

STATE MANAGEMENT OF ASSET MANAGEMENT OFFICERS AND ASSET MANAGEMENT AND LIQUIDATION FIRMS

Article 22.Responsibilities of the Ministry of Justice

The Ministry of Justice shall assist the Government in uniformly performing the state management of asset management officers, asset management and liquidation firms and asset management and liquidation practice nationwide, having the following duties and powers:

1. To draft and submit to competent state agencies for promulgation or promulgate according to its competence legal documents detailing and guiding the implementation of the law on asset management officers, asset management and liquidation firms and asset management and liquidation practice.

2. To grant, revoke and re-grant asset management officer practice certificates.

3. To issue the professional code of ethics of asset management officers and forms of documents and papers in the field of asset management and liquidation.

4. To make, announce and manage the list of asset management officers and asset management and liquidation firms nationwide; to develop a database on asset management officers and asset management and liquidation firms.

5. To examine and inspect asset management and liquidation practice activities.

6. To take measures to support the development of the asset management and liquidation profession.

7. To enter into international cooperation on asset management officers and asset management and liquidation practice.

8. To settle complaints and denunciations about, and handle violations in, asset management and liquidation practice activities.

9. To perform other duties and exercise other powers in accordance with law.

Article 23.Responsibilities of ministries and ministerial-level agencies

1. Ministries and ministerial-level agencies shall, within the ambit of their duties and powers, coordinate with the Ministry of Justice in performing the state management of asset management officers, asset management and liquidation firms and asset management and liquidation practice.

2. The Minister of Finance shall prescribe the collection, payment, management and use of the fees for grant and re-grant of asset management officer practice certificates; and the fee for registration of asset management and liquidation practice.

Article 24.Responsibilities of provincial-level People’s Committees

1. Provincial-level People’s Committees shall perform the state management of asset management officers, asset management and liquidation firms and asset management and liquidation practice in their localities, having the following duties and powers:

a/ To organize the registration of asset management and liquidation practice and manage asset management officers and asset management and liquidation firms in their localities;

b/ To examine, inspect, and handle violations of asset management officers and asset management and liquidation firms in asset management and liquidation practice in their localities according to their competence;

c/ To settle complaints and denunciations about asset management officers, asset management and liquidation firms and asset management and liquidation practice according to their competence;

d/ To annually report to the Ministry of Justice on asset management officers, asset management and liquidation firms and asset management and liquidation practice in their localities;

dd/ To take measures to support the development of the asset management and liquidation profession in their localities;

e/ To perform other duties and exercise other powers in accordance with law.

2. Provincial-level Justice Departments shall assist provincial-level People’s Committees in performing the function of state management of asset management officers, asset management and liquidation firms and asset management and liquidation practice in their localities, having the following duties and powers:

a/ To register asset management and liquidation practice and announce lists of asset management officers and asset management and liquidation firms in their localities;

b/ To suspend asset management and liquidation practice, prolong or cancel the suspension of practice of asset management officers and asset management and liquidation firms; to delete names of asset management officers and asset management and liquidation firms from the lists of asset management officers and asset management and liquidation firms;

c/ To review, make and report on statistics on asset management officers, asset management and liquidation firms and asset management and liquidation practice in their localities; to screen to detect cases subject to revocation of asset management officer practice certificates in their localities and request the Minister of Justice to revoke asset management officer practice certificates under regulations;

d/ To examine, inspect, and handle violations of asset management officers and asset management and liquidation firms in asset management and liquidation practice in their localities according to their competence;

dd/ To settle complaints and denunciations about asset management officers, asset management and liquidation firms and asset management and liquidation practice according to their competence;

e/ To report to provincial-level People’s Committees and the Ministry of Justice on asset management officers, asset management and liquidation firms and asset management and liquidation practice in their localities on an annual basis or at the request of competent agencies;

g/ To perform other duties and exercise other powers in accordance with law.

Article 25.Handling of acts infringing upon lawful rights and interests of asset management officers and asset management and liquidation firms

Persons who commit acts infringing upon lawful rights and interests of asset management officers and asset management and liquidation firms or obstructing the practice of asset management officers and asset management and liquidation firms shall, depending on the nature and seriousness of their violations, be disciplined or examined for penal liability. If causing damage, they shall pay compensation in accordance with law.

Article 26.Handling of individuals and organizations illegally practicing asset management and liquidation

1. Individuals who fail to fully satisfy the conditions for asset management and liquidation practice but practice asset management and liquidation in any form shall be forced to terminate their violations and fined in accordance with the law on handling of administrative violations, or examined for penal liability. If causing damage, they shall pay compensation in accordance with law.

2. Organizations that fail to fully satisfy the conditions for asset management and liquidation practice but practice asset management and liquidation in any form shall be forced to terminate their violations and handled in accordance with the law on handling of administrative violations. If causing damage, they shall pay compensation in accordance with law.

Article 27.Complaints and denunciations

1. Asset management officers and asset management and liquidation firms may lodge complaints about administrative decisions or acts of civil judgment enforcement agencies and other agencies and organizations when having grounds to believe that such administrative decisions or acts infringe upon their lawful rights and interests. The settlement of complaints must comply with the law on complaints and law on judgment enforcement.

2. Individuals have the right to denounce acts in violation of the law on bankruptcy and the professional code of ethics of asset management officers to competent state agencies. The settlement of denunciations must comply with the law on denunciations.

Chapter V

IMPLEMENTATION PROVISIONS

Article 28.Transitional provisions

1. For requests for opening of bankruptcy procedures for bankruptcy cases accepted by courts before January 1, 2015, for which asset management and liquidation teams have been set up in accordance with Law No. 21/2004/QH11 on Bankruptcy, if such teams have not yet fulfilled their duties and powers by January 1, 2015, they shall continue performing their duties and exercising their powers in such bankruptcy cases.

In case judges carrying out bankruptcy procedures can appoint asset management officers or asset management and liquidation firms in accordance with Law No. 51/2014/QH13 on Bankruptcy and this Decree for aforesaid requests for opening of bankruptcy procedures, asset management and liquidation teams shall terminate their operation and be disbanded in accordance with Law No. 21/2004/QH11 on Bankruptcy. Asset management officers or asset management and liquidation firms shall continue performing the duty of asset management and liquidation in such bankruptcy cases, except jobs the asset management and liquidations teams have performed within their duties and powers provided in Law No. 21/2004/QH11 on Bankruptcy. Results of jobs performed by asset management and liquidation teams shall be recognized for use in accordance with Law No. 51/2014/QH13 on Bankruptcy.

2. For requests for opening of bankruptcy procedures for bankruptcy cases accepted by courts before January 1, 2015, for which no asset management and liquidation team has been set up by January 1, 2015, in accordance with Law No. 21/2004/QH11 on Bankruptcy, judges carrying out bankruptcy procedures shall appoint asset management officers or asset management and liquidation firms in accordance with Law No. 51/2014/QH13 on Bankruptcy and this Decree.

Article 29.Effect

1. This Decree takes effect on April 6, 2015.

2. To annul the provisions on asset management and liquidation teams in:

a/ Clause 3, Article 1; Clause 2, Article 2; Article 11 and Chapter III, of the Government’s Decree No. 67/2006/ND-CP of July 11, 2006, guiding the application of the Law on Bankruptcy to special enterprises and organization and operation of asset management and liquidation teams;

b/ Articles 6 and 7; Clause 1, Article 17; Clause 3, Article 27; Clause 3, Article 31; and Clauses 2 and 3, Article 40, of the Government’s Decree No. 05/2010/ND-CP of January 18, 2010, on application of the Law on Bankruptcy to credit institutions.

Article 30.Implementation responsibility

1. Ministers, heads of ministerial-level agencies, heads of government-attached agencies and chairpersons of provincial-level People’s Committees shall implement this Decree.

2. The Minister of Justice shall guide the implementation of this Decree.-

On behalf of the Government
Prime Minister
NGUYEN TAN DUNG

* All forms issued together with this Decree are not translated.