The Court of Cassation has considered whether company insolvency proceedings may be extended to a managing director and shareholder who has made payments to himself from the company's bank account.
Background
On 16 September 2021, ordinance 2021-1193 implemented the European Directive on preventive restructuring frameworks into French law. The Ordinance applies to proceedings opened from 1 October 2021.
Key features
Background
The crisis exit treatment procedure has been introduced to provide a temporary judicial procedure for debtors encountering difficulties related to the pandemic and the financing of their activities. This excludes debtors that are structurally in distress.
The procedure enables debtors to adopt a repayment plan within a three-month period to resolve the company's financial difficulties. The procedure is subject to the rules governing judicial reorganisation proceedings with certain adaptations and exclusions.
On 1 October, Ordinance 2021-1193 introduced changes to the 'accelerated safeguard' procedure making this the 'preventive restructuring framework' as required by the 2019 Directive.
Certain conditions for the opening of an accelerated safeguard procedure have been retained with some modifications:
Law No. 47/2010/QH12 on credit institutions has been amended pursuant to Law No. 17/2017/QH14 (“Amended Law”) passed by the National Assembly. The Amended Law came into effect on 15 January 2018.
The Amended Law provides grounds for special control by the State Bank of Vietnam (“SBV”) against underperforming credit institutions which:
have failed to maintain liquidity requirements;
have accumulated losses exceeding 50% of the charter capital and reserve funds as recorded in the latest audited financial statements;
Summary
Bankruptcy in Vietnam applies to enterprises (including foreign invested enterprises), co operatives and co operative unions (hereafter collectively referred to as enterprises). Unlike certain countries, this does not apply to individuals.
Bankruptcy Law
Bankruptcy procedures are governed by the Law on Bankruptcy No. 51/2014/QH13 which came into effect on 1 January 2015: