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Official Gazette

Saturday, June 6, 2020

Coercive measures applicable to commercial legal persons to be decreed

Updated: 08:00’ - 01/04/2020
Commercial legal persons that fail to serve or fully serve legally effective judgments or rulings of courts would be subject to freezing of bank accounts and securities accounts.

Commercial legal persons that fail to serve or fully serve legally effective judgments or rulings of courts would be subject to freezing of bank accounts and securities accounts__Photo: Internet
 
Such is provided in a draft decree designed by the Ministry of Public Security to provide principles, measures, order and procedures for applying coercive measures for execution of penalties and judicial remedies to commercial legal persons.

Other coercive measures include distrainment of property for auction and temporary seizure of documents, e-data carriers or seals.

Under the draft, a commercial legal person might be subject to one or more than one coercive measure at the same time. However, coercive measures would be applied only after a competent criminal judgment execution agency issues a coercive execution decision. The decision on application of coercive measures must be made based on the penalty or judicial remedy imposed on the legal person; contents, nature, severity of the case; and local conditions and realities.

The measure of freezing of accounts would be applied to commercial legal persons that are subject to suspension from operation for a definite term; prohibition from doing business, operating in all areas or raising capital; or judicial remedies.

Criminal judgment execution agencies competent to issue decisions on freezing of accounts might request credit institutions, securities companies and the Vietnam Securities Depository to provide information on the accounts of commercial legal persons. Such agencies would be responsible for keeping confidential the information they received.

In the meantime, commercial legal persons subject to coercive measures would have to notify competent criminal judgment execution agencies of the names of the credit institutions or securities companies where their accounts are opened as well as their account numbers when so requested.

Within three working days after receiving the decision on freezing of accounts, credit institutions, securities companies and the Vietnam Securities Depository where commercial legal persons open their accounts would have to freeze all accounts and notify thereof to the account holders.- (VLLF)
 


 

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