Decision No. 528/QD-BT on the operational regulations of the Asset Management Group and the Asset Liquidation Group

Pursuant to …;

Regarding the operating regulations of the asset management team and the asset settlement team

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Article 1. The operating regulations of the Asset Management Team and the Asset Settlement Team are hereby promulgated together with this Decision.

Article 2. The Director of the Ministry of Justice's Office, the Director of the Execution of Civil Judgments Department, the Head of the Local Courts Management Department, and the Directors of the Justice Departments of provinces and centrally governed cities shall be responsible for implementing this Decision.

 REGULATIONS

OPERATIONS OF THE ASSET MANAGEMENT TEAM AND THE ASSET SETTLEMENT TEAM

(Issued together with Decision No. 528/QĐ-BT dated June 13, 1995 of the Minister of Justice)

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A. REGARDING THE OPERATING REGULATIONS OF THE ASSET MANAGEMENT TEAM

Immediately after the decision to initiate the procedure to declare bankruptcy of the enterprise is made, the head of the Asset Management Team must organize the first meeting to assign specific tasks to each staff member, and announce the location and work plan of the Team.

Depending on the nature and content of each case, the head of the Asset Management Team will assign staff members into groups to carry out various types of work as stipulated in Article 17 of the Bankruptcy Law, specifically:

I. ESTABLISHING THE ASSET LIST OF THE ENTERPRISE

1. The asset list of the enterprise includes two parts: assets owned and debts.

Assets owned and debts include: tangible assets, cash and other property rights.

For tangible assets, it is necessary to clearly record the name, type, quantity, condition, value (original value and remaining value), the subject managing the asset, and related documents.

Simultaneously with the inventory of tangible assets, the Asset Management Team must also inventory and inspect cash, stocks, bonds, other negotiable instruments, and other property rights of the enterprise.

The asset declaration form of the enterprise is established based on the business situation report of the enterprise, financial reports of the last two years of operation, accounting books, and other relevant documents as stipulated in Point c Clause 2 Article 9 of the Bankruptcy Law.

When establishing the asset list, if deemed necessary, the head of the Asset Management Team may dispatch staff members or directly work with the owner of the private enterprise or the legal representative of the enterprise and other individuals or organizations related to clarify the asset situation of the enterprise.

The asset list must be discussed and decided upon at the meeting of the Asset Management Team and signed by the Asset Management Team before being submitted to the Judge responsible for resolving the request to declare the enterprise bankrupt (hereinafter referred to as the Judge).

In cases where additional assets or assets not belonging to the enterprise are discovered after the asset list has been completed, the person discovering such assets must immediately report to the head of the Asset Management Team to organize verification and decide to amend or supplement the asset declaration form. If the asset declaration form has already been submitted to the Judge, then the head of the Asset Management Team must report to the Judge for consideration and decision.

2Verification of assets

If there are signs indicating that the origin, value, or condition of the assets are unclear, the head of the Asset Management Team must organize the verification process.

The verification process can only be carried out with the participation of at least two staff members.

During verification, the person conducting the verification must announce the Judge's decision regarding the verification of assets. During the verification process, if there is doubt about the authenticity of the documents or evidence related to the assets, the person conducting the verification must immediately report to the head of the Asset Management Team. If the doubt is found to be justified, the head of the Asset Management Team must request the Judge to examine and decide on the authentication of these documents or evidence.

The verification of assets must be recorded in a protocol, detailing the results of the verification. This protocol must be signed by the person conducting the verification and representatives of the organizations or individuals currently managing or using the assets. In cases where the current managers or users of the assets refuse to sign the verification protocol or have differing opinions on issues requiring verification, this must also be noted in the protocol and reported to the Judge for examination and decision.

If during the verification process it is found that the assets may be lost or damaged, the person conducting the verification must immediately report to the head of the Asset Management Team to take appropriate measures, including requesting the Judge to issue a decision to apply urgent temporary measures as stipulated in Article 16 of the Bankruptcy Law.

3. Valuation of assets

The valuation of assets is conducted by the Asset Management Team; in cases where necessary, experts may be invited to assist in the valuation.

The basis for valuation is the value of the assets reflected in the accounting records and market value. In cases where the data reflected in the accounting records are not sufficiently reliable, the Asset Management Team must convene a meeting to determine the value of the assets.

During the valuation process, if the owner of the private enterprise, the legal representative of the enterprise, or the organizations or individuals currently managing or using the assets do not provide conditions or create difficulties for the valuation, the person conducting the valuation must report to the head of the Asset Management Team, who will then request the Judge to take appropriate measures.

II. INSPECTION AND SUPERVISION OF ASSET MANAGEMENT
ENTERPRISE ASSETS

After the decision to initiate the procedure to declare the enterprise bankrupt is made, all business activities of the enterprise continue as usual but must be subject to supervision and inspection by the Judge and the Asset Management Team.

The head of the Asset Management Team assigns experienced personnel in the field of managing production and business operations to perform the function of inspecting and supervising the management of the enterprise's assets.

The number of staff responsible for this task is determined by the head of the Asset Management Team, but must be at least three people, including representatives from financial agencies and the State Bank.

Inspection and supervision activities mainly focus on the following areas:

- Signing and executing contracts;

- Using, preserving, and transferring assets outside of contracts;

- Settling debts arising after the decision to initiate the procedure to declare the enterprise bankrupt.

1. In the area of signing and executing contracts.

The asset management team must inspect all contracts that the enterprise has signed before the Court issues the Decision to initiate the procedure for declaring the enterprise bankrupt, clearly identifying which contracts should continue to be performed and which should be terminated. From the date of the Decision to initiate the procedure for declaring the enterprise bankrupt, signing new contracts must be with the consent of the Judge.

In cases where there is an increase or decrease in the enterprise's assets due to the signing and implementation of contracts, the staff members of the team must report to the Head of the Asset Management Team to request the Judge to amend and supplement the list of the enterprise's assets.

In cases where signs of violations of Article 18, Clause 2 of the Enterprise Bankruptcy Law are discovered, the Head of the Asset Management Team must conduct an investigation. If the violation is proven, the Head of the Asset Management Team must propose to the Judge to take measures to recover the assets.

2. In the field of using, preserving, and transferring assets outside of contracts.

The Head of the Asset Management Team must assign staff members to regularly monitor the process of using and preserving assets listed in the Declaration of Assets. The Head of the Asset Management Team has the right to require the private enterprise owner and the legal representative of the enterprise to periodically report on the situation of using and preserving the enterprise's assets.

In cases where acts of concealing, disposing of, and other acts causing loss or damage to the enterprise's assets are discovered, the Head of the Asset Management Team has the right to require the private enterprise owner and the legal representative of the enterprise to immediately stop these acts and report to other organizations or individuals; if necessary, immediately report to the Judge to take measures including emergency interim measures.

3. In the field of debt settlement.

The asset management team is responsible for checking the activities of debt settlement of the enterprise. Before settling debts arising from the date of the Decision to initiate the procedure for declaring the enterprise bankrupt, the private enterprise owner and the legal representative of the enterprise must report to the Head of the Asset Management Team so that the Head can report to the Judge. Settlement can only be carried out after the consent of the Judge; in case of discovery of violations, the Head of the Asset Management Team must require the private enterprise owner and the legal representative of the enterprise to stop the settlement and report to the Judge to take measures.

III. ESTABLISHING THE LIST OF CREDITORS

Simultaneously with assigning staff members to perform tasks as mentioned in Sections I and II above, the Head of the Asset Management Team assigns one staff member to be responsible for establishing the List of Creditors and Debts.

The List of Creditors and Debts is established based on the accounting books of the enterprise and debt notices.

The establishment of the List of Creditors and Debts must be completed within sixty days from the date of the first publication of the Decision to initiate the procedure for declaring the enterprise bankrupt.

Any disputes arising during the process of determining creditors and debts among related parties: in cases where consensus cannot be reached, the Head of the Asset Management Team must prepare a record and report to the Judge for consideration and decision.

The Head of the Asset Management Team must register the List of Creditors and Debts before presenting it to the Judge. After this list is stamped with the court seal, the Head of the Asset Management Team must assign someone to post it at locations as stipulated in Article 22 of the Enterprise Bankruptcy Law.

Any additions or modifications to the List of Creditors and Debts after posting can only be conducted according to the Judge's decision when sufficient justifiable grounds are provided.

IV. WORK REGIME AND RECORD KEEPING

The asset management team can only convene meetings when at least two-thirds of the total number of staff members participate. Decisions of the asset management team can only be passed with the agreement of the majority of staff members.

During the course of work, if there are reports of lack of honesty or impartiality by staff members of the asset management team, the Head of the Asset Management Team must organize a meeting of the team to clarify the issue; if the report is found to be true, they have the right to appoint another person to replace them to continue the ongoing work and propose to the Judge to take measures, including changing the staff members of the asset management team.

Records and documents related to the activities of the asset management team are managed by the Head and must be kept at the court premises.

All transaction documents related to the activities of the asset management team must be signed and stamped by the Judge.

B. WORK REGULATIONS OF THE ASSET SETTLEMENT TEAM

Immediately after receiving the decision of the Head of the Asset Settlement Team from the Enforcement Department Head, the Head of the Asset Settlement Team must convene the first meeting to announce the assignment of tasks to each member of the team, and inform the location and work plan of the team. Depending on the nature and scale of each case, the Head of the Asset Settlement Team assigns team members to carry out the recovery and auction of assets and other tasks of the team.

I. RECOVERY OF ASSETS

Prior to initiating the recovery of assets, the Head of the Asset Settlement Team must convene staff members to unify the plan and methods of implementation.

The plan and methods of cooperation with other agencies and organizations in organizing the recovery of assets must be reviewed and decided by the Enforcement Department Head. Recovery of assets can only be carried out with the participation of at least two members of the Asset Settlement Team.

When implementing the recovery of assets, the Head of the Asset Management Team must announce the Decision to declare bankruptcy, the Execution Decision, the Decision to declare bankruptcy, and the Decision to recover assets.

The recovery of assets must be recorded in a protocol specifying the name, quantity, type, and condition of the assets. This protocol must be made in three copies and signed by the staff members involved in the recovery: in cases where other agencies are involved, signatures of their representatives must also be included.

For immovable property or movable property that cannot be transported, measures must be taken to preserve such property: if the preservation exceeds the permitted capacity, the Head of the Asset Settlement Team shall immediately report to the Director of the Enforcement Department to take appropriate action.

Along with the recovery of assets, the Asset Settlement Team must also recover accompanying documents such as ownership certificates, usage rights certificates, explanatory documents, and instructions on how to use and operate the assets.

In cases involving property rights, the recovery process must also notify the relevant state management agency and persons with related rights and interests.

II. AUCTION OF ASSETS

The establishment of the Valuation Committee, its composition, and the duties and powers of the Committee are carried out according to the provisions of Article 33 of Decree No. 189-CP dated December 23, 1994, guiding the implementation of the Enterprise Bankruptcy Law issued by the Government.

The Head of the Asset Settlement Team is responsible for organizing the auction of the bankrupt enterprise's assets. The list of assets, time, and location of the auction must be published in three consecutive local newspapers or central daily newspapers and posted at the offices of the Enforcement Department, the bankrupt enterprise, the People's Committee of the commune, ward, town where the assets are located, seven days prior to the auction date.

The auction can only proceed when there are at least two participants bidding. Members of the Valuation Committee and staff of the Asset Settlement Team are not allowed to participate in the purchase of auctioned assets.

The asset will be sold to the highest bidder. The Head of the Asset Settlement Team is responsible for recording the successful and unsuccessful auction results and delivering relevant documents to the buyer.

III. DEBT PAYMENT

The Asset Settlement Team carries out the payment of fees, bankruptcy expenses, and debt repayment to creditors based on the Decision declaring the enterprise bankrupt.

The methods and procedures for payment are implemented according to the provisions of Articles 35 and 36 of Decree No. 189-CP dated December 23, 1994, guiding the implementation of the Enterprise Bankruptcy Law.

IV. WORK REGIME AND RECORD KEEPING

The Asset Settlement Team may convene a meeting only when at least two-thirds of its members are present. Decisions of the Asset Settlement Team are adopted only with the agreement of the majority of members.

During the course of work, if there are reports of dishonesty or lack of objectivity by members of the Asset Settlement Team, the Head of the Asset Settlement Team must convene a team meeting to clarify the issue. If the report is found to be true, they have the authority to appoint another person to continue the ongoing work and recommend to the Director of the Enforcement Department to take appropriate actions, including replacing members of the Asset Settlement Team.

All books and documents related to the activities of the Asset Settlement Team are managed by the Head and stored at the enforcement agency's office.