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NOTES TO INVESTORS: PROHIBITED ACTS DURING THE TIME THAT ENTERPRISE DISSOLVES
NOTES TO INVESTORS: PROHIBITED ACTS DURING THE TIME THAT ENTERPRISE DISSOLVES
Dissolve means the termination of the legal existence of a business at the will of the owner and/or the decision of the competent authorities for approval. In case the enterprise is released under the decision of the business owner/ company owner/ Members' Council/ General Meeting of Shareholders (Point b, Clause 1, Article 207 of the Law on Enterprises 2020), the following activities of the enterprise will be strictly prohibited from the time of promulgating the decision, including:
Dissolve means the termination of the legal existence of a business at the will of the owner and/or the decision of the competent authorities for approval. In case the enterprise is released under the decision of the business owner/ company owner/ Members' Council/ General Meeting of Shareholders (Point b, Clause 1, Article 207 of the Law on Enterprises 2020), the following activities of the enterprise will be strictly prohibited from the time of promulgating the decision, including:
- For enterprise assets: prohibit acts of hiding or dispersing assets; acts of pledging, mortgage, donating or leasing property.
- For corporate obligations: it is strictly forbidden for enterprise managers to convert unsus collateral debts into debts secured by enterprise assets; termination of effective contracts.
- For the rights and ability to use the rights of enterprises: the law prohibits the signing of new contracts (except for cases for the implementation of enterprise disarmament); acts of giving up or reducing the right to collect debts and acts of raising capital.
The provision of the prohibited acts mentioned above is aimed at preventing the in addition of rights and obligations that lead to a decrease in the ability of the enterprise to repay the debt during the process of dissolution. At the same time, limiting the enterprise's dispersal of assets, evading obligations to partners during operation, directly affecting the legitimate rights and interests of related subjects.
For detailed advice and timely support on the above documents and procedures, please contact:
Gattaca Law Firm
Address: 32 Nguyen Dinh Hoan, Nghia Do, Cau Giay, Ha Noi
Hotline: 0243.204.1777 – 090.17.63.379
Website: gattacalaw.vn
Director – Dr. Lawyer Nguyen Thanh Nam
For detailed advice and timely support on the above documents and procedures, please contact:
Gattaca Law Firm
Address: 32 Nguyen Dinh Hoan, Nghia Do, Cau Giay, Ha Noi
Hotline: 0243.204.1777 – 090.17.63.379
Website: gattacalaw.vn
Director – Dr. Lawyer Nguyen Thanh Nam
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