04 COERCIVE JUDGMENT ENFORCEMENT MEASURES AGAINST COMMERCIAL JURIDICAL PERSONS

According to Decree No. 44/2020/ND-CP issued by the Government on April 8, 2020 and coming into force from June 01, 2020:

– Accordingly, corporations which fail to serve or insufficiently serve effective court verdicts/decisions will be subject to the following coercive judgment enforcement measures:

(i) Account freeze.

(ii) Distraint of properties with equal value to the sum put up as guarantee for the execution of judicial measures (property distraint).

(iii) Impoundment of records, documents and devices containing electronic data; Impoundment or withdrawal of the seals of corporations.

– The rules for applying coercive judgment enforcement measures are as follows:

(i) The enforcement is only carried out after receipt of written coercive enforcement decisions from competent criminal judgment enforcement agencies.

(ii) The time limit for application of coercive measures to ensure enforcement of court judgments must not exceed the sentence-serving term specified in the effective court verdict/decision; the time limit for provision of guarantee for execution of a judicial measure is determined once such judicial measure is completely enforced.

(iii) A corporation may be subject to one or more enforcement measures at the same time if a single measure does not guarantee their execution.

(iv) Legitimate rights and benefits of corporations, relevant organizations and individuals are protected upon coercive judgment enforcement.

Best regards,