Covid-19: Should you choose to dissolve or go bankrupt?

BANKRUPTCY & INSOLVENCY

Covid-19: Should you choose to dissolve or go bankrupt?

Although Corona virus is small, it brings unpredictable dangers to the whole world. The number of deaths increases every minute.Businesses are in difficulty when epidemic disease has been raging continually. Many Vietnamese businesses have to go through dissolution or go bankruptcy to save the business survival. Bankruptcy and dissolution, which choice is the best?

-According to the Law on Enterprises 2014, an enterprise is dissolved when  belonging to one of the following cases:

+ Finishing the term of operation as stated in the Company Charter without extension.

+According to the decision of the business owner for a private enterprise or partnership member for a partnership; Members’Council , Company owner for a limited company or General meeting of shareholders for a joint stock company;

+The company no longer has a sufficient minimum number of members within 6 consecutive months without changing procedures. Particularly, the limited company must ensure the number of members is from 02 to less than 50; the joint stock company is required to have 03 or more shareholders; a partnership must ensure that 02 members are joint owners of the company;

+ Business registration certificate is revoked when one of the following case falls: (1) the enterprise declares false information in the enterprise profile;(2) pausing business for one year without proceeds notification procedures; according to the decision of the Court;…

Covid-19: Should you choose to dissolve or go bankrupt?
Covid-19: Should you choose to dissolve or go bankrupt?

In case of bankruptcy:

The enterprise fails to do debt payment obligation within 03 months from the due date, the creditor, the employee, the legal representative of the enterprise… can submit a petition for bankruptcy to the Court.

In general, there are choices that are appropriate for the current business situation, you can consider making a suitable decision.

Please do not hesitate to contact us for more information to be supported and consulted:

LUAT SU RIENG (LSR) LAW FIRM

Address: no. 16 Nguyen Quy Canh Street, An Phu Ward, District 2, Ho Chi Minh City

Hotline: 1900252503. Press No. 3

Email: [email protected]

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