Persons with the right and obligation to file a petition for bankruptcy proceedings

Bankruptcy is the state of an enterprise or a cooperative being unable to pay its debts and being declared bankrupt by a People’s Court decision. So who are the persons with the right and obligation to file a petition for bankruptcy proceedings according to the law?

According to Article 5 of the Law on Bankruptcy No. 51/2014/QH13 promulgated by the National Assembly of the Socialist Republic of Vietnam on June 19, 2014, the persons with the right and obligation to file a petition for bankruptcy proceedings include:

1. Creditors without collateral or the creditor with partial collateral shall have the right to file a petition for bankruptcy proceedings when the enterprise or cooperative fails to fulfill its payment obligations after the deadline of 03 months from the payment due date.
2. Employees, grassroots trade unions, and directly higher grassroots trade unions in places where grassroots trade unions have yet to be established shall have the right to file a petition for bankruptcy proceedings when the enterprise or cooperative fails to fulfill its payment obligations, including salary and other debts, after the deadline of 03 months from the payment due date.
3. Legal representatives of enterprises or cooperatives shall have the obligation to file a bankruptcy petition when the enterprise or cooperative becomes unable to pay.
4. The sole proprietor owner, Chairman of the Board of Directors of a joint-stock company, Chairman of the Board of Members of a limited liability company with two or more members, owner of a one-member limited liability company, and members of a partnership shall have the obligation to file a bankruptcy petition when the enterprise becomes unable to pay.
5. Shareholders or a group of shareholders owning 20% or more of ordinary shares continuously for at least 06 months shall have the right to file a bankruptcy petition when the joint-stock company becomes unable to pay. Shareholders or a group of shareholders owning less than 20% of ordinary shares continuously for at least 06 months shall have the right to file a bankruptcy petition when the joint-stock company becomes unable to pay in cases specified in the company’s Charter.
6. Members of a cooperative or legal representatives of a cooperative member in a cooperative alliance shall have the right to file a bankruptcy petition when such cooperative or cooperative alliance becomes unable to pay.

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