On February 16, 2015, the Government issued the Decree No. 22/2015/ND-CP detailing a number of articles of the Law on Bankruptcy regarding asset management officers and asset management and liquidation practice. Within that, an asset management officer or asset management and liquidation firm shall refuse to conduct asset management and liquidation when the asset management officer is an affiliated person of the insolvent enterprise or cooperative in accordance with the law on enterprises.
One of the important contents at the Decree is the asset management officers or asset management and liquidation firms and other expenses. In particular, for the total value of assets collected after liquidation of under VND 100 million, the remuneration level is 5% of total value of assets collected after liquidation; between VND 100 million and 500 million, the remuneration level is 5 months’ basic salary in accordance with the law on basic salary for cadres, civil servants, public employees and armed forces + 4% of the asset value collected after liquidation in excess of VND 100 million; between over VND 500 million and 1 billion, the remuneration level is 20 months’ basic salary in accordance with the law on basic salary for cadres, civil servants, public employees and armed forces + 3% of the asset value collected after liquidation in excess of VND 500 million; between over VND 1 billion and 10 billion, the remuneration level is 36 months’ basic salary in accordance with the law on basic salary for cadres, civil servants, public employees and armed forces + 2% of the asset value collected after liquidation in excess of VND 1 billion….and over VND 50 billion, the remuneration level of up to VND 50 billion for the total asset value collected after liquidation determined according to section 5 of this table + 0.3% of the asset value collected after liquidation in excess of VND 50 billion.
Besides, the Decree also emphasizes on prohibited acts of asset management officers and asset management and liquidation firms, such as leasing, lending or letting other individuals or organizations use their asset management officer practice certificates for practicing asset management and liquidation; soliciting or receiving any sums of money or material benefits from parties involved in bankruptcy procedures or taking advantage of the capacity as asset management officers to earn benefits from individuals and organizations other than receivable asset management officer expenses prescribed by law; taking advantage of their duties and powers to act in collusion with other individuals and organizations for self-seeking purposes or disclosing information on organization and operation of insolvent enterprises or cooperatives which they know in the course of practice, unless such enterprises or cooperatives give their written consent to disclosure or otherwise provided by law..
This Decree takes effect on April 06, 2015.
