In which cases is the penalty of prohibiting capital mobilization applied to commercial legal entities?

Reply:

A commercial legal entity committing a crime is a commercial legal entity that, in the course of its business activities, has committed a socially dangerous act defined as a crime by criminal law.

Prohibition on capital mobilization is an additional penalty for commercial legal entities that commit crimes, aiming to force commercial legal entities not to mobilize capital in various forms.

The penalty of banning capital mobilization is stipulated in Article 81 of the 2015 Penal Code as follows:

1. Prohibition on capital mobilization is applied when it is considered that if a convicted commercial legal entity is allowed to mobilize capital, there is a risk of continuing to commit crimes.

2. Forms of prohibition on capital mobilization include:

a) Prohibition on borrowing from banks, credit institutions or investment funds;

b) Prohibition of issuance and offering of securities;

c) Prohibition of raising customer capital;

d) Prohibition of domestic and foreign joint ventures and associations;

d) Prohibition of forming real estate trust funds.

3. The Court decides to apply one or several forms of capital mobilization prohibition prescribed in Clause 2 of this Article.

4. The period of prohibition on capital mobilization is from 01 year to 03 years, from the date the judgment takes legal effect".