"Clinically dead," the company still doesn't want to file for bankruptcy.

(Baonghean) - According to statistics from the Department of Planning and Investment, from 2011 to the present, due to the impact of economic recession, crisis, and the policy of curbing inflation, Nghe An has seen over 4,600 businesses close their tax registration numbers, cease operations, or dissolve. However, very few businesses have completed dissolution procedures or filed for bankruptcy proceedings. This makes it very difficult for partners, employees, creditors, etc., to protect their rights. In reality, debt collection using "jungle law" still occurs. And legal regulations that benefit creditors, employees with unpaid wages, shareholders, etc., may not be understood by these parties to protect their rights.

Vietnam's current Business Bankruptcy Law stipulates that many entities have the right to file a petition for bankruptcy proceedings. This aims to limit situations where business owners are unwilling to file for bankruptcy. The Bankruptcy Law stipulates that when a business or cooperative is in a state of bankruptcy, the following individuals have the right to file a petition for bankruptcy proceedings: Creditors; representatives of employees or trade union representatives in cases where the cooperative or business is not paying wages or other debts to employees; the business owner or legal representative of the business, the head of the cooperative, or the owner's representative when the business does not file a petition for bankruptcy proceedings; shareholders or groups of shareholders as stipulated in the company's charter; and partners in a partnership.

Business bankruptcy is the inability to pay debts when due, a situation not uncommon among many businesses that are currently showing signs of "clinical death." However, a business or cooperative is only considered bankrupt when a court declares it bankrupt based on a request for bankruptcy resolution. Bankruptcy is something no one wants, but if a business cannot survive, it must go through the bankruptcy procedure as prescribed by law to ensure the rights of those involved.

Pearl