On April 8, 2020, the Government issued Decree No. 44/2020/ND-CP stipulating the Forced execution of judgments against commercial legal entities. This Decree takes effect as from June 1, 2020 providing for the principles, measures, order and procedures for application of coercive measures of judgment execution to commercial legal entities specified in Article 163 of Law on Criminal Judgment Execution.
Measures of coercive judgment execution applicable to commercial legal entities include: Account blockade; property distraint has the value corresponding to the security guarantee enforcement amount (property distraint); custody of documents, vouchers, devices containing electronic data; temporarily seizing or withdrawing seals of commercial legal entities.
According to Decree No. 44/2020/ND-CP, there are 4 types of assets not subject to enforcement of commercial judgment execution including:
Properties banned from circulation as prescribed by law; assets in service of national defense, security and public interests; properties financed by the State budget for agencies and organizations;
Number of medicines in service of prevention and treatment of laborers; food, tools and other assets serving workers’ meals;
Kindergartens, schools, health facilities and equipment, vehicles and other properties of these facilities which are not assets for business;
Equipment, facilities and tools to ensure labor safety, fire and explosion prevention and fighting, and prevention of environmental pollution.
The Decree also states that if the legal entity has no other assets or assets but not enough to execute the sentence, the criminal judgment enforcement agency has the right to distrain and handle the property pledged, mortgage if the value of such property is greater than the guaranteed obligation and the cost of enforcement of the judgment.