Professional Documents
Culture Documents
I. Definition of dissolution
Dissolution marks the end of the partnership relationship. It occurs when
any partner discontinues his or her involvement in the partnership business
or when there is any change in the partnership relationship.
Under the Article 201 of the Law on Enterprise 2014, the cases of
dissolution of partnerships in Vietnam are:
2. The enterprise shall only be dissolved if all debts and liabilities can
be settled and the enterprise is not involved in any dispute at a court or
arbitral tribunal. Relevant managers and enterprises mentioned in Point
d Clause 1 of this Article are jointly responsible for the enterprise’s
debts.
1. Voluntary dissolution:
2. Compulsory dissolution:
This is one of the most highly litigated area in a company. This kind of
dissolution takes place where the company itself has passed a special
resolution to be dissolved by the authorised institutions, but more commonly
the reason for the presentation of a petition for such dissolution is due to the
inability of the company to settle its debts.
Pursuant to Article 202, Law on Enterprise 2014, the dissolution in the cases
mentioned in Point a, b and c, Clause 1 of Article 201 shall be carried out as
follows:
Secondly, the enterprise’s assest liquidation shall take place. The Board of
members shall directly organize this assest liquidation, unless a separate
liquidation organization must be established according to the company’s
charter.
Thirdly, the decision on dissolution and meeting minutes must be sent to the
business registration authority, tax authority, and employees of the
enterprise; the decision on dissolution shall be posted on National Business
be enclosed with the debt settlement plan and sent to the creditors, people
with relevant rights, obligations, and interests. The plan must contain the
creditors’ names and addresses; the amount of debts, deadline, location, and
complaints.
from the enterprise. The notification must be posted together with the
And then, the enterprise’s debts shall be paid in the following order: