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Shall a person holding a management position in a bankrupt enterprise bear individual responsibility? If so, what are the legislative provisions concerning this?

A person holding a management position in a bankrupt enterprise may be prohibited from holding the management position after that enterprise has been declared bankrupt, except in the cases where the enterprise is declared bankrupt due to force majeure. In particular:

    • Those who hold the position of Chairman, General Director, Director and member of the Board of Directors in enterprises with 100% state capital which are declared bankrupt shall be prohibited from holding such positions in any state-owned enterprise from the date the enterprise is declared bankrupt.
    • Those who act as representatives of state capital contributions at state-invested enterprises which are declared bankrupt shall be prohibited from holding management positions in any state-invested enterprises.
    • If holders of management positions in enterprises that are declared bankrupt intentionally violate the provision of Article 18.1, Article 28.5 and Article 48.1 of the 2014 Law on Bankruptcy, the Judge shall consider and decide whether to deprive them of the right to establish, or act as managers of enterprises, within 03 years from the date the bankruptcy declaration decision is issued.

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