Do prisoners lose their rights to manage the company?

Do prisoners lose their rights to manage the company?
Posted date: 21/04/2020

My younger brother is the legal representative of S.T one-member limited liability company. Now, he is in prison so he wants the company to be dissolved. I would like to know if my younger brother could sign the file sent to tax agencies and business office for the company dissolution. Sincerely thank you!

FDVN’s opinion:

Based on your consulting requirements, after studying the legal documents, FDVN Law Firm offers the following advice:

According to the provisions of Clause 2 Article 77 of Law on Enterprises 2014 on the performance of the company’s owner’s rights in some special cases: In case the company’s owner being an individual is detained, sentenced to imprisonment, or deprived of the right to practice by a court as prescribed by law, such member shall authorize another person to perform the rights and obligations of the company’s owner. The decision restructuring, dissolution and bankruptcy request of the company are the rights of owner S.T member limited liability company.

Besides, according to the provision of Article 200 of Law on Enterprises 2014 on Enterprise suspension “A enterprise may suspend its business as long as a written notification of the time and duration of suspension and time of resumption is sent to the business registration authority at least 15 days before the date of suspension or resumption. These regulations still apply in case the enterprise resumes its business before the notified date”.

Thus, your younger brother may suspend the company operation and does not need to dissolve the company. After serving the imprison punishment, he may return to operate the company. If he wants to dissolve the company, he can authorize other people to sign the papers on behalf of him.

Above is FDVN Law Firm's opinion for your request of a consultant based on studying the relevant legal provisions. Hopefully, FDVN's advice would be helpful to you.

Legal expert: Nguyen Thi Lan Anh

FDVN Law Firm


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