Ministry of Home Affair of Vietnam suggested on making a new decree on compensation and refund responsibilities of the representative of the capital share of a limited liability company of which 100% charter capital is held by the State.

This draft decree includes regulations on duties of compensation and refund and related procedures applied when the manager of 100% charter capital state-owned one member liability limited company breaks the law.

In cases the manager of the enterprise or the representative of the State’s capital in the enterprise commits acts of causing damage and is examined for penal liability, the settlement of the liability for compensation and refund shall comply with the provisions of Criminal procedure law.

In cases the manager of the enterprise or the representative of the State’s capital in the enterprise commits acts of causing damage, it is discovered that such person has died or the enterprise is damaged due to force majeure causes such as natural calamities or enemy sabotage or other force majeure reasons verified by local authority. The manager of enterprises or representatives of state’s capital in enterprises that commit acts of causing damage shall not be liable for compensation or refund.

How to estimate the damage?

According to the draft, within 30 days from the date of receipt of the document from the state agency or the person competent to determine the manager of the enterprise, the representative of the State’s capital in the enterprise commits the act.  In case of damage, the representative office of the owner or the damaged enterprise shall have to complete the damage determination or hire a competent agency or organization to conduct asset valuation or property damage. The violator will bare the cost of determination and valuation.

Find more details here.

Source: VCCI