Headlines 23/10/2017 14:15 CH

Amount of money provided as a security for a commercial entity’s compliance with arbitrary awards becomes in force

Khắc Duy

The Government has recently issued the Decree No. 115/2017/ND-CP specifying processes, procedures for and amount of money paid by a commercial entity as a security for arbitrary awards; temporary custody, refund and payment to the state budget of such amount of money.

Pursuant to this Decree, the amount of money a commercial entity provides as a security for compliance with arbitrary awards varies depending on the decision made by law enforcement and judicial bodies and conforms to the following requirements:

- If such amount is provided as a security for payment of a fine imposed by an arbitrary decision, it must Not be less than 50% and not greater than the highest rate of fine as prescribed in the applicable provisions on initiation of legal proceedings, investigation, prosecution and arbitration; 

- If such amount is provided as a security for compliance with compensation obligations,

+ It must Not be less than 50% and not greater than the highest level of damage or loss of property provided that the applicable provisions on initiation of legal proceedings, investigation, prosecution and arbitration prescribe levels of damage or loss of property; 

+ It must Not be greater than the actual level of damage or loss determined by law enforcement and judicial bodies (unless the applicable provisions on initiation of legal proceedings, investigation, prosecution and arbitration prescribe levels of damage or loss of property). 

The Decree No. 115/2017/ND-CP is set to enter into effect from January 1, 2018.

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