The question of whether the creditors’ meeting can approve the resolution concerning the declaration of bankruptcy for an enterprise is indeed a pivotal issue in the realm of bankruptcy proceedings. Moreover, this query delves deeply into the dynamics and decision-making process within the meeting, which serves as a critical component of the bankruptcy process. Understanding the intricacies of this matter is crucial, as it holds significant implications for both creditors and the enterprise under consideration. Understanding the authority and decision-making power of the meeting in this context is essential for both creditors and the enterprise in question. In this exploration, we will delve into the intricacies of this matter and shed light on the factors and considerations that come into play when determining the fate of an enterprise facing bankruptcy.
Question:
According to Clause 1, Article 79 of the Law on Bankruptcy, a valid creditors’ meeting must be organized. Moreover, it necessitates the participation of creditors representing 51% of the total unsecured debts, and additionally, 100% of the present creditors must unanimously declare the bankruptcy of the enterprise. Given these criteria, the pivotal question that arises is whether this meeting possesses the authority to pass a resolution declaring the bankruptcy of the enterprise.
Answer:
According to Clause 1, Article 79 of the Law on Bankruptcy
Clause 2, Article 81 of the Law on Bankruptcy stipulates: “The Resolution of the creditors’ meeting shall be passed when more than half of the unsecured creditors attend and representatives of at least 65% of the unsecured debts approve. The Resolution of the creditors’ meeting shall apply to every creditors.” In this case, they successfully organized the meeting in a valid manner. However, it did not pass the meeting’s resolution, triggering the provisions of paragraph 4 of Article 83 of the Law on Bankruptcy. Consequently, the Court shall issue a decision declaring the bankruptcy of the enterprise in accordance with the provisions of Article 106 of the Law on Bankruptcy.
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