In the realm of bankruptcy proceedings, the question of representation takes center stage when the lawful representative of an enterprise or cooperative is conspicuously absent. This scenario raises critical queries regarding the continuity and management of affairs when the primary decision-maker is not available. Understanding who steps into this role is pivotal to the smooth functioning of bankruptcy proceedings. This inquiry delves into the heart of this issue, exploring the legal framework and principles that determine who shall represent the entity in question during bankruptcy proceedings in the absence of its lawful representative. In this exploration, we will uncover the mechanisms and considerations that come into play when addressing this essential facet of bankruptcy proceedings.
Question:
In the event that the Court has jurisdiction to handle a request for bankruptcy proceedings against a business, but during the process of bankruptcy resolution, the legal representative of the business is absent (not present at the locality) because the business has ceased operations for a long period of time, and the creditors also do not know their whereabouts, how should the matter be resolved?
Answer:
According to Clause 2 Article 16 of the Law on Bankruptcy provides: The bankruptcy Liquidator, the business administration, and the liquidator have the right to represent the business, cooperative in cases where the business, cooperative does not have a legal representative.
At the same time, in Clause 2, Article 65 of the Law on Bankruptcy stipulates that the bankruptcy Liquidator, the business administration, and the liquidator shall designate a person to act as the representative of the business, cooperative to perform the task of inventorying and determining the value of the assets of the business, cooperative.
Therefore, in the process of resolving the bankruptcy of a business or cooperative where the legal representative is absent, the bankruptcy Liquidator, the business administration, and the liquidate assets shall act as the representative of the business, cooperative, or designate a person to act as the representative of the business, cooperative to perform the task of inventorying and determining the value of the assets of the business, cooperative.”
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