The procedure for declaring a shareholder death

The petition for declaration of shareholder’s death is a civil case – the procedure for declaration of a person’s death. Civil cases resolved in Court are uncommon. Therefore, when requesting the Court to declare a shareholder’s death, there will be several different problems and procedures compared with the settlement of the dispute between the company and shareholders at the Court. The petitioner won’t know how to contact which authority agency, or how Vietnamese law regulates the petition for declaration of a shareholder’s death.

As a law firm providing consultancy service and dispute resolution at Court or Arbitration in different fields, we will analyze the basic procedures, conditions and work upon carrying out the procedure to request the Court to declare a shareholder’s death. Accordingly, clients can proceed to solve issues related to shares of shareholders of the company.

Therefore, how is the procedure for declaring a shareholder’s death regulated? Which case is required that the Court declare a shareholder’s death? Which should the petitioner contact with the state agency to resolve the issue? How long does the procedure require declaration about a shareholder’s death?

A. The cases the Court issues a decision to declare a shareholder’s death

Pursuant to Article 71 of the Civil Code 2015, a person with related rights or interests may request a Court to issue a decision declaring that a person is dead in any of the following cases:

  1. After three years from the effective date of a court’s decision declaring a person missing, there is still no reliable information that such person is alive;
  2. The person has disappeared during a war and there is still no reliable information that such person is alive for five years from the end of the war;
  3. The person met with an accident, catastrophe or a natural disaster and there is still no reliable information that such person is alive for two years from the end of such accident, catastrophe or natural disaster, unless otherwise provided for by law;
  4. The person has been missing for five consecutive years or longer and there is no reliable information that such person is still alive; this time limit shall be calculated in accordance with Clause 1 Article 68 of Civil Code 2015.

Accordingly, if a shareholder falls into one of the above cases (the “Declared Person“), the person with related rights and interests (the “Claimant”) may request the Court to issue a decision declaring a person is dead.

B. A Court which has the right to settle a civil case declares a shareholder’s death

Pursuant to Article 39 of the Civil Procedure Code 2015, the procedure for declaring a shareholder death will be resolved by the district People’s Court in the place where the Declared Person last resided.

C. The procedure for declaring a shareholder to be dead.

  1. Prepare documents and evidence to prove that the Declared Person is dead

The Claimant must make a written statement explaining that he had no information about the Declared Person and send it to the police of the ward/commune where the Declared Person registered last permanent and temporary residence to be confirmed.

  1. File a petition at the Court

After the regional police confirms under section (1), the Claimant proceeds to an application form attached with certified true copy documents.

The attached documents include: (i) ID / citizen card/ Passport and household registration of the Claimant; (ii) Documents and evidence; (iii) Relevant documents of persons with related rights and obligations; (iv) Other documents and evidence (if any).

  1. Pay court fees

After 07 working days from the date of filing the application form, the Claimant pays VND 300,000 as prescribed by Resolution No. 326/2016/UBTVQH14 dated December 30, 2016.

  1. Preparation for consideration of petition for declaring a person missing

Within 20 days from the date of receiving a petition for declaring a person missing, the Court shall issue a decision on a notice in search of the person who is requested to be declared missing.

  1. Announcement of notices on search of persons absent from their residence places

Within 01 month from the day on which the Court issues decision to issue a notice on search of a person absent from his/her residence place, such decision must be posted on one of central dailies for three consecutive issues, e-portal of the Court and/or People’s Committee of province (if any) and broadcasted on the central radio or television channels three times for 03 consecutive days.

Within 10 days after the expiration of the notification period, the Court must open a meeting to consider the application form.

  1. Decision to declare a person dead

In case of accepting a petition, the Court shall issue a decision declaring a person dead. In such a decision, the Court shall determine the day on which that person died and the legal consequences of declaring a person dead according to the provisions of the Civil Code.

Accordingly, when the Court’s decision declaring a person dead takes effect, the heir of the shareholder becomes a shareholder of the company in accordance with the Enterprise Law.

The above is the procedure for the court to declare a shareholder’s death. However, there will be other legal issues occuring in each situation, clients can contact us for advice and answers for each specific case.

With many years of legal service operation, we are ready to support clients so that the procedure is carried out faster. The client will not lose much time in case the Court or competent authorities returns the dossier or requests additional dossiers during the settlement of the case.

Note: The above advice is for reference only. Depending on the time and audience, the above advice may no longer be suitable. For more information, please contact us by email: phieu.le@lmp-lawyers.com

Contact us
0986 123 714