9th Floor Diamond Plaza Building, 34 Le Duan, Ben Nghe Ward, District 1, Ho Chi Minh City
info@bkclaw.vn
0901 333 341
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In the context of rapid socio-economic development in Ho Chi Minh City, resolving internal enterprise disputes has become a critical factor in maintaining stability and operational efficiency. Conflicts between departments, individuals, or even among the leadership can seriously affect morale and overall productivity. Therefore, applying reasonable dispute resolution methods not only restores working relationships but also enhances operational efficiency and builds a positive corporate culture.
Internal disputes within an enterprise are conflicts or disagreements among individuals or entities within the company arising during the establishment, operation, dissolution, merger, consolidation, division, separation, asset handover, or transformation of the company’s organizational form.
Pursuant to Clause 4, Article 30 of the Civil Procedure Code 2015, internal enterprise disputes include: “Disputes between the company and its members; disputes between the company and its managers in limited liability companies or members of the Board of Directors, Director, General Director in joint-stock companies; disputes among members of the company related to the establishment, operation, dissolution, merger, consolidation, division, separation, asset handover, or transformation of the company’s organizational form.”
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– Disputes between company managers and shareholders or members. Such disputes often arise from managers’ lack of legal knowledge or from prioritizing personal interests over company regulations and principles. This can lead to decisions that violate company rules or legal provisions, thereby infringing on the legitimate rights and interests of shareholders and members.
– Disputes among shareholders, typically arising from unequal rights among shareholders.
– In the current difficult economic climate, business owners and investors may make inappropriate decisions to sustain operations. However, such decisions often adversely affect the rights and interests of other shareholders or members, leading to conflicts, disagreements, and disputes.
– Representatives exploiting their positions for personal gain through transactions, including: major shareholders holding over 35% of common shares, authorized representatives of organizational shareholders, Board members, directors, or general directors. Common self-dealing transactions include inflating prices in goods purchase contracts, selling company goods below market value, hiring related parties at higher salaries than others in the same position. Other serious self-dealing acts include waiving rights such as debt claims or granting debt deferrals.
Self-dealing transactions cause asset losses and harm the company’s rights and interests. Business operations rely not only on assets but also on reputation and prestige. Self-dealing damages the company’s assets or reputation, negatively affecting shareholders, partners (lost business opportunities, unfair competition), and broader socio-economic impacts.
For internal enterprise disputes, the law prioritizes encouraging the parties to negotiate and conciliate directly. This is the most harmonious and cost-effective method for balancing interests.
Regarding conciliation, shareholders may agree on a conciliation method as provided in the company charter pursuant to Decree 22/2017/ND-CP:
“Disputes arising from commercial activities.
– Disputes between parties where at least one party engages in commercial activities.
– Other disputes between parties as prescribed by law to be resolved by commercial conciliation.”
During commercial conciliation, the parties may select the conciliation rules of a commercial conciliation organization or agree on their own conciliation procedures. If no agreement is reached on procedures, the commercial conciliator shall conduct conciliation in a manner deemed appropriate to the case circumstances, the parties’ wishes, and accepted by the parties.
This is a confidential method that ensures the parties’ autonomy and the right to prompt resolution.
Pursuant to Articles 5, 16, and 18 of the Commercial Arbitration Law 2010, disputes may only be resolved by arbitration when there is an arbitration agreement and the agreement is not invalid. The arbitration agreement may be made before or after the dispute arises, in writing, either as a separate agreement or as a clause in a contract.
The advantage of this method is high confidentiality, suitable for many enterprises’ need to protect business secrets and important documents.
Pursuant to Articles 72 and 161 of the Enterprise Law and Article 30 of the Civil Procedure Code 2015, courts have jurisdiction to resolve disputes between the company and members of the Board of Directors, Director, or General Director in joint-stock companies. Court jurisdiction is mandatory by law and does not require prior agreement, unlike alternative dispute resolution methods.
Even if the company charter does not specify a dispute resolution method, shareholders or groups of shareholders holding at least 1% of the company’s shares may file a civil lawsuit with the competent People’s Court.
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The law respects the principle of freedom of business, allowing enterprises to freely choose their preferred dispute resolution method. However, enterprises should adhere to the following principles when resolving disputes:
At BKC Law, we provide professional consultation services for resolving internal enterprise disputes with an experienced team of lawyers. We understand that disputes can seriously affect business operations and reputation. Therefore, we commit to helping clients identify the root causes of issues and propose the most reasonable and optimal solutions, thereby creating a harmonious and sustainable working environment. With the motto “Resolving disputes, preserving relationships,” BKC Law accompanies you at every step of the resolution process.
Lawyers at BKC Law are committed to delivering consultation services with utmost dedication, expertise, and reliability to best protect your rights and interests.
To receive free legal consultation at BKC Law, please contact our lawyers using the following information:
Telephone: 0901 3333 41
Email: info@bkclaw.vn
Branch in District 1: 9th Floor, Diamond Plaza Building, 34 Le Duan Street, District 1, Ho Chi Minh City
Branch in Binh Tan: 41 Ten Lua Street, Binh Tan District, Ho Chi Minh City
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41 Rockets, Binh Tri Dong B, Binh Tan District, Ho Chi Minh City.
info@bkclaw.vn
0901 3333 41
9th Floor, Diamond Plaza Building, 34 Le Duan, Ben Nghe Street, District 1, Ho Chi Minh City.
info@bkclaw.vn
0901 3333 41