If an arbitration center does not operate in accordance with the contents of its establishment license, will it be suspended?

If an arbitration center does not operate in accordance with the contents of its establishment license, will its operation be suspended?

Pursuant to Point a, Clause 3, Article 26 Decree 82/2020/ND-CP; Point a Clause 4 Article 26 Decree 82/2020/ND-CP; Point b Clause 5 Article 26 Decree 82/2020/ND-CP violating regulations on the operation of arbitration centers and branches of arbitration centers; Branches and representative offices of foreign arbitration organizations in Vietnam:

Violations of regulations on the operation of arbitration centers and branches of arbitration centers; branches and representative offices of foreign arbitration organizations in Vietnam

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3. Fine from 10,000,000 VND to 15,000,000 VND for one of the following acts:

a) Operating not in accordance with the contents of the establishment license or operation registration certificate of the arbitration center or branch of the arbitration center; License to establish branches and representative offices of foreign arbitration organizations;

b) Operating without an establishment license or operation registration certificate;

c) Allowing another organization to use its establishment license or operation registration certificate to conduct commercial arbitration activities;

d) Failure to develop procedural rules or develop procedural rules of the arbitration center whose content is inconsistent with the provisions of law;

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4. Additional sanctions:

a) Suspension of operations from 01 month to 03 months for violations specified in Points a and c, Clause 3 of this Article;

b) Confiscate evidence such as establishment licenses, operation registration papers that have been erased or altered to falsify the content for violations specified in Point h, Clause 3 of this Article.

5. Remedial measures:

a) Recommend competent agencies, organizations, and persons to consider and handle papers and documents that have been erased or modified to falsify the content specified in Point h, Clause 3 of this Article;

b) Forced to return illegal profits obtained from committing violations specified in Points a, b and c, Clause 3 of this Article.

Thus, if an arbitration center does not operate in accordance with the contents of its establishment license, its operation may be suspended from 01 month to 03 months.

At the same time, a fine of from 10,000,000 VND to 15,000,000 VND may be imposed;

Forced to return illegal profits obtained from the above violations.

In what cases is an arbitration center’s Establishment License and Operation Registration Certificate revoked?

According to the provisions of Clause 1, Article 15 of Decree 63/2011/ND-CP, the arbitration center’s Establishment License and Operation Registration Certificate are revoked in the following cases:

– The arbitration center commits a violation that has been administratively sanctioned but repeats the violation;

– The arbitration center does not conduct any activities stated in its Charter or Establishment License within 05 consecutive years from the date of issuance of the Operation Registration Certificate;

– Within 30 days from the date of receiving the Establishment License, the Arbitration Center shall not register its operations at the Department of Justice of the province or centrally run city where the Arbitration Center is headquartered.

– The arbitration center does not amend or supplement the charter or rules of arbitration proceedings to be consistent with the Commercial Arbitration Law within 12 months from the effective date of the Commercial Arbitration Law.

Does state management of Arbitration include guidance on training and fostering Arbitrators?

Pursuant to Article 15 of the 2010 Commercial Arbitration Law, the state management of Arbitration is as follows:

State management of Arbitration

1. State management of Arbitration includes the following contents:

a) Promulgating and guiding the implementation of legal documents on Arbitration;

b) Issuing and revoking the Establishment License and Operation Registration Certificate of Arbitration Centers; Branches and representative offices of foreign arbitration organizations in Vietnam;

c) Announcing the list of Arbitrators of arbitration organizations operating in Vietnam;

d) Propagating and disseminating the law on Arbitration; international cooperation in the field of arbitration; guide the training and fostering of Arbitrators;

dd) Check, inspect and handle violations of the law on Arbitration;

e) Resolve complaints and denunciations related to the activities specified in Points b, c, d and dd of this Clause.

2. The Government unifies state management of Arbitration.

3. The Ministry of Justice is responsible to the Government for implementing state management of Arbitration.

4. The Department of Justice of provinces and centrally run cities helps the Ministry of Justice perform a number of tasks according to the Government’s regulations and the provisions of this Law.

Thus, state management of Arbitration includes guidance on training and fostering Arbitrators according to the provisions of law.