What do you mean by freezing assets?

Frozen assets are assets that enterprises are not allowed to withdraw or transfer in banks according to law.

Freezing is a compulsory measure to protect the property of an enterprise in order to prevent the debtor's enterprise from transferring or disposing of the property in various ways and protect the interests of creditors before the enterprise is declared bankrupt. The deposit of an enterprise in a bank is a legal act that cannot be withdrawn or transferred.

To put it simply, asset freezing is a restrictive measure to prohibit the transfer, use and disposal of intangible property rights, such as compulsory measures against the deposits, assets and creditor's rights of the person subjected to execution. Asset freezing is actually a measure in asset preservation, which can better prevent the actor from withdrawing capital contribution and protect the interests of creditors.

Characteristics of asset preservation

1. Protective measures are mandatory and temporary. Preservation measures include sealing up, detaining, freezing and ordering to provide guarantee. Once the property has been preserved, the parties concerned shall not be punished again. However, if the respondent provides effective guarantee, or the case has been closed without guarantee, the court shall lift the preservation measures.

Two, the scope of preservation is limited to the scope of the arbitration claim and the property related to the case, and the value of the property should not exceed the amount of the arbitration claim. When taking property preservation measures, the personal rights of the parties concerned shall not be infringed.

Third, the decision to take property preservation measures should not make a substantive decision on the disputed object of the parties, that is, the substantive rights and obligations of the parties cannot be determined through preservation. In foreign arbitration cases, it is of great significance to take property preservation measures. Correct and timely application and adoption of preservation measures are of great significance for protecting the legitimate rights and interests of the parties and smoothly executing the arbitration award.