Principles of Capital Mobilization of Cooperative Societies

Anh Tu

13:15, 11/07/2024

Cooperatives and cooperative unions are entitled to raise capital in accordance with the provisions of law to serve production and business activities and shall be responsible for the efficiency of the use of mobilized capital, fully repaying creditors as committed in the contract.

** Circular 83/2015/TT-BTC stipulates the principles of capital mobilization as follows:**

- Capital mobilization must have a plan approved by the general meeting of members or the board of directors, the director (general director) according to the authority delegated in the charter and financial management regulations of the cooperative, cooperative union.- The person approving the capital mobilization plan must be responsible for inspecting, supervising, and ensuring that the mobilized capital is used for the correct purposes, to the right entities, and effectively.- Borrowing capital from domestic economic organizations, individuals, cooperatives, and cooperative unions must be conducted through a loan contract with the lending economic organizations or individuals according to legal regulations.- The mobilization of capital from foreign organizations and individuals must comply with the legal regulations on foreign borrowing and debt repayment.

Methods of Capital Mobilization

Capital mobilization from members, member cooperatives; borrowing capital from credit institutions, other financial institutions, individuals, organizations outside the cooperative, cooperative union, and other forms of capital mobilization as per legal regulations.

For details, see Circular 83/2015/TT-BTC effective from July 15, 2015.

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