Vietnam: Cases of termination of membership in the People's Credit Fund from July 1, 2024

Cases of Vietnam: Cases of termination of membership in the People's Credit Fund from July 1, 2024 (Image from internet)

On June 28, 2024, the State Bank of Vietnam issued Circular 29/2024/TT-NHNN prescribing regulations on People's Credit Funds.

1. Cases of termination of membership in People's Credit Funds from July 1, 2024

According to Clause 1, Article 9 of Circular 29/2024/TT-NHNN, a member of a People's Credit Fund shall terminate their membership when falling under one of the following cases:

- Automatic termination:

+ The member is an individual who has died or gone missing;

+ The member is a legal entity that has terminated its legal entity status;

+ The member no longer meets the conditions to become a member as prescribed in Article 8 of Circular 29/2024/TT-NHNN, except for the case of not ensuring sufficient contributed capital as prescribed;

+ The member has transferred all capital contributions to another person according to the provisions of law and the charter of the People's Credit Fund;

- Voluntary termination: The member voluntarily resigns and is approved by the Board of Directors to withdraw from the People's Credit Fund;

- Expulsion: The member is expelled from the People's Credit Fund by the General Meeting of Members due to:

+ Not ensuring sufficient contributed capital as prescribed;

+ Committing fraud or falsification in membership documents;

+ Other cases as prescribed in the charter of the People's Credit Fund.

The Board of Directors shall decide on the termination of membership and compile the list during the reporting period at the nearest General Meeting of Members.

2. Handling capital contributions when terminating membership in People's Credit Funds

The handling of capital contributions when terminating membership as stipulated in Section 1 is as follows:

- Cases of termination of membership as prescribed in points a(i), a(ii), a(iii) of Clause 1 Article 9 of Circular 29/2024/TT-NHNN:

(i) Capital contributions may be transferred according to Clause 1, Article 12 of Circular 29/2024/TT-NHNN or refunded according to Clause 3, Article 12 of the same Circular;

(ii) If the member is an individual who has died, gone missing, lost civil capacity, or is partially incapacitated: the rights and obligations of the member shall be handled according to civil law regulations;

(iii) If the member is a legal entity terminating its legal entity status: procedures shall follow legal regulations on reorganization, dissolution, or bankruptcy;

- Case of voluntary termination as stipulated in point b, Clause 1, Article 9 of Circular 29/2024/TT-NHNN: the member may transfer capital contributions according to Clause 1, Article 12 of the Circular or get a refund according to Clause 3, Article 12 of the same Circular;

- Expulsion as per point c, Clause 1, Article 9 of Circular 29/2024/TT-NHNN: the member is not allowed to transfer capital contributions. Refunds shall be executed according to Clause 3, Article 12 of the same Circular.

Note: Terminated members are entitled to benefits (if any) decided by the General Meeting of Members after fulfilling all financial obligations as prescribed by law and the charter of the People's Credit Fund.

Nguyen Ngoc Que Anh

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