What are the conditions and standards of members of the Board of directors of the people’s credit fund in Vietnam?
What is the Board of directors of the people’s credit fund in Vietnam?
Pursuant to Article 17 of Circular 04/2015/TT-NHNN stipulating as follows:
Organization and operation of the Board of directors
1. The Board of directors of the people’s credit fund is an organ entitled to act on behalf of the people’s credit fund to decide and exercise rights and fulfill obligations of the people’s credit fund, except for issues that fall within the authority of the general members’ meeting.
Accordingly, the Board of directors of the people’s credit fund is an organ entitled to act on behalf of the people’s credit fund to decide and exercise rights and fulfill obligations of the people’s credit fund, except for issues that fall within the authority of the general members’ meeting.
What are the conditions and standards of members of the Board of directors of the people’s credit fund in Vietnam?
What are the conditions and standards of members of the Board of directors of the people’s credit fund in Vietnam?
In Article 20 of Circular 04/2015/TT-NHNN, amended and supplemented in Clause 9, Article 2, Circular 21/2019/TT-NHNN stipulates conditions and standards for members of the Board of Directors including:
Conditions and standards of members of the Board of Directors
1. For people's credit funds with total assets under VND 200 billion:
(i) Being an individual member or the representative of the capital contribution of a legal entity member;
(ii) Permanently residing in the area of operation of the people's credit fund;
(iii) Being healthy enough to meet the work requirements;
(iv) Not falling into the cases specified in Articles 33 and 34 of the Law on Credit Institutions (amended and supplemented);
(v) Not being the person responsible according to the inspection conclusion, leading to the credit institution and foreign bank branch being sanctioned for administrative violations in the field of currency and banking at a high fine level. especially for violations of regulations on licensing, administration, operations, shares, stocks, capital contributions, stock purchases, credit granting, corporate bond purchases, and safety ratios according to regulations. legal regulations on handling administrative violations in the field of currency and banking during the 24 months immediately preceding the time of election;
(vi) Having at least 01 year as a manager or executive of a credit institution or have at least 02 years as a manager or executive of an enterprise operating in the finance, banking, accounting, auditing industry accounting or have at least 03 years working directly in the professional department of finance, banking, accounting, auditing;
(vii) Having an intermediate degree in one of the majors of finance, banking, accounting, auditing, business administration, law and have a diploma (certificate) proving that you have been trained in credit fund operations people under the People's Credit Fund Professional Training Program of the State Bank or have a college degree in one of the majors of finance, banking, accounting, auditing, business administration, law or have university degree or higher.
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Accordingly, members of the Board of directors of the people’s credit fund need to meet the conditions as prescribed above.
Vietnam: How often does the Board of directors of the people’s credit fund meet?
Pursuant to Article 19 of Circular 04/2015/TT-NHNN stipulating as follows:
Meetings of the Board of directors
1. The Board of directors shall meet at least once a month which is convened and presided over by the president of the Board of directors or a member of the Board of directors authorized by the president.
The Board of directors shall hold an irregular meeting at the request of one third of the members of the Board of directors or the president, Head of the control board, full-time controller or the director of the people’s credit fund.
2. The meeting of the Board of directors shall be deemed valid if it is attended by at least two-thirds of the members of the Board of directors. If the meeting of the Board of directors is not attended by sufficient number of participants as prescribed, the president of the Board of directors shall convene a second meeting within 10 working days from the expected date of the first meeting. After two postponements due to insufficient number of participants, the president shall request the Board to convene an irregular general members’ meeting within 30 days from the expected date of the second meeting to review the status of the members who have not attended the meeting and decide on the handling measure.
3. All contents of, and conclusions reached in each session of the general members' meeting must be recorded into the minute book; minutes of meetings of the Board of directors must be fully signed by the meeting chair, participating members and secretary. The meeting chair and secretary shall assume joint responsibility for accuracy and integrity of these minutes. Members of the Board of directors shall be entitled to reserve their opinions and reserved opinions shall be recorded in the meeting minutes.
4. The Board’s decisions are adopted on the principle of majority vote; each member has one vote with equal value. If the numbers of affirmative votes and negative votes are even, the presiding person shall have the casting vote.
Thus, the Board of directors shall meet at least once a month which is convened and presided over by the president of the Board of directors or a member of the Board of directors authorized by the president.
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