In what cases does a member of the Board of Directors automatically lose membership status in a commercial bank in Vietnam?
- In what cases does a member of the Board of Directors automatically lose membership status in a commercial bank in Vietnam?
- In what cases does a member of the Board of Directors of a commercial bank be relieved from duty, dismissal?
- What are the rights and obligations of managers and executives of a commercial bank in Vietnam?
In what cases does a member of the Board of Directors automatically lose membership status in a commercial bank in Vietnam?
Pursuant to Article 35 of the 2010 Law on Credit Institutions in Vietnam stipulating the cases of automatic loss of status as follows:
Automatic loss of status
1. A member of the Board of Directors or Members' Council or Control Board or a Director General (Director) automatically loses membership status or post when:
a/ He/she loses the civil act capacity or dies;
b/ He/she violates Article 33 of this Law on cases banned from holding posts;
c/ He/she represents the capital share of an organization which is a shareholder or capital contributor of the credit institution when this organization has its legal entity status terminated:
d/ He/she is no longer the authorized representative of an institutional shareholder's capital share:
e/ He/she is expelled from the Socialist Republic of Vietnam;
f/ The credit institution has its license revoked;
g/ The contract on Director General (Director) hiring terminates;
h/ He/she is no longer a member of the cooperative bank or people's credit fund.
2. The Board of Directors or Members7 Council of a credit institution shall send a report enclosed with documents evidencing a holder' automatic loss of his/her post under Clause 1 of this Article to the State Bank within 5 working days after finding out such loss, take responsibility for the accuracy and truthfulness of this report, and carry out procedures to elect and appoint holder of the vacant post under law.
3. After automatically losing his/her membership status or post, a member of the Board of Directors or Members' Council or Control Board or Director General (Director) of a credit institution must be liable for his/her decisions made during his/her office term.
Thus, a member of the Board of Directors automatically loses membership status or post when:
- He/she loses the civil act capacity or dies;
- He/she violates Article 33 of the 2010 Law on Credit Institutions in Vietnam on cases banned from holding posts;
- He/she represents the capital share of an organization which is a shareholder or capital contributor of the credit institution when this organization has its legal entity status terminated:
- He/she is no longer the authorized representative of an institutional shareholder's capital share:
- He/she is expelled from the Socialist Republic of Vietnam;
- The credit institution has its license revoked;
- The contract on Director General (Director) hiring terminates;
- He/she is no longer a member of the cooperative bank or people's credit fund.
In what cases does a member of the Board of Directors automatically loses membership status in a commercial bank in Vietnam?
In what cases does a member of the Board of Directors of a commercial bank be relieved from duty, dismissal?
Pursuant to Clause 1, Article 36 of the 2010 Law on Credit Institutions in Vietnam on relief from duty, dismissal of members of the Board of Directors as follows:
Relief from duty, dismissal
1. The chairman or a member of the Board of Directors or Members' Council: the head or a member of the Control Board; or the Director General (Director) of a credit institution shall be relieved from office or dismissed when:
a/ He/she has his/her civil act capacity restricted;
b/ He/she submits his/her resignation to the Board of Directors, Members' Council or Control Board of the credit institution;
c/ He/she fails to join activities of the Board of Directors, Members' Council or Control Board for 6 consecutive months, except in force majeure circumstances;
d/ He/she fails to meet the criteria and conditions specified in Article 50 of this Law;
e/ The independent member of the Board of Directors fails to meet requirements on independence;
f/ In other cases defined by the credit institution's charier.
...
Thus, a member of the Board of Directors or Members' Council shall be relieved from office or dismissed when:
- He/she has his/her civil act capacity restricted;
- He/she submits his/her resignation to the Board of Directors, Members' Council or Control Board of the credit institution;
- He/she fails to join activities of the Board of Directors, Members' Council or Control Board for 6 consecutive months, except in force majeure circumstances;
- He/she fails to meet the criteria and conditions specified in Article 50 of this Law;
- The independent member of the Board of Directors fails to meet requirements on independence;
- In other cases defined by the credit institution's charier.
What are the rights and obligations of managers and executives of a commercial bank in Vietnam?
Article 38 of the 2010 Law on Credit Institutions in Vietnam stipulates the rights and obligations of managers and executives of commercial banks as follows:
- To exercise their rights and fulfill their obligations under law, the credit institution's charier and resolutions and decisions of the Shareholders' General Meeting or owners or capital contributors of the credit institution.
- To exercise their rights and fulfill their obligations honestly and prudently in the interests of the credit institution and its shareholders, capital contributors and owners.
- To be loyal to the credit institution; to neither use information, secrets and business opportunities of the credit institution nor abuse their positions and titles and the credit institution's assets for self-seeking purposes or in the- interests of other organizations and individuals, harming the interests of the credit institution and its shareholders, capital contributors and owners.
- To keep dossiers and records of the credit institution in order to provide statistics for the credit institution to manage, administer and control its activities and for the State Bank's inspection, supervision and examination.
- To be knowledgeable about risks in credit institution operations.
- To promptly, fully and accurately notify the credit institution of possible conflicts of interests arising from the credit institution's benefits in other institutions or its transactions with other organizations and individuals and to only conduct such transactions when so consented by Board of Directors or Members' Council.
- Not to create conditions for themselves or their affiliated persons to take loans or use other banking services of the credit institution with conditions more preferential and favorable than those under the credit institution's general regulations.
- To neither have their salaries and remuneration increased nor request bonus when the credit institution suffers loss.
- To fulfill other obligations defined by the credit institution's charter.
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