Official Decree Guiding the Registration of Partnerships, Cooperatives, and Unions of Cooperatives Effective From July 18, 2024
Has the Decree on Guidelines for Registering Cooperatives, Cooperative Alliances, and Cooperative Groups been Implemented from July 18, 2024?
On July 18, 2024, the Prime Minister of the Government of Vietnam issued Decree 92/2024/ND-CP guiding the registration of cooperative groups, cooperatives, and cooperative alliances.
Decree 92/2024/ND-CP stipulates the dossiers, processes, and procedures for registering cooperative groups, cooperatives, and cooperative alliances; the business registration agencies; the interconnection in the registration of cooperative groups, cooperatives, and cooperative alliances; and other related matters concerning the registration of cooperative groups, cooperatives, and cooperative alliances.
Decree 92/2024/ND-CP applies to the following subjects:
- Cooperative groups required to register for business, cooperative groups willing to register for business according to the regulations of Clause 2, Article 107 of the Law on Cooperatives.
- Cooperatives and cooperative alliances.
- Agencies, organizations, and individuals involved in the registration of cooperative groups, cooperatives, and cooperative alliances.
Decree officially guiding the registration of cooperative groups, cooperatives, and cooperative alliances applies from July 18, 2024?
What Are the Conditions to Become a Member of a Cooperative?
Article 30 of the Law on Cooperatives 2023 stipulates the conditions for becoming a cooperative member as follows:
(1) Official members and associate members contributing capital to the cooperative include:
- Individuals who are Vietnamese citizens aged 18 years and over, with full civil act capacity.
- Individuals who are foreign investors possessing an investment registration certificate according to the provisions of the law on investment.
- Households, cooperative groups, and other organizations without legal personality established and operating in Vietnam. Members of these organizations must appoint a representative according to the provisions of the Civil Code to exercise the rights and obligations of a cooperative member.
- Vietnamese legal entities.
(2) Associate members not contributing capital to the cooperative include:
- Individuals who are Vietnamese citizens or foreigners lawfully residing in Vietnam, aged 18 years and over, with full civil act capacity.
- Individuals who are Vietnamese citizens aged from 15 to under 18 years, not restricted in civil act capacity, not losing civil act capacity, not having difficulties in cognition and behavior control; must meet conditions as per the law when participating in civil or labor transactions.
- Households, cooperative groups, and other organizations without legal personality established and operating in Vietnam. Members of these organizations must appoint a representative according to the provisions of the Civil Code to exercise the rights and obligations of a cooperative member.
- Vietnamese legal entities.
Individuals and organizations must voluntarily apply for membership, contribute capital, or pay membership fees and meet the conditions prescribed by the Law on Cooperatives 2023 and the Charter.
- A cooperative member can simultaneously be a member of multiple cooperatives unless otherwise stipulated by the Charter.
In addition, foreign investors and foreign-invested economic organizations, when participating as official members or capital-contributing associate members of a cooperative, must meet the following conditions:
- Market access conditions for foreign investors as prescribed by the law on investment and related laws.
- Conditions ensuring national defense and security as prescribed by the law on investment.
(6) Cooperatives with official members and capital-contributing associate members who are foreign-invested economic organizations or foreign investors must meet market access conditions applicable to foreign investors as prescribed by the law on investment and related laws.
(7) The total number of official members who are foreign-invested economic organizations and foreign investors must account for less than 35% of the total number of official members of the cooperative.
What Are the Rights of Cooperative Members?
Article 31 of the Law on Cooperatives 2023 stipulates the rights of cooperative members as follows:
(1) Official members have the following rights:
- To be provided with products, services, and employment by the cooperative.
- To receive the distribution of income according to the provisions of the Law on Cooperatives 2023 and the Charter.
- To enjoy the welfare of the cooperative.
- To attend or elect delegates to attend the General Meeting of Members.
- To vote on matters within the authority of the General Meeting of Members.
- To nominate and be elected as members of the Board of Directors, Director (General Director), members of the Supervisory Board, or controllers, and other elected management positions.
- To propose, request the Board of Directors, Director (General Director), Supervisory Board, or controllers to explain the activities of the cooperative.
- To request the Board of Directors, Director (General Director), Supervisory Board, or controllers to convene an extraordinary General Meeting of Members.
- To be provided with necessary information related to the activities of the cooperative; to receive support in training, fostering, and improving professional qualifications to serve the activities of the cooperative.
- To leave the cooperative as per the provisions of the Law on Cooperatives 2023 and the Charter.
- To be refunded a part or all of the contributed capital according to the provisions of the Law on Cooperatives 2023 and the Charter.
- To receive a share of the remaining asset value of the cooperative according to the provisions of the Law on Cooperatives 2023 and the Charter.
- To complain, denounce, or sue under the provisions of the law.
- To other rights as provided by law and the Charter.
(2) Capital-contributing associate members have the following rights:
- The rights specified in points b, c, g, i, k, l, m, n, and o of Clause 1, Article 31 of the Law on Cooperatives 2023.
- To participate and express opinions but not to vote at General Meetings of Members when invited.
(3) Non-capital-contributing associate members have the following rights:
- The rights specified in points a, c, i, k, n, and o of Clause 1, Article 31 of the Law on Cooperatives 2023.
- To participate and express opinions but not to vote at General Meetings of Members when invited.
The Law on Cooperatives 2023 comes into effect from July 1, 2024, except for the provisions in Clause 2, Article 114 of the Law on Cooperatives 2023.
Provisions in Clauses 3 and 4, Article 115 of the Law on Cooperatives 2023 come into effect from September 1, 2023.
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