How is the capital contribution handled when a member of the people's credit fund terminates their membership?
What are the conditions for an individual to become a member of a credit cooperative?
Based on Article 31 of Circular 04/2015/TT-NHNN (as amended by Clause 3 Article 2 of Circular 06/2017/TT-NHNN and Clause 17 Article 2 of Circular 21/2019/TT-NHNN), the conditions are as follows:
For individuals:
- Vietnamese citizens who are at least 18 years old, with full civil capacity, and have permanent or temporary residence registered in the operating area of the credit cooperative. In the case of temporary residence registration, the individual must have production or business activities or be a worker in the operating area of the credit cooperative and must provide documents proving this;
- Officials and public employees working in organizations or agencies with headquarters located in the operating area of the credit cooperative. Members of the credit cooperative who are officials and public employees are not allowed to hold the positions of Chairman and members of the Board of Directors; Head of the Supervisory Committee and members of the Supervisory Committee; Director, Deputy Director; Chief Accountant, and other specialized professional positions unless appointed.
- Not belonging to the following subjects:
+ Being prosecuted for criminal liability, serving a criminal sentence, or having been convicted of serious crimes without having their criminal records cleared;
+ Officials and public employees working in fields related to state secrets as prescribed by law;
+ Officers, non-commissioned officers, and professional soldiers in the units of the people's armed forces.
How are the capital contributions of members who cease to be members of a credit cooperative handled?
When does a member of a credit cooperative cease to be a member?
A member of a credit cooperative ceases to be a member in one of the cases specified in Clause 1 of Article 32 of Circular 04/2015/TT-NHNN as follows:
Termination of Membership
1. A member of a credit cooperative ceases to be a member in one of the following cases:
a) Automatic loss of membership: A member who is an individual dies, goes missing, loses civil capacity, or has restricted civil capacity; a member who is a household without a representative meeting the conditions specified in Clause 2, Article 31 of this Circular; a member who is a legal entity when the organization is dissolved, goes bankrupt, or lacks a representative meeting the conditions specified in Clause 3, Article 31 of this Circular; a member who has transferred all capital contributions to another person as prescribed by law and the charter of the credit cooperative.
b) Voluntary case: A member voluntarily applies and is approved by the Board of Directors to terminate membership and is ratified by the General Assembly of Members according to the charter of the credit cooperative;
c) Exclusion case: A member is excluded from the credit cooperative by the General Assembly of Members for:
(i) Failing to meet the minimum capital contribution requirement as specified in Clause 1, Article 28 of this Circular;
(ii) Engaging in falsification or fraud in membership documentation;
(iii) Other cases as prescribed by the charter of the credit cooperative.
Thus, a member of a credit cooperative ceases to be a member when belonging to one of the following specific cases:
(1) Automatic loss of membership
- The member is an individual who dies, goes missing, loses civil capacity, or has restricted civil capacity;
- The member is a household without a representative meeting the conditions specified in Clause 2, Article 31 of Circular 04/2015/TT-NHNN;
- The member is a legal entity that is dissolved or goes bankrupt or lacks a representative meeting the conditions specified in Clause 3, Article 31 of Circular 04/2015/TT-NHNN to appoint as a representative;
- The member has transferred all capital contributions to another person as prescribed by law and the charter of the credit cooperative.
(2) Voluntary case: The member voluntarily applies and is approved by the Board of Directors to terminate membership and is ratified by the General Assembly of Members according to the charter of the credit cooperative;
(3) Exclusion case
The member is excluded from the credit cooperative by the General Assembly of Members for:
- Failing to meet the minimum capital contribution requirement as specified in Clause 1, Article 28 of Circular 04/2015/TT-NHNN;
- Engaging in falsification or fraud in membership documentation;
- Other cases as prescribed by the charter of the credit cooperative.
How are the capital contributions of members who cease to be members handled?
Based on Clause 2, Article 32 of Circular 04/2015/TT-NHNN, the handling of the capital contribution of members who cease to be members as prescribed in Section 2 is as follows:
- In case of termination of membership as prescribed in Point a, Clause 1, Article 32 of Circular 04/2015/TT-NHNN:
(i) The member is an individual who dies, goes missing, loses civil capacity, or has restricted civil capacity; the member is a household without a representative meeting the conditions specified in Article 31 of Circular 04/2015/TT-NHNN:
Implemented according to the provisions of the civil law on inheritance, loss of civil capacity, restriction of civil capacity, and other relevant laws;
(ii) The member is a legal entity that is dissolved or goes bankrupt: Implemented according to the provisions of the law on dissolution and bankruptcy;
- In case of termination of membership as prescribed in Point b, Clause 1, Article 32 of Circular 04/2015/TT-NHNN: The member can transfer capital contributions as prescribed in Clause 1, Article 30 of Circular 04/2015/TT-NHNN or get a refund of capital contributions as prescribed in Clause 2, Article 30 of Circular 04/2015/TT-NHNN;
- In case of termination of membership as prescribed in Point c, Clause 1, Article 32 of Circular 04/2015/TT-NHNN: The member is not allowed to transfer capital contributions. The refund of capital contributions is implemented according to Clause 2, Article 30 of Circular 04/2015/TT-NHNN.
LawNet