What organizations will be included in the management organization of cooperatives and cooperative unions in Vietnam from July 1, 2024?
How many management models are there of cooperatives and cooperative unions in Vietnam?
Pursuant to Article 56 of the Law on Cooperatives 2023 stipulates:
Management model
1. Cooperatives and cooperative unions shall be managed adopting two management models as follows:
a) The fully-organized management model consists of the GMM, Board of Directors, Director (General Director), and Board of Controllers. The Chairperson of the Board of Directors may concurrently hold the position of Director (General Director);
b) The simplified management model consists of the GMM, Director and Controller.
2. A small, medium or large cooperative or cooperative union that has 10 members or more must adopt the fully-organized management model.
3. A micro cooperative or cooperative union that has less than 10 members may adopt either fully-organized management model or simplified management model.
4. In case a cooperative or cooperative union that is adopting the simplified management model is developed into a small, medium or large cooperative or cooperative union that has 10 members or more, the adoption of the fully-organized management model must be decided in the nearest GMM.
Thus, cooperatives and cooperative unions shall be managed adopting two management models as follows:
- The fully-organized management model consists of the GMM, Board of Directors, Director (General Director), and Board of Controllers. The Chairperson of the Board of Directors may concurrently hold the position of Director (General Director);
- The simplified management model consists of the GMM, Director and Controller.
What organizations will be included in the management organization of cooperatives and cooperative unions in Vietnam from July 1, 2024?
What are the forms of the General Meeting of Members in Vietnam?
Pursuant to Article 57 of the Law on Cooperatives 2023 stipulates:
General Meeting of Members (GMM)
1. The GMM of a cooperative or cooperative union is its supreme governing body. The GMM shall be convened annually and whenever necessary. In case of simplified management model, the GMM shall be convened on a periodical basis as prescribed in the cooperative or cooperative union's charter but at least every 03 months and on an ad hoc basis.
2. The GMM shall be held in the form of a plenary meeting or delegate meeting. If the meeting of the GMM is held in the form of a plenary meeting, official members will attend and vote at the meeting. If the meeting of the GMM is held in the form of a delegate meeting, delegates representing official members will attend and vote at the meeting. The GMM of a cooperative or cooperative union that has a total of at least 50 official members may be held in the form of a delegate meeting.
Contributing members and non-contributing members may be invited to the meeting of the GMM.
3. The meeting of the GMM may be on-site meeting, online meeting or hybrid meeting.
4. The minutes of the meeting of the GMM shall be compulsory while their audio and video recordings are optional. These materials shall be provided at the request of members. The minutes must bear signatures of the chair and secretary of the meeting. In case the chair and the secretary refuse to sign the minutes, the minutes shall be effective if they are signed by more than 50% of the members participating in the meeting. In this case, the minutes shall clearly state the refusal by the chair and the secretary to sign them. The persons who sign the minutes shall be jointly responsible for the accuracy and truthfulness of the minutes.
Thus, the GMM shall be held in the form of a plenary meeting or delegate meeting.
- If the meeting of the GMM is held in the form of a plenary meeting, official members will attend and vote at the meeting.
- If the meeting of the GMM is held in the form of a delegate meeting, delegates representing official members will attend and vote at the meeting.
- The GMM of a cooperative or cooperative union that has a total of at least 50 official members may be held in the form of a delegate meeting.
What are the requirements for the number of delegates participating in the delegate meeting of cooperatives or cooperative unions in Vietnam?
Article 58 of the Law on Cooperatives 2023 stipulates:
Delegates participating in delegate meeting
1. Eligibility requirements and procedures for election of delegates to participate in the delegate meeting are provided in the cooperative or cooperative union’s charter.
2. The number of delegates participating in the delegate meeting shall comply with the cooperative or cooperative union’s charter, provided that:
a) It shall not be fewer than 50% of total official members of the cooperative or cooperative union that has a total of more than 50 to 100 official members;
b) It shall not be fewer than 30% of total official members of the cooperative or cooperative union that has a total of more than 100 to 300 official members;
c) It shall not be fewer than 20% of total official members of the cooperative or cooperative union that has a total of more than 300 to 1.000 official members;
d) It shall not be fewer than 200 delegates of the cooperative or cooperative union that has a total of more than 1.000 official members.
3. Delegates participating in the delegate meeting must express opinions and aspirations of and communicate the congress’s results to members that they represented.
Thus, the number of delegates participating in the delegate meeting shall comply with the cooperative or cooperative union’s charter, provided that:
- It shall not be fewer than 50% of total official members of the cooperative or cooperative union that has a total of more than 50 to 100 official members;
- It shall not be fewer than 30% of total official members of the cooperative or cooperative union that has a total of more than 100 to 300 official members;
- It shall not be fewer than 20% of total official members of the cooperative or cooperative union that has a total of more than 300 to 1.000 official members;
- It shall not be fewer than 200 delegates of the cooperative or cooperative union that has a total of more than 1.000 official members.
The Law on Cooperatives 2023 will take effect from July 1, 2024
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