What are the cases of termination of membership of contributing members and non-contributing members of cooperatives in Vietnam?
- Vietnam: When will the membership of contributing members and non-contributing members of cooperatives be terminated?
- What are the obligations of members of cooperatives in Vietnam regulated in the Law on Cooperatives 2023?
- What are the rights of members of cooperatives in Vietnam regulated in the Law on Cooperatives 2023?
Vietnam: When will the membership of contributing members and non-contributing members of cooperatives be terminated?
Pursuant to Clauses 2 and 3, Article 33 of the Law on Cooperatives 2023 stipulates:
Termination of membership
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2. The membership of contributing members shall be terminated according to Points a, b, c, d, dd and g Clause 1 of this Article.
3. The membership of a non-contributing member shall be terminated:
a) In the cases specified in Points a, b, c, d, dd and e Clause 1 of this Article; or
b) if the member fails to pay membership fees as prescribed in the cooperative’s charter.
4. The authority to decide termination of membership, and settlement of rights and obligations of members that have their membership terminated shall comply with the provisions of this Law and the cooperative’s charter.
Thus, cases of termination of membership of contributing members include:
- A member that is an individual dies; is declared by a Court dead, missing or incapacitated, or to be a person with limited capacity for civil acts or difficulty in awareness or control of his/her own acts;
- A member that is an organization ceases to exist, is dissolved or declared bankrupt;
- The cooperative ceases to exist, is dissolved or declared bankrupt;
- A member voluntarily leaves the cooperative;
- A member is expelled according to the cooperative’s charter;
- At the capital contribution time, a member fails to make capital contribution as promised or makes a capital contribution which is lower than the minimum capital contribution prescribed in the cooperative’s charter.
And cases of termination of membership of non-contributing members include:
- A member that is an individual dies; is declared by a Court dead, missing or incapacitated, or to be a person with limited capacity for civil acts or difficulty in awareness or control of his/her own acts;
- A member that is an organization ceases to exist, is dissolved or declared bankrupt;
- The cooperative ceases to exist, is dissolved or declared bankrupt;
- A member voluntarily leaves the cooperative;
- A member is expelled according to the cooperative’s charter;
- A member has neither used products/services nor made labour contribution for a consecutive period prescribed in the cooperative’s charter;
- A member fails to pay membership fees as prescribed in the cooperative’s charter.
Vietnam: When will the membership of contributing members and non-contributing members of cooperatives be terminated?
What are the obligations of members of cooperatives in Vietnam regulated in the Law on Cooperatives 2023?
Pursuant to Article 32 of the Law on Cooperatives 2023, it is stipulated as follows:
Obligations of members
1. A cooperative’s official member shall be obliged to:
a) make capital contributions in full and on schedule as promised in the cooperative’s charter;
b) use the cooperative’s products/services as registered or make labour contribution as agreed upon with the cooperative;
c) assume liability for the cooperative’s debts and other financial obligations which is equal to the member’s stakes in the cooperative;
d) make compensation for damage caused to the cooperative in accordance with regulations of law and the cooperative’s charter;
dd) comply with guidelines, objectives, charter and internal regulations of the cooperative, resolutions of the GMM, and decisions issued by the Board of Directors (in case of fully-organized management model) or by the Director (in case of simplified management model);
e) perform other obligations as prescribed by law and the cooperative’s charter.
2. Contributing members shall be obliged to perform the obligations in points a, c, d, dd and e Clause 1 of this Article.
3. A cooperative’s non-contributing member shall be obliged to:
a) pay membership fees as prescribed in the cooperative’s charter. Membership fees must not be paid to state budget as prescribed by the Law on fees and charges.
b) perform the obligations in Points b, d, dd and e Clause 1 of this Article.
Thus, members of the cooperatives in Vietnam have obligations to comply with the above regulations.
What are the rights of members of cooperatives in Vietnam regulated in the Law on Cooperatives 2023?
Pursuant to Article 31 of the Law on Cooperatives 2023, it is stipulated as follows:
Rights of members
1. A cooperative’s official member shall be entitled to:
a) be provided by the cooperative with products, services and employment;
b) receive incomes distributed in accordance with this Law and the cooperative’s charter;
c) receive welfare benefits of the cooperative;
d) attend or elect delegates to the GMM;
dd) vote on matters falling under the jurisdiction of the GMM;
e) stand as a candidate for or nominate persons to the position of members of the Board of Directors, Director (General Director), members of the Board of Controllers or Controller and other managerial positions to be elected;
g) request the Board of Directors, Director (General Director), members of the Board of Controllers or Controller to explain the cooperative’s operations;
h) request the Board of Directors, Director (General Director), members of the Board of Controllers or Controller to convene extraordinary GMM;
i) be provided with necessary information concerning the cooperative’s operations; be provided with training and re-training for improving the member’s professional qualifications to serve the cooperative’s operation;
k) leave the cooperative in accordance with this Law and the cooperative’s charter;
l) have part or entire amount of the member’s stakes returned as prescribed in this Law and the cooperative’s charter;
m) receive the remaining assets of the cooperative in accordance with this Law and the cooperative’s charter;
n) file complaints, denunciations or lawsuits in accordance with regulations of law;
o) exercise other rights as prescribed by law and the cooperative’s charter.
2. A cooperative’s contributing member shall be entitled to:
a) exercise the rights specified in Points b, c, g, i, k, l, m, n and o Clause 1 of this Article;
n) attend and comment without voting in meetings of the GMM, if invited.
3. A cooperative’s non-contributing member shall be entitled to:
a) exercise the rights specified in Points a, c, i, k, n and o Clause 1 of this Article;
n) attend and comment without voting in meetings of the GMM, if invited.
Thus, cooperative members have the rights according to the above regulations.
The Law on Cooperatives 2023 will take effect from July 1, 2024.
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