Vietnam: Is there a Law on Cooperative in 2023? When will the Law on Cooperative 2023 come into force?
- What are the prohibited acts for regulatory authorities in Vietnam according to Law on Cooperative 2023?
- What are the prohibited acts for artels, cooperatives and cooperative unions in Vietnam according to Law on Cooperative 2023?
- What are the prohibited acts for members of artels, cooperatives and cooperative unions according to Law on Cooperative 2023?
- What are the rights of cooperatives and cooperative unions in Vietnam?
The National Assembly approved the Law on Cooperative 2023 on June 20, 2023, effective from July 1, 2024, including 12 chapters with 115 articles.
What are the prohibited acts for regulatory authorities in Vietnam according to Law on Cooperative 2023?
According to Clause 1, Article 7 of the Law on Cooperative 2023, it is stipulated:
Prohibited acts
1. Regulatory authorities are prohibited from:
a) Issuing cooperative or artel registration certificate to ineligible applicants; refusing to issue cooperative or artel registration certificate to applicants that meet eligibility requirements laid down in this Law;
b) Obstructing the performance of legitimate rights and obligations of artels, cooperatives, cooperative unions and their members as prescribed in this Law;
c) Giving assistance or incentives to artels, cooperatives or cooperative unions without complying with principles and provisions on eligible entities, authority, contents and procedures laid down in laws;
d) Abusing their positions and powers to violate regulations of law on assistance and provision of incentives for artels, cooperatives and cooperative unions;
dd) Delaying, obstructing or harassing artels, cooperatives, cooperative unions and relevant organizations and individuals during registration, operation of, or provision of assistance to, artels, cooperatives or cooperative unions;
Thus, the latest Law on Cooperative prohibits 06 acts related to artels, cooperatives and cooperative unions for state management agencies according to the above regulations.
Vietnam: Is there a Law on Cooperative in 2023? When will the Law on Cooperative 2023 come into force? (Internet image)
What are the prohibited acts for artels, cooperatives and cooperative unions in Vietnam according to Law on Cooperative 2023?
According to Clause 2, Article 7 of the Law on Cooperative 2023, it is stipulated:
Prohibited acts
...
2. Artels, cooperatives and cooperative unions are prohibited from:
a) Operating without obtaining registration certificate as prescribed in this Law; operating without satisfying eligibility requirements laid down in this Law and relevant laws;
b) Providing untruthful or incorrect information in the application for registration of artel, cooperative or cooperative union;
c) Improperly implementing or applying principles for organization, management and operation laid down in this Law;
d) Providing false or untruthful information or forging documents for personal gain;
dd) Using resources for the purposes other than the intended ones.
Thus, the new Law on Cooperative prohibits 05 acts against artels, cooperatives and cooperative unions according to the above regulations.
What are the prohibited acts for members of artels, cooperatives and cooperative unions according to Law on Cooperative 2023?
Pursuant to Clause 3, Article 7 of the Law on Cooperative 2023 stipulates:
Prohibited acts
...
3. Members of artels, cooperatives and cooperative unions are prohibited from:
a) Abusing positions and powers to obtain personal gain or interests for a group of members;
b) Providing untruthful information for their artels, cooperatives and cooperative unions.
Thus, the latest Cooperative Law prohibits 02 acts against members of cooperative groups, cooperatives, and cooperative unions.
What are the rights of cooperatives and cooperative unions in Vietnam?
Pursuant to Article 9 of the Cooperative Law 2023 stipulates:
Rights of cooperatives and cooperative unions
Every cooperative or cooperative union has the right to:
1. Operate in such a way to effectively achieve its set objectives and goals.
2. Decide its organizational structure, management and operation; hire and use employees.
3. Freely engage in any business line that is not banned by laws.
4. Request its members to register their demands for products/services so as to develop and implement an appropriate plan for supply of products/services to its members.
5. Supply products/services to entities other than its members after having fulfilling all obligations to and ensuring interests of its members as prescribed in its charter or relevant laws.
6. Provide services and organize economic, social and cultural activities for the purposes of improving living conditions of its members and communities, and achieving sustainable development.
7. Engage in implementation of policies, programs and projects on economic, cultural and social development, political security, social safety and public order, and environmental protection in residential communities.
8. Admit new members and terminate membership in accordance with regulations of law on cooperatives.
9. Increase or decrease charter capital during its operation.
10. Raise capital in accordance with regulations of law.
11. Grant internal loans as prescribed in this Law.
12. Monitor revenues and expenses on its internal transactions separately from those on its external transactions.
13. Enter into joint ventures, linkages and cooperation with domestic and foreign organizations and individuals for achieving its operational objectives.
14. Make capital contribution to, purchase shares of, or establish enterprises with the aim of supporting its operations.
15. Distribute its incomes and settle its losses and debts.
16. Join in its representative body.
17. File complaints or denunciations of acts of infringing upon its legitimate rights and interests in accordance with regulations of law; settle internal disputes and take actions against violating members in accordance with its charter.
18. Exercise other rights as prescribed by law and its charter.
Thus, cooperatives and cooperative unions have the 18 benefits mentioned above.
The Law on Cooperative 2023 takes effect from July 1, 2024.
For the provisions of Clause 3 and Clause 4, Article 115 of the Law on Cooperative 2023, it will take effect from September 1, 2023.
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