Vietnam: 04 cases of termination of the member status of the Goods Exchange

Specifically, according to Article 24 of Decree No. 158/2006/NĐ-CP of Vietnam’s Government, the member status of a trader is terminated in the following cases:

1. It no longer satisfies the conditions for being a member.

2. It dissolves, goes bankrupt or terminates its operation according to the provisions of law.

3. It proposes at its own will the termination of its member status and gets approval of the Goods Exchange according to the operation charter of the Goods Exchange.

4. It commits a violation constituting a condition for termination of its member status as specified in the operation charter of the Goods Exchange or the provisions of law.

Thus, upon member status termination, the trader shall perform obligations as follows:

- When its member status is terminated, a trader shall notify its customers of the reason(s) for the termination of its member status and the performance of contractual obligations as entrusted by its customers.

- In case of termination of member status of a member according to this Decree, the Goods Exchange may request that member to authorize another member to perform the contractual obligations. If the terminated member fails to make authorization, the Goods Exchange may designate another member to do so.

- The trader with its member status terminated is obliged to transfer necessary information on customers to the authorized or designated member.

- After the authorization or designation of a member to perform the contractual obligations according to provisions is made, the collateral paid by customers for the trader with its member status terminated must be converted into collateral of customers for the authorized or designated trading member.

- The trader with its member status terminated shall pay charge for the performance of contractual obligations to the trader authorized by itself or designated by the Goods Exchange according to the provisions of the operation charter of the Goods Exchange.

- Upon the termination of its member status, the trader shall perform obligations arising towards its customers and other subjects related to its trading activities at the Goods Exchange. If damage is caused to customers, it shall pay compensations therefor according to law.

View more details at Decree No. 158/2006/NĐ-CP of Vietnam’s Government, effective from January 22, 2007.

Ty Na

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