Legal Counselling

Vietnam: Guidelines for liquidation and transfer of assets when a cooperative is dissolved or declared bankrupt

09:32, 25/04/2018

The Ministry of Finance of Vietnam issued Circular No. 31/2018/TT-BTC providing guidance on settlement of assets acquired from various sources of capital when cooperatives and cooperative unions are dissolved or declared bankrupt.

According to Circular No. 31/2018/TT-BTC of the Ministry of Finance of Vietnam, when a cooperative is dissolved or declared bankrupt, the liquidation and transfer of assets shall be carried out as follows:

- The dissolution council, or the board of directors of the cooperative that is declared bankrupt, shall cooperate with the receiver, or the enterprise in charge of managing and liquidating assets of the cooperative that is declared bankrupt, to plan the asset disposition in the form of auction sale.

- An asset whose revalued amount is less than VND 2,000,000 may be disposed of without holding an auction.

- The dissolution council, or the board of directors of the cooperative that is declared bankrupt, shall submit a complete report on liquidation results to the People's Committee of the same level with the agency issuing the certificate of cooperative registration; the amounts that remain after paying taxes as regulated shall be distributed according to each source of capital from which an asset is formed.

Relevant provisions can be found in Circular No. 31/2018/TT-BTC of the Ministry of Finance of Vietnam, which takes effect from May 14, 2018.

- Thanh Lam -

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