Vietnam: Regulations on transfer of assets when a cooperative is dissolved or declared bankrupt

09:33, 15/05/2018

Recently, 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, the transfer of assets when a cooperative is dissolved or declared bankrupt is specified as follows:

- The power to make decision to transfer assets:

+ The People's Committee of the same level with the agency issuing the certificate of cooperative registration shall issue a decision to transfer the cooperative’s assets to another cooperative or a state organization in the same district.

+ The transfer of assets to a cooperative or a state organization situated in another district shall be subject to the decision of the Provincial-level People's Committee.

- Parties to the transfer of assets: the transferor, the transferee, the agency witnessing the transfer.

- Asset transfer procedures:

+ Record the transfer, which includes information about the parties to the transfer of assets, detailed description of each asset, its book value or value determined, etc.

+ Increase or decrease in assets and capital shall be duly recorded according to applicable accounting policy;

+ The ownership or rights to use assets must be registered in accordance with applicable laws and regulations.

More details 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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