Vietnam: Settlement of the amounts collected from disposition or liquidation of assets when a cooperative is declared bankrupt

09:28, 10/04/2018

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 Vietnam’s new regulations, the remainder of proceeds of disposition or liquidation of assets, after deducting disposition or liquidation costs and taxes as regulated, shall be distributed as follows:

- The remaining proceeds from disposition of assets acquired from the financial assistance grants or subsidies given by the Government shall be paid to the budget of the government of the same level with the agency issuing the certificate of cooperative registration under regulations of Point a Clause 1 Article 21 of Decree No. 193/2013/ND-CP of Vietnam’s Government;

- The remaining proceeds from disposition of assets acquired from the investment and development fund, offered and donated amounts which are defined as undivided assets, or other capital and assets which are defined as undivided assets in the charter shall be treated under regulations of Point b Clause 1 Article 21 of Decree No. 193/2013/ND-CP and Clause 3 Article 1 of Decree No. 107/2017/ND-CP of Vietnam’s Government;

- The remaining proceeds from disposition of assets acquired from the capital contributed by members of the cooperative shall be accounted for as proceeds from dissolution or bankruptcy for settlement under regulations of the Law on cooperatives and the Law on bankruptcy.

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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