Vietnam: What are the conditions for founding members of a social and charity fund?

According to Article 11 of Decree No. 93/2019/ND-CP of Vietnam’s Government, founding members of a fund are required to meet the following conditions:

- They must be Vietnamese citizens or organizations;

- If the founding member is a Vietnamese citizen, he/she must have full capacity for civil acts and no previous criminal convictions;

- If the founding member is a Vietnamese organization, it must be duly established and have its charter or document defining its functions and tasks, a resolution of its leadership or decision of its head on the establishment of fund, and a decision on appointment of a representative to act as a fund's founding member; in case of a foreign-invested organization, its representative who acts as a fund’s founding member must be a Vietnamese citizen;

- They have contributed assets to establish the fund as prescribed in Article 14 hereof;

- If a founding member is subject to the management of a competent authority, a written approval from such competent authority must be obtained according to regulations on management of officials before submitting an application for establishment license and acknowledgment of the fund’s charter to the competent authority as prescribed in Article 18 hereof.

Concurrently, founding members shall establish a fund founding board. Such fund founding board is comprised of at least 03 founding members, including its head, deputy head and member. The fund founding board shall prepare an application for establishment license as prescribed in Article 15 hereof and send it to a competent authority as prescribed in Article 18 hereof. It shall request the Fund Management Council to compile the draft charter and other documents included in the application for establishment license.

More details can be found in Decree No. 93/2019/ND-CP of Vietnam’s Government, which takes effect from January 15, 2020 and replaces Decree No. 30/2012/ND-CP.

Thu Ba

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