Vietnam: When shall the status of member and member cooperative be terminated?

Specifically, according to Article 16 of the Cooperative Law 2012 of Vietnam, the status of member or member cooperative is terminated upon occurrence of any of the following cases:

- A member who is an individual dies, is declared dead or missing by a court, has his/her civil act capacity restricted or lost, or is sentenced to imprisonment in accordance with law;

- A member that is a household no longer has a lawful representative as prescribed by law; a member that is a legal entity is dissolved or goes bankrupt; a member cooperative of a cooperative union is dissolved or goes bankrupt;

- The cooperative or union of cooperatives is dissolved or goes bankrupt;

- A member or member cooperative voluntarily leaves the cooperative or union of cooperatives;

- A member or member cooperative does not use products or services for a continuous time prescribed by the charter, but not more than 3 years. For a job creation cooperative, a member does not work for a continuous time prescribed by the charter, but not more than 2 years.

For these cases, the Board of Directors shall make decision and report to the coming general meeting of members.

- A member or member cooperative is expelled as prescribed by the charter;

- At the committed time of full capital contribution, a member or member cooperative does not contribute or has contributed capital less than the minimum contributed capital specified in the charter;

- Other cases as prescribed by the charter.

For these cases, the Board of Directors shall request the general meeting of members to make decision after consulting the Control Board or controller.

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