The process of admitting members of the cooperative group in Vietnam

The process of admitting members of the cooperative group in Vietnam (Internet image)

1. What is a cooperative group?

According to Clause 1, Article 3 of Decree 77/2019/ND-CP, a cooperative group is an organization without legal status, formed on the basis of a cooperation contract, that consists of 02 or more individuals or legal entities that are voluntarily established, jointly contribute assets and efforts to perform certain jobs, benefit from and share responsibility.

2. Rights and obligations of cooperative group members in Vietnam

Rights and obligations of cooperative group members according to Articles 8 and 9 of Decree 77/2019/ND-CP are as follows:

2.1. Rights of cooperative group members

- Receive profits obtained from the activities of the cooperative group.

- Participate in deciding on issues related to the performance of cooperation contracts, managing and supervising the activities of cooperative groups.

- Withdraw from the cooperative group when there is a legitimate reason and the consent of more than fifty percent (50%) of the total number of members of the cooperative group or according to the conditions agreed in the cooperation contract.

- Other rights according to the provisions of the cooperation contract and relevant laws.

2.2. Obligations of cooperative group members

- Participate in deciding on issues related to the implementation of cooperation contracts and supervise the activities of the cooperative groups.

- Compensate for damage caused by their own fault.

- Implement the provisions of the cooperation contract on the basis of the principles of equality and mutual benefit to ensure the common interests of the cooperative group.

- Contribute fully and on time to the assets and efforts committed in the cooperation contract.

- Perform other obligations according to the provisions of the cooperation contract and relevant laws.

3. The process of admitting members of the cooperative group in Vietnam

The procedure for admitting members of the cooperative group according to Article 10 of Decree 77/2019/ND-CP is as follows:

Members of the cooperative group shall agree on the process and conditions for adding members and write them into the cooperation contract. In case the cooperation contract does not stipulate, members of the cooperative group may be added according to the following process:

- Individuals or legal entities that satisfy the conditions specified in Article 7 of Decree 77/2019/ND-CP and wish to join a cooperative group may write an application or express their wish directly to the leader of the cooperative group (or the person authorized by the members of the cooperative group).

- The leader of the cooperative group (or the person authorized by the members of the cooperative group) organizes consultations with the members of the cooperative group, directly or indirectly, on the issue of adding members of the cooperative group.

- Individuals and legal entities are recognized as members of a cooperative group when more than fifty percent (50%) of the total number of cooperative group members agree to supplement and sign their names in the cooperation contract.

4. Termination of cooperative group membership in Vietnam

Termination of membership of cooperative groups is according to Article 11 of Decree 77/2019/ND-CP as follows:

- Membership in a cooperative group is terminated when one of the following cases occurs:

+ The cooperative group terminates its operation according to the provisions of Article 14 of Decree 77/2019/ND-CP;

+ A member of a cooperative group is an individual who dies, or is declared dead by a court, except for the case specified at Point a, Clause 1, Article 27 of Decree 77/2019/ND-CP;

+ A member of a cooperative group that is a legal entity ceases to exist, except for the case specified in Clause 4, Article 27 of Decree 77/2019/ND-CP;

+ Members of the cooperative group voluntarily withdraw from the cooperative group as prescribed in Clause 3, Article 8 of Decree 77/2019/ND-CP;

+ A member of the cooperative group seriously violates the provisions of the cooperation contract and other relevant laws.

- Members of the cooperative group can agree on their own decision-making authority, the process of terminating their membership in the cooperative group and recording it in the cooperation contract.

In case the cooperation contract does not specify, the termination of membership of a cooperative group in the cases specified at Points d and dd Clause 1 of Article 11 of Decree 77/2019/ND-CP shall be done as follows:

+ The leader of the cooperative group (or the person authorized by the members of the cooperative group) shall synthesize and propose a list of members of the cooperative group whose membership status is terminated at the next meeting of members for consideration and decision by the members of the cooperative group;

+ Membership in the cooperative group will be terminated if more than fifty percent (50%) of the total number of members agree, and it is recorded in the minutes of the meeting, specifying the percentage (%) of the members agreeing;

+ The leader of the cooperative group (or the person authorized by the members of the cooperative group) shall, on behalf of the cooperative group, notify all members of the cooperative group of the termination of membership, remove the member's name from the cooperative group within 05 working days from the date of holding the meeting of members of the cooperative group.

- The rights and obligations of members of a cooperative group whose membership is terminated are agreed upon by the members and stated in the cooperation contract. If the cooperation contract is not specified, the provisions of Article 26 of Decree 77/2019/ND-CP shall be followed.

- Members of a cooperative group who have their membership status terminated as prescribed in Point dd Clause 1 of Article 11 of Decree 77/2019/ND-CP are determined to be in breach of contract and must perform their civil liability in accordance with the provisions of the Civil Code and other relevant laws.

- The termination of membership in a cooperative group does not terminate the rights and obligations of this individual or legal entity established and performed before the time of withdrawal from the cooperation contract.

Quoc Dat

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