Vietnam: Process of liquidation and transfer of assets when dissolving a cooperative

09:22, 05/06/2018

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, when a cooperative or a cooperative union (hereinafter referred to as “cooperative”) is dissolved or declared bankrupt, the settlement of assets shall be carried out as follows:

- The transfer of assets shall be carried out according to the decision to transfer the cooperative's assets according to the Form No. 01 enclosed herewith;

- 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.

- Based on the asset’s value determined by a qualified valuation service provider, the liquidation and transfer of assets shall be carried out in the form of auction sale as regulated in the Law on property auction; an asset whose revalued amount is less than VND 2,000,000 may be disposed of without holding an auction.

- Report results of liquidation and transfer of assets.

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.

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