Conditions and standards for members of the Control Board of a people's credit fund in Vietnam

Conditions and standards for members of the Control Board of a people's credit fund in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. Conditions and standards for members of the Control Board of a people's credit fund in Vietnam

Conditions and standards of members of the Control Board of a people's credit fund in Vietnam are specified in Article 23 of Circular 04/2015/TT-NHNN as follows:

1.1. For people's credit funds with total assets under VND 200 billion

Conditions and standards for members of the Control Board as prescribed at Point c, Clause 1, Article 21 of Circular 04/2015/TT-NHNN:

- Satisfying the conditions and standards specified at Points a(i), a(ii), a(iii), a(iv), and a(v) of Clause 1 Article 20 of Circular 04/2015/TT-NHNN;

- A member of the Supervisory Board must not concurrently be the Chief Accountant, Treasurer, or professional staff of the People's Credit Fund and must not be related to a member of the Board of Directors, Director, or Deputy Director, Chief Accountant, or Treasurer of the People's Credit Fund;

- Having at least 01 year working directly in the field of finance, banking, accounting or auditing;

- Having an intermediate degree in one of the majors in finance, banking, accounting, auditing, business administration, or law and having a diploma (or certificate) proving that they have received professional training in people's credit funds according to the People's Credit Fund Professional Training Program of the State Bank, or having a college degree in one of the majors in finance, banking, accounting, auditing, business administration, law, or a university degree or higher;

1.2. For people's credit funds with total assets from VND 200 billion to VND 500 billion

For a people's credit fund with total assets ranging from VND 200 billion to VND 500 billion, the conditions and standards for members of the Control Board are as follows:

- Satisfying the conditions and standards specified at Points a(i), a(ii), a(iii), a(iv), and a(v) of Clause 1 Article 20 of Circular 04/2015/TT-NHNN;

- A member of the Supervisory Board must not concurrently be the Chief Accountant, Treasurer, or professional staff of the People's Credit Fund and be not related to members of the Board of Directors, the Director, Deputy Director, Chief Accountant, or Treasurer of the People's Credit Fund;

- Having at least 02 years' experience working directly in the fields of finance, banking, accounting, or auditing;

- Having a college degree in one of the majors in finance, banking, accounting, auditing, business administration, law, or a university degree or higher;

1.3. For people's credit funds with total assets of VND 500 billion or more

Conditions and standards for members of the Control Board for a people's credit fund with total assets of VND 500 billion or more include:

- Satisfying the conditions and standards specified at Points a(i), a(ii), a(iii), a(iv), and a(v) of Clause 1 Article 20 of Circular 04/2015/TT-NHNN;

- A member of the Supervisory Board must not concurrently be the Chief Accountant, Treasurer, or professional staff of the People's Credit Fund and be not related to members of the Board of Directors, Director, Deputy Director, Chief Accountant, or Treasurer of the People's Credit Fund;

- Having at least 03 years of working directly in the fields of finance, banking, accounting, and auditing;

- Having a university degree or higher;

2. Tasks and power of the Control Board of the People's Credit Funds in Vietnam

According to Clause Article 22 of Circular 04/2015/TT-NHNN, the tasks and power of the Control Board of the People's Credit Funds in Vietnam as prescribed in Article 84 of the Law on Credit Institutions 2010 are as follows:

- Tasks and powers of the Control Board of the people’s credit fund shall comply with Article 84 of the Law on Credit Institutions 2010s.

- Head of the Control Board shall have the following tasks and powers:

= Conduct the tasks and powers of the Control Board in accordance with Article 1 of Circular 04/2015/TT-NHNN;

= Convene and preside over the meetings of the Control Board;

= Sign documents under the authority of the Control Board on behalf of the Control Board;

= Attend meetings of the Board of directors, give opinions in these meetings but have no right to vote.

= Prepare operating plans and assign tasks to members of the Control Board;

= Authorize another member of the Control Board to control his/her tasks when he/she is absent;

= Convene and preside over irregular general members’ meetings in accordance with Clause 6 Article 84 of the Law on Credit Institutions 2010 on behalf of the Control Board;

= Perform other tasks and powers as prescribed in the Charter of the people’s credit fund.

- If the people’s credit fund only elects one full-time controller, the full-time controller shall have the following tasks and powers:

= Perform tasks and powers of the Control Board as prescribed in Article 84 of the Law on Credit Institutions 2010;

= Attend meetings of the Board of directors, give opinions in these meetings but have no right to vote;

= Perform other tasks and powers as prescribed in the Charter of the people’s credit fund.

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