Contents of the Charter of cooperatives and cooperative unions in Vietnam

What are cooperatives and cooperative unions?

Pursuant to the Law on Cooperatives 2023 (taking effect on July 1, 2024):

- cooperative means an organization that has the status of a juridical person, is voluntarily established by at least 05 official members who cooperate with and assist each other in production, business and job creation with the aim of meeting general economic, cultural and social demands of its members and making contribution to sustainable community and social development, and adheres to the principles of autonomy, equality and democracy.

- cooperative union means an organization that has the status of a juridical person, is voluntarily established by at least 03 official members who cooperate with and assist each other in production, business and job creation with the aim of increasing their production and business scale, improving their ability to compete in the market, and making contribution to sustainable community and social development, and adheres to the principles of autonomy, equality and democracy.

Contents of the Charter of cooperatives and cooperative unions in Vietnam (Internet image) 

Contents of the Charter of cooperatives and cooperative unions in Vietnam

Pursuant to Article 40 of the Law on Cooperatives 2023, the charter of a cooperative or cooperative union must not be contrary to this Law and relevant laws, and shall, inter alia, have the following contents:

- Name, head office’s address; logo (if any) of the cooperative or cooperative union;

- Business lines of the cooperative or cooperative union;

- Qualification for membership and admission procedures;

- Cases of membership termination and procedures, including the following conditions for membership termination:

= Cases of expulsion of members;

= Level of frequent use of products/services or consecutive period over which an official member fails to make labour contribution;

= Minimum value of products/services which must be used by an official member;

- Rights and obligations of members;

- Management model; authority of the GMM; tasks and powers of the Board of Directors, Director (General Director) and Board of Controllers (in case of fully-organized management model) or tasks and powers of Director and Controller (in case of simplified management model);

- Quantity, titles, rights and obligations of the legal representative; division of rights and obligations between legal representatives (if the cooperative or cooperative union has more than one legal representative);

- The charter capital; increase/decrease in charter capital; minimum and maximum capital contributions, contribution method and time limit; valuation of contributed assets; partial or full return of stakes to official/contributing members;

- Membership fees payable by non-contributing members, if any;

- Methods for convening the GMM; voting at the GMM; electing delegates to attend and vote at the GMM in case the GMM is organized in the form of a delegate meeting;

- Minimum internal transaction rate;

- Investment, capital contribution, purchase of shares, establishment of enterprises, joint ventures or associations with other business entities;

- Establishment of funds; contributions to funds; income distribution method;

- Financial management, use and settlement of assets, capital, funds and losses;

- Rules for paying remunerations, salaries, wages, bonuses and other benefits to members of the Board of Directors, Director (General Director), members of the Board of Controllers or Controller, and employees;

- Procedures for issuance, re-issuance, replacement and revocation of certificates of capital contribution;

- Procedures for revising the charter;

- Actions against overdue debts of members;

- Actions against violations against the charter and rules for settlement of internal disputes.

Mai Thanh Loi

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