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THE NATIONAL ASSEMBLY
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SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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No: 18/2003/QH11
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Hanoi, November 26th, 2003
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LAW
ON COOPERATIVES
(No. 18/2003/QH11 of November 26, 2003)
Pursuant to the 1992
Constitution of the Socialist Republic of Vietnam, which was amended and
supplemented under Resolution No. 51/2001/QH10 of December 25, 2001 of the Xth
National Assembly, the 10th session;
This Law prescribes the cooperatives.
Chapter
I
GENERAL
PROVISIONS
Article
1.- Cooperatives
A cooperative is a
collective economic organization established under the provisions of this Law
by individuals, households or legal persons (hereinafter referred collectively
to as cooperative members) who share common demands and interests, and
volunteer to contribute capital and labor in order to bring into play the
collective strength of each cooperative member, to help one another efficiently
conduct production/business activities and improve the material and spiritual life,
thus contributing to the national socio-economic development.
A cooperative operates
as a type of enterprise, having the legal person status, enjoying autonomy and
taking self-responsibility for financial obligations within the scope of its
charter capital, accumulated capital and other capital sources according to law
provisions.
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This Law prescribes
the setting up, organization and operation of cooperatives in all branches and
domains of the national economy.
Article
3.- The State's policies towards
cooperatives
1. The State shall
implement the following policies towards cooperatives:
a/ To promulgate and
implement policies and programs to support the development of cooperatives in
terms of personnel training; human resource development; land; finance; credit;
establishment of funds in support of development of cooperatives; scientific
and technological application; marketing and market expansion; infrastructure
development investment; and to create conditions for cooperatives to
participate in the State's socio-economic development programs;
b/ To encourage and
create favorable conditions for cooperatives to develop;
c/ To ensure that
cooperatives' legal position and production/business conditions are equal to
those of enterprises of other types;
d/ To protect
cooperatives' legitimate rights and interests according to law provisions;
dd/ To respect
cooperatives' rights to autonomy, self-determination and self-responsibility in
production and business activities;
e/ Not to interfere in
cooperatives' lawful management and operation.
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Article
4.- Interpretation of terms
In this Law, the words
and phrases below shall be construed as follows:
1. Minimum contributed
capital means a sum of money or value of assets, including land-use right
value, property right to inventions, technical know-hows and other valuable
papers, which are monetized, to be compulsorily contributed by cooperative
members when they join the cooperatives.
2. Labor contribution
means the cooperative members' participation in the building of cooperatives in
forms of direct management, productive labor, business, consultancy and other
forms of participation.
3. The cooperative's
charter capital means the total capital contributed by the cooperative members
and inscribed in the cooperative's charter.
4. The cooperative's
logo means the exclusive symbol of each cooperative representing particular
characteristics of such cooperative and distinguishing it from other
cooperatives and enterprises.
5. Cooperative's
services provided to its members mean the provision of goods or supplies by the
cooperative to its members in material or non-material form, for which the
members have the demand and must pay to the cooperative.
6. The extent of use
of the cooperative's services means the ratio between the value of services
provided by the cooperative to each member and the total value of services
provided by the cooperative to all of its members.
7. Economic commitment
between the cooperative and its members means economic ties between the
cooperative and its members.
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Cooperatives shall be
organized and operate on the following principles:
1. Voluntariness: All
individuals, households and legal persons, that fully meet the conditions prescribed
by this Law and agree to the cooperative's charter, may join the cooperative;
cooperative members may leave the cooperative in accordance with the provisions
of the cooperative's charter;
2. Democracy, equality
and publicity: Cooperative members may participate in managing, examining and
supervising the cooperative and have equal voting right; make public
production/business plans, finance, distribution and other issues prescribed in
the cooperative's charter;
3. Autonomy,
self-responsibility and mutual benefits: The cooperative shall enjoy autonomy
and take self-responsibility for the results of its production/business
activities; and decide by itself on income distribution.
After fulfilling the
cooperative's tax payment obligations and offsetting its losses, a part of
profits shall be channeled to the cooperative's funds, another part shall be
distributed according to capital and labor contributions of the cooperative
members, and the rest shall be distributed to the cooperative members according
to the extent of using the cooperative's services;
4. Cooperation and
community development: Cooperative members must have the sense of bringing into
play the spirit of collective building and cooperation with one another in the
cooperative and social community; cooperation with domestic and foreign
cooperatives in accordance with law provisions.
Article
6.- Rights of cooperatives
Cooperatives shall
have the following rights:
1. To select
production/business lines not banned by law;
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3. To conduct direct
import/export or enter into joint-venture or association with domestic and
foreign organizations and individuals for production/business expansion in
accordance with law provisions;
4. To hire labor if
cooperative members fail to meet the cooperatives' production/business
requirements according to law provisions;
5. To decide on the
admission of new members, permit members to leave the cooperatives, and expel
members according to the provisions of the cooperatives' charters;
6. To decide on the
distribution of incomes, and handle the cooperatives' losses;
7. To decide on the
commendation and/or reward of members who record numerous achievements in the
cooperative building and development; to discipline members who violate the
cooperatives' charters; and to decide on the compensation paid by members for
damage caused to the cooperatives;
8. To borrow capital
from credit institutions and mobilize other capital sources; to organize internal
credit according to law provisions;
9. To have industrial
property right protected according to law provisions;
10. To refuse
organizations' or individuals' requests contrary to law;
11. To lodge
complaints about acts of infringing upon the cooperatives' legitimate rights
and interests;
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Article
7.- Obligations of cooperatives
Cooperatives shall
have the following obligations:
1. To conduct
production/business strictly according to the registered production/business
lines or commodity items;
2. To strictly observe
law provisions on accounting, statistics and audit;
3. To pay taxes and
fulfill other financial obligations according to law provisions;
4. To preserve and
develop their working capital; to manage and use the State-assigned land
according to law provisions;
5. To bear
responsibility for financial obligations within their charter capital,
accumulated capital and other capital sources according to law provisions;
6. To protect the
environment, ecological environ-ment, scenic places, historical-cultural relics
as well as defense and security works according to law provisions;
7. To ensure its
members' rights and fulfill economic commitments to their members;
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9. To pay compulsory social
insurance premiums for their members being individuals and laborers who
regularly work for the cooperatives according to the provisions of the
cooperatives' charters and law provisions on insurance; to organize the
participation in paying voluntary social insurance premiums by members other
than the above-said subjects. The Government shall specify the payment of
social insurance premiums by cooperative members;
10. To attend to
education, training, fostering in order to raise their members' knowledge, and
provide information to all cooperative members so that they can actively
participate in the cooperative building;
11. To fulfill other
obligations according to law provisions.
Article
8.- Names and logos of cooperatives
A cooperative may
select its own name and logo by itself in accordance with law provisions.
The seal, signboard,
advertisement forms and transaction papers of the cooperative must carry the
sign "HTX" (Cooperative).
The name and logo (if
any) of the cooperative must be registered at the competent State body and
protected according to law provisions.
Article
9.- Political organizations and
socio-political organizations in cooperatives
Political
organizations and socio-political organizations in cooperatives shall operate
within the framework of the Constitution, law and their respective charters in
accordance with law provisions.
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ESTABLISHMENT
AND BUSINESS REGISTRATION OF COOPERATIVES
Article
10.- Founding members
1. The founding members
are individuals, households or legal persons who initiate the setting-up of the
cooperative and participate in it.
2. The founding
members shall make written reports to the commune, ward or township People's
Committee (hereinafter referred collectively to as the commune-level People's
Committee) of the locality where the cooperative is planned to be headquartered
on the setting-up, headquarter location, production/business orientations and
operation plans of the cooperative.
3. The founding
members shall propagate and mobilize individuals, households and other legal
persons, that wish to join the cooperative; elaborate production/business
orientations; draft the charter of the cooperative and perform other necessary
jobs in order to organize the conference to set up the cooperative.
Article
11.- Conference to set up a cooperative
1. The conference to
set up a cooperative shall be organized by the founding members. The conference
participants include the founding members as well as individuals, households
and other legal persons that wish to become the cooperative members.
2. The conference
shall discuss and reach agreement on the cooperative's production/business
orientations and operation plans; the draft charter of the cooperative; the
name and logo (if any) of the cooperative; and draw up the list of cooperative
members.
3. The conference
shall discuss and vote by majority on the following issues:
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b/ Adoption of the
charter and internal regulations of the cooperative;
c/ Decision on the
separate or non-separate establishment of the managerial apparatus and
executive apparatus of the cooperative.
For the cooperative
which sets up a managerial-cum-executive apparatus, the conference shall elect
Managing Board and the manager; the cooperative manager shall be concurrently
the head of the Managing Board; and the conference shall decide the number of
the cooperative's deputy managers.
For the cooperative which
sets up the managerial apparatus and the executive apparatus separately, the
conference shall elect the Managing Board and its head among the Managing
Board's members; it shall decide to elect or hire the cooperative manager; and
decide the number of the cooperative's deputy managers;
d/ The election of the
Control Board and its head among the Control Board's members;
dd/ Adoption of
minutes of the cooperative-founding conference.
Article
12.- The cooperative charter
1. Each cooperative
shall have its own charter. The cooperative charter must conform to the
provisions of this Law and other law provisions.
2. A cooperative
charter shall cover the following contents:
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b/ The address of the cooperative's
headquarter;
c/ Production and/or
business lines;
d/ Regulations on
subjects, conditions and procedures for joining the cooperative and for
cooperative members to leave the cooperative;
dd/ Regulations on
interests, responsibilities and obligations of cooperative members;
e/ Principles for, and
subjects of, payment of compulsory social insurance premiums;
g/ The cooperative's
charter capital;
h/ Minimum contributed
capital: The levels, forms and terms of contribution, and conditions for return
of contributed capital of cooperative members;
i/ Competence and
modes for capital mobilization;
k/ Principles for
paying remunerations and handling losses; distribution of profits according to
capital and labor contributed by cooperative members and according to the
extent of using services of the cooperative; deduction for setting up,
management and use of the cooperative's funds;
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m/ Organizational and
managerial structure of the cooperative; functions, powers, tasks and
responsibilities of the Managing Board and its head, the cooperative manager,
the Control Board and its head, and the sections assisting the cooperative;
n/ The cooperative's
representative at law;
o/ Modalities for
holding the congress and adopting decisions of the congress of cooperative
members;
p/ Regime on handling
violations of the cooperative charter and principles for settling internal
disputes;
q/ Modalities for
amending the cooperative charter;
r/ Other regulations
decided by the congress of cooperative members itself, which, however, must not
be contrary to law.
3. When amending its
charter, the cooperative must send its amended charter enclosed with minutes of
the congress of cooperative members to the agency which has granted the
business registration certificate to the cooperative.
4. The Government
shall promulgate forms guiding the elaboration of charters of agricultural
cooperatives, people's credit funds and non-agricultural cooperatives.
Article
13.- Business registration dossiers
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1. An application for
business registration;
2. The cooperative
charter;
3. The number of
cooperative members, lists of members of the cooperative's Managing Board and
Control Board;
4. The minutes adopted
at the cooperative-founding conference.
Article
14.- Business registration places
1. A cooperative shall
make business registration at the provincial- or district-level business
registration office in the locality where the cooperative is planned to be
headquartered, depending on its specific conditions.
2. The representative
at law of the to be-set up cooperative shall submit business registration
dossiers at the selected business registration office and bear responsibility
for the accuracy and truthfulness of the business registration dossiers.
Article
15.- Granting of business registration
certificates
1. Cooperatives shall
be granted the business registration certificates when they fully meet the
following conditions:
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b/ Being engaged in
production and/or business lines not banned by law;
c/ Having their names
and logos (if any) prescribed in Article 8 of this Law;
d/ Having charter
capital. For cooperatives engaged in production and/or business lines which
require legal capital as stipulated by the Government, the charter capital must
not be lower than the legal capital;
dd/ Having fully paid
business registration fees as prescribed.
2. The granting of, or
refusal to grant, business registration certificates, and time for cooperatives
to commence their operation, are as follows:
a/ Within fifteen days
after receiving the complete and valid dossiers, the business registration
offices must consider the dossiers and grant the business registration
certificate to the cooperatives; in case of refusal, they must reply in writing
thereto;
b/ The cooperatives
shall have the legal person status and may commence their operation as from the
date they are granted the business registration certificates; for conditional
production and/or business lines registered by the cooperatives, they may
conduct such production and/or business lines as from the date they are granted
the business registration certificates by the competent State bodies or when
they fully meet the business conditions according to law provisions.
3. In case of disagreement
with the business registration offices' decisions to refuse the granting of the
business registration certificates as prescribed in Clause 2 of this Article,
the representatives at law of the to be-set up cooperatives may lodge their
complaints to the competent State bodies or initiate lawsuits at courts
according to law provisions.
Article
16.- Branches, representative offices and
dependent enterprises of cooperatives
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2. Cooperatives may
set up their dependent enterprises in accordance with law provisions.
Chapter
III
COOPERATIVE
MEMBERS
Article
17.- Conditions for becoming cooperative
members
1. Every Vietnamese
citizen, who is aged full 18 years or older, has full civil act capacity,
contributes capital or labor, agrees to the cooperative charter, and volunteers
to join the cooperative, can become a member of the cooperative.
Officials and public
servants may participate in cooperatives in the capacity as cooperative members
according to the provisions of the cooperatives' charters but must not directly
manage or administer the cooperatives.
2. Households and
legal persons may become cooperative members according to the provisions of the
cooperatives' charters. When participating in cooperatives, households and
legal persons must appoint their representatives fully meeting the conditions
set for participating individuals.
3. An individual,
household or legal person may become a member of many cooperatives if such is
not prohibited by the cooperative charter.
Article
18.- Rights of cooperative members
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1. To be given
priority to work for their cooperatives and enjoy remuneration according to the
provisions of their cooperatives' charters;
2. To enjoy profits
distributed according to their contributed capital or labor, and the extent of
using the cooperatives' services;
3. To be provided with
necessary econo-technical information by the cooperatives; to be provided with
training, fostering and improvement of their professional qualifications by the
cooperatives;
4. To benefit from
their cooperatives' welfare and the fulfillment of economic commitments by the
cooperatives;
5. To be commended
and/or rewarded when they make numerous contributions to the cooperative
building and development;
6. To attend the congress
of cooperative members or elect delegates to attend the congress of cooperative
members, attend conferences of cooperative members to discuss and vote on the
cooperatives' affairs;
7. To stand for or be
elected as members of the Managing Board, the cooperative manager, members of
the Control Board or other elected titles of the cooperatives;
8. To make proposals
to the Managing Board, the cooperative manager and the Control Board, and
request the reply; to request the Managing Board, the cooperative manager or
the Control Board to convene an extraordinary congress of cooperative members
according to the provisions of Clause 4, Article 21 of this Law;
9. To transfer their
contributed capital as well as interests and obligations to other persons according
to the provisions of the cooperative charter;
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11. To have their
contributed capital returned and enjoy other interests according to the provisions
of the cooperatives' charters and relevant law provisions in the following
cases where:
a/ They leave the
cooperative;
b/ The cooperative
members being individuals die, are reported missing, lose their civil act
capacity or have their civil act capacity restricted;
c/ The cooperative
members being households have no representatives fully meeting the conditions
as prescribed in the cooperatives' charter;
d/ The cooperative
members being legal persons dissolve or go bankrupt, or have no representatives
fully meeting the conditions as prescribed in the cooperatives' charters.
For cases prescribed
at Points b, c and d, Clause 11 of this Article, the cooperative members'
contributed capital and other interests shall be returned to those persons who
fully meet the conditions for inheritance or the guardians of such cooperative
members according to law provisions.
Article
19.- Obligations of cooperative members
Cooperative members
shall have the following obligations:
1. To abide by their
cooperatives' charters and internal regulations as well as resolutions of the
cooperative members' congresses;
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3. To unite and
cooperate with one another, to study to raise their professional
qualifications, thus contributing to boosting the development of cooperatives;
4. To fulfill economic
commitments with their cooperatives;
5. Within the limits
of their contributed capital, to bear joint responsibility for debts, risks,
damage or losses of their cooperatives;
6. To pay compensation
for damage they have caused to the cooperatives according to the provisions of
their cooperatives' charters.
Article
20.- Termination of cooperative membership
1. The cooperative
membership shall be terminated in the following cases where:
a/ Cooperative members
being individuals die, are reported missing, lose their civil act capacity or
have their civil act capacity restricted; cooperative members being households
have no representatives fully meeting the conditions as prescribed in the
cooperative charter; or cooperative members being legal persons dissolve or go
bankrupt or have no representatives fully meeting the conditions as prescribed
in their cooperatives' charters;
b/ Cooperative members
are permitted to leave their cooperatives under the provisions of their
cooperatives' charters;
c/ Cooperative members
have transferred their whole contributed capital as well as interests and
obligations to other persons under the provisions of their cooperatives'
charters;
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dd/ Other cases
prescribed by the cooperatives' charters.
2. The settlement of
the cooperative members' interests and obligations in cases prescribed in
Clause 1 of this Article shall be prescribed by the cooperatives' charters.
Chapter
IV
ORGANIZATION
AND MANAGEMENT OF COOPERATIVES
Article
21.- Congress of cooperative members
1. The congress of
cooperative members shall be the highest decision-making body of a cooperative.
2. A cooperative with
many members may organize a congress of delegates of cooperative members; the
election of delegates to the congress shall be prescribed by the cooperative's
charter. The congress of delegates of cooperative members and the congress of
all cooperative members (hereinafter referred collectively to as the congress
of cooperative members) are equal in rights and tasks.
3. The regular
congress of cooperative members shall be convened once a year by the Managing
Board within three months after the annual settlement books are closed.
4. The extraordinary
congress of cooperative members shall be convened by the cooperative's Managing
Board or Control Board to decide on necessary issues which fall beyond the
powers of the Managing Board or the Control Board.
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Article
22.- Contents of the congress of
cooperative members
The congress of
cooperative members shall discuss and decide on the following issues:
1. Criteria set for
cooperative members when joining the cooperative;
2. Annual report on
the cooperative's production/business situation, report on activities of the Managing
Board and the Control Board;
3. Report on financial
publicity, planned distribution of incomes, and handling of losses and debts;
4. Production/business
orientations and plans;
5. Minimum capital;
charter capital increase or reduction; competence and modes for capital
mobilization;
6. Determination of
value of the cooperative's common assets under the provisions of Clause 3,
Article 35 of this Law;
7. Distribution of
profits according to the contributed capital and labor as well as the extent of
using services by cooperative members; the cooperative's funds;
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9. Election or dismissal
of the Managing Board, the Managing Board's head, the Control Board, and the
Control Board's head;
10. Adoption of the
admission of new cooperative members and permission of cooperative members to
leave the cooperative; decision on expulsion of cooperative members;
11. Reorganization or
dissolution of the cooperative;
12. Amendment of the
cooperative's charter or internal regulations;
13. Levels of
remunerations, salaries and bonuses for the head and other members of the
Managing Board, the manager and deputy managers of the cooperative, the head
and other members of the Control Board, and other titles of the cooperative;
14. Subjects for whom
the cooperative pays social insurance premiums under the State's policy on
compulsory social insurance;
15. Other issues which
are proposed by the Managing Board, the Control Board or at least one-third of
the total number of cooperative members.
Article
23.- Stipulations on the number of
delegates and the voting at the congress of cooperative members
1. The congress of
cooperative members must be attended by at least two-thirds of the total number
of cooperative members or delegates of cooperative members; in cases where the
number of cooperative members is insufficient, the congress must be postponed;
the Managing Board or the Control Board must reconvene the congress of
cooperative members.
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3. The voting at the
congress of cooperative members and conferences of cooperative members shall
not depend on the contributed capital or positions of the members in the
cooperative. Each cooperative member or delegate of cooperative member has only
one vote.
Article
24.- Notification on convening the
congress of cooperative members
At least ten days
before the opening of the congress of cooperative members, the convening body
must notify each cooperative member or delegate of cooperative member of the time,
venue and agenda of the congress. The congress of cooperative members shall
discuss and decide on the issues already put on the congress's agenda and
arising issues proposed by at least one-third of the total number of
cooperative members.
Article
25.- A cooperative's Managing Board
1. A cooperative's
Managing Board is the cooperative-managing body, elected directly by the
congress of cooperative members, consisting of the head and other members. The
number of the Managing Board's members shall be prescribed by the cooperative's
charter.
2. The term of the
cooperative's Managing Board shall be prescribed by the cooperative's charter,
which shall be at least two years and not exceed five years.
3. The cooperative's
Managing Board shall hold a meeting at least once a month, which is convened
and presided over by the Managing Board's head or an authorized member. The
cooperative's Managing Board shall hold an extraordinary meeting at the request
of one-third of the Managing Board's members, the Managing Board's head, the
Control Board's head, or the cooperative manager. A meeting of the
cooperative's Managing Board shall be regarded as valid when it is attended by
at least two-thirds of the number of the Managing Board's members. The
cooperative's Managing Board shall operate on the principles of collectivism
and make decisions by majority. In cases where the number of votes for equals
the number of votes against, the number of votes on the side of the person who
presides over the meeting shall be decisive.
Article
26.- Criteria and conditions of members of
the cooperative's Managing Board
A member of the
Managing Board must be a cooperative member, possessing good moral qualities
and having qualifications and capability to manage the cooperative.
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Article
27.- Setting-up of
managerial-cum-executive apparatus by cooperatives
1. The Managing Board
shall have the following rights and tasks:
a/ To appoint or
dismiss the cooperative's deputy managers at the proposal of the cooperative's
manager;
b/ To appoint,
dismiss, hire or terminate the contract on hiring, chief accountant (if this
title exists in the cooperative);
c/ To decide on the
organizational structures of professional sections of the cooperative;
d/ To organize the
implementation of the resolution of the congress of cooperative members;
dd/ To prepare the
reports on the cooperative's production and/or business plans, capital
mobilization and profit distribution, and report on the Managing Board's
operation for submission to the congress of cooperative members;
e/ To prepare the
agenda of the congress of cooperative members and convene the congress of
cooperative members;
g/ To evaluate the
cooperative's production and/or business results; to approve the financial
settlement report for submission to the congress of cooperative members;
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i/ To consider the
admission of new cooperative members and permit cooperative members to leave
the cooperative (except for cases where cooperative members are expelled) and
report such to the congress of cooperative members for adoption;
k/ To represent the
owner of assets of the cooperative and its dependent enterprises if the
cooperative has its dependent enterprises;
l/ To examine and
evaluate the work of the manager and deputy managers of the cooperative under
the Managing Board's decisions;
m/ To bear
responsibility for its own decisions before the congress of cooperative members
and law;
n/ To perform other
rights and tasks prescribed by the cooperative's charter.
2. The cooperative
manager shall have the following rights and tasks:
a/ To represent the
cooperative according to law;
b/ To realize production
and/or business plans and run daily activities of the cooperative;
c/ To organize the
implementation of decisions of the cooperative's Managing Board;
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dd/ To sign contracts
in the name of the cooperative;
e/ To submit the annual
financial settlement report to the cooperative's Managing Board;
g/ To propose to the
Managing Board the plan on organizational structure of the cooperative;
h/ To recruit labor,
except for cases falling under the competence of the cooperative's Managing
Board;
i/ To exercise other
rights prescribed in the cooperative's charter and resolution of the congress
of cooperative members;
k/ To bear
responsibility before the congress of cooperative members and the Managing
Board for his/her assigned tasks;
When being absent, the
cooperative manager shall authorize a deputy manager or a member of the
Managing Board to administer the cooperative's activities.
Article
28.- Separate establishment of managerial
apparatus and executive apparatus by the cooperative
1. The Managing Board
shall have the following rights and tasks:
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b/ To appoint and
dismiss deputy managers of the cooperative at the proposal of the cooperative
manager.
Apart from the
above-said rights and tasks, the cooperative's Managing Board shall also have
the rights and tasks prescribed at Points b, c, d, e, f, g, h, i, j, k, l and
m, Clause 1, Article 27 of this Law.
2. The head of the
cooperative's Managing Board shall have the following rights and tasks:
a/ To represent the
cooperative according to law;
b/ To elaborate
programs and plans on operation of the Managing Board;
c/ To convene and preside
over meetings of the Managing Board and the congress of cooperative members;
d/ To bear
responsibility before the congress of cooperative members and the Managing
Board for his/her assigned tasks;
dd/ To sign decisions
of the congress of cooperative members and the Managing Board;
e/ To exercise other
rights and perform other tasks prescribed by the cooperative's charter.
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a/ To realize production
and/or business plans and run daily activities of the cooperative;
b/ To organize the
implementation of decisions of the cooperative's Managing Board;
c/ To sign contracts
in the name of the cooperative under the authorization of the cooperative's
Managing Board;
d/ To submit the
annual financial settlement report to the cooperative's Managing Board;
dd/ To propose to the
Managing Board the plan on organizational structure of the cooperative;
e/ To recruit labor
under the authorization of the cooperative's Managing Board;
g/ To exercise other
rights prescribed in the cooperative's charter, the resolution of the congress
of cooperative members or contracts signed with the cooperative's Managing
Board.
When being absent, the
cooperative manager shall authorize a deputy manager to administer the
cooperative's activities.
In cases where the
cooperative manager is a cooperative member or a member of the cooperative's
Managing Board, apart from fully exercising the rights and performing the tasks
of a cooperative manager as prescribed by this Article, he/she shall also have
to exercise the rights and fulfill the obligations of a cooperative member or
member of the cooperative's Managing Board.
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Article
29.- The Control Board
1. The Control Board is
the body which supervises and examines all activities of the cooperative
strictly according to law and the cooperative's charter.
2. The Control Board
shall be elected directly by the congress of cooperative members. The number of
the Control Board's members shall be prescribed by the cooperative's charter; a
cooperative with few members may elect only one controller.
3. The criteria of a
member of the Control Board are the same as those of a member of the Managing
Board. The Control Board members must not be concurrently members of the
Managing Board, chief accountants or cashiers of the cooperative, or must not
be the parents, spouses, children or siblings thereof.
4. The term of office
of the Control Board corresponds with that of the Managing Board.
Article
30.- Rights and tasks of the Control Board
The Control Board
shall have the following rights and tasks:
1. To examine the
observance of the cooperative's charter and internal regulations as well as the
resolution of the congress of cooperative members;
2. To supervise
activities of the Managing Board, the cooperative manager and cooperative
members strictly according to law as well as the cooperative's charter and
internal regulations;
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4. To receive
complaints and denunciations related to the cooperative's activities; settle,
or propose competent bodies to settle, such complaints and denunciations
according to the provisions of the cooperative's charter;
5. To attend the
Managing Board's meetings;
6. To notify the
cooperative's Managing Board of examination results and report them before the
congress of cooperative members; to propose the Managing Board and the
cooperative manager to redress weaknesses in the cooperative's production
and/or business activities and handle violations of the cooperative's charter
and internal regulations;
7. To request relevant
persons in the cooperative to provide documents, books, vouchers and necessary
information in service of the examination work but not to use such documents or
information for other purposes;
8. To prepare the
agenda of, and convene, the extraordinary congress of cooperative members in
one of the following cases where:
a/ The Managing Board
fails to take or inefficiently takes measures to preclude acts of violating
law, the cooperative's charter or internal regulations, or the resolution of
the congress of cooperative members as requested by the Control Board;
b/ The Managing Board
fails to convene the extraordinary congress of cooperative members at the
requests of the cooperative members prescribed in Clause 4, Article 21 of this
Law.
Chapter
V
ASSETS AND
FINANCE OF COOPERATIVES
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1. When joining
cooperatives, the cooperative members must contribute capital according to the
provisions of Clause 2, Article 19 of this Law.
Cooperative members
may contribute capital in lump sum right from the beginning or in installments;
the levels, forms and time limits for capital contribution shall be prescribed
by the cooperatives' charters.
The minimum
contributed capital level shall be adjusted under the decision of the congress
of cooperative members.
2. Cooperative members
shall have their contributed capital returned in the cases prescribed at Points
a, b, d and e, Clause 1, Article 20 of this Law.
The return of
contributed capital of cooperative members shall be based on the cooperative's
financial actual situation at the time of returning the capital after the
cooperative has made the annual settlement and settled economic interests and
obligations of cooperative members towards the cooperative. The forms and time
limits for return of contributed capital to cooperative members shall be
stipulated by the cooperatives' charters.
Article
32.- Capital mobilization
1. Cooperatives may
borrow capital from banks and mobilize capital in other forms according to law
provisions.
2. Cooperatives may
additionally mobilize contributed capital of cooperative members under
decisions of the congress of cooperative members.
3. Cooperatives may
receive and use capital and subsidies from the State as well as domestic and foreign
organizations and individuals as agreed upon by the parties and in accordance
with law provisions.
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The working capital of
cooperatives shall be formed from cooperative members' contributed capital, the
cooperative-owned accumulated capital and other lawful capital sources.
The working capital of
cooperatives shall be managed and used according to the provisions of this Law,
other law provisions and the cooperatives' charters.
Article
34.- Cooperatives' funds
1. Cooperatives must
set up the production development fund and the reserve fund under the
Government's guidance; other funds shall be prescribed by the cooperatives'
charters and congress of cooperative members, which are suitable to specific conditions
of each cooperative. The specific percentage of deduction for setting up the
funds shall be decided by the congress of cooperative members.
2. The purposes and
modes of management and use of the cooperatives' funds shall be prescribed by
the cooperatives' charters.
Article
35.- Cooperative's assets
1. Assets under
cooperatives' ownership shall be formed from the cooperatives' working capital.
2. The management and
use of cooperatives' assets shall comply with the provisions of the
cooperatives' charters and relevant law provisions.
3. Cooperatives shall
have common assets, including works in service of production, socio-cultural
welfare works, infrastructures in service of the population community, which
are formed from the cooperatives' production development funds and welfare
funds, capital sources subsidized by the State, as well as donations and gifts
of domestic and foreign organizations and individuals.
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1. Upon its
dissolution, a cooperative shall not distribute to its members the capital and
common assets subsidized by the State but transfer them to the local
administration for management.
For the cooperative's
capital and common assets formed from capital sources and labor contributed by
the cooperative members or donations and gifts of domestic and foreign
organizations and individuals, the congress of cooperative members shall make
decision thereon.
2. Capital contributed
by cooperative members in land-use right value and land assigned by the State
to the cooperative for use shall be handled according to the law provisions on
land.
3. After having paid
all debts and expenses for the cooperative dissolution, the handling of other
remaining assets, capital or funds of the cooperative shall comply with the
provisions of this Article, other relevant law provisions, and the
cooperative's charter.
Article
37.- Distribution of profits
1. After fulfilling
the tax payment obligations, a cooperative's profits shall be distributed as
follows:
a/ Off-setting the
previous year's losses (if any) according to law provisions on tax;
b/ Deduction for
setting up the production develop-ment fund, the reserve fund and other funds
of the cooperative; distribution of profits to cooperative members according to
their contributed capital and labor, the rest shall be distributed to
cooperative members according to the extent of using services of the
cooperative.
2. Basing itself on
the production/business results and accumulation demands for the development of
the cooperative, the congress of cooperative members shall decide on the
specific ratios of distribution of annual profits into the funds prescribed at
Point b, Clause 1 of this Article.
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A cooperative's losses
arising in the year shall be deducted into the proceeds from compensations by
relevant organizations and/or individuals; the deficit amounts (if any) shall
be offset by the reserve fund; if such amounts are still insufficient, the
remaining loss amounts shall be transferred to the subsequent year according to
law provisions on tax.
Chapter
VI
REORGANIZATION,
DISSOLUTION OR BANKRUPTCY OF COOPERATIVES
Article
39.- Division and separation of
cooperatives
The congress of
cooperative members shall decide on the division or separation of a cooperative
into two or more cooperatives.
Article
40.- Procedures for dividing or separating
cooperatives
1. The Managing Board
of the to be-divided/separated cooperative must:
a/ Set up a Council to
settle the division or separation of the cooperative. The Council for
division/separation shall be composed of the Managing Board of the to
be-divided/separated cooperative and representatives of the new cooperatives to
be formed from the divided/separated cooperative. The Council shall have the
tasks to discuss and negotiate to reach agreement on settling matters related
to the division or separation of the cooperative; compile dossiers of
application for division or separation of the cooperative; and form the
managerial and executive apparatuses of the new cooperatives;
b/ Elaborate plans on
handling of assets, capital, funds, organizational structure, personnel,
cooperative members and labor (including those of branches, representatives
offices and dependent enterprises of the cooperative) upon the division or
separation; draw up production/business orientations; the charters of new
cooperatives; rights, interests, responsibilities and obligations of the
cooperatives after the division or separation;
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d/ Inform in writing
creditors as well as organizations and individuals having economic relations
with the cooperative of the decision on the division/separation, and settle
economic issues related to them;
dd/ Send the business
registration dossier of the divided/separated cooperative made according to the
provisions of this Law to the agency which has granted the business
registration certificate, enclosed with the resolution of the congress of
cooperative members on the division or separation of the cooperative; plans for
settlement of issues related to the division or separation already discussed
with creditors as well as organizations and individuals having economic
relations with the cooperative.
2. Within fifteen days
after receiving the division/separation dossiers, the business registration
agency which has granted the business registration certificate shall announce
in writing the approval or disapproval of the division or separation of the
cooperative. If the cooperative disagrees with the decision on the disapproval
of the division or separation, it may lodge its complaints to the competent
State body or initiate a lawsuit at court according to law provisions.
The business
registration agency which has granted the business registration certificate to
the to be-divided cooperative must withdraw the business registration certificate
from such cooperative after the division; The divided cooperative must submit
immediately its seal to the competent State body.
3. The cooperatives
having branches, representative offices or dependent enterprises must, upon
their division/separation, notify the business registration agencies of the
continuity or termination of operation of their branches, representative
offices or dependent enterprises.
Article
41.- Consolidation and merger of
cooperatives
1. Two or more
cooperatives may be consolidated into one new cooperative by transferring all
assets, rights, obligations and legitimate interests to the consolidating
cooperative, and at the same time terminating the existence of the consolidated
cooperatives.
One or several
cooperatives may be merged into another cooperative by transferring all assets,
rights, obligations and legitimate interests to the merging cooperative, and at
the same time terminating the existence of the merged cooperative(s).
2. Procedures for
consolidation of cooperatives shall comply with the following regulations:
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b/ To convene the
congress of cooperative members of the consolidating cooperative to decide on
the consolidation and adopt issues prescribed at Point a of this Clause;
c/ To compile business
registration dossiers of the consolidating cooperative according to the
provisions of Article 13 of this Law and send them to the business registration
agency;
d/ To inform in
writing creditors as well as organizations and individuals having economic
relations with the cooperative of the decision on consolidation and modes of
settlement of economic relations related to them;
dd/ Within fifteen
days after receiving the consolidation dossiers, the business registration
agency must announce in writing the approval or disapproval of the
consolidation and grant the business registration certificate to the
consolidating cooperative. If the cooperative disagrees with the business
registration agency's decision, it may lodge its complaints to the competent
State body or initiate a lawsuit at court according to law provisions;
e/ After business
registration, the consolidating cooperative shall have the rights and
legitimate interests, bear responsibility for the unsettled debts, labor
contracts and other property obligations of the consolidated cooperatives.
3. The procedures for the
merger of cooperatives shall comply with the following regulations:
a/ The Managing Boards
of the merging and merged cooperatives must together set up the Merger Council
to project the merger procedures and conditions; plans on handling of assets,
capital, debts, cooperative members, labor and unsettled issues of the merged
cooperative; draft production/business plans and charter of the merging
cooperative;
b/ To convene the
congress of cooperative members with the participation of members of the merging
and merged cooperatives to decide on the issues prescribed at Point a of this
Clause;
c/ To notify in
writing creditors as well as organizations and individuals having economic
relations with the cooperative of the decision on merger and modes of settlement
of economic relations related to them;
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dd/ After
supplementing the business registration dossiers, the merging cooperative shall
have the rights and legitimate interests, bear responsibility for unsettled
debts, labor contracts and other property obligations of the merged
cooperatives.
Article
42.- Dissolution of cooperatives
The dissolution of
cooperatives is prescribed as follows:
1. Voluntary
dissolution:
In case of voluntary
dissolution under the resolution of the congress of cooperative members, a
cooperative must send the application for dissolution and the resolution of the
congress of cooperative members to the business registration agency which has
granted the business registration certificate to the cooperative, and at the same
time publish the dissolution application and time limits for settlement of
debts and liquidation of contracts on the newspaper of the locality where it
conducts operation for three consecutive issues.
Within thirty days after
the expiry of the time limit for settlement of debts and liquidation of
contracts, the application-receiving business registration agency must announce
the approval or disapproval of the cooperative's application for dissolution.
Within thirty days after
receiving the announcement on the approval of the dissolution from the business
registration agency, the cooperative must handle capital and assets according
to the provisions of Article 36 of this Law, pay expenses for the dissolution,
return contributed capital, and settle interests of cooperative members
according to the provisions of the cooperative's charter;
2. Compulsory
dissolution:
The People's Committee
of the locality where the business registration certificate is granted may
decide on the compulsory dissolution of a cooperative in one of the following
cases where:
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b/ The cooperative
have ceased its operation for twelve consecutive months;
c/ The cooperative
fails to convene a regular congress of cooperative members without plausible
reasons for eighteen consecutive months;
d/ Other cases as
prescribed by law;
3. The People's
Committee which issues the decision on dissolution shall set up the Dissolution
Council and designate the Council chairman to organize the dissolution of the
cooperative.
The Council for
dissolution of the cooperative must publish the decision on the dissolution of
the cooperative on a newspaper of the locality where the cooperative conducts
its operation for three consecutive issues; announce the order, procedures and
time limits for settlement of debts and liquidation of contracts, and handle
capital and assets according to the provisions of Article 36 of this Law,
return contributed capital and settle cooperative members' other relevant
interests according to the provisions of the cooperative's charter.
The time limit for
settlement of debts and liquidation of contracts shall be one hundred and
eighty days at most after the first publication on newspapers.
4. After the
cooperative receives the dissolution notice, the business registration agency
which has granted the business registration certificate must withdraw the
business registration certificate and delete the name of the cooperative from
the business registration book; the cooperative must immediately submit its
seal to the competent State body;
5. If the cooperative
disagrees with the People's Committee's decision on the dissolution of the
cooperative, it may lodge its complaints to the competent State body or
initiate a lawsuit at court according to law provisions.
Article
43.- Settlement of the cooperative's
request to declare bankruptcy
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Chapter
VII
UNIONS OF
COOPERATIVES, FEDERATIONS OF COOPERATIVES
Article
44.- Unions of cooperatives
1. Those cooperatives,
which wish and volunteer to establish a union of cooperatives, may jointly do
so.
A union of
cooperatives is an economic organization operating on the principles on
organization and operation of cooperatives prescribed in Article 5 of this Law,
aiming to raise the production/business efficiency of member cooperatives,
support one another in their activities and satisfy other demands of the
participating members.
The union of
cooperatives shall set up the Management Board and the Directorate.
The head of the
Management Board is the chairman; the head of the Directorate is the director
or general director.
The union of
cooperatives shall make business registration at the provincial-level business
registration agency.
2. The union of
cooperatives may select its own name and logo by itself in accordance with law
provisions. The seal, signboard and transaction papers of the union of
cooperatives must bear the sign "LHHTX" (Union of cooperatives).
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Article
45.- Federations of cooperatives
1. A federation of
cooperatives is a socio-economic organization which is voluntarily and jointly
established by cooperatives or unions of cooperatives. The federations of
cooperatives shall be organized according to branches and economic sectors. The
federations of cooperatives shall be set up at the central and
provincial/municipal levels.
2. Federations of
cooperatives shall have the following functions:
a/ To represent and
protect legitimate interests of member cooperatives and unions of cooperatives;
b/ To propagate and
mobilize for the development of cooperatives;
c/ To provide support
and necessary services for the formation and development of cooperatives and
unions of cooperatives; to carry out programs in support of development of
cooperatives, which are assigned by the Government; to train and foster
officials of cooperatives according to the Government's regulations;
d/ To participate in
formulating policies and legislation on cooperatives;
dd/ To represent
cooperatives and unions of cooperatives in relations of the members'
coordination with domestic and foreign organizations according to law
provisions.
3. The rights, tasks,
organizational structures, names and finance of federations of cooperatives
shall be prescribed by the charters of federations of cooperatives.
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5. The State shall
create conditions for the central and local federations of cooperatives to
operate according to law provisions.
6. The Government
shall specify the working relations between federations of cooperatives and the
administrations of all levels.
Chapter
VIII
STATE
MANAGEMENT OVER COOPERATIVES
Article
46.- State management over cooperatives
1. Contents of State
management over cooperatives cover:
a/ To issue,
disseminate, and organize the implementation of, legal documents on
cooperatives;
b/ To elaborate and
implement strategies and plans on development of cooperatives;
c/ To organize and
guide business registration for cooperatives and unions of cooperatives;
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dd/ To inspect and
examine the observance of law by cooperatives according to law provisions;
e/ To direct the
implementation of international cooperation on cooperatives.
2. Responsibilities of
agencies performing the State management over cooperatives:
a/ The Government
shall perform the uniform State management over cooperatives;
b/ The ministries and
ministerial-level agencies shall, within the ambit of their respective tasks
and powers, perform the State management over cooperatives;
c/ The People's
Committees of all levels shall have to perform the State management over
cooperatives in their respective localities according to law provisions;
d/ The Government
shall specify the assignment and decentralization of State management over
cooperatives among the ministries, ministerial-level agencies and localities.
Article
47.- Tasks and powers of the People's
Committees of various levels towards cooperatives
1. The People's
Committees of various levels shall, within the ambit of their respective tasks
and powers:
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b/ Guide and encourage
cooperatives to coordinate their activities for the interests of people in
their respective localities;
c/ Examine and inspect
the enforcement of the Law on Cooperatives and relevant legal documents;
d/ To settle according
to their respective competence complaints, denunciations and disputes, and
handle acts of violating the legislation on cooperatives;
dd/ To materialize
other contents of the State management over cooperatives according to law
provisions.
2. The professional
agencies of the People's Committees of various levels shall, within the ambit
of their respective functions, tasks and powers, assist the People's Committees
in performing the State management over cooperatives in their assigned domains.
Article
48.- Relations between State agencies and
Vietnam Fatherland Front and its member organizations, and roles of these
organizations towards cooperatives
1. The State agencies
shall have to coordinate with Vietnam Fatherland Front and its member
organizations in organizing the implementation of the legislation on
cooperatives.
2. Vietnam Fatherland
Front and its member organizations shall propagate and mobilize people to
participate in building and developing cooperatives; consult with State
agencies in elaborating policies and supervising the implementation of the
legislation on cooperatives.
Chapter
IX
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Article
49.- Commendation
The following
organizations and individuals shall be commended and/or rewarded according to
law provisions:
1. Cooperative
members, cooperatives, unions of cooperatives and federations of cooperatives,
that operate efficiently and make numerous contributions to local
socio-economic development;
2. Organizations and
individuals, that record splendid achievements in labor, production and/or
business activities and development of cooperatives.
Article
50.- Handling of violations
1. Those who violate
the provisions of this Law and other relevant law provisions shall, depending
on the nature and seriousness of their violations, be reprimanded, cautioned,
dismissed, expelled from cooperatives, administratively sanctioned or examined
for penal liability; if causing damage, they must pay compensation therefor
according to law provisions.
2. Organizations or
individuals, that commit fraudulent acts in business registration or abuse the
names of cooperatives to operate; cooperatives which operate without business
registration certificates or contrarily to the registered production/business
lines, shall be suspended from operation and handled according to law
provisions.
3. Those who abuse
their positions or powers to grant business registration certificates in
contravention of law or deliberately refuse to grant business registration
certificates even when organizations fully meet the conditions for setting up
cooperatives shall, depending on the nature and seriousness of their
violations, be disciplined, administratively sanctioned or examined for penal
liability according to law provisions.
Chapter
X
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Article
51.- Implementation effect
This Law takes
implementation effect as from July 1, 2004.
This Law replaces the
1996 Law on Cooperatives.
Article
52.- Implementation guidance
The Government shall detail
and guide the implementation of this Law.
This Law was passed on
November 26, 2003 by the XIth National Assembly of the Socialist Republic of
Vietnam at its 4th session.
NATIONAL
ASSEMBLY CHAIRMAN
Nguyen Van An