Chương 1 Luật hợp tác xã 1996: Những quy định chung

Chapter I

GENERAL PROVISIONS

Article 1.- Definition of cooperative

A cooperative is a self-governing economic organization established in accordance with provisions of law by laborers who share common need and interests, and volunteer to contribute capital and labor to bring into play the strength of the collective and of individual cooperative members so as to assist one another in carrying out more efficiently production, business and service activities and improving their living conditions, thus contributing to the national economic and social development.

Article 2.- Cooperative group

A cooperative group organized in different forms, and under different names shall enjoy the State's guidance and assistance and benefit from the policies of encouragement to develop into a cooperative when it has the sufficient conditions.

Article 3.- Scope of regulation

This Law applies to cooperatives in all branches and fields of the national economy.

Article 4.- The Model Statute

The Model Statute of the agricultural cooperative and the cooperatives of other branches and trades shall be issued by the Government in accordance with provisions of this Law to serve as the legal basis for the elaboration of the Statute of Cooperative in conformity with the characteristics of each type of cooperative. The Model Statute shall provide for the minimum membership of a cooperative.

Article 5.- The State policies regarding the cooperatives

The State shall protect the legitimate interests of the cooperatives, ensure the right to equality of the cooperatives in production, business and services; issue legal documents and policies to encourage the development of cooperatives; carry out, through cooperatives, policies to support and assist the cooperative members in eradicating hunger and alleviating poverty, achieving equality, justice and social progress. The State shall respect the rights to self - governing and self - responsibility in production, business and services, and shall not interfere in the lawful management and operation of the cooperatives.

Article 6.- Interpretation of terms

In this Law, the terms below shall be construed as follows:

1. "Minimum contributed capital" is the amount of money or monetized assets to be compulsorily contributed by cooperative members when they join the cooperative.

2. "Labor contribution" means the direct participation in the forms of production, business and service labor or the participation in the management of the cooperative to which remuneration is paid in accordance with the contribution as stipulated by the Statute of the cooperative.

3. "The statutory capital of the cooperative" is the total capital contributed by the cooperative members and written in the Statute of the cooperative.

4. "The logo of the cooperative" is the exclusive symbol of each cooperative representing the particular features of such cooperative and to distinguish the cooperative from other cooperatives and enterprises.

5. "Services of the cooperative for its members" mean the supply of goods, services by the cooperative for its members in material or non-material forms, for which the members shall have to pay to the cooperative.

6. "The extent of using services of the cooperative" is the ratio between the value of services supplied by the cooperative for each cooperative member and the total value of services provided by the cooperative for all its members.

7. "Economic commitment between the cooperative and its members" is an agreement clearly specifying the economic relations between the cooperative and its members.

Article 7.- Principles of organization and operation of the cooperative

A cooperative shall be organized and operated in accordance with the following principles:

1. Voluntary joining and leaving the cooperative: all citizens of Vietnam meeting the conditions under this Law and accepting the Statute of the cooperative may become members of the cooperative; a cooperative member is entitled to leave the cooperative in accordance with provisions of the Statute of the cooperative.

2. Democracy and equality in management: all cooperative members are entitled to participate in the management, examination and supervision of the cooperative and have equal voting right.

3. Self-responsibility and mutual benefits: the cooperative bears its own responsibility for the results of its operations in production, business and services; decides by itself the distribution of income, assures benefits of both the cooperative and its members.

4. The division of profits must ensure both the members' interests and the development of the cooperative: after fulfilling tax payment obligations, part of the profits shall be contributed to the funds of the cooperative, part shall be divided according to the capital and labor contributed by the members, the rest will be divided to the members according to the proportion of their use of the cooperative's services as decided by the Congress of the cooperative members.

5. The cooperative and community development: the cooperative members shall have to develop the collective spirit, heighten the sense of cooperation in the cooperative and in the social community; cooperate with the cooperatives in the country and abroad in accordance with provisions of law.

Article 8.- The rights of the cooperative

The cooperative has the following rights:

1. To select branches, trades, fields, scale of production business and services and the territory of operation in conformity with the capabilities of the cooperative;

2. To decide the form and organizational structure of production, business and services of the cooperative;

3. To conduct export and import, form joint ventures, and cooperate with domestic and foreign organizations and individuals in accordance with provisions of law;

4. To hire labor if the cooperative members fail to meet the requirements of production, business and services of the cooperative as provided for by law;

5. To admit new members, settle the wish of members to leave the cooperative, expel cooperative members in accordance with provisions of the Statute of the cooperative;

6. To divide the revenue, settle the losses of the cooperative;

7. To award those individuals with meritorious deeds in building and developing the cooperative; to discipline those members who violate the Statute of the cooperative; force members to compensate for losses caused to the cooperative;

8. To borrow capital from banks and mobilize capital from other sources, loan capital to members in accordance with provisions of law.

9. The cooperative's technological secrets shall be protected in accordance with provisions of law;

10. To refuse requests of organizations and individuals that are contrary to provisions of law.

The cooperative has other relevant rights as stipulated by law.

Article 9.- Obligations of the cooperative

The cooperative has the following obligations:

1. To carry out production, business and services in conformity with the branches, trades, and goods already registered;

2. To correctly implement the regime of accountancy and statistics as stipulated by the State and the regime of auditing of the State;

3. To pay taxes and fulfill other financial obligations in accordance with provisions of law;

4. To preserve and develop the operating capital of the cooperative, manage and use land of which the right to use is assigned by the State in accordance with provisions of law;

5. To be responsible for all debts and other obligations through the entire capital and properties owned by the cooperative;

6. To protect the environment, ecology, landscape, historical relics and projects of national defense and security in accordance with provisions of law;

7. To ensure the rights of its members and fulfill economic commitments to its members;

8. To fulfill obligations to those members who directly work for the cooperative and laborers hired by the cooperative; encourage and create conditions for laborers to become members of the cooperative;

9. To buy social insurance for members as provided by law;

10. To provide education, training, fostering, improvement of knowledge, information for all members so that they will actively participate in building the cooperative;

11. To create favorable conditions for legal socio-political organizations to operate in the cooperative.

Article 10.- The name, logo of a cooperative

A cooperative is entitled to select its own name and logo in accordance with provisions of law.

The seal, signboard and transaction documents of the cooperative must carry the sign "HTX" (Cooperative).

The name, logo (if any) of the cooperative must be registered at the competent State agency and protected in accordance with provisions of law.

Article 11.- The Party and mass organizations in the cooperative

The organization of the Communist Party of Vietnam in the cooperative shall operate in accordance with the Constitution and the law of the State of the Socialist Republic of Vietnam and the provisions of the Communist Party of Vietnam.

The trade union, peasants and other socio-political organizations and militia and self-defense force in the cooperative shall operate in accordance with the Constitution, the law and the Statutes of such organizations.