Chương 5 Luật hợp tác xã 1996: Tài sản và tài chính của hợp tác xã

Chapter V

PROPERTIES AND FINANCE OF THE COOPERATIVE

Article 36.- Shares contributed by the cooperative members

1. When joining the cooperative, the cooperative members shall contribute shares in accordance with the provisions of Article 24 of this Law.

A cooperative member may contribute the share at one time at the beginning or in several installments; the amount, form and time limit of the share contribution shall be stipulated by the Statute of the cooperative.

The share to be contributed by the cooperative members shall be readjusted in accordance with the decisions of the Congress of cooperative members.

2. The share shall be returned to the cooperative member in cases specified in Points b, c, e and f of Clause 1, Article 25 of this Law. The return of the share contributed by the cooperative member shall be based on the financial situation of the cooperative at the time of capital redemption after the cooperative has made the annual balance statement and settled all the economic interests and obligations of the cooperative member towards the cooperative. The modes and time limit for returning the share to the cooperative member shall be stipulated by the Statute of the cooperative.

Article 37.- Mobilization of capital

1. The cooperative is entitled to borrow capital from banks in accordance with provisions of law.

2. The cooperative is entitled to mobilize capital contributed by the cooperative members in accordance with the decisions of the Congress of cooperative members.

3. The cooperative is entitled to borrow capital from its members or other organizations under the conditions mutually agreed upon by both sides, but not contrary to the provisions of law.

4. The cooperative is entitled to receive and use the capital, subsidies of the State, domestic and foreign organizations and individuals as mutually agreed upon by the parties, and in accordance with provisions of law.

Article 38.- Operating capital of the cooperative

The operating capital of the cooperative is formed by the shares of the cooperative members, the accumulative capital of the cooperative, borrowed capital and other sources of mobilization.

The operating capital of the cooperative shall be managed and used in accordance with provisions of this Law, other provisions of law and the Statute of the cooperative.

Article 39.- The funds of the cooperative

1. The profits of the cooperative shall be used with priority to establishing the production development fund and the reserve fund while other funds shall be determined by the Statute of the cooperative and the Congress of cooperative members depending on the concrete conditions of each cooperative.

2. The purposes and modes of management and use of the funds of the cooperative shall be determined by the Statute of the cooperative.

Article 40.- The assets of the cooperative

1. The assets of the cooperative are assets owned by the cooperative which are generated by the operating capital of the cooperative.

2. The assets of the cooperative shall be managed and used in accordance with the provisions of the Statute of the cooperative and other provisions of law. The cooperative shall, in no case, be allowed to divide to the cooperative members the capital supplied by the State, public welfare projects and infrastructure in service of the community.

Article 41.- Settlement of assets and capital of the cooperative in case of its dissolution

When it is dissolved, the cooperative shall have to transfer to the local administration assets that are not allowed to be divided as provided for in Clause 2, Article 40 of this Law, for management and common use by the community.

The land of which the right to use is assigned by the State to the cooperative shall be settled in accordance with provisions of the law on land.

The remaining assets, capital and funds, after clearing all the debts of the cooperative and expenses for the dissolution, shall be divided to the cooperative members.

Article 42.- Distribution of profits

1. After fulfilling the tax payment obligations, the profits of the cooperative shall be distributed as follows:

a) To make up for the losses of the previous year (if any);

b) To supply the funds of the cooperative; the rest shall be divided in proportion to the capital and labor contributed by each cooperative after deduction of the cost of the service provided by the cooperative.

2. On the basis of the results of production, business and services, the Congress of cooperative members shall decide the ratio of annual profit distribution.

Article 43.- Settlement of losses

The losses of the cooperative caused by objective reasons shall be made up for by the profit of the following, or be deducted from the cooperative's funds or contributed capital of the cooperative members as decided by the Congress of cooperative members. If the losses are caused by subjective factors, the responsible person/persons shall, depending on the extent of the losses, have to make compensation in accordance with the decisions of the Congress of cooperative members.