Chương 3 Nghị định 18/2005/NĐ-CP: Cấp giấy phép thành lập và hoạt động

Chapter 3:

GRANTING OF ESTABLISHMENT AND OPERATION LICENSE

Article 11. Granting establishment and operation license to a reciprocal insurance organization

The granting of establishment and operation license to a reciprocal insurance organization shall be done according to the provisions related to the Law on Insurance Business and other guiding documents. The Ministry of Finance shall provide specific guidance on the granting of establishment and operation license to a reciprocal insurance organization.

Article 12. Contract signed before the establishment and operation license is granted

1. A contract serving the formation of a reciprocal insurance organization may be signed by founder members.

2. When a reciprocal insurance organization is formed, such company shall accept the rights and obligations arising from the signed contract according to the provisions set out in Clause 1 of this Article unless otherwise as regulated.

3. In case a reciprocal insurance organization is not formed, founder members shall be responsible for the implementation of such contract.

Article 13. Contribution of capital for the formation of a reciprocal insurance organization

Capital for the formation of a reciprocal insurance organization shall be contributed in cash (or valuable papers) into an escrow account opened at a bank legally operating in Vietnam. The escrow account shall start its transaction right after the establishment and operation license is granted to a reciprocal insurance organization.

Article 14. Statute of a reciprocal insurance organization

1. Statute of a reciprocal insurance organization must conform to the provisions hereof and other relevant law provisions.

2. Statute of a reciprocal insurance organization shall be constructed by founder members in preparation for the formation of a reciprocal insurance organization and must bear signatures of the founder members.

3. Statute of a reciprocal insurance organization shall include the following information:

a) Name and location where headquarter of a reciprocal insurance organization is situated; symbol of a reciprocal insurance organization (if any).

b) Purpose of the formation of a reciprocal insurance organization

c) Scope, operating area and duration;

d) Determination of membership status, rights and obligations of members of a reciprocal insurance organization;

dd) Voting by members;

d) Name, address, rights and obligations of founder members of a reciprocal insurance organization; legal representatives;

f) Capital contributed for the formation of a reciprocal insurance organization; method of contribution and refund of capital, other expenses pertaining to the formation of a reciprocal insurance organization;

g) Financial regulations; principles and foundations for reduction of insurance premium; division of business performance outcome;

h) Organizational structure, apparatus and working regulations of the general membership meeting, Board of Directors and the Control Board; entitlements of managers, executive officials; manner of voting, ratification of resolutions; principles for settling internal disputes;

i) Other provisions of the Statute suggested by members but not running contrary to relevant law provisions.

4. Abrogation, replacement, supplements and amendments to the Statute shall be decided in the general membership meeting.

Article 15. Branches and representative offices

The opening of branches and representative offices of a reciprocal insurance organization shall be done according to the provisions of the Law on forms of insurance enterprises.