Chương 3 Nghị định 193/2013/NĐ-CP: Tài sản, tài chính của hợp tác xã, liên hiệp hợp tác xã

Chapter 3.

PROPERTY AND FINANCE OF COOPERATIVES OR ASSOCIATIONS OF COOPERATIVES

Article 20. Capital contribution, share purchase and business establishment

1. Capital contribution, share purchase or business establishment by cooperatives or associations of cooperatives must meet the following regulations:

a) These activities must be decided or approved by the members’ general meeting;

b) Capital contribution, share purchase or business establishment shall be applied to sectors or industries related to those in which cooperatives or associations of cooperatives are operating;

c) Capital funded by the non-divisible property of cooperatives or associations of cooperatives shall not be used for capital contribution, share purchase or business establishment purposes;

d) Total investment in capital contribution, share purchase or business establishment shall not exceed 50% of the charter capital of a cooperative or association of cooperatives which is specified in the latest financial statement;

dd) Business operations must generate profits for at least 02 consecutive years.

2. Within the duration of 15 working days from the date of capital contribution, share purchase or business establishment, cooperatives or associations of cooperatives must send a notification to the agencies already granting certificate of registration for these cooperatives or associations of cooperatives. The notification shall contain the followings:

a) Name of the requesting cooperative or association of cooperatives, address of its main office, registration certificate number, date of issue of registration certificate;

b) Scope of business or operations of cooperatives or associations of cooperatives;

dd) Family name, last name, permanent residence address, nationality, number of ID card, passport or other legal authenticated documents of the legal representative of the requesting cooperative or association of cooperative;

d) Name, address, business sectors or industries, number of certificate of registration of the business in which the cooperative or association of cooperatives contributes capital, purchase shares or which is established by the cooperative or association of cooperatives;

dd) Capital contribution amount; value of shares purchased; amount of charter capital of the business to be established;

This notification must enclose the resolution of the members’ general meetings on capital contribution, share purchase or business establishment, held by cooperatives or associations of cooperatives.

3. Cooperative registration agencies shall receive notifications, archive and record these activities in the journal.

Article 21. Disposition of non-divisible property of cooperatives or associations of cooperatives in case of bankruptcy or business closure

1. In case where cooperatives or associations of cooperatives are dissolved or bankrupt, their non-divisible property referred to in clause 2 of Article 48 in the Law on Cooperatives shall be disposed of as follows:

a) Value of property acquired from non-refundable grants, aids or subsidies of the State shall be transferred to the budget of the local government at the same level as the agency granting registration of cooperatives or associations of cooperatives;

b) Value of property acquired from annual capital investment funds which is classified as non-divisible assets under the decision of the members' general meeting upon termination of the status as members or member cooperatives; property which is gifted or donated as non-divisible assets; capital and assets defined by the Statutes of cooperative or association of cooperatives as non-divisible property upon termination of the status as members or member cooperatives, shall be disposed of by applying measures decided by the members’ general meeting;

c) Value of property acquired from annual capital investment funds and accepted as non-divisible assets according to decisions of members' general meetings in case cooperatives or associations of cooperatives close their business; assets that are agreed upon as non-divisible gifted and donated assets; other equity and assets prescribed by statutes of cooperatives or associations of cooperatives as non-divisible assets in case of their business closure, shall be transferred under decisions of members' general meetings to local authorities or other organizations located in the same localities as these cooperatives or associations of cooperatives in order to meet objectives of serving public interests of population in these localities;

d) Rights to use land authorized or leased by the State shall be subject to the law on land.

2. If capital and property of cooperatives or associations of cooperatives which are dissolved or bankrupt are not adequate to pay all debts, they must use their non-divisible property in the following order for debt repayments:

a) Gifts or donations which are agreed upon as non-divisible property;

b) Amounts retained from annual capital investment funds that are classified as non-divisible property under the decision of the members’ general meeting;

c) Capital or other assets defined in the statutes of cooperatives or associations of cooperatives as non-divisible property.

Article 22. Accounting and auditing regimes of cooperatives or associations of cooperatives

1. Cooperatives or associations of cooperatives shall implement financing, accounting and auditing regimes in accordance with law.

2. Cooperatives or associations of cooperatives whose members are legal entities must submit to the compulsory audit.

3. Cooperatives or associations of cooperatives shall be encouraged to carry out the internal audit.

4. The Ministry of Finance shall preside over and cooperate with the Ministry of Planning and Investment, relevant ministries and sectoral administrations in providing specific instructions about implementation of financing and accounting regimes applied to cooperatives or associations of cooperatives.

Article 23. Regime for reporting of business results of cooperatives and associations of cooperatives

1. No later than March 31 every year, cooperatives or associations of cooperatives shall be required to submit reliable, sufficient and accurate review reports on the previous year’s business results of cooperatives and associations of cooperatives to cooperative registration agencies.

2. Each notification shall comprise the following information: Number of members or member cooperatives; number of employees or employments; business results determined based on service contracts between cooperatives or associations of cooperatives and members; assets, capital and investment activities.

3. The Ministry of Planning and Investment shall preside over and cooperate with the Ministry of Finance, relevant ministries and sectoral administrations in providing sample reports for cooperatives or associations of cooperatives, and shall regulate reporting regimes applied to cooperative registration agencies.