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1. General Introduction to Cooperative Law.
2. Content of the latest 2022 Cooperative Law.
3. Amendment of the Cooperative Law.
* Abbreviation Directory:
- Coop: Cooperative.
* Download the latest Cooperative Law HERE
1. General Introduction to Cooperative Law
- The effective Cooperative Law currently in force is the 2012 Cooperative Law. This law consists of 64 articles divided into 09 chapters; it has been in effect since July 1, 2013.
- Regulatory Scope: The law regulates the establishment, organization, and activities of cooperatives, cooperative unions in various sectors of the economy.
- Applicable Entities: cooperatives, cooperative unions, cooperative members, member cooperatives of cooperative unions, and organizations, households, individuals related to the establishment, organization, and activities of cooperatives, cooperative unions.
2. Content of the Latest 2023 Cooperative Law
In 2023, the 2012 Cooperative Law is still in effect, with the following prominent contents:
2.1. Charter capital contribution of cooperatives
- The previous regulation in the 2003 Cooperative Law stipulated: Members must contribute capital according to the charter of the cooperative; the contribution amount shall not exceed 30% of the charter capital of the cooperative.
- However, according to the new law, the capital contribution of members is carried out according to agreements and statutes, but not exceeding 20% of the cooperative's charter capital.
- Additionally, there is a noticeable change in the terminology used for cooperative members, from 'village members' now referred to as 'cooperative members'; 'Chairman of the Cooperative' now referred to as Director of the Cooperative or 'Chief Executive Officer of the Cooperative'.
Cooperatives are currently also a chosen form of business operation alongside the establishment of enterprises such as limited liability companies, joint-stock companies, etc. These companies are established and operated in accordance with the regulations of the Enterprise Law.
The latest provisions on charter capital contribution according to the new Cooperative Law
2.2. Prohibited Behaviors
This is also a new content added by the 2012 law compared to the old law. Accordingly, the following behaviors are strictly prohibited:
(1) Behaviors related to cooperative registration
- Issuing registration certificates for cooperatives, cooperative alliances in cases where they do not meet the requirements.
- Refusing to issue certificates in cases where the requirements are met.
- Obstructing, disrupting the registration and operations of cooperatives, cooperative alliances.
(2) Obstructing the exercise of rights and obligations of cooperatives, cooperative alliances, members, cooperative members.
(3) Operating under the guise of cooperatives, cooperative alliances without registration certificates; continuing operations after registration certificates have been revoked.
(4) Providing dishonest, inaccurate information in cooperative registration, cooperative alliance registration.
(5) Fraud in asset valuation for capital contribution.
(6) Engaging in industries, occupations not listed in the registration certificate; engaging in conditional industries, occupations without meeting business conditions.
(7) Failure to adhere to organizational, operational principles.
2.3. Cooperative Registration Must Include Production, Business Plans
- According to Article 2 of the 2012 Cooperative Law, the registration dossier for cooperatives, cooperative alliances must include the following documents:
+ Registration proposal for cooperatives, cooperative alliances;
+ Statute;
+ Production, business plan;
+ List of members, cooperative members; list of board of management, director (chief executive officer), inspection board or inspector;
+ Resolution of founding conference.
- Meanwhile, the old law stipulated that the dossier includes: Registration form; cooperative statute; number of village members, list of Board of Management, Inspection Board of the cooperative; and minutes approved at the founding conference of the cooperative: Thus, there was no requirement for production, business plans.
2.4. Membership Register Must Be Established for Cooperative Members
Once the cooperative has been issued a registration certificate, a membership register must be established, which is a new requirement compared to the 2003 Cooperative Law.
Accordingly, the membership register must contain the following basic information:
- Name, address of the main office of the cooperative; number and date of issuance of the registration certificate;
- Information about members, cooperative members includes:
- The value of capital contribution of each member, cooperative member; time of contribution;
- Number and date of issuance of the capital contribution certificate of each member, cooperative member;
- Signature of the member as an individual, legal representative of the household, legal representative of the legal entity; signature of the legal representative of the cooperative member;
- Signature of the legal representative of the cooperative, cooperative alliance.
3. Amendment to the Cooperative Law
Currently, the Cooperative Law of 2012 is being considered for amendment as certain shortcomings and limitations have emerged during its implementation, requiring further refinement to better align with reality.
Accordingly, the following contents are proposed for amendment:
- New name of the law: Law on Cooperative Economic Organizations. Along with this, it will expand the scope, the subjects regulated are cooperatives and Cooperative Alliance.
- Draft law adding new points on audit regime, expanding rights for cooperatives.
- Streamlining administrative procedures, abolishing business production plans, reducing regulations on minimum number of members when establishing: This helps minimize unnecessary procedures, create favorable conditions for cooperatives to join or withdraw from the market.
- Adding provisions on policies supporting cooperative economic organizations into 01 chapter. In which clearly stipulates the conditions for support, limits cases of excessive support, ineffective support.
Above are the information about cooperative law that we have compiled and provided to our readers. It can be seen that in the increasingly changing socio-economic situation, the requirements for the legal system must also be more suitable and improved to adapt to these changes.
Next, readers can refer to other laws in the Vietnamese legal system such as the Complaint Law, Mineral Law, Economic Law, etc., to gain more knowledge and understanding of the Law.
