Correction Is it required that all members of the cooperative group agree to change the cooperation contract?

Does amending the cooperation contract require the approval of all members of the cooperation group?

Pursuant to Clause 1, Article 21 of Decree 77/2019/ND-CP, it is stipulated that as follows:

Voting in the cooperative group

1. Amendments and supplements to the cooperation contract must be approved by one hundred percent (100%) of the cooperation group members and expressed in writing, unless the cooperation contract has other provisions.

2. The disposition of common assets of cooperative group members is the right to use land, houses, factories, and other main means of production; Assets with a value greater than fifty percent (50%) of the total value of common assets of cooperative group members must be approved by one hundred percent (100%) of cooperative group members and expressed in writing, unless the cooperative contract has other provisions.

3. Other contents not specified in Clauses 1 and 2 of this Article are approved when at least more than fifty percent (50%) of the total number of cooperative group members agree, unless the cooperation contract stipulates otherwise.

According to the above regulations, amendments and supplements to the cooperation contract must be approved by one hundred percent (100%) of the cooperative group members and expressed in writing, unless the cooperation contract has other provisions.

Therefore, the amendment of the cooperation contract must be approved by all (100%) members of the cooperation group and expressed in writing, unless the cooperation contract has other provisions.

Are the contents of establishing a cooperative group recorded in the cooperation contract?

Pursuant to Article 12 of Decree 77/2019/ND-CP there are the following provisions:

Establishment of cooperative groups

1. The establishment of cooperative groups is initiated by individuals and legal entities that wish to establish and organize activities.

2. The main contents of the establishment, organization and operation of cooperative groups are discussed and agreed upon by members of the cooperative group and recorded in the cooperation contract.

3. After the members of the cooperative group sign the cooperation contract, the head of the cooperative group sends a notice of establishment of the cooperative group (Form I.01) together with the cooperation contract (Form I.02) to the People’s Committee of the commune where the cooperative group intends to establish and operate within 05 working days.

4. In case a cooperative group changes one or several contents of name, address, industry, production and business lines, total value of contributions, representatives, and number of members of the cooperative group, the cooperative group shall send a notice (Form I.01) to the People’s Committee of the commune where the cooperative group was established and operates within 05 working days from the date of change.

5. Commune-level People’s Committees prepare books to monitor the establishment and operations of cooperative groups in their localities (Form II.01); Update changes and fluctuations of the cooperative group according to the provisions of law.

Thus, according to the above regulations, the main contents of establishing a cooperative group are discussed and agreed upon by members of the cooperative group and recorded in the cooperation contract.

When the term stated in the cooperation contract expires, does the cooperative group have to terminate?

When the term stated in the cooperation contract expires, does the cooperative group have to terminate? According to the provisions of Clause 1, Article 14 of Decree 77/2019/ND-CP, it is stipulated as follows:

Termination of operations activities of the cooperative group

1. The cooperative group terminates its operations in the following cases:

a) Expiry of the term stated in the cooperation contract;

b) The purpose of cooperation has been achieved;

c) Failure to maintain the minimum number of members as prescribed in Clause 1, Article 3 of this Decree;

d) According to the decision of the agency competent state authority;

dd) According to the provisions of the cooperation contract and relevant laws;

e) According to the agreement of the cooperative group members.

2. Termination of operations of a cooperative group according to the provisions of Point e, Clause 1 of this Article must be approved by one hundred percent (100%) of the total number of cooperative group members, expressed in the minutes of the cooperative group meeting, with signatures of the cooperative group leader (or a person authorized by the cooperative group members) and the cooperative group members, unless otherwise specified in the cooperative contract.

3. Within 05 working days from the date of termination of operation, the head of the cooperative group (or the person authorized by the members of the cooperative group) sends a written notice of termination of operation (Form I.03), accompanied by the minutes of the meeting of cooperative group members to the People’s Committee of the commune where the cooperative group operates.

Thus, according to the above regulations, when the term stated in the cooperation contract expires, the cooperative group must terminate its operations.