Within what time limit must a cooperative hold an annual general meeting of members?

Within what time limit must cooperatives hold their annual general meeting of members?

The deadline for holding the annual general meeting of members of the cooperative is specified in Clause 1, Article 31 of the 2012 Cooperative Law as follows:

Convene a general meeting of members

1. The annual general meeting of members must be held within 03 months from the end of the fiscal year convened by the board of directors.

The extraordinary general meeting of members is convened by the board of directors, supervisory board or controller or representative members of at least one-third of the total number of members and member cooperatives according to the provisions of Clauses 2, 3 and 4 of this Article.

According to the above regulations, cooperatives must hold an annual general meeting of members within 03 months from the end of the fiscal year convened by the board of directors.

Will the cooperative be fined if the annual general meeting of members is not held on time?

The level of administrative penalties for cooperatives that hold their annual general meeting of members on time is specified in Point a, Clause 1, Article 65. Decree 122/2021/ND-CP as follows:

Violation of operations of cooperatives and unions of cooperatives

1. Fine from 10,000,000 VND to 20,000,000 VND for one of the following acts:

a) Failure to organize an annual general meeting of members of cooperatives and unions of cooperatives within 03 months from the end of the fiscal year;

b) Failure to prepare a member registration book after being granted the Certificate of registration of cooperatives and unions of cooperativess, or the member registration book does not have complete content as prescribed;

c) Failure to provide information or providing incomplete, untimely, inaccurate information about production, business, financial activities, income distribution and other contents as prescribed;

d) Failure to retain documents of cooperatives and unions of cooperatives according to regulations.

…

According to Clause 2, Article 4, Decree 122/2021/ND-CP stipulates the fine levels as follows:

Fine level

…

2. The fines specified in this Decree are the fines applicable to organizations (except the fines specified in Point c, Clause 2, Article 28; Points a and b, Clause 2, Article 38; Articles 62 and Article 63 of this Decree are the fines applicable to individuals). For the same administrative violation, the fine for individuals is equal to 1/2 (one-half) of the fine for organizations.

According to the above regulations, cooperatives that do not hold their annual general meeting of members on time (within 03 months from the end of the fiscal year) may be subject to administrative sanctions with a fine from 10,000,000 VND to 20,000,000 VND.

What contents does the General Assembly of members of the cooperative decide?

Pursuant to Article 32 of the Cooperative Law 2012, the General Assembly of members of the cooperative decides on the following contents:

(1) Approve the report on operating results for the year; Report on activities of the board of directors and the supervisory board or controller.

(2) Approve financial reports and internal audit results.

(3) Plan for income distribution and handling of losses and debts; establishment and rate of appropriation of funds; Salary plan and income for employees for job creation cooperatives.

(4) Production and business plan.

(5) Invest or sell assets with a value equal to or greater than 50% of the total asset value recorded in the most recent financial report.

(6) Contribute capital, buy shares, become members. establishing a business, joint venture, association; establish branches and representative offices; Participate in cooperative unions, representative organizations of cooperatives, and unions of cooperatives.

(7) Increase or decrease charter capital and minimum contributed capital; Decision-making authority and methods of capital mobilization.

(8) Determining the value of assets and undivided assets.

(9) Organizational structure of cooperatives and cooperative unions.

(10) Whether members of the board of directors are also directors (general directors) or hire directors (general directors). governor).

(11) Elect, dismiss, dismiss the chairman of the board of directors, members of the board of directors, head of the supervisory board, members of the supervisory board or controllers; increase or decrease the number of members of the board of directors and supervisory board.

(12) Transfer, liquidation, handling of fixed assets.

(13) Division, separation, merger, consolidation, dissolution, bankruptcy of cooperatives and cooperative unions.

(14) Amendments and supplements to the charter.

(15) Remuneration and bonuses of members of the board of directors, members of the supervisory board or controllers; Wages, salaries and bonuses of the director (general director), deputy director (deputy general director) and other management positions according to the provisions of the charter.

(16) Termination of membership status and member cooperatives according to the provisions of point b, clause 2, Article 16 of this Law.

(17) Other contents decided by the board of directors, control board or inspection proposed by the controller or at least one-third of the total number of members and member cooperatives.