What Payables Does a Cooperative Have? Debts and Payment Liability

Quick answer: Cooperative payables arise from the cooperative’s production and business activities: bank loans, purchases of goods and services on credit, tax debts, employee wage debts and other financial obligations. A cooperative bears liability with all its assets for its debts — members are liable only within the scope of contributed capital, unless the charter or a resolution provides a higher liability level.

Legal Basis

• Law on Cooperatives 2023 (No. 17/2023/QH15, effective from 01/7/2024).

Common Payables

• Borrowings: bank and credit institution loans, member loans for investment and production expansion;
• Payables for goods and services: unpaid purchases of materials, supplies and services;
• Tax debts: VAT, CIT, withheld PIT and other financial obligations to the State;
• Wage and insurance debts: wages, social and health insurance of employees;
• Other debts: damages compensation, contractual penalties…

Payment Liability

• A cooperative is an independent legal person, liable with all its assets;
• Members are not liable with personal assets for the cooperative’s debts, except for higher commitments in the charter;
• Cooperative managers and executives causing damage through breach of duty must compensate.

Debt Management of Cooperatives

• All large borrowings must be decided by the General Meeting of Members or the Board of Directors according to the charter’s delegation;
• Track and classify debts (current, overdue) in financial statements;
• When a cooperative becomes insolvent: procedures under the Law on Recovery and Bankruptcy 2025 apply.

If you need to determine the appropriate approach for your specific situation, you should consult a lawyer first to have your dossier reviewed and receive advice on handling options.

For prompt consultation, please contact our lawyers at 0966.475.966.

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