Rights and obligations of members of cooperative banks

What are the current regulations on credit activities of Cooperatives? What are the charter of a cooperative bank?

1. Can service cooperatives do credit business?

Pursuant to Article 8 of the 2012 Cooperative Law as follows:

Increase or decrease charter capital during operation; mobilization of capital and internal credit activities according to the provisions of law.

In addition, according to Article 73 of the Law on Credit Institutions 2010 as follows:

Credit institutions that are cooperatives are a type of credit institution organized according to the cooperative model operating in the banking sector with the main purpose of mutual support between members to effectively carry out production activities. export, trade services and improve life. Credit institutions that are cooperatives include cooperative banks and people’s credit funds.

In addition, based on Article 74 of the Law on Credit Institutions 2010 as follows:

“Article 74. Establishment of credit institutions as cooperatives

1. Members of cooperative banks include all funds people’s credit and other legal entities contributing capital.

2. Members of the people’s credit fund include individuals, households and other legal entities contributing capital.”

Accordingly, if all conditions are met, cooperatives can also operate credit.

2. What is the charter of a cooperative bank?

Pursuant to Article 77 of the Law on Credit Institutions 2010 stipulates the charter of a cooperative bank as follows:

“Article 77. Charter

1. The charter of cooperative banks and people’s credit funds must not contravene the provisions of this Law and the Law on Cooperation. cooperatives and other relevant provisions of law. The charter of a cooperative bank or people’s credit fund must have the following main contents:

a) Name and location of head office;

b) Content and scope of operations;

c) Term of operation;

d) charter capital and method of capital contribution;

dd) Organizational structure, tasks, powers of the Board of Directors, Supervisory Board and rights and obligations of the General Director (Director);

e) Procedures for conducting the Members’ Congress and passing decisions of the Members’ Congress;

g) Rights and obligations of members;

h) Principles of finance, accounting, control and internal audit;

i) Principles of paying salaries, allowances and remunerations for public services, handling losses, dividing profits according to capital contributions, contributions of members and the level of use of services of the credit institution; principles of setting up, managing and using funds;

k) Management procedures management, use, preservation and disposal of common assets and accumulated capital;

l) Cases and procedures for division, separation, consolidation, merger, dissolution, bankruptcy;

m) Procedures for amending the Charter.

3. How are the rights of members of cooperative banks regulated?

Pursuant to Article 78 of the Law on Credit Institutions 2010 stipulates the rights of members of cooperative banks as follows:

“1. Attend the Members’ Congress or elect delegates to the Members’ Congress, attend member meetings and vote on issues under the authority of the Members’ Congress.

2. Stand for and nominate people to the Board of Directors, Supervisory Board and other elected positions according to the provisions of the Charter of cooperative banks and people’s credit funds.

3. To deposit money, borrow capital, and divide interest according to capital contribution and level of service usage of cooperative banks and people’s credit funds.

4. Enjoy general social benefits of cooperative banks and people’s credit funds.

5. Be provided with necessary information related to the operations of cooperative banks and people’s credit funds.

6. Propose issues related to the operations of cooperative banks and people’s credit funds and request answers; request the Board of Directors and the Supervisory Board to convene an extraordinary general meeting of members to resolve urgent issues.

7. Transfer your capital contribution and rights and obligations to others in accordance with the provisions of law and the Charter of the cooperative bank and people’s credit fund.

8. Please leave the cooperative bank or people’s credit fund according to the provisions of the Charter of the cooperative bank and people’s credit fund.

9. Other rights as prescribed by law and the Charter of cooperative banks and people’s credit funds.”

4. How are the obligations of members of cooperative banks regulated?

Pursuant to Article 79 of the Law on Credit Institutions 2010, the obligations of members of cooperative banks are stipulated as follows:

“Article 79. Obligations of members

1. Implement the Charter of cooperative banks, people’s credit funds and resolutions of the Congress of members.

2. Contribute capital according to the provisions of the Charter of cooperative banks, people’s credit funds and relevant laws.

3. Cooperation and mutual support among members, contributing to building and promoting the development of cooperative banks and people’s credit funds.

4. Jointly responsible for risks and losses in the operations of cooperative banks and people’s credit funds within the scope of their capital contribution.

5. Repay capital and interest on loans from cooperative banks and people’s credit funds according to commitments.

6. Compensate for damages caused by you to cooperative banks and people’s credit funds.”