Can organizations without legal status become members of cooperatives?

Can organizations without legal status be members of cooperatives?

Pursuant to regulations Clause 1 Article 30 of the Cooperative Law 2023 Regulations on conditions to become a cooperative member are as follows:

Conditions for becoming a cooperative member
1. Official members and capital contributing members of the cooperative include:
a) Individuals who are Vietnamese citizens aged 18 years or older, with full civil act capacity;
b) Individuals who are foreign investors with investment registration certificates according to the provisions of law on investment;
c) Households, cooperative groups and other organizations without legal status established and operating in Vietnam. Members of this organization must appoint a representative according to the provisions of the Civil Code to exercise the rights and obligations of cooperative members;
d) Vietnamese legal entity.
….

Thus, according to regulations, organizations that do not have legal status but are established and operating in Vietnam can still be official members or capital contributing members of the cooperative.

Therefore, organizations without legal status can still be members of the cooperative.

What rights do official members of the cooperative have?

Pursuant to regulations Article 31 of the Cooperative Law 2023 Regulations on the rights of cooperative members are as follows:

Rights of cooperative members
1. Official members have the following rights:
a) To be provided with products, services, and jobs by the cooperative;
b) To be distributed with income according to the provisions of this Law and the Charter;
c) To enjoy the benefits of the cooperative;
d) To attend or elect delegates to the General Meeting of Members members;
dd) To vote on content under the authority of the General Meeting of Members;
e) To nominate and nominate members of the Board of Directors, Director (General Director), members of the Supervisory Board or controllers and other elected management positions;
g) Recommend, request the Board of Directors, Director (General Director), Board of Supervisors or controllers to explain the cooperative’s activities;
h) Request the Board of Directors, Director (General Director), Board of Supervisors or controllers to convene an extraordinary General Meeting of members;
i) Be provided with necessary information related to activities cooperative activities; receive support for training, fostering and improving professional qualifications to serve the cooperative’s operations;
k) Leave the cooperative according to the provisions of this Law and the Charter;
l) Receive part or all of the capital contribution back according to the provisions of this Law and the Charter;
m) Receive the remaining asset value of the cooperative according to the provisions of this Law and the Charter;
n) Complaints, denunciations, and lawsuits according to the provisions of law;
o) Other rights according to the provisions of law and Charter.
…

Thus, official members of the cooperative have the following rights:

– Cooperatives provide products, services, and jobs;

– Income is distributed according to the provisions of Cooperative Law 2023 and Charter;

– Enjoy the benefits of the cooperative;

– To attend or elect delegates to attend the Members’ Congress;

– To vote on contents under the authority of the Members’ Congress;

– Stand for and nominate members of the Board of Directors, Director (General Director), members of the Supervisory Board or controllers and other elected management positions;

– Recommend and request the Board of Directors, Director (General Director), Supervisory Board or controllers to explain the cooperative’s activities;

– Request the Board of Directors, Director (General Director), Supervisory Board or controller to convene an extraordinary general meeting of members;

– Be provided with necessary information related to the cooperative’s activities; receive support for training, fostering and improving professional qualifications to serve the cooperative’s activities;

– Leaving the cooperative according to the provisions of Cooperative Law 2023 and Charter;

– Be returned part or all of the capital contribution according to the provisions of the Cooperative Law 2023 and the Charter;

– Receive the remaining asset value of the cooperative according to the provisions of the Cooperative Law 2023 and the Charter;

– Complaints, denunciations, and lawsuits according to the provisions of law;

– Other rights as prescribed by law and Charter.

In what cases will a cooperative member’s official membership status be terminated?

Pursuant to regulations Clause 1 Article 33 of the Cooperative Law 2023 Regulations on termination of cooperative membership are as follows:

Termination of cooperative membership
1. Cases of official termination of membership:
a) The individual member has died; declared by the Court to be dead, missing, limited or losing civil act capacity, having difficulty in cognition and behavior control;
b) Members of organizations that cease to exist, dissolve, go bankrupt;
c) Cooperatives that cease to exist, dissolve, go bankrupt;
d) Members that voluntarily leave the cooperative Commune;
d) Member is expelled according to the provisions of the Charter;
e) Member does not use products, services or does not contribute labor for a continuous period of time according to the provisions of the Charter;
g) At the time of commitment to fully contribute capital, the member does not contribute capital or contributes capital lower than the minimum capital prescribed in the Charter. rule.
….

Thus, cooperative members will have their official membership status terminated in the following cases:

– Member is an individual who has died; declared by the Court to be dead, missing, having limited or lost civil act capacity, having difficulty in cognition and behavior control;

– Member is an organization that ceases to exist, dissolves, or goes bankrupt;

– The cooperative ceases to exist, dissolves, or goes bankrupt;

– Members voluntarily leave the cooperative;

– Members are expelled according to the provisions of the Charter;

– Members do not use products or services or do not contribute labor for a continuous period of time according to the provisions of the Charter;

– At the time of committing to fully contribute capital, members do not contribute capital or contribute capital lower than the minimum capital contribution specified in the Charter.