How to calculate salary for the Board of Directors of the Cooperative?

If the Board of Directors of the Cooperative works and receives salary according to the unit’s salary regime, the salary calculation of the Board of Directors shall comply with the provisions of labor law.

At the same time, according to Clause 15, Article 32 of the 2012 Cooperative Law, the General Assembly of members will decide the 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.

Accordingly, the salary cannot be lower than the regional minimum level. Paying a salary 7% higher than the regional minimum for workers who have undergone vocational training is no longer regulated.

However, you need to check the content of the labor contract, the cooperative’s regulations, the cooperative’s charter, and the salary and bonus regulations to see if there are any provisions on paying a salary 7% higher than the regional minimum for workers who have undergone vocational training.

If so, those regulations will still be followed unless the parties agree otherwise (this issue is recorded in Official Dispatch 2086/BLDTBXH-TLLDLDVN of 2022 on directing the implementation of Decree 38/2022/ND-CP on minimum wage issued by the Ministry of Labor, War Invalids and Social Affairs – Vietnam General Confederation of Labor)

What powers and duties does the Cooperative Director have?

The Director of Cooperatives has the powers and duties specified in Clause 2, Article 38 of the 2012 Cooperative Law as follows:

– Organize the implementation of production and business plans of the cooperative;

– Implement resolutions of the general meeting of members and decisions of the board of directors;

– Signing contracts on behalf of cooperatives and unions of cooperatives as authorized by the chairman of the board of directors;

– Submit annual financial reports to the board of directors;

– Develop a plan to organize the assisting department and affiliated units of the cooperative and submit it to the Board of Directors for decision;

– Recruitment of employees according to the decision of the board of directors;

– Carry out other powers and duties specified in the cooperative’s charter and regulations.

In case the director (general director) is hired by the cooperative, in addition to exercising the above powers and duties, he must also perform the powers and duties according to the labor contract and may be invited to participate in the general meeting of members and the board of directors.

Can a cooperative’s controller also be the Director of the same cooperative?

Can a cooperative’s controller also be the Director of the same cooperative? According to Article 40 of the 2012 Cooperative Law, as follows:

Conditions for becoming a member of the board of directors, supervisory board or controller, director (general director) of cooperatives, unions of cooperatives

1. Members of the cooperative board of directors must meet the following conditions:

a) Be a member of the cooperative;

b) Not simultaneously be a member of the control board or controller, chief accountant, treasurer of the same cooperative and not be a biological father or mother; adoptive father and mother; couple; children, adopted children; siblings of members of the board of directors, supervisory board, controllers;

c) Other conditions prescribed by the cooperative charter.

2. A member of the board of directors of a cooperative union must fully meet the following conditions:

a) Be a legal representative of the member cooperative;

b) Not simultaneously be a member of the control board or controller, chief accountant, treasurer of the same cooperative union and not be a biological father or mother; adoptive father and mother; couple; children, adopted children; siblings of members of the board of directors, supervisory board, controller;

c) Other conditions prescribed by the charter of the cooperative union.

3. Controllers and members of the cooperative control board must meet the following conditions:

a) Be a member of the cooperative;

b) Not simultaneously be a member of the board of directors, director (general director), chief accountant, treasurer of the same cooperative and not be a biological father or mother; adoptive father and mother; couple; children, adopted children; siblings of members of the board of directors, other members of the control board;

c) Other conditions prescribed by the cooperative charter.

4. Controllers and members of the supervisory board of cooperative unions must fully meet the following conditions:

a) Be a legal representative of member cooperatives as prescribed in Clause 2, Article 13 of this Law;

b) Not simultaneously be a member of the board of directors, director (general director), chief accountant, treasurer of the same cooperative union and not be a parent giving birth; adoptive father and mother; couple; children, adopted children; siblings of members of the board of directors, other members of the control board;

c) Other conditions prescribed by the charter of the cooperative union.

…

Accordingly, the Cooperative’s Controller cannot simultaneously be the Cooperative’s Director.