Can a cooperative group that has achieved the purpose of cooperation terminate its operations?

Based on point b, clause 1, Article 14 of Decree 77/2019/ND-CP, it is stipulated as follows: following:

Termination of cooperative group activities

1. The cooperative group terminates its operations in the following cases:

a) Expiry of the term stated in the cooperation contract;

b) The purpose of cooperation has been achieved;

c) Failure to maintain the minimum number of members as prescribed in Clause 1, Article 3 of this Decree;

d) According to the decision of the agency competent state authority;

dd) According to the provisions of the cooperation contract and relevant laws;

e) According to the agreement of the cooperative group members.

2. Termination of operations of a cooperative group according to the provisions of Point e, Clause 1 of this Article must be approved by one hundred percent (100%) of the total number of cooperative group members, expressed in the minutes of the cooperative group meeting, with the signatures of the cooperative group leader (or person authorized by the cooperative group members) and the cooperative group members, unless otherwise specified in the cooperative contract.

3. Within 05 working days from the date of termination of operation, the head of the cooperative group (or the person authorized by the members of the cooperative group) sends a written notice of termination of operation (Form I.03), accompanied by the minutes of the meeting of cooperative group members, to the People’s Committee of the commune where the cooperative group operates.

Thus, according to the above regulations, if the cooperative group has achieved its cooperative purpose, it will terminate its operations.

Can a meeting of cooperative group members decide on the handling of common assets of cooperative group members?

Pursuant to Clause 1, Article 20 of Decree 77/2019/ND-CP has the following provisions:

The meeting of cooperative group members work

1. The cooperative group decides on its own the number of cooperative group meetings but must hold a member meeting at least once a year.

The cooperative group member meeting can decide the following issues:

a) Approve the results of the cooperative group’s activities;

b) Plan for distributing profits, profits, dealing with losses and financial issues of the cooperative group;

c) Plan for activities in the coming time;

d) Handling common assets of members of the cooperative group;

dd) Election, dismissal, dismissal of the group leader and executive board, if necessary;

e) Termination of membership status according to the provisions of Points d and dd, Clause 1, Article 11 of this Decree;

g) Amendments and supplements to the cooperation contract;

h) Remuneration and bonuses of team leaders and members of the executive board (if any);

i) Contents Other cases proposed by the group leader, executive board or more than thirty-three percent (33%) of the total number of cooperative group members;

k) Other cases as stipulated in the cooperation contract.

2. The order of convening a meeting of cooperative group members

In cases where the cooperation contract does not specifically stipulate, the order of convening a meeting of cooperative group members is carried out as follows:

a) The head of the cooperative group (or a person authorized by the cooperative group members) convenes the member meeting on behalf of the cooperative group. In case of necessity, representatives of more than thirty-three percent (33%) of the total cooperative group members may request the cooperative group leader (or a person authorized by the cooperative group members) to convene a member meeting, unless the cooperation contract and relevant laws stipulate otherwise;

Thus, according to the above regulations, a meeting of cooperative group members can decide on the handling of common assets of cooperative group members.

What sources are the common assets of cooperative group members formed from?

Pursuant to Clause 1, Article 22 of Decree 77/2019/ND-CP, it is stipulated as follows:

Common assets of cooperative group members, the group’s finances work

1. Common assets of group members hop Cooperation is formed from the following sources:

a) Contributions of members of cooperative groups including: objects, money, valuable papers and property rights;

b) Parts deducted from yields and after-tax profits;

c) Jointly created by members of cooperative groups;

d) Support and incentives from the House Sponsored, donated, or donated by the country or other individuals or organizations;

dd) Other sources as prescribed by law.

2. The disposition of assets and finances of the cooperative group is decided by the members of the cooperative group according to the provisions of Article 21 of this Decree, except for the cases specified in Clause 3 of this Article.

3. In case the cooperative group is given the right to enjoy property by the State, individuals or other organizations, it shall exercise the right to enjoy according to the provisions of Article 257 to Article 266 of the Civil Code.

4. The cooperative group implements financial and accounting regulations in accordance with the law.

Thus, according to the above regulations, the common assets of cooperative group members are formed from the following sources:

– Contributions of cooperative group members include: objects, money, valuable papers and property rights;

– The portion deducted from yields and after-tax income;

– Team members cooperate and create together;

– Support and incentives from the State or other individuals and organizations sponsoring, donating, or giving;

– Other sources as prescribed by law.