Regulations on products and services provided by cooperatives to members According to the law

1. What rights and obligations do cooperatives have?

* The rights of cooperatives are stipulated in Article 8 of the 2012 Law on Cooperatives as follows:

– Implementing the operational objectives of cooperatives and unions of cooperatives; autonomy and self-responsibility in their operations.

– Decide on the management organization and operations of cooperatives and unions of cooperatives; hire and use labor.

– Conduct production and business activities, create jobs according to registered industries and occupations to meet the common needs of members and member cooperatives.

– Supply and consume products, services, jobs for members, member cooperatives and the market but must ensure the fulfillment of obligations to members and member cooperatives members.

– New admission, termination of membership, member cooperatives.

– Increase, decrease charter capital during operation; mobilize capital and operate internal credit according to the provisions of law.

– Joint venture, association, cooperation with domestic and foreign organizations and individuals to realize the operational goals of cooperatives and cooperative unions.

– Contribute capital, buy shares, establish businesses with the goal of supporting the operations of cooperatives and cooperative unions commune.

– Manage, use and handle capital, assets and funds of cooperatives and unions of cooperatives.

– Implement income distribution and handle losses and debts of cooperatives and unions of cooperatives.

– Participate in representative organizations of cooperatives and unions of cooperatives. commune.

– Complain or, through a representative, denounce acts that violate the legitimate rights and interests of cooperatives and unions of cooperatives; handle members and member cooperatives who violate the charter and resolve internal disputes.

* Obligations of cooperatives are carried out according to Article 9 of the Cooperative Law 2012 as follows:

– Implement the provisions of the charter.

– Ensure the legitimate rights and interests of members and member cooperatives according to regulations of this Law.

– Operate in accordance with registered industries and occupations.

– Implement service contracts between cooperatives and members, cooperative unions and member cooperatives.

– Implement legal regulations on finance, tax, accounting, auditing, statistics.

– Management and use of capital, assets and funds of cooperatives and cooperative unions according to the provisions of law.

– Manage and use land and other resources assigned or leased by the State according to the provisions of law.

– Sign and implement labor contracts, pay social insurance, health insurance and other policies for employees in accordance with the law law.

– Educate, train, foster, and provide information to members and member cooperatives.

– Implement a reporting regime on the operating situation of cooperatives and cooperative unions according to the provisions of the Government.

– Compensate for damages caused by oneself to members and member cooperatives according to the provisions of law. law.

2. What products and services do cooperatives provide to cooperative members?

According to Clause 6, Article 4 of the 2012 Law on Cooperatives, regulations on products and services of cooperatives to members are as follows:

Products and services of cooperatives for cooperative members are products and services provided by cooperatives to members under contracts services through one or several of the following activities:

– Jointly purchasing products and services from the market to serve members;

– Jointly selling members’ products and services to the market;

– Buying products and services from members to sell to the market;

– Buying products and services from market to sell to members;

– Processing products of members and member cooperatives;

– Providing facilities and technical infrastructure to serve members;

– Credit for members;

– Creating jobs for members for job creation cooperatives do;

– Other activities according to the provisions of the cooperative charter.

In which, the service contract specified in Clause 5, Article 4 of the 2012 Law on Cooperatives is an agreement between the cooperative and its members on the use of products and services of the cooperative to meet the common needs of members.

3. Are cooperatives allowed to provide products and services to customers who are not members?

The supply of products and services to customers who are not cooperative members is carried out in accordance with the provisions of Article 5 of Decree 193/2013/ND-CP (amended by Clause 1, Article 1 of Decree 107/2017/ND-CP) as follows: as follows:

– Cooperatives and unions of cooperatives have the right to supply and consume products, services and jobs for members and member cooperatives and for non-member customers but must ensure the fulfillment of obligations to members and member cooperatives.

– Rate of supply and consumption of products, services and jobs that cooperatives and unions of cooperatives commit to provide, Consumption for members and member cooperatives for non-member customers is specifically regulated by the cooperative charter but does not exceed the following regulations:

+ Not more than 50% of the total value of supply of products and services of cooperatives and cooperative unions in the agricultural and non-agricultural sectors.

+ In the case of cooperatives creating jobs, wages paid to workers Employees who are not members with indefinite-term labor contracts do not exceed 30% of the total salary of the cooperative paid to all employees in the cooperative with indefinite-term contracts.

– Receiving deposits and granting credit to customers who are not members of the people’s credit fund is carried out in accordance with the provisions of the Law on Credit Institutions and the guidance of the State Bank of Vietnam. country.

– For cooperatives and unions of cooperatives established after the Law on Cooperatives takes effect, the rate of supply and consumption of products, services or jobs that cooperatives and unions of cooperatives commit to supply and consume for members and member cooperatives for non-member customers must ensure as prescribed in Clauses 2 and 3 of this Article.

– For cooperatives and unions of cooperatives established before the Law on Cooperatives takes effect:

+ In case the cooperatives and unions of cooperatives have guaranteed the supply and consumption rate of products, services and jobs that the cooperatives and unions of cooperatives commit to supply and consume for members, member cooperatives and non-member customers according to the provisions of Clauses 2 and 3 of this Article, they will continue to operate. Act according to the provisions of the Cooperative Law;

+ In case a cooperative or union of cooperatives has not guaranteed the supply and consumption rate of products, services and jobs that the cooperative or union of cooperatives commits to supply and consume for members, member cooperatives and non-member customers as prescribed in Clause 2 and Clause 3 of this Article, it must reorganize its operations to ensure the rate specified in Clause 2 and Clause 3 of this Article within the time limit. 36 months from July 1, 2013 or establish an enterprise to sell those products, services or jobs.

Based on the above regulations, we see that cooperatives are allowed to provide products and services to customers who are not members of the cooperative, but must ensure the prescribed limits, accordingly, for the supply of products and services of cooperatives and cooperative unions in the agricultural sector and non-agricultural products must meet the supply ratio of no more than 50% of the total supply value.