What is the maximum % of charter capital that a member cooperative of a cooperative union can own?

What is the maximum percentage of charter capital that a member cooperative of a cooperative union can own?

The ownership ratio of a member cooperative in a cooperative union is specified in Clause 2 of the Article 17 Law on Cooperatives 2012 as follows:

charter capital contribution and capital contribution certificate

1. For cooperatives, members’ capital contributions are made according to the agreement and according to the provisions of the charter but must not exceed 20% of the cooperative’s charter capital.

2. For cooperative unions, the capital contribution of member cooperatives shall comply with the agreement and the provisions of the charter but must not exceed 30% of the charter capital of the cooperative union.

3. The term, form and level of charter capital contribution are according to the provisions of the charter, but the time limit for full capital contribution does not exceed 06 months from the date the cooperative or cooperative union is granted a registration certificate or from the date of admission.

…

According to the above regulations, a member cooperative of the cooperative union will own a maximum of 30% of the charter capital of the cooperative union.

When are member cooperatives of a cooperative union granted a capital contribution certificate?

The time when a member cooperative of a cooperative union is granted a capital contribution certificate is specified in Clause 4, Article 17 of the 2012 Cooperative Law as follows:

charter capital contribution and capital certificate contribute

…

4. When contributing enough capital, members and member cooperatives will be granted a certificate of capital contribution by the cooperative or union of cooperatives. The capital contribution certificate has the following main contents:

a) Name and head office address of the cooperative or cooperative union;

b) Number and date of issuance of the cooperative and cooperative union registration certificate;

c) Full name, permanent address, nationality, identity card number or passport of the member individual or legal representative of the household.

In case the member is a legal entity, the name, head office, establishment decision number or registration number must be clearly stated; full name, permanent residence address, nationality, identity card number or passport of the legal representative of the legal entity. For member cooperatives, the name, head office, and registration certificate number of the member cooperative must be clearly stated; full name, permanent residence address, nationality, identity card number or passport of the legal representative of the member cooperative;

d) Total capital contribution; time of capital contribution;

d) Full name, signature of the legal representative of the cooperative or cooperative union.

Accordingly, member cooperatives of the cooperative union are granted capital contribution certificates when fully contributing capital.

What rights do member cooperatives of a cooperative union have?

Pursuant to Article 14 of the Cooperative Law 2012, member cooperatives of a cooperative union have the following rights:

– To be provided with products and services by the cooperative union according to the service contract.

– Income is distributed according to the provisions of this Law and the charter.

– Enjoy the benefits of the cooperative union.

– To attend or elect delegates to attend the congress of member cooperatives.

– To vote on contents under the authority of the general meeting of members according to the provisions of Article 32 of this Law.

– Stand for and nominate members of the board of directors, supervisory board or controller and other elected positions of the cooperative union.

– Recommend and request the board of directors, director (general director), control board or controller to explain the operations of the cooperative union; request the board of directors, supervisory board or controller to convene an extraordinary general meeting of members according to the provisions of this Law and the charter.

– Be provided with necessary information related to the operations of the cooperative union; receive support for training, fostering and improving professional qualifications to serve the operations of cooperative unions.

– Leave the cooperative union according to the provisions of the charter.

– Contributed capital will be returned when leaving the cooperative union according to the provisions of this Law and the charter.

– To be divided in the value of the remaining divided assets of the cooperative union according to the provisions of this Law and the charter.

– Complain, denounce and sue according to the provisions of law.

– Other rights according to the provisions of the charter.