PROCESS FOR ESTABLISHING A NEW COOPERATIVE

PROCESS FOR ESTABLISHING A NEW COOPERATIVE

Step 1: Identify the need for cooperation

Issues that need to be identified:

– Subjects needing cooperation.

– Production and business conditions, advantages and local concerns.

– Advantages and difficulties in the operation of cooperatives.

The above issues need to be analyzed and evaluated to orient the development of cooperatives and better solve problems in the local community.

Step 2: Founding and advocacy work

Task 1: Find a founder

Founders have a particularly important role for cooperatives, being the individual, household or legal entity that initiates the establishment of cooperatives and participates in cooperatives.

The founder must be a person who has the idea of forming a cooperation, has knowledge of the Law and organization of cooperatives, has enthusiasm, reputation, ability, and understanding of the issues that the cooperative intends to produce and business services. services, have the ability to initiate programs and plan activities of the cooperative.

Task 2: Mobilize and prepare

The founder reports in writing to the People’s Committee of the commune where the cooperative’s headquarters is intended to be located on the establishment, headquarters location, production and business direction and operating plan of the cooperative.

The founder propagates and mobilizes individuals, households, and other legal entities wishing to join the cooperative.

+ Related documents: Decree 193/2013/ND-CP of the Government detailing a number of articles of the Law on Cooperatives: Czech attachment: 193-nd.pdf

Task 3: Develop a draft Cooperative Charter

The founder develops the cooperative charter according to the provisions of Article 21 of the 2012 Law on Cooperatives.

Task 4: Develop a draft direction for production, business and service of the cooperative

Task 5: Establish a list of people wishing to join the cooperative

Task 6: Get opinions from people (those who will be members) on the draft Charter and Directions for production, business and services of the cooperative.

Task 7: Meeting to discuss the cooperative’s organizational structure, nominating the positions of Board of Directors, Chairman of the Board of Directors, Supervisory Board, Head of Supervisory Board or controller.

+ Cooperative Board of Directors: is a cooperative management organization established by a conference or a general meeting of members elected, dismissed, or dismissed by secret ballot.

  • The Board of Directors consists of a chairman and members. The number of board members is prescribed by the charter but the minimum is 03 people, the maximum is 15 people.
  • The term of the board of directors is prescribed by the charter, but the minimum is 02 years, the maximum is 05 years.

– Director: is the person who manages the cooperative’s activities.

– Control board and controller: operate independently, inspect and supervise the cooperative’s activities according to the provisions of law and charter.

  • The Supervisory Board or controllers are elected directly by the general meeting of members from among the members by secret ballot. The number of members of the supervisory board is decided by the general meeting of members but must not exceed 07 people.
  • Cooperatives with 30 or more members must elect a supervisory board. For cooperatives with less than 30 members, the establishment of a control board or controller is prescribed by the charter.
  • The head of the Supervisory Board is directly elected by the general meeting of members from among the members of the Supervisory Board; The term of the supervisory board or controller follows the term of the board of directors.

– Prepare propaganda reports and mobilize for the establishment of cooperatives

Step 3: Organize a conference to establish a cooperative

The cooperative establishment conference was organized by the founders.

Composition: founder is the individual, legal representative of the founder; Legal representatives of households, legal entities and other individuals who wish to join the cooperative.

Guests: representatives of the Party Committee, People’s Committees of communes and districts, representatives of departments, divisions, functional boards, Cooperative Alliance of Binh Thuan province…

  • Approve the draft Charter (developed according to Article 21 of the 2012 Law on Cooperatives).
  • Approval of production and business plan (Circular 03/2014/TT-BKHDT).
  • Approving the list of members (Circular 03/2014/TT-BKHDT).
  • Election of the board of directors, chairman of the board of directors, supervisory board or controller, head of the supervisory board (Circular 03/2014/TT-BKHDT).
  • Passed the conference resolution to establish the cooperative.

Step 4: Register cooperative

+ When establishing a cooperative, the cooperative sends to the cooperative registration agency where the cooperative intends to have its headquarters a set of documents to register the establishment of the cooperative, including:

  • Application for registration of establishment of cooperative according to the prescribed form;
  • The charter of the cooperative is built according to Article 21 of the Law on Cooperatives;
  • Production and business plan according to the prescribed form;
  • List of members according to the form specified in the Appendix;
  • List of board of directors, directors, supervisory board or controllers according to the prescribed form;
  • The resolution of the founding conference on the contents specified in Clause 3, Article 20 of the Law on Cooperatives was voted for.

+ Cooperatives are granted a registration certificate when the following conditions are met:

  • Production and business industries and professions that are not prohibited by law;
  • Registration dossier as prescribed in Article 7 of Circular 03/2014/TT-BKHDT.
  • The name of the cooperative is set according to the provisions of Articles 7, 8, 9, 10 of Decree 193/2013/ND-CP.
  • Head office: is the transaction location of the cooperative in the territory of Vietnam, with an identified address including house number, street name, street, commune, ward, town, district, district, town, and city. province, province, centrally run city; phone number, fax number and email (if any).

The legal representative of the cooperative or cooperative union must declare fully, honestly and accurately the prescribed contents and is responsible before the law for the declared contents.

The competent state agency shall issue a registration certificate within 05 working days from the date of receipt of the dossier. In case of refusal, a written response must be provided clearly stating the reason.

Cooperatives have legal status and have the right to operate according to the content in the cooperative registration certificate from the date the cooperative registration certificate is issued. After being granted a registration certificate, the cooperative has its seal engraved and has the right to use its seal.

Forms for establishing new cooperatives.rar

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