Decree No. 151/2007/ND-CP dated October 10, 2007 on the organization and operation of cooperative groups

THE GOVERNMENT -------	SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom - Happiness ----------
No. 151/2007/ND-CP	Hanoi, October 10, 2007

DECREE

ON THE ORGANIZATION AND OPERATION OF COOPERATIVE GROUPS

THE GOVERNMENT

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to the 2005 Civil Code;

At the proposal of the Minister of Agriculture and Rural Development,

DECREES:

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation and subjects of application

1. This Decree provides for the organization and operation of cooperative groups which are formed on the basis of cooperation contracts authenticated by Peoples Committees of communes, wards and townships (below collectively referred to as commune-level Peoples Committees) by three individuals or more who jointly contribute assets and labor to carrying out certain works for mutual benefit and responsibility.

Article 2. Organization and operation principles

Cooperative groups are organized and operate on the following principles:

1. Voluntariness, equality, democracy and mutual benefit;

2. Majority voting;

3. Financial autonomy, self-financing and self-responsibility with assets of the groups and their members.

Article 3. Names and logos of cooperative groups

A cooperative group may select its name and logo in accordance with law which must not be identical to names and logos of other cooperative groups operating in the same commune, ward or township.

Article 4. Formation of cooperative groups

1. Individuals wishing to form a cooperative group shall organize its formation.

2. When forming a cooperative group, the following principal contents must be discussed and agreed upon:

a/ Purpose and operation plan of the cooperative group;

b/ Contents of the cooperation contract;

c/ Name and logo (if any) of the cooperative group;

d/ List of members;

e/ Selection of the head and management board (if necessary);

f/ Other relevant issues.

Article 5. Cooperation contracts

1. A cooperation contract is the written agreement between group members, named as cooperation contract or other, but its contents must comply with Clause 2 of this Article.

2. Major contents of a cooperation contract

a/ Purpose and term of the cooperation contract;

b/ Full names, places of residence and signatures of the head and members;

c/ Contributed assets (if any); modes of sharing yields or profits among members;

d/ Rights, obligations and responsibilities of members, head and management board (if any)

e/ Conditions for joining and leaving the cooperative group;

f/ Conditions for terminating the cooperative group;

g/ Other agreements.

3. The cooperation contracts contents may be modified and supplemented when so agreed by a majority of members.