Decision No. 35/2008/QD-NHNN on amending and supplementing certain provisions of the regulations on procedures and formalities for changes of People's Credit Funds that require approval from the State Bank issued together with Decision No. 05/2007/QD-NHNN dated January 30, 2007, of the Governor of the State Bank.

Pursuant to …;

concerning the amendment and supplementation of certain articles of the Regulations on the procedures and formalities for implementing changes by People's Credit Funds that must be approved by the State Bank issued together with Decision No. 05/2007/QĐ-NHNN dated January 30, 2007

of the Governor 1. Ministry-level scientific and technological tasks:

GOVERNOR OF THE STATE BANK OF VIETNAM

Pursuant to the Law on the State Bank of Vietnam 1997 and the Law Amending and Supplementing Certain Provisions of the Law on the State Bank of Vietnam 2003;

Pursuant to the Law on Credit Organizations 1997 and the Law Amending and Supplementing Certain Articles of the Law on Credit Organizations 2004;

Pursuant to the Law on Cooperatives 2003;

Pursuant to Decree No. 96/2008/NĐ-CP dated August 26, 2008 of the Government stipulating the functions, tasks, powers, and organizational structure of the State Bank of Vietnam;

Pursuant to Decree No. 48/2001/NĐ-CP dated August 13, 2001 of the Government on the organization and operation of People's Credit Funds; Decree No. 69/2005/NĐ-CP dated May 26, 2005 of the Government amending and supplementing certain articles of Decree No. 48/2001/NĐ-CP of the Government on the organization and operation of People's Credit Funds;

At the proposal of the Director of the Department of Cooperative Credit Organizations,

DECISION:

Article 1. Amend and supplement certain contents of the Regulations on the procedures and formalities for implementing changes by People's Credit Funds that must be approved by the State Bank issued together with Decision No. 05/2007/QĐ-NHNN dated January 30, 2007 of the Governor of the State Bank as follows:

1. Clause 2, Article 2 shall be amended and supplemented as follows:

“2. Increase or decrease in charter capital exceeding the plan already approved by the State Bank.”

2. The name of Section 2 is amended and supplemented as follows:

“Procedures and formalities for increasing or decreasing charter capital exceeding the plan already approved by the State Bank.”

3. The name of Article 8 is amended and supplemented as follows:

“Conditions for increasing or decreasing charter capital exceeding the plan already approved by the State Bank.”

4. Clause 1 of Article 8 is amended and supplemented as follows:

“1. People's Credit Funds may increase or decrease charter capital exceeding the plan already approved by the State Bank (hereinafter referred to as increasing or decreasing charter capital) when such increase or decrease in charter capital does not adversely affect the quality of operations of the People's Credit Fund; does not lead to violations of the provisions on safety ratios; and the reduction in charter capital does not result in the total charter capital falling below the statutory minimum capital.”

5. Clause 2 of Article 10 is amended and supplemented as follows:

“2. After receiving the approval document from the State Bank, the People's Credit Fund must carry out the following tasks:

a) Implement the increase or decrease in charter capital according to the plan;

b) Carry out other related tasks.”

6. Clause 2 of Article 21 is supplemented and amended as follows:

“2. After receiving the approval document from the State Bank, the People's Credit Fund must carry out the following tasks:

2.1. The Board of Directors convenes the Members' Congress to remove, dismiss the positions of Chairman of the Board of Directors or General Director (for People's Credit Funds established with a combined management and operational structure), other members of the Board of Directors, Head of the Supervisory Board, other members of the Supervisory Board, and elect new replacements according to the provisions of the law;

In case the General Director is appointed by the Board of Directors: The Board of Directors must convene a meeting to decide on dismissing, removing the position of the former General Director and appointing a new General Director;

In case the General Director is hired by the Board of Directors: The Board of Directors must convene a meeting to decide on terminating the employment contract with the former General Director and signing a new employment contract with a new General Director.

2.2. Within a period not exceeding 15 working days from the date the Members' Congress approves the removal, dismissal, and election of the positions of Chairman of the Board of Directors or General Director (for People's Credit Funds established with a combined management and operational structure), other members of the Board of Directors, Head of the Supervisory Board, other members of the Supervisory Board, and from the date the Board of Directors convenes a meeting to decide on dismissing, removing the position, or terminating the employment contract with the former General Director and appointing or signing a new employment contract with a new General Director, the Board of Directors of the People's Credit Fund must complete the dossier to request the State Bank's approval for the removal, dismissal, removal of position, or termination of employment contract; and the election, appointment, or signing of new employment contracts for the positions. The dossier includes:

a) A report from the Board of Directors requesting approval for the removal, dismissal, and election of the positions of Chairman of the Board of Directors or General Director (for People's Credit Funds established with a combined management and operational structure), other members of the Board of Directors, Head of the Supervisory Board, other members of the Supervisory Board; and the dismissal, removal of position, or termination of employment contract and appointment or signing of employment contract for the position of General Director (for People's Credit Funds established separately with a management structure and an operational structure).

b) Resolutions of the Members' Congress regarding the removal, dismissal, and election of the positions of Chairman of the Board of Directors or General Director (for People's Credit Funds established with a combined management and operational structure), other members of the Board of Directors, Head of the Supervisory Board, other members of the Supervisory Board; Resolutions of the Board of Directors regarding the dismissal, removal of position, or termination of employment contract and appointment or signing of employment contract for the General Director (for People's Credit Funds established separately with a management structure and an operational structure).

c) A copy of the curriculum vitae (original) of those proposed for approval of the elected, appointed, or hired positions.

d) Certified copies of diplomas of those proposed for approval of the elected, appointed, or hired positions.

đ) Other related documents as required by the State Bank.

2.3. After being approved by the State Bank, the People's Credit Fund must:

a) Register the change of legal representative, list of Board of Directors, Supervisory Board of the People's Credit Fund with the business registration agency.

b) Notify the change of Board of Directors, Supervisory Board, General Director to relevant units and organizations according to the provisions of the law.

c) Carry out other related tasks.”

Article 2. This Decision takes effect 15 days after its publication in the Official Gazette.

Article 3. The Chief of the Office, the Director of the Department of Cooperative Credit Organizations, the Heads of relevant units under the State Bank, the Governors of the State Bank branches in provinces and centrally governed cities, the Chairmen of the Board of Directors, the General Managers of Central People's Credit Funds, the Chairmen of the Board of Directors, the General Directors of grassroots People's Credit Funds are responsible for implementing this Decision./.