Circular No. 10/2018/TT-NHNN dated April 09, 2018 of the State Bank of Vietnam on providing the dossiers, order and procedures for approval of changes proposed by microfinance institutions

CIRCULAR

Providing the dossiers, order and procedures for approval of changes proposed by microfinance institutions

Pursuant to the June 16, 2010 Law on the State Bank of Vietnam;

Pursuant to the June 16, 2010 Law on Credit Institutions;

Pursuant to the November 20, 2017 Law Amending and Supplementing a Number of Articles of the Law on Credit Institutions;

Pursuant to the November 26, 2014 Law on Enterprises;                                                   

Pursuant to the Government’s Decree No.16/2017/ND-CP of February `7, 2017, defining the functions, tasks, powers and organizational structure of the State Bank of Vietnam;

At the proposal of the Bank Supervisor and Inspector General;

The Governor of the State Bank of Vietnam promulgates the Circular providing the dossiers, order and procedures for approval of changes proposed by microfinance institutions.

Chapter  I

GENERAL PROVISIONS

Article 1. Scope of regulation

1. This Circular provides the dossiers, order and procedures for approval of changes proposed by microfinance institutions, including:

a/ Names, head-office locations;

b/ Charter capital level;

c/ Operation contents, scope and duration;

d/ Trading in, transfer of, contributed capital of owners; trading in, transfer of, contributed capital of capital-contributing members;

dd/ Cessation of business operation for 05 days or more, except cessation of operation due to force majeure incidents.

2. The trading in, or transfer of, owners’ contributed capital, which leads to the change of legal form of microfinance institutions, shall comply with regulations of the State Bank of Vietnam (below referred to as the State Bank) and relevant legal provisions.

Article 2. Subjects of application

1. Microfinance institutions.

2. Organizations and individuals involved in the approval of changes made by microfinance institutions defined in this Circular.

Article 3. Compilation and submission of dossiers

1. Documents of microfinance institutions proposing the State Bank to approve the changes defined in this Circular will be signed by lawful representatives of microfinance institutions. In cases where they are signed by authorized representatives, the dossiers must include the written authorization made under provisions of law.

2. The dossiers proposing the State Bank to approve the changes defined in this Circular will be made in 01 set in Vietnamese. Copies of papers, documents, written translations from foreign language (s) into Vietnamese in the dossiers must be certified under provisions of law.

3. If copies are not certified or are duplicated from the original books, upon the submission of dossiers, the originals thereof must be produced for comparison; the comparers shall sign the copies for certification and take responsibility for the accuracy of the copies compared to the originals.

4. Dossiers and written notifications of microfinance institutions will be forwarded to the State Bank by way of direct submission or mail.

Article 4. Approval documents

The approval of changes made by microfinance institutions will be made in the following forms:

1. Decision amending, supplementing the establishment and operation licenses (below referred to as licenses) of microfinance institutions, for cases defined at Points a, b and c of Article 1 of this Circular.

2. Written approval, for the cases defined at Point d and e, Clause 1, Article 1 of this Circular.

Chapter II

SPECIFIC PROVISIONS

Section 1

CHANGE OF NAMES, HEAD-OFFICE LOCATIONS; CHARTER CAPITAL LEVEL; OPERATION CONTENTS, SCOPE AND DURATION

Article 5. Change of names

1. The proposing dossiers must comprise:

a/ The written proposal for approval of change of names covers at least the following contents: The names stated in licenses; the names intended for change under legal provisions related to naming, the reasons for change;

b/ Decisions of the Councils of Members adopting the changes of names.

2. Order for carrying out procedures for approval:

a/ Microfinance institutions shall compile the dossiers prescribed at Clause 1 of this Article and send them to the State Bank. If the dossiers are incomplete, the State Bank shall, within 03 working days after receiving the dossiers, issue written official letters requesting the microfinance institutions to supplement the dossiers;

b/ Within 30 days after receiving the complete valid dossiers, the State Bank shall issue decisions amending or supplementing the licenses of microfinance institutions; in case of refusal, the State Bank shall reply in writing clearly stating the reasons therefor.

Article 6. Change of head-office locations

1. The proposing dossiers must comprise:

a/ The written proposal for approval of changes of head-office locations, which contains at least the following contents:

(i) The location defined in the license;

(ii) The proposed location for change, clearly identified: name of the building (for lease office building); house number, name of the street (alley), names of communes, wards, townships, districts, provincial town, centrally run cities. Locations intended for change must comply with the State Bank’s regulations on head offices;

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