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The document ceased to be valid since  January 1, 2016 according to article 42 of the Law of the Republic of Kazakhstan of October 29, 2015 No. 372-V ZRK

LAW OF THE REPUBLIC OF KAZAKHSTAN

of December 25, 2000 No. 133-II

About agricultural partnerships and their associations (unions)

(as amended on 16-05-2014)

This Law determines legal status of agricultural partnerships, governs the relations between partnership and its members.

Chapter 1. General provisions

Article 1. The basic concepts used in this Law

In this Law the following concepts are used:

1) association (union) of agricultural partnerships - the voluntary consolidation of agricultural partnerships created on the basis of decisions of general meeting of agricultural partnerships for ensuring protection of their common property and other laws, coordination of activities, representation of their interests in state bodies, local government bodies and the international organizations and also rendering legal, information and other services to copartners;

2) share - the share of the member of agricultural partnership in its property pro rata to the size of the share brought by the member;

3) share - property fee of the member of agricultural partnership in share fund the money, the parcels of land, land and property shares or other property having money value;

4) obligatory share - the share brought without fail and granting the right of equal voice in governing bodies of partnership, uses of its services and privileges provided by the charter;

5) additional share - the share of the member of agricultural partnership brought by it voluntarily over obligatory share or in the cases provided by general meeting of partnership;

6) share fund - the fund consisting of the property (share) fees brought by members of agricultural partnership, and being one of sources of forming of property of partnership;

7) agricultural products - the crop and livestock products which passed complete production cycle of production and conforming to the established standards;

8) agricultural producer - the physical person or legal entity which is engaged in commodity production of agricultural products;

9) services of partnership - sale, conversion of agricultural products, supply with material resources, field service or any other services rendered by agricultural partnership to producers;

10) the member of agricultural partnership - the physical person or legal entity which is the producer of agricultural products and entered partnership according to the procedure, established by this Law and the charter of partnership.

Article 2. Legislation on agricultural partnerships

The legislation on agricultural partnerships consists of the Civil code, this Law and other regulatory legal acts.

Article 3. Agricultural partnership

1. The agricultural partnership is the legal entity created on the basis of membership by voluntary consolidation of property fees of agricultural producers for satisfaction of their needs for sale, storage, conversion of agricultural products, supply with material resources, water supply or other field service of copartners.

The physical persons and legal entities which are engaged in the commodity production of agricultural products corresponding to partnership profile can be members of agricultural partnership.

2. Agricultural partnerships are non-profit organizations and can be engaged in business activity only so far as it answers their authorized purpose.

The net income gained by agricultural partnership cannot be distributed between his members and shall go to the authorized purposes.

3. The agricultural partnership is considered created sine die if constituent documents do not provide that it is created for certain term or for achievement of particular purpose.

Article 4. Purposes of creation of agricultural partnerships

Agricultural partnerships are created for the purpose of:

1) satisfactions of social and economic requirements of agricultural producers by their voluntary consolidation for sales promotion, storage, conversion of agricultural products, supply with material resources, water supply and other field service of copartners;

2) providing profit of agricultural producers when functioning partnerships on non-profit basis;

3) creations of competitive environment in spheres of sale, storage, conversion of products and supply with material resources;

4) providing direct deliveries of agricultural products from the producer to the consumer;

5) assistance to acquisition on profitable terms agricultural producers of necessary resources and receipts of access to financing of their economic activity.

Article 5. Basic principles of creation and activities of agricultural partnerships

Agricultural partnerships are created and perform the activities on the basis of the following principles:

1) voluntariness of membership in partnership and possibility of the introduction for any agricultural producer who feels the need for services in profile of partnership and is ready to assume obligations of his member;

2) democratic nature of the management based on equality of copartners: one member - one voice;

3) selectivity and periodical removability of structure of governing bodies and their accountability to copartners;

4) implementation of activities of partnership by the principle "service at cost" for the benefit of the members;

5) establishments of the size of obligatory and additional shares depending on amount of consumption of services;

6) obligation of consumption of the services by his members provided by partnership in the amount provided by the contract;

7) availability of information on activities of agricultural partnership, association (union) to all his members.

Chapter 2. Types of agricultural partnerships

Article 6. Core activities of agricultural partnerships

Agricultural partnerships depending on core activity can be divided into the sales, overworking, supplying, service and mixed types.

The core activity of agricultural partnership is reflected in its name.

Article 7. Sales agricultural partnerships

Sales partnerships sell products made by copartners. Also collection, storage, sorting, drying, sale of raw materials in the fresh or processed type wholesale or at retail and transportation of products of copartners belong to sales activities.

Article 8. The overworking agricultural partnerships

The overworking agricultural partnerships are engaged in conversion of agricultural products and its realization through own system of wholesale and retail trade.

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