LAW OF UKRAINE

of July 17, 1997 No. 469/97-BP

About agricultural cooperation

This Law determines legal, organizational, economic and financial features of education and activities of agricultural cooperatives.

Section I General provisions

Article 1. Basic concepts

1. In this Law the terms below are used in such value:

cooperative payments in the agricultural serving cooperative - return to members of cooperative of part of earlier excessively paid cost of the services provided by cooperative concerning them actual cost which is distributed following the results of financial year between his members;

rules of intraeconomic activities of cooperative - the regulating document establishing requirements to implementation of economic and other activity of cooperative according to the legislation and the charter of cooperative;

agricultural cooperation - system of agricultural cooperatives, their associations formed for the purpose of satisfaction of economic, social and other needs of members of cooperatives;

agricultural production cooperative - agricultural cooperative which is formed by merging of the physical persons which are producers of agricultural products for implementation of joint productive or other economic activity on the principles of their obligatory labor participation for the purpose of profit earning;

agricultural cooperative - the legal entity formed by physical persons and/or legal entities which are the producers of agricultural products which voluntarily united on the basis of membership for implementation of the joint economic and other activity connected with production, conversion, storage, sale, sale of products of crop production, livestock production, forestry or fish breeding, delivery of means of production and material resources to members of this cooperative, provision of services by it for the purpose of satisfaction of economic, social and other requirements on the principles of self-government;

the agricultural serving cooperative - agricultural cooperative which is formed by merging of physical persons and/or legal entities - producers of agricultural products for the organization of the servicing directed to reduction of expenses and/or increase in the income of members of this cooperative during implementation of agricultural activities by them and to protection of their economic interests;

participation in economic activity of the agricultural serving cooperative - sale through such cooperative of raw materials, products of its conversion, purchase of means of production, use of technological services of cooperative in the amount and procedure provided by its charter and/or rules of intraeconomic activities.

2. Other terms which are used in this Law are used in the value established in the Law of Ukraine "About cooperation". The term "producers of agricultural products" is used in the value established by the Law of Ukraine "About agricultural census".

Article 2. The legislation regulating activities of agricultural cooperatives

1. Activities of agricultural cooperatives are based on regulations of the Constitution of Ukraine, Civil, Economic, Tax and Land codes of Ukraine, this Law, other regulatory legal acts.

2. The general principles, concepts and regulations of education, ensuring functioning, management and liquidation of agricultural cooperative and cooperative associations, control of their activities, the rights and obligations of their members, forming of property, funds, the prices and rates for products and services, and also employment relationships in such cooperatives and associations are regulated by the Law of Ukraine "About cooperation".

Article 3. Types of agricultural cooperatives

1. On the purposes, and to nature of activities agricultural cooperatives are subdivided by tasks on serving and production.

Article 4. Charter of agricultural cooperative

1. The charter of agricultural cooperative is drafted according to requirements of article 8 of the Law of Ukraine "About cooperation".

2. Approximate charters of agricultural cooperatives are drafted by the central executive body providing forming of the state agrarian policy.

The Section II the Agricultural serving cooperatives

Article 5. Types of the agricultural serving cooperatives

1. Depending on type of activity the agricultural serving cooperatives are subdivided on processing, procurement and sales, supplying and others.

2. The cooperatives performing conversion of agricultural raw materials which are made by members of such cooperatives treat the serving cooperatives overworking agricultural (production bakery, pasta, vegetable, fruit and berry, meat, dairy, fish products, products and semifinished products from flax, lubovy cultures, leso-and timber and so forth).

3. The procurement and sales agricultural serving cooperatives perform, in particular, procurement, storage, pre-sale processing and sale of products made by members of such cooperatives provide them marketing services.

4. The supplying agricultural serving cooperatives are formed for the purpose of purchase and delivery to members of such cooperatives of the means of production, material resources necessary for production of agricultural products and products of its conversion, production of raw materials, materials and delivery to their members of cooperative.

5. In case of combination of several types of activity multipurpose cooperatives are formed.

6. The agricultural serving cooperatives provide to the members and other services, in particular technological, transport, meliorative, repair, construction, on veterinary servicing of animals and breeding work, accounting and audit, nauchnokonsultatsionny servicing.

Article 6. Membership in the agricultural serving cooperative

1. Producers to agricultural produktsiiyuridicheskia can be founders and members of the agricultural serving cooperative and/or physical persons which made introductory and share contributions in the sizes determined by general meeting of cooperative fulfill requirements of the charter, have the right of casting vote and take part in economic activity of cooperative.

Founders of the agricultural serving cooperative after its state registration acquire the status of members of cooperative.

2. Physical persons or legal entities can be members of several agricultural serving cooperatives, various on types of activity.

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