LAW OF UKRAINE

of April 10, 1992 No. 2265-XII

About consumer cooperation

This Law determines legal, economic and social basis of activities of consumer cooperation in Ukraine.

The law is directed to revival and strengthening of democratic basis of consumer cooperation, protection of interests of her members and rural population as consumers and governs the relations with executive bodies.

Section I. General provisions

Article 1. Consumer cooperation and its purposes

Consumer cooperation in Ukraine is voluntary consolidation of citizens for joint conducting economic activity for the purpose of improvement of the economic and social position. It performs the trading, procurement, productive and other activity which is not forbidden by the current legislation of Ukraine, promotes social and cultural development of the village, national crafts and crafts, participates in the international cooperative movement.

Article 2. Basic principles of activities of consumer cooperation

Activities of consumer cooperation are based on the principles of voluntariness of membership, democratism, social justice, mutual assistance and cooperation, free economic functioning on the basis of the market relations.

Article 3. Independence of consumer cooperation

Consumer cooperation does not depend in the activities on public authorities, political parties and public organizations.

Any intervention which can limit the rights of consumer cooperation or interfere with their implementation is forbidden if it is not provided by the law.

Article 4. Legislation on consumer cooperation

The relations connected with creation and activities of consumer cooperation are regulated by this Law and other legal acts of Ukraine.

Section II. Consumer society - primary link of consumer cooperation

Article 5. Consumer society and its creation

1. Primary link of consumer cooperation is consumer society - the independent, democratic organization of citizens who on the basis of voluntariness of membership and mutual assistance at the place of residence or works unite for joint managing for the purpose of improvement of the economic and social position.

2. The main document regulating activities of consumer society is the charter. In it are determined procedure for the accession to society and exit from it, the right and obligation of members of society, its governing bodies, control and their competence, procedure for formation of property of society and profit distribution, condition of reorganization and liquidation of society and other provisions which are not contradicting legal acts of Ukraine.

3. Consumer society is considered created, is recognized the legal entity and can perform economic and other activity from the date of its state registration.

Article 6. Membership, basic rights and obligations of members of consumer society

Membership in consumer society can be individual and collective.

1. The citizens who reached 16-year age and showed willingness to participate in implementation of the purposes and tasks of consumer society can be individual members of consumer society.

Persons which reached 14-year age can be members of student's consumer societies which are created under comprehensive schools and other educational institutions.

2. The farms, collective agricultural enterprises, economic societies, cooperative, state and other entities dividing it the purposes and interests can be collective members of consumer society.

3. The economic relations between consumer society and its collective member are under construction on a contract basis.

Consumer society does not answer for obligations the collective member, and the last answers for obligations society within its share.

4. The member of consumer society has the right:

participate in activities of consumer society, choose and be elected to its governing bodies and control, to make suggestions for improvement of activities of society and to remedial action in work of its bodies and officials;

on benefit in purchase of goods and receipt of services in shops and other companies of consumer cooperation;

receive profit share, distributed by results of economic activity between members of consumer society according to their share;

be employed in first-priority procedure in consumer society according to education and professional training and get referrals in educational institutions, including as the economic scholar on a contract basis.

General meeting (meeting of representatives) can establish for members of consumer society and other benefits, and also preferential terms of use of services of cooperative entities and organizations.

5. The member of consumer society shall observe the charter, fulfill the duties before consumer society connected with participation in its activities, and the decision of general meeting, elected bodies of management and control.

6. The member of consumer society answers for obligations consumer society only within the obligatory share brought by it if other is not provided by the charter.

Article 7. The supreme body of management of consumer society

1. The supreme body of management of consumer society is general meeting of his members which accepts the charter, determines the sizes of admission and obligatory share, elects the leading and regulatory authorities of society, and also resolves other issues connected with its activities.

2. Each member has on general meeting of consumer society the right of one voice irrespective of the size of the share brought by it, and this right cannot be transferred to other persons.

3. For the operational solution of the questions which are within the competence of general meeting of consumer societies (except questions of adoption of the charter, liquidation, reorganization and exit from the union), the meeting of representatives can be convened.

Section III. Unions of consumer societies

Article 8. Creation of the unions and their governing bodies

1. Consumer societies can unite on a voluntary basis in the local unions, the Central union of consumer societies of Ukraine and have the right of free exit from them.

Relations between consumer societies and their unions are under construction on a contract basis. Societies can delegate to the unions part of the powers and accomplishment of separate functions.

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