FEDERAL LAW OF THE RUSSIAN FEDERATION

of December 8, 1995 No. 193-FZ

About agricultural cooperation

Accepted by the State Duma on November 15, 1995

Approved by the Federation Council on November 28, 1995

This Federal Law determines legal and economic basis of creation and activities of the agricultural cooperatives and their unions constituting system of agricultural cooperation of the Russian Federation.

This Federal Law guarantees to citizens (physical persons) and legal entities the right to creation and the state support of agricultural cooperatives and their unions (associations).

The relations connected with creation and activities of agricultural cooperatives and their unions (associations) are regulated by this Federal Law, the Civil code of the Russian Federation, the land legislation of the Russian Federation, other Federal Laws, the laws and other regulatory legal acts of subjects of the Russian Federation.

Chapter I. General provisions

Article 1. Basic concepts

In this Federal Law the following basic concepts are used:

agricultural cooperation - system of agricultural production and agricultural consumer cooperatives and their unions;

agricultural cooperative - the organization created by agricultural producers and (or) the citizens conducting personal subsidiary farms on the basis of voluntary membership for the joint productive or other economic activity based on combining of their property shares for the purpose of satisfaction of material and other needs of members of cooperative. The agricultural cooperative (further also - cooperative) can be framed in the form of agricultural production cooperative (further also - production cooperative) or agricultural consumer cooperative (further also - consumer cooperative);

the member of cooperative - the physical person or the physical person or legal entity which is taking part in economic activity of consumer cooperative which are meeting requirements of this Federal Law and the charter of cooperative taking personal labor part in activities of production cooperative brought share in the size and procedure established by the charter of cooperative accepted in cooperative with voting power and bearing subsidiary responsibility according to obligations of cooperative;

the associated member of cooperative - the physical person or legal entity which brought share on which it receives dividends bearing risk of the losses connected with activities of cooperative within the cost of the share and the having right to vote in cooperative taking into account the restrictions established by this Federal Law and the charter of cooperative;

subsidiary responsibility of members of cooperative - responsibility of members of cooperative, additional to responsibility of cooperative for its obligations and arising in case of impossibility of cooperative at the scheduled time to meet requirements of creditors imposed to it. The sizes and conditions of subsidiary responsibility of members of cooperative are determined by this Federal Law and the charter of cooperative;

agricultural producer - the physical person or legal entity performing production of agricultural products which constitute in value term more than 50 percent of total amount of the made products, including fishing artel (kolkhoz), production of agricultural products, including fish products, and catch of water biological resources in which is made in value term by more than 70 percent of total amount of the made products;

the worker - person who is involved according to the employment contract (contract) for work on certain specialty, qualification or position;

share of the member of cooperative - property fee of the member of cooperative or the associated member of cooperative in share fund of cooperative the money, the parcels of land, land and property shares or other property or property rights having money value. The share of the member of cooperative can be obligatory and additional;

obligatory share - the share of the member of cooperative brought without fail and granting voting power and the participation right in activities of cooperative on use of its services and privileges provided by the charter of cooperative and for receipt of the relying cooperative payments;

additional share - the share of the member of cooperative brought by it voluntarily over obligatory share on which he receives dividends in the amount of and according to the procedure which are provided by this Federal Law and the charter of cooperative;

share - the part of property of cooperative reflecting the amount of participation of the member of cooperative or the associated member of cooperative in formation of property of cooperative and considered in value term. The share of the member of cooperative consists of its share and the developped share. The share of the associated member of cooperative is equal to its share;

the developped share - the part of share of the member of cooperative created over its share due to cooperative payments or other means of cooperative and settled according to the procedure, provided by this Federal Law;

share fund - the amount of shares of members of cooperative and associated members of cooperative in terms of money;

the dividend - the part of profit of cooperative paid on additional shares of members and shares of associated members of cooperative in the amount of, established by this Federal Law and the charter of cooperative;

cooperative payments - the part of profit of cooperative distributed between his members it is pro rata to their personal labor participation or participation in economic activity of cooperative;

participation in economic activity of cooperative - delivery to cooperative of products, raw materials by members of cooperative, acquisition of goods by them in cooperative, use of services of cooperative, including receipt of loans and saving of money in agricultural credit consumer cooperative (further - credit cooperative);

fixed fund capital of cooperative - the part of property of cooperative which is not subject during existence of cooperative to the Section on shares of members of cooperative and associated members of cooperative or payment in case of the termination by them of membership in cooperative and used on the purposes determined by the charter of cooperative;

personal labor participation - the participation of the member of cooperative in activities of production cooperative expressed by the number of the days worked him in cooperative or the amount of compensation or amount of the performed work or the made products during this or that period;

self-regulatory organization of the auditing unions of agricultural cooperatives (further also - self-regulatory organization) - the non-profit organization created in the form of consolidation (association, the union) the auditing unions of agricultural cooperatives and conforming to requirements of this Federal Law;

the self-regulatory organization in the field of the financial market combining credit cooperatives - self-regulatory organization which is framed according to the procedure, No. 223-FZ provided by the Federal Law of July 13, 2015 "About self-regulatory organizations in the field of the financial market" and which members are credit cooperatives.

Article 2. Basic principles of creation and functioning of cooperative

The cooperative is created and functions on the basis of the following principles:

voluntariness of membership in cooperative;

mutual assistance and providing economic benefit for the members of cooperative participating in its productive and other economic activity;

profit distribution and losses of cooperative between his members taking into account their personal labor participation or participation in economic activity of cooperative;

restrictions of participation in economic activity of cooperative of persons which are not his members;

restrictions of dividends on additional shares of members and shares of associated members of cooperative;

managements of activities of cooperative on democratic principles (one member of cooperative - one voice);

availability of information on activities of cooperative to all his members.

Article 3. Agricultural production cooperatives

1. Agricultural production cooperative the agricultural cooperative created by citizens for joint activities for production, conversion and sale of agricultural products, and also for accomplishment of other activities which are not prohibited by the law based on personal labor participation of members of cooperative is recognized.

2. The production cooperative is the commercial organization. Types of production cooperatives are the collective farm (kolkhoz), fishing artel (kolkhoz) and cooperative farm (further - koopkhoz), and also other cooperatives created according to requirements, stipulated in Item 1 this Article.

3. Collective or fishing farm (kolkhoz) the agricultural cooperative created by citizens on the basis of voluntary membership for joint activities for production, conversion, sale of agricultural products, including fish products, and also for other activities which are not prohibited by the law by voluntary consolidation of property shares in the form of money, the parcels of land, land and property shares and other property of citizens and their transfer to share fund of cooperative is recognized. For members of agricultural and fishing artels (kolkhozes) personal labor participation in their activities is obligatory, at the same time their members are agricultural producers irrespective of the functions which are carried out by them. The trade name of collective or fishing farm (kolkhoz) shall contain its name and the words "collective farm" or "kolkhoz" or "fishing artel" or "fishing kolkhoz". Other requirements to trade name of collective or fishing farm (kolkhoz) are established by the Civil code of the Russian Federation.

4. Koopkhoz the agricultural cooperative created by the heads of peasant farms and (or) citizens conducting personal subsidiary farms on the basis of voluntary membership for joint activities for processing of the earth, production of animal production or for accomplishment of other activities connected with production of agricultural products and based on personal labor participation of members of koopkhoz and consolidation of their property shares in the amount of and procedure established by this Federal Law and the charter of koopkhoz is recognized. At the same time the parcels of land which are in property of members of peasant farms or the citizens conducting personal subsidiary farms and the right of lease of the parcels of land used by them based on the lease agreement, except for the lands intended for all-cooperative needs are not contributed to share fund of koopkhoz. The trade name of koopkhoz shall contain its name and the word "koopkhoz". Other requirements to trade name of koopkhoz are established by the Civil code of the Russian Federation.

5. The number of members of production cooperative shall be at least five.

6. The number of persons employed of production cooperative (except for the workers occupied on seasonal works) shall not exceed number of members of this cooperative.

Article 4. Agricultural consumer cooperatives

1. Agricultural consumer cooperative the agricultural cooperative created by agricultural producers and (or) the citizens conducting personal subsidiary farm on condition of their obligatory participation in economic activity of consumer cooperative is recognized.

2. Consumer cooperatives are non-profit organizations and depending on type of their activities the sales (trade), servicing, supplying, crop, livestock and other cooperatives created according to requirements, stipulated in Item 1 this Article for accomplishment of one or several of the types of activity specified in this Article are subdivided on processing. The agricultural consumer cooperative can implement on the parcel of land used by it from lands of agricultural purpose self-produced agricultural products with use of the rooms located in capital construction projects, non-capital structures, constructions, construction which reconstruction and operation are allowed on this parcel of land in accordance with the legislation of the Russian Federation, or non-stationary shopping facilities on condition of placement of such objects on this parcel of land which is not relating to agricultural holdings, without work, connected with violation of soil layer of the parcel of land.

Requirements to the rooms specified in this Item are established by the legislation in the field of ensuring sanitary and epidemiologic wellbeing of the population.

3. The consumer cooperatives which are engaged in conversion of agricultural products treat the overworking cooperatives (production of meat, fish and dairy products, bakery goods, vegetable and fruit products, products and semifinished products from flax, cotton and hemp, leso-and timber and others).

4. Sales (trade) cooperatives perform sale of products, and also its storage, sorting, drying, washing, packing, packaging and transportation, conclude bargains, carry out sale market research, will organize advertizing of the specified products and another.

5. The servicing cooperatives perform the mechanized, agrochemical, reclamative, transport, repairing, construction works, and also services in research and production, legal and financial consultation, electrification, installation of telephones, sanatorium and medical attendance, issue of loans and to saving of money (credit cooperatives) and other works and services.

6. Supplying cooperatives are formed for the purpose of purchase and sale of means of production, fertilizers, limy materials, forages, oil products, the equipment, spare parts, pesticides, herbicides and other chemicals, and also for the purpose of purchase of any other goods necessary for production of agricultural products; testing and quality control of the purchased products; deliveries of seeds, young growth of the cattle and bird; productions of raw materials and materials and delivery to their agricultural producers; purchases and deliveries to agricultural producers of consumer goods necessary for them (food, clothes, fuel, medical and veterinary supplies, books and others).

7. Crop and livestock cooperatives are formed for rendering range of services on production, conversion and sales of products of crop production and livestock production.

8. Credit cooperatives are created for the purpose of the organization of financial mutual assistance of members of credit cooperatives and associated members of credit cooperatives by means of:

1) associations of shares of members of credit cooperatives and associated members of credit cooperatives, the funds raised in credit cooperatives in the form of the loans obtained from members of credit cooperatives and associated members of credit cooperatives, and other money according to the procedure, determined by this Federal Law, other Federal Laws and charters of credit cooperatives;

2) placements of 1 this Item of money specified in the subitem by providing loans to members of credit cooperatives for satisfaction of their financial requirements.

8.1. Full name of the credit cooperative performing activities, stipulated in Item the 8th this Article shall contain the word "credit".

9. Ceased to be valid

10. Ceased to be valid

11. The consumer cooperative is formed if at least two legal entities or at least three citizens are its part if other is not provided by this Federal Law. At the same time the legal entity who is the member of cooperative has one voice in case of decision making by general meeting.

12. Two and more production and (or) consumer cooperative can form consumer cooperatives of the subsequent levels, up to the All-Russian and international consumer cooperatives. Cooperatives of the previous level can only be members of cooperative of the subsequent level.

13. At least 50 percent of the amount of works (services) which are carried out by the servicing, overworking, sales (trade), supplying, crop and livestock cooperatives shall be performed for members of data of cooperatives.

14. The name of consumer cooperative shall contain specifying on main objective of its activities, and also the word "agricultural consumer cooperative".

Article 5. Unions (associations) of cooperatives

1. Cooperatives independently or together with other legal entities - agricultural producers - for the purpose of coordination of the activities, and also for the purpose of representation and protection of common valuable interests, implementation of audits of cooperatives, unions (associations) of cooperatives - members of the union (association) can create among themselves under the agreement associations in the form of the unions (associations) of cooperatives (further - the union (association), being non-profit organizations.

2. If according to the decision of members of the union (association) conducting business activity is assigned to the union (association), such union (association) will be transformed to economic society or to partnership according to the procedure, provided by the civil legislation, or can create economic society for implementation of business activity or can participate in such society.

3. Members of the union (association) keep the independence and the rights of the legal entity.

4. Constituent documents of the union (association) are the foundation agreemtn signed by his members, and the charter approved by them.

5. Members of the union (association) have the right to use gratuitously its services if other is not determined by this Federal Law.

6. The member of the union (association) has the right to leave at discretion the union (association) upon termination of financial year. In this case he bears subsidiary responsibility according to obligations of the union (association) in proportion to the fee within two years from the moment of exit.

7. The member of the union (association) can be excluded from it according to the decision of the remaining members of the union (association) in cases and according to the procedure which are established by constituent documents of the union (association). The rules relating to exit from the union (association) are applied to responsibility of the excluded member of the union (association).

8. Acceptance in the union (association) of new members is performed according to the procedure, provided by the charter of the union (association). The accession to the union (association) of new members can be caused by their subsidiary responsibility according to the obligations of the union (association) which arose to their introduction.

8.1. The unions (associations) have the right to create under the agreement among themselves associations in the form of the union (association) of the subsequent level, and in the cases provided by this Federal Law shall create the specified associations.

9. The name of the union (association) shall contain specifying on the main subject of its activities and the territory in which it performs the activities, with inclusion of the words "union of agricultural cooperatives" or "association of agricultural cooperatives", "union of fishing kolkhozes" or "association of fishing kolkhozes".

Article 6. Competences of cooperative

The cooperative created according to this Federal Law is legal entity and has the following competences:

create representations and branches, to perform the rights in the territory of the Russian Federation and beyond its limits;

perform the types of activity provided by articles 3 and 4 of this Federal Law, and other types of activity which are not prohibited by the law;

have in property, buy or to otherwise acquire, sell, pledge and perform other rights to property and the parcels of land including contributed to it in the form of share to share fund of cooperative, according to the procedure and on conditions which are established by the legislation of the Russian Federation and the legislation of subjects of the Russian Federation;

create reserve and other fixed fund capitals of cooperative and make investments of reserve fund in banks and other credit institutes, in securities and other property. Investments of reserve fund of credit cooperative are made only in the banks participating in system of compulsory deposit insurance in banks of the Russian Federation;

raise borrowed funds, and also issue monetary credits (loans) and advance payments to members of cooperative;

sign agreements, and also perform all rights necessary for goal achievement, provided by the charter of cooperative;

perform foreign economic activity according to the procedure, established by the legislation of the Russian Federation;

take a legal action or Arbitration Court with statements for recognition invalid (fully or partially) acts of the state and other bodies, and also with statements for illegality of actions of the officials violating the rights of cooperative;

perform reorganization or liquidation of cooperative.

Article 7. State and cooperatives

1. The state stimulates creation and supports activities of cooperatives by allocation of means by it from the federal budget and budgets of subjects of the Russian Federation for acquisition and construction of the overworking and servicing companies, creation of credit cooperatives based on developed plans and forecasts of development of the territories and target programs, performs scientific, personnel and information support.

2. In case of privatization of the state companies for conversion of agricultural products and to rendering services to agricultural producers the laws and other regulatory legal acts provide the privilege of agricultural consumer cooperatives to participation in privatization of data of the companies.

3. Public authorities and local government bodies have no right to interfere with economic, financial and other activities of cooperatives, except as specified, stipulated by the legislation the Russian Federation.

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