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LAW OF TURKMENISTAN

of March 30, 2007 No. 113-III

About daykhansky associations (new edition)

(as amended on 13-11-2021)

This Law determines economic, legal and social basis of creation and activities of daykhansky associations.

Chapter I. General provisions

Article 1. Daykhansky consolidation

Daykhansky consolidation is the legal entity created for the organization and conducting agricultural production, based on the mixed (joint) property.

Article 2. Tasks of daykhansky consolidation

The main objectives of daykhansky consolidation are:

- production, conversion and realization of agricultural products;

- the effective organization of agricultural production within own property and powers;

- accomplishment of contractual commitments on main types of agricultural products;

- expanded reproduction on the basis of rational use of the earth assigned to it and other natural resources;

- development and strengthening own production and material and technical resources, implementation in agricultural production of achievements of scientific and technical progress, the best practices and the latest technologies, effective use of the entered objects for storage and conversion of agricultural raw materials and production on its basis of finished goods;

- realization of the organizational and economic measures promoting development of production and labor associations and agro-industrial associations in agricultural industry;

- creation in the village of new workplaces by development of the companies, network of workshops on conversion of local raw materials and production wastes, constructions of greenhouses, and also creations of forming on servicing of rural population;

- improvement of working conditions and life of rural population.

Article 3. Membership in daykhansky consolidation

1. The citizens who reached 18 years, irrespective of residence, the associations which are directly participating in productive activity can be members of daykhansky consolidation.

2. Membership in daykhansky consolidation is voluntary. Membership in daykhansky consolidation arises based on the submitted application.

3. Members of daykhansky associations for the purpose of rational use of land and water resources on adjacent acreage, introductions of crop rotation and increase in efficiency of all agrotechnical actions can voluntarily unite in groups of lessees.

Article 4. Legislation on daykhansky consolidation

The relations connected with creation and activities of daykhansky consolidation are regulated by this Law, the standard Charter of daykhansky consolidation approved by the Cabinet of Ministers of Turkmenistan including the provisions connected with the matters, and also other regulatory legal acts of Turkmenistan.

Chapter II. Bases of economic activity of daykhansky consolidation

Article 5. Economic basis of activities

1. The economic basis of activities of daykhansky consolidation is constituted:

- the earth transferred by the state to use, fixed assets and other property;

- money and other financial assets;

- products made as a result of economic activity;

- the gained income;

- other material values acquired on the bases which are not prohibited by the law.

2. The earth, fixed assets and other property transferred by the state to daykhansky consolidation belong to it respectively on right to use and complete economic maintaining, and they are not subject to the Section.

3. The material values acquired by daykhansky consolidation at the expense of own means the gained income, and also products being at the command associations, are its property.

Article 6. Financial basis of activities and credit relations

1. Financial resources of daykhansky consolidation are created due to assignments from the income of lessees and other producers and land users in the amounts determined by the Cabinet of Ministers of Turkmenistan, and also income gained from all types of own activities, the credits, loans and other receipts which are not prohibited by the legislation of Turkmenistan.

2. Daykhansky consolidation independently uses the financial resources belonging to it and provides timely accomplishment of obligations by calculations.

3. Daykhansky consolidation has the right to create the special trust funds of development of production, social development and reserve funds at the expense of the income, intending them for use for the purpose of financial provision of expanded reproduction.

4. Tax payment, and also other obligatory payments is performed according to the legislation of Turkmenistan.

5. Daykhansky consolidation can allocate from the funds of social development, reserve fund for the corresponding Gengesh's account of means, constructions intended for financing and repair of objects social and domestic in the villages located in the territory of the gengeshlik, according to the procedure, determined by the Cabinet of Ministers of Turkmenistan.

Article 7. Prices and pricing

1. Products made by daykhansky consolidation are implemented on market and state purchase prices.

2. The state purchase prices and the list of the types of products realized at these prices are established by the Cabinet of Ministers of Turkmenistan.

3. The lessee after accomplishment of contractual and other commitments can sell products remaining at its order on free market prices.

Article 8. Organization of economic activity of daykhansky consolidation

1. Daykhansky consolidation independently chooses the direction of the activities and plans it according to contractual commitments for production and purchase of the main agricultural products taking into account perspectives of own development.

2. For accomplishment of contractual commitments the relevant ministries and departments will organize in accordance with the established procedure on paid basis ensuring daykhansky associations with the mechanized services, fertilizers, water resources, other necessary means.

3. The organizations rendering services to daykhansky associations in providing with the water, seeds, fertilizers, chemicals mechanized by processing of lands and harvesting in case of untimely and not in full accomplishment of contractual commitments, and it is equal also daykhansky associations in case of creation of the obstacles in organization activity servicing them bear responsibility according to the procedure, established by the legislation of Turkmenistan.

4. Daykhansky consolidation has the right to provide to members of consolidation the earth, the cattle and other resources in lease on conditions and according to the procedure, stipulated by the legislation Turkmenistan.

5. Economic relations of production of daykhansky consolidation with physical persons and legal entities are performed on contractual basis according to the procedure, established by the legislation of Turkmenistan.

6. Bases of confirmation of bankruptcy of daykhansky consolidation or the announcement by his bankrupt are determined by the Law of Turkmenistan "About bankruptcy".

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