Accepted at the tenth plenary session of Inter-parliamentary Assembly of the State Parties of the CIS by the resolution of December 6, 1997, No. 10-18

MODEL LAW

About cooperatives and their associations (unions)

This Law determines general legal, organizational, economic and social basis of creation and activities of cooperatives and their associations (unions) taking into account the cooperative principles and values conventional by the world community. It provides to citizens the right of the voluntary accession to cooperative and free exit from it, participation in administration of cooperative.

Chapter 1. General provisions

Article 1. Basic concepts

In this Law the following concepts are used:

cooperative - voluntary consolidation of citizens on the basis of membership for the purpose of satisfaction of the material and other requirements by the organization on democratic principles of the joint activities provided by the charter and associations by his members of property (share) fees. By constituent documents of cooperative participation in cooperative on the basis of membership as well legal entities can be provided;

production cooperative - voluntary consolidation of citizens on the basis of membership for the purpose of satisfaction of the material and other requirements by the organization on democratic principles of the joint productive and other economic activity based on personal labor participation and associations by his members of property (share) fees;

consumer cooperative - voluntary consolidation of citizens on the basis of membership for the purpose of satisfaction of the material and other requirements by the organization on democratic principles of the joint activities provided by the charter and associations by his members of property (share) fees. Personal labor participation of members of consumer cooperative in its activities is not obligatory;

the member of cooperative - the physical person which is meeting requirements of the charter of cooperative, contributed introductory and share in the established size and procedure and accepted in cooperative with voting power;

share (share) - fee of the member of cooperative in share fund the money, property or property rights having money value;

the admission fee - the sum of money directed to covering of the expenses connected with the accession to cooperative;

share fund - the fund consisting of the shares brought by members of cooperative during creation of cooperative or the introduction in it and which are one of sources of forming of property of cooperative;

the reserve fund - fund which is intended for covering of losses from force majeure and procedure for forming and which use is determined by the charter of cooperative or union of cooperatives;

indivisible fund - part of property of cooperative or union of cooperatives which is not subject to distribution between members and procedure for forming and which uses it is determined by the charter of cooperative or union of cooperatives;

cooperative payments - the part of the income of cooperative distributed between his members it is pro rata to their personal labor participation or participation in economic activity of cooperative, and also on other conditions provided by the charter;

participation in economic activity of cooperative - purchase of goods in cooperative, delivery to it products and raw materials, use of services of cooperative or other participation in its economic activities as the consumer, the supplier or the client.

Article 2. Basic principles of creation and functioning of cooperative

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

- voluntariness of membership in cooperative;

managements of activities of cooperative on democratic principles (one member of cooperative - one voice, selectivity of governing bodies and their accountability before general meeting of members of cooperative);

- mutual assistance and providing economic benefit for members of cooperative;

- autonomies and independence;

- creations of conditions for increase in educational level and qualification of the members, availability of information; cooperation between cooperatives of different types.

2. The cooperative is legal entity. It has the following competences:

- have the representations, branches, to create economic societies, organizations and to perform the rights in relation to them according to the procedure, established by the legislation;

- perform all types of activity provided by this Law, and other types of activity which are not prohibited by the legislation;

- have in property, buy or to otherwise acquire, sell, pledge and perform other corporeal rights to the property 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 and the charter;

- create share, indivisible, reserve and other funds of cooperative, make investments in banks and other credit institutes, in securities and other property;

- raise borrowed funds from members of cooperative and other citizens, also to issue monetary credits and advance payments to members of cooperative;

- perform foreign economic activity according to the procedure, established by the legislation;

- appeal judicially acts of state bodies and local government bodies, the actions of their officials violating the rights of cooperative;

Disclaimer! This text was translated by AI translator and is not a valid juridical document. No warranty. No claim. More info