LAW OF THE KYRGYZ REPUBLIC

of June 11, 2004 No. 70

About cooperatives

Accepted by General Court of Jogorku Kenesh of the Kyrgyz Republic on April 30, 2004

This Law determines legal and economic basis of education and activities of cooperatives of the Kyrgyz Republic and their unions.

The relations connected with education and activities of cooperatives and their unions are regulated by this Law and other regulatory legal acts of the Kyrgyz Republic.

Chapter I. General provisions

Article 1. The concepts used in this Law

In this Law the following concepts are used:

1. Cooperative - voluntary consolidation of physical persons and legal entities on the basis of membership for the purpose of satisfaction of the economic and other requirements.

2. Agricultural cooperative - voluntary consolidation of agricultural producers on the basis of membership for the joint productive or other economic activity based on combining of their property shares having money value for the purpose of satisfaction of economic and other needs of members of cooperative.

2-1. Housing or housing and operational cooperative - the voluntary consolidation of owners of residential and non-residential premises on the basis of membership for management of common property of the apartment house based on combining of their property shares having money value.

2-2. Housing cooperative - the voluntary consolidation of physical persons and legal entities on the basis of membership for construction of the apartment house or housing estate created according to the procedure, established by the legislation of the Kyrgyz Republic.

3. The member of cooperative - the physical and (or) legal entity meeting requirements of this Law and the charter of cooperative.

4. The worker - person who is involved for work in cooperative for certain specialty, qualification or position.

5. Share (share) - fee of the member of cooperative in share fund of cooperative money, and also property. The share can be obligatory and additional.

6. Obligatory share - the share of the member of cooperative brought without fail.

7. Additional share - the share of the member of cooperative brought by it voluntarily over obligatory share.

8. The dividend - the part of net profit of cooperative paid on shares of members of cooperative according to the procedure, established by this Law and the charter of cooperative.

9. Cooperative payments - the part of the income of cooperative distributed between his members it is pro rata to their participation in economic activity of cooperative, on the conditions provided by the charter.

10. Share fund - the fund consisting of the shares brought by members of cooperative.

11. The fund for emergency situations - fund which is intended for covering of losses from force majeure procedure for forming and which use is determined by the charter of cooperative.

12. The reserve fund - fund which is intended for providing others except covering of losses from emergency situations, requirements of cooperative, procedure for forming and which use is determined by the charter of cooperative.

13. Participation in economic activity of cooperative - deliveries by members of cooperative of products, raw materials, acquisition of goods by them in cooperative, use of services of cooperative or other participation in economic activity of cooperative provided by its charter.

14. Equity of cooperative - the part of property of cooperative created at the expense of shares of members of cooperative, the created funds and retained earnings.

Article 2. Basic principles of education and activities of cooperative

The cooperative is formed and performs the activities on the basis of the following principles:

- voluntariness of membership in the cooperative and free exit from it according to the procedure established by the charter of cooperative;

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

- managements of activities of cooperative on democratic principles;

- purposes of cooperative for the most complete satisfaction of economic needs of his participants;

- preserving economic and economic independence of members of cooperative;

- creations of conditions for increase in educational level of members of cooperative;

- availability of information on activities of cooperative and its financial condition for his members, according to the procedure, established by the charter of cooperative.

Article 3. Cooperatives

1. Cooperatives are created by physical persons and legal entities on voluntary basis for implementation of the joint economic and other activity provided by the charter of cooperative.

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