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LAW OF THE AZERBAIJAN REPUBLIC

of December 29, 2015 No. 97-VQ

About legal entities of the public law

(as amended on 06-10-2020)
Article 1. Circle of application of this Law

1.1. This Law according to Item 10 of part 1 of article 94 of the Constitution of the Azerbaijan Republic establishes rules of creation, activities and forming of public legal entities.

1.2. It is excluded.

Article 2. The concepts used in this Law

2.1. The public law - community of the legal regulations governing the relations connected with providing state and public concerns.

2.2. The public legal entity - the organization which is not the state or municipal body, engaged in the activities carrying nation-wide and (or) social significance, created on behalf of the state and municipality.

Article 3. Activities of the public legal entity

3.1. Public legal entities can be engaged in business activity only when these activities serve goal achievement, delivered during their creation and in their charters, and answers these purpose.

3.2. In case when it is provided in its charter, the public legal entity can create economic societies or take part in them.

3.3. The profit of the public legal entity can be transferred into the state and local budgets for the purposes which are not provided in the charter only for the decision of the founder.

3.4. In case of provision of services and implementation of the legal acts provided by the Law of the Azerbaijan Republic "About the state fee" the legal entity of the public law collects the state fee in the amount of and procedure, established by the specified Law.

Article 4. Creation of the public legal entity

4.1. The public legal entity on behalf of the state is created by the relevant organ (structure) established by executive body, and on behalf of municipality relevant organs of municipality.

4.2. It is excluded according to the Law of the Azerbaijan Republic of 12.07.2019 No. 1655-VQD

4.3. Other questions connected with creation of the public legal entity are regulated by the Civil code of the Azerbaijan Republic taking into account the features established by this Law.

4.4. The public legal entity acquires the status of the legal entity after state registration of the executive authority by relevant organ according to the procedure, established by the Law of the Azerbaijan Republic "About state registration of legal entities in the state register". Registration of the legal entity of the public law created by relevant organ of the executive authority is carried out and in case members of its governing bodies are not appointed en banc.

Article 5. Legal capacity of the public legal entity

5.1. The public legal entity has the civil laws and performs civil duties from the moment of state registration, legal capacity of the public legal entity stops from the moment of completion of its liquidation.

5.2. The public legal entity can be engaged only in those activities which are provided in its charter.

5.3. It is excluded

5.4. The legal entity of the public law cannot be announced by insolvent.

Article 6. Charter of the public legal entity

6.1. The model charter of the public legal entity on various spheres can be established by relevant organ of the executive authority.

6.2. In the charter of the public legal entity the following is specified:

6.2.1. the name, location and that is public legal entity;

6.2.2. procedure for adoption of the charter and entering of amendments into it;

6.2.3. activities, rights and obligations;

6.2.4. procedure for management;

6.2.5. sphere of influence and form of control over the public legal entity;

6.2.6. authorized capital;

6.2.7. sources of forming of property, basis, absence or availability of regulated prices for products (goods, works, services) legal entity of the public law of financial activities;

6.2.8. creation of economic societies, occupation business activity or the right of participation in them (in case of its availability);

6.2.8-1. provision, stipulated in Article 6.4 presents of the Law;

6.2.9. procedure for informing public on activities of the public legal entity;

6.2.10. procedure for liquidation and reorganization.

6.3. The charter of the public legal entity created on behalf of the state the charter affirms relevant organ of the executive authority, and the charter of the public legal entity created on behalf of municipality the charter affirms the relevant municipality.

6.4. Employees of the legal entity of the public law created by relevant organ of the executive authority who in the cases provided by the Law of the Azerbaijan Republic "About the state fee" provide services in connection with registration of dispositive facts (perform legal acts), in the case provided by the charter are equated to government employees.

Article 7. Property of the public legal entity

7.1. The authorized fund of the public legal entity is created at the expense of the property given by the founder (founders).

7.2. The property of the public legal entity can be created of authorized fund, other property transferred to it from founders and also the funds allocated from the state or local budgets, the receipts received from the works and services, donations, grants and other means arriving from the sources determined by the charter rendered according to activity.

7.3. The procedure the public legal entity of the property right to the property, rights to use and orders is established by it its charter.

7.4. The property transferred to the public legal entity respectively by the state and municipality is used by it only according to the purposes determined in the charter.

7.5. It is excluded

7.6. It is excluded

Article 8. Management

8.1. The procedure for management of the public legal entity is determined by its charter.

8.2. The following belongs to powers of the founder of the public legal entity:

8.2.1. approval of its charter and determination of the size of its authorized fund, modification of them;

8.2.2. creation of governing bodies;

8.2.2-1. position assignment and dismissal of heads (members) of governing bodies;

8.2.3. determination of the directions of development, approval of annual financial reports;

8.2.4. approval of structure, salary fund, limit of number of workers and size of their salary (including salary supplements, awards and other payments);

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