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of June 14, 2016 No. 270-VQ

About agricultural cooperation

(as amended on 05-03-2024)

According to Item 1 of part 1 of article 94 of the Constitution of the Azerbaijan Republic, this law determines legal and economic bases of forming and development of agricultural cooperation, creation and activities of agricultural cooperatives.

Chapter 1. General provisions

Article 1. Basic concepts

1.1. The basic concepts used in this Law express the following values:

1.1.1. agricultural cooperation - the joint voluntary activities performed by producers of agricultural products by means of agricultural cooperatives and their unions for the purpose of satisfaction of the material and social requirements;

1.1.2. agricultural cooperative (further - cooperative) - the legal entity, being the voluntary merging of producers of agricultural products based on membership for joint activities, created for the purpose of satisfaction of material and social needs of participants by consolidation of shares of property of his members;

1.1.3. agricultural production cooperative (further - production cooperative) - the legal entity created by merging of producers of agricultural products, the being legal entities for accomplishment of the joint productive and other economic activity based on participation by personal labor for the purpose of profit earning;

1.1.4. agricultural consumer cooperative (further - consumer cooperative) - the legal entity created by merging of producers of agricultural products, the being physical and (or) legal entities for the organization of the services directed to reduction of expenses and (or) increase in profit of the members during activities in the field of agricultural industry and protection of their economic interests;

1.1.5. Agricultural production consumer cooperative (further - production consumer cooperative) - the legal entity created for carrying out the joint economic activity connected with production, collection, processing and realization of agricultural products, providing members with means of production and material resources, providing of services to them for the purpose of satisfaction of economic, social and other requirements;

1.1.6. The producer of agricultural products - the physical person or legal entity which is the producer of commodity agricultural products;

1.1.7. Participation of cooperative in economic activity - sending to cooperative members of cooperative of products, raw materials, purchase of goods from cooperative, use of services of cooperative.

1.2. Other concepts used in this Law express the values established by the Civil code of the Azerbaijan Republic and other regulatory legal acts.

Article 2. Legislation on agricultural cooperation

2.1. The legislation on agricultural cooperation consists of the Constitution of the Azerbaijan Republic, the Civil Code of the Azerbaijan Republic, the Land legislation of the Azerbaijan Republic, the Law of the Azerbaijan Republic "About environmental impact assessment" and other normative legal acts corresponding to it.

2.2. In case of difference of the regulations established in the field of agricultural cooperation in international treaties which supporter is the Azerbaijan Republic from the regulations provided in this Law regulations of international treaties are applied.

Article 3. Law purposes

The purposes of this Law are creation of large agricultural enterprises on the basis of voluntary merging of producers of agricultural products, production competitive agricultural products with rational use of their potential production and performance improvement, to give impetus to forming and development of agricultural cooperation, protection of economic, social and other interests of participants of cooperation.

Chapter 2. Cooperatives

Article 4. Basic principles of the organization and activities of cooperative

4.1. Membership in cooperative voluntary is also opened for everyone who assumes obligations established by its charter.

4.2. The cooperative is controlled on democratic basis and control over its activities is exercised by his members. Members of cooperative have the identical right to vote (1 member - 1 voice).

4.3. Members of cooperative participate in its economic activity, forming of share fund and the capital, income distribution on identical basis.

4.4. Cooperatives are effective freely and independently, for development of cooperative and interests of his members they have the right to conclude different bargains with the state, municipal, private and non-governmental organizations.

4.5. For the purpose of ensuring effective development of cooperative, cooperatives create conditions to the members and workers for education and training, show care and give them support in social protection.

4.6. Members of cooperative have the rights to receipts of information on activities of cooperative according to the procedure, provided by the law. Cooperatives periodically inform the members on the activities.

4.7. Cooperatives for the purpose of own development and for the benefit of the members effectively cooperate with each other, and also in the unions of cooperatives of different level.

4.8. Cooperatives are created at the expense of means of founders, build the activities on the principles of self-financing and self-financing.

4.9. Creation of cooperatives, membership in cooperative, the rights and obligations of members, property of cooperative, shares of members and payevy fund of cooperative, profit of cooperative and its distribution, property responsibility of cooperative and its members, management in cooperative, the terminations of membership and assignment of share, reorganization and liquidation of cooperative, and also other questions connected with activities of cooperative, which are not provided by this Law are regulated by the Civil code of the Azerbaijan Republic and the charter of cooperative.

Article 5. Types and activities of cooperatives

5.1. Depending on nature of activities cooperatives can have production, consumer, and is production - consumer types.

5.2. With indication of in the brand name of cooperative hind legs of its activities are stood that the cooperative is agricultural.

5.3. For the purpose of coordination of the activities, and also protection and representation of the common interests cooperatives can create the unions (associations) of agricultural cooperatives. One cooperative can become the member in several unions of cooperatives with multidirectional activities.


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