Production cooperatives

An enterprise is an economic entity thatestablished in accordance with the law for the provision of services, production, performance of any work in order to meet the needs of society and profit.

There are some organizational and legal forms:

1. Partnership (full, limited).

2. Society (joint-stock company, with additional responsibility, limited liability).

3. Production cooperatives.

4. Unitary enterprises.

A production cooperative is an association of persons,created for the purpose of joint conduct of any entrepreneurial activity, which is based on their personal labor participation. The initial capital consists of the share contributions of each of the participants. Production cooperatives should consist of five or more people. In this case, they may not have the status of individual entrepreneurs.

Initial contributions of all members of the cooperative are notmust be equal. However, when solving various issues, they have the same rights. The distribution of profits is made according to their labor participation. In the event of withdrawal from the cooperative, each member is entitled only to payment of the unit (its initial contribution).

Production cooperatives have the following management system:

• general meeting;
• supervisory board;
• executive bodies (board, chairman).

Production cooperatives give theirparticipants the right to independently withdraw from it or transfer their personal share to another member of the cooperative. The transfer of a share to a third party is solely with the consent of the general meeting.

Exclude from the cooperative can only in the event of failure to perform their direct duties. In addition, only the general meeting can do this.

One of the most common varietiessimilar organizations is an agricultural production cooperative. Its activities are based on the personal labor participation of each member for the purpose of producing, processing and / or marketing agricultural products.

The supreme body is the general meeting. The amount of the contribution must be 10% of the share. The remaining amount is paid throughout the year. The profit resulting from the activities of the agricultural cooperative is paid to its members, depending on the degree of labor participation. At the same time (according to the legislation) at least half of the works should be carried out by the members of the cooperative.

A common organizational formare unitary enterprises. To their distinctive features first of all it is necessary to attribute the fact that the property belonging to them (state or municipal) is not divided in any way.

The unitary enterprise is headed by the head. It can be a director or a general director. It is appointed by the owner or authorized body. The head is the sole executive body and acts on the basis of the employment contract concluded with him. His duties include the following:

• conclusion of contracts;
• opening of bank accounts;
• issuing powers of attorney;
• drawing up orders for employees of the enterprise;
• organization of implementation of decisions of the owner of the enterprise.

Due to the fact that the property of unitaryenterprises state or municipal, the legislation restricts their rights and opportunities. This is done in order to avoid various abuses.

Unitary enterprises can not be (according tocurrent legislation) by participants of credit institutions. Participate in the activities of commercial, non-profit organizations, as well as dispose of property manager has the right only with the consent of the owner.

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