See more
Publication date: 28.05.2024
I am studying in the third year of the State University of Economics and Technology.I specialize in contractual, economic and corporate law, in particular, I provide consultations and write articles.
A consumer cooperative is a legal entity that unites consumers in order to satisfy their needs for various goods or services. The basic idea of consumer cooperatives is for people to join together to buy goods or services at wholesale prices, to have access to quality products and services, and to receive a limited share of the profits or dividends from the cooperative's activities.
The main characteristics of consumer cooperatives include:
Membership: Consumer cooperatives are based on the principle of membership, where any person who wants to use the services or products of the cooperative can become a member.
Democratic management: Each member of the consumer cooperative has the right to vote at the general meeting and can be elected to the management bodies of the cooperative. Decision-making is usually carried out on the basis of the principle "one member - one vote".
Economies of scale: Consumer cooperatives allow their members to obtain goods or services at wholesale prices by combining orders and purchasing goods in large quantities.
Level of service and product quality: Generally, consumer cooperatives ensure that their members receive quality goods or services at competitive prices.
Management bodies of the consumer cooperative:
General meeting: the highest governing body of the cooperative, at which key decisions regarding the strategy, policy and activities of the cooperative are made. At the general meeting, members of the cooperative have the right to vote and can express their views on issues related to the activities of the cooperative.
Executive body: responsible for the general management and leadership of the cooperative. He makes decisions on issues related to daily activities, financial management, personnel policy, etc.
Supervisory board: responsible for compliance with the charter of the cooperative by all its members. It ensures compliance with financial discipline and detects possible financial deficiencies or abuses. If the number of members in the cooperative exceeds 50 people, then it can create a supervisory board.
Constituent document of the consumer cooperative:
The charter of a consumer cooperative is a key document that defines the rules of operation and organization of the cooperative. Here is the general structure and content that can be included in the articles of association of a consumer cooperative:
1. Name and location: Establish the official name and legal address of the cooperative.
2. Purpose and Objectives: Define the primary purpose and objectives of the cooperative, specifically what it aims to achieve through the cooperative activities of the members.
3. Forms and types of activities: Describe the types of activities that a cooperative can carry out within the scope of its activities.
4. Membership and rights of members: Establish the terms of admission and withdrawal from the cooperative, as well as the rights and obligations of its members.
5. Management bodies: Describe the composition, competence and procedures for the election of the management bodies of the cooperative, such as: general meeting, executive body, supervisory board.
6. Financial issues: Determine the procedure for formation and use of cooperative capital, profit distribution, terms of membership and payment of membership fees.
7. Procedures for changes and termination of operations: Establish procedures for amendments to the charter, dissolution of the cooperative, and distribution of property among its members in the event of termination of operations.
Creating a consumer cooperative usually includes the following steps:
1. Formulation of the idea and purpose: Determine the main purpose and goals of your consumer cooperative. This could be purchasing goods or services together, gaining access to quality products at wholesale prices, or any other purpose that suits your group's needs. Involve other people who have an interest in your idea of creating a cooperative. These can be potential users of services, consumers of goods or people who share your goals and values.
2. Drafting of articles of incorporation (founding agreement): Create a founding document that defines the purpose of the cooperative, the rights and responsibilities of its members, management procedures, and other important aspects. The statute must meet the requirements of the current legislation.
3. Defining the governance structure: Establish the cooperative's governing bodies, such as general meetings, boards, and audit committees. Define procedures for selecting managers and making decisions.
4. State registration of the cooperative: Register the consumer cooperative in accordance with the requirements of the law. This may include filing the necessary documents with the state registrar.
Legal services for business when creating a consumer cooperative:
A business lawyer may be needed at any of the above-described stages of the creation of a cooperative, because the compliance of the founding documents, activities and other aspects with current legislation largely affects the effectiveness of the legal entity. The lawyer for business will ensure proper legal protection of business against illegal actions of regulatory bodies, law enforcement officers, and counterparties.
