What is a cooperative

Our country is returning to the long tradition of creating and developing cooperatives. Even before the revolution, Russia occupied the first place in the number of such unions, and now they are gaining special popularity. For many enterprises, the need arises to unite with their competitors in order to increase profits and not go bankrupt.

A cooperative is an association of organizations or people with the aim of cooperation in the production and marketing of products, the purchase and consumption of goods and services, the operation and construction of residential premises and houses. The association is a legal entity that exists through self-government and self-financing. The property of the cooperative is created on the basis of shared participation of all members. In addition, as a result of the work, the cooperative makes a profit and buys new property. The main specifics of the cooperative is any participation of its members.

To achieve the goals in the cooperative, a common fund is created. In it, each participant contributes his share of the funds (share). It is the shareholders who manage the work of the cooperative and take responsibility for all the risks and results of the organization.

Today, there are several types of cooperatives. The most common are production associations. They are created for the purpose of joint production or economic activity. Each member of the company participates in the work of the organization (by share contributions or personal labor participation).

In order to satisfy the material or other needs of shareholders without obtaining joint profit, consumer cooperatives are created. They can be trade, service, horticultural, insurance and so on. For example, a garage-building society unites owners of garages, and a credit cooperative unites people to provide financial assistance.

The activities of production cooperatives are regulated by the Federal Law of the Russian Federation of May 8, 1996. A constituent document called a charter should be created for each cooperative. It should describe the size and procedure for making a share, the responsibility of each member of the organization and the nature of their participation in the work of the cooperative. The activities of consumer cooperatives are regulated by the law of Russia under the name "On Consumer Cooperation in Russia", which was adopted in 1992.