home · Efficiency · Producer cooperatives in brief. Producer cooperatives

Producer cooperatives in brief. Producer cooperatives

Cooperative is a society whose activities are aimed, in principle, not at generating income, but at providing assistance and assistance to members of society.

The founders of modern cooperatives are considered to be 28 workers from the city of Rochdale. (England). In 1844, saving a few pence a week, they collected an initial capital of 28 pounds, with which they rented a store and began a small trade in flour, oatmeal, sugar, butter and candles. The profits from this enterprise were divided among the members in proportion to the number of their purchases.

Such societies are called consumer cooperative societies. Along with them there are production cooperative societies created by producers. In Russia, cooperatives have become widespread primarily in production activities, in the service sector and in the trade and intermediary area. The cooperative form of entrepreneurship is characterized by the establishment close connection between the members of the cooperative and the cooperative itself. The cooperative is a legal entity, and therefore a subject of law.

In modern business practice, turnover cooperatives occupy a relatively small share, although they are common in many countries. This is explained by a number of circumstances, and primarily by the fact that at cooperative enterprises there is a tendency towards "decapitalization" of income, which reduces production efficiency, hampers the innovation process, and complicates structural transformations.

On the other hand, this form has clear advantages, among which one of the important ones is high motivation due to the unity of property and labor. But it only works if, instead of impersonal “collective property,” which essentially means the property of a collective, there is the property of the members of this collective. In the USA, for example, the term “employee-owned” is used to characterize such enterprises. It is much more accurate, since employee property is a type of private property, which differs from classical private property in that the owner necessarily simultaneously works at the enterprise of which he is a co-owner, and there is a certain mechanism that ensures his participation in the management of the enterprise.

It should be noted that in the United States, employee ownership is transformed into private rather than public ownership. Moreover, this process is strongly encouraged, since, according to available data, labor productivity in employee-owned enterprises is on average 10% higher than in other types of enterprises. In recent years, the US Congress has adopted more than 20 federal laws, in one form or another, primarily through tax breaks that stimulate the development of employee ownership. Now in the country there are more than 11 thousand enterprises that are fully or partially owned by workers. They employ about 12 million people. Several centers have emerged that deal with the problems of employee ownership, both theoretically and purely applied.

The emergence and development of this kind of collective-private entrepreneurship is based on scientific and technological revolution. It caused the development of knowledge-intensive industries and increased the role and share of intellectual workers. They cannot set the rhythm of their work using a conveyor, and even the most ordinary control over their work is ineffective. Such employees work with dedication only when they have the appropriate motivation. The position of owner is best conducive to the emergence of such motivation. As a result, first dozens, and then hundreds and thousands of companies began to appear, sometimes employing only a few people. But this fragmentation is compensated by the fact that an increasing number of people participate in social production not just as hired workers, but as owners who have completely different incentives to work.

In large industries, which for technological reasons cannot be divided into small private enterprises, a similar problem is solved by transforming traditional private property into employee ownership. Moreover, the supporters of such a transformation are often the entrepreneurs themselves, who understand that by ceding part of the property they own to their employees, they increase the efficiency of their work and more than compensate for that part of the profit that they will have to give in the form of dividends to the emerging co-owners.

In Russia and other CIS countries, enterprises based on employee ownership are just being created.The attitude towards them in society is ambiguous. Among scientists, for example, there are many critics"people's enterprises", often appealing to the Yugoslav experience of “workers’ self-government,” which, as we know, did not stand the test of time. However, this misses the point: in the Yugoslav experiment, worker property was not created or used. Impersonal collective property reigned there, which actually did not belong to either the workers or the state.

The attitude of labor collectives in our country towards “people's enterprises” is very friendly, which means that in the course of further privatization they will become widespread. But to prevent such enterprises from becoming a type of Soviet collective farms, a comprehensive study of Western experience in their organization is necessary. Moreover, today this experience is not limited to the American one.

At one time, the EU Council adopted recommendations for the implementation of programs for the transition to “employee ownership” (ESOP program) in all Western European countries. As a method of privatization, the ESOP program has also begun to be widely used in Poland, Hungary, the Czech Republic, and Slovakia.

However, it would be a mistake to extend worker-owned enterprises throughout the economy. Western countries achieved success in socio-economic, scientific and technological development because they created conditions for the development of various forms of ownership and entrepreneurship.

A production cooperative (artel) is considered a voluntary association of citizens on the basis of membership for joint or other economic activities (this includes production, processing, marketing of industrial, agricultural and other products, performance of work, trade, consumer services, provision of other services), based on their personal labor and other participation, as well as the association of its members (participants) of property share contributions. The number of members of a production cooperative must be at least 5.

Members of a production cooperative bear subsidiary liability for the obligations of the cooperative within the framework and in the manner provided for by the Federal Law of the Russian Federation “On Production Cooperatives” of May 8, 1996 and the charter. The founding document of a cooperative is the charter, which is approved by the general meeting of members of the cooperative, which defines the rights and obligations of members of the cooperative and other information in accordance with the Federal Law.

Production cooperatives provide for personal labor or other participation of their members in activities and property share contributions. In foreign practice, cooperatives, as a rule, do not set the initial goal of generating income and profit. The main thing in their work is to provide assistance and assistance to members of society. They are characterized by close ties between the company and members of the cooperative. Currently common to foreign practice is the tendency to curtail cooperatives as a form of organizing economic activity. The production cooperatives that exist in our country are actually close to limited liability companies. The property of cooperatives is created on a shared basis through contributions from its members, which are carried out in monetary and material forms.

Property is also created through the products of the cooperative, income received from its sale, and other types of activities.

The highest governing body of the cooperative is the general meeting. The executive bodies are the board, headed by the chairman. During the work of the general meeting, each member of the cooperative has only one vote, regardless of the size of his property contribution.

For cooperatives, the dependence of the income of cooperative members on the size of share contributions has not been established. The individual earnings of its members are determined by their labor contribution and the amount of the gross income intended for wages. Production cooperatives that exist in agriculture are established (created) and operate in accordance with the Civil Code of the Russian Federation and the Federal Law of the Russian Federation “On Agricultural Cooperation” (December 8, 1995).

Concept and characteristics of a production cooperative 2017

In accordance with Art. 106.1 of the Civil Code of the Russian Federation (as amended in 2017) production cooperative (artel) recognizes a voluntary association of citizens on the basis of membership for joint production and other economic activities (production, processing, marketing of industrial, agricultural and other products, work, trade, consumer services, provision of other services), based on their personal labor and other participation and association its members (participants) of property shares.
It should be noted that with regard to cooperatives, the legislator took into account the division of legal entities into corporate and unitary, and a cooperative in accordance with the provisions of Art. 65 of the Civil Code of the Russian Federation is classified as a corporation.
The definition of a production cooperative formulated in Art. 106 of the Civil Code of the Russian Federation, generally repeats a similar definition contained in Art. 1 of the Law on Production Cooperatives. The only difference is that in Art. 106 of the Civil Code of the Russian Federation lists the areas of production and other economic activities of cooperatives. Production cooperatives can be created in a variety of areas of production, social and other activities (Clause 1, Article 2 of the Law on Production Cooperatives). It should be recognized that a cooperative, at its core, is an economic entity that primarily pursues entrepreneurial goals. The above definitions contain general qualifying features that characterize a cooperative, on the one hand, as one of the organizational and legal forms of entrepreneurial activity, and on the other, as a corporation. Such signs include:
1) voluntary occurrence;
2) membership as a principle of organizing a production cooperative;
3) equal rights of participants regardless of the size of the share;
4) method of activity based on mutual assistance and independence;
5) organization of management on the basis of election and self-government;
6) joint implementation of production and other economic activities.
A production cooperative is the result of a voluntary agreement among its participants. At the basis of any agreement is the intention to create a voluntary, free cooperative organization; at the same time, the agreement defines the subject and goals of the activity of this organization, the procedure for forming the property basis of its activities, the rights and obligations of participants, etc. The provision is legislated according to which a cooperative is formed exclusively by decision of its founders (Article 4 of the Law on Production Cooperatives) .
A production cooperative is a commercial organization built on a corporate basis, that is, it is a voluntary association of citizens based on membership.
Earlier, before amendments were made to the Civil Code of the Russian Federation regarding the division of legal entities into corporate and unitary, in the scientific literature regarding the sign of “membership” the position was expressed that in relation to legal entities the legislation does not speak about their membership, but about the possibility of their participation in activities cooperative. In particular, T. E. Abova noted that “such terminological diversity does not change anything in the legal qualifications of the participants of the cooperative - individuals and legal entities. The basis of their participation is membership.”
Analyzing this problem, M. M. Kapur emphasized that “the term “membership” can be used in different meanings: as a synonym for general participation in an organization and as a specific form of personal participation, completely unrelated to property participation. The Civil Code understands membership in a cooperative precisely in its latter meaning.”
However, at present, taking into account changes in civil legislation and the classification of cooperatives as corporate commercial organizations, it should be noted that the sign of membership can be defined as fundamental.
The production cooperative is classified under Art. 106.1 of the Civil Code of the Russian Federation to independent organizational and legal form of a corporate commercial organization. At the same time, the definition of the concept of a production cooperative given in the said article of the Code contains the main qualifying features that distinguish it from such corporate commercial organizations as partnerships and societies. The entire set of these characteristics allows us to come to the conclusion that a production cooperative cannot be recognized as either a partnership or a company “in its pure form” and represents both an association of capital and an association of persons (and not just persons, as is sometimes claimed). This circumstance is of decisive importance in the sense that either one factor (association of capital) or another (association of persons), or their combined impact, have priority importance in the legal status of the cooperative, and only the totality of all these factors taken together gives a genuine, true picture the legal status of a cooperative as an organizational and legal form of entrepreneurship. This reveals the uniqueness of the legal status of the cooperative.
Thus, precisely because a production cooperative is an association of capital, it cannot but pursue the goal of making a profit. But precisely because a cooperative is an association of individuals, it cannot fail to take into account the economic, social and other interests of the members of the cooperative. As a result, the goals of making a profit are adjusted by the interests of individuals and, in their total combination, act “as making a profit, taking into account the interests of the members of the cooperative.” Hence the final conclusion is absolutely correct: the main goals of cooperatives in a market economy are different from those of societies.
However, precisely because a cooperative is an association of persons, a member of the cooperative votes when deciding management issues, and the amount of capital contributed by him does not matter. This follows the principle that each member of the cooperative has one vote, regardless of the size of the contribution (share).
Finally, given that a cooperative is an association of both capital and individuals, it cannot but be an organization built on the self-government of both capital and individuals. In practice, this means that, firstly, members of the cooperative must have the right to participate in both profits and management, and, secondly, that in a cooperative we can and should talk about self-government of both capital and individuals. Legally, this is expressed in legislation, for example, the provision according to which only members of the cooperative can be elected to the bodies of the cooperative, but not hired personnel (clause 2 of article 106 of the Civil Code of the Russian Federation, clause 4 of article 14 of the Law on Production Cooperatives).
The position on classifying cooperatives as associations of both individuals and capital is also reflected in the scientific literature. In particular, S.P. Grishaev points out that the peculiarity of a production cooperative is that it represents both an association of capital and an association of individuals. Essentially, we are talking about an intermediate form between business partnerships and companies. In turn, V.F. Popondopulo, also recognizing cooperatives as associations of both individuals and capital, notes that the law associates with one circumstance (personal labor participation) and another circumstance (contribution of a share) certain legal consequences (participation in management , distribution of profits and losses and some others).

Features of the legal status of a production cooperative

When analyzing the legal status of a production cooperative, it should be noted that it is unique as an organizational and legal form of entrepreneurial activity. It lies in the fact that a cooperative organically combines such a volume of possibilities for realizing the rights, freedoms and interests of citizens, which is not characteristic of any other organizational and legal form of entrepreneurship. A production cooperative is at the same time a form of realization by a citizen of:
1) the right to freely use one’s property for business activities (Article 34 of the Constitution of the Russian Federation);
2) the right to own, use and dispose of property not individually, but jointly with other persons (Article 35 of the Constitution of the Russian Federation);
3) the right to freely use one’s abilities to engage in entrepreneurial activity (Article 34 of the Constitution of the Russian Federation);
4) the right to work, freedom of choice of activity and profession (Article 37 of the Constitution of the Russian Federation).
Thus, a specific feature of the status of a production cooperative is that it, as an entrepreneurial structure, is simultaneously a form of combining property (capital) and labor based on the membership of the owner and worker in this structure in combination with the principle of democratic self-government. This is not typical for any of the other organizational and legal forms of entrepreneurship, where in any case any of the above elements are absent.
When analyzing the characteristics of a production cooperative based on its main features in comparison with such entrepreneurial structures as business partnerships and companies, the literature rightly notes that the most pressing task is to prevent the cooperative from developing into an ordinary partnership or joint-stock company. It is this task that forces members of the cooperative to voluntarily accept obligations that would prevent such overgrowth (limitation in the withdrawal of their shares by members of the cooperative, limitation or complete exclusion of income on an invested share, etc.). This is due to the distinctive features of cooperation related to the needs and interests of social groups participating in the cooperative movement.

Difference between producer and consumer cooperatives

As noted, a production cooperative is one of the corporate organizations (Article 50 of the Civil Code of the Russian Federation, Article 1 of the Law on Production Cooperatives).
It has been repeatedly pointed out in the legal literature that the division of cooperative organizational and legal forms into commercial and non-commercial is an unfortunate provision of civil legislation. According to M. M. Kapura, the differences contained in the legislation are not sufficient to consider production and consumer cooperatives as two independent organizational and legal forms of a legal entity. Moreover, upon a detailed study of the legislation on cooperation, it turns out that the differences existing in the legislation are largely smoothed out. So, on the basis of paragraph 2 of Art. 7 of the Law on Production Cooperatives, some members of the cooperative can only make a share contribution, but not take personal labor participation in its activities. At the same time, the legislator directly allows consumer cooperatives to engage in entrepreneurial activities and distribute the income received among their members, both depending on labor participation and in proportion to property contributions. In addition, consumer and production cooperatives are brought together by the presence of subsidiary liability of their members for the debts of the cooperative (clause 2 of article 106, clause 2 of article 123 of the Civil Code of the Russian Federation).
At the same time, the analysis of the issue under consideration allows us to come to the conclusion that, in theoretical and practical aspects, it is not without reason that a distinction is made between the position of production and consumer cooperation in the structure of a market economy.
Conducting difference between producer and consumer cooperatives, three significant points should be noted. Firstly, the effectiveness of consumer cooperatives directly depends on their ability to attract the largest possible number of members into their ranks. The high number of shareholders creates a wide and guaranteed supply and sales market for such cooperatives. A production cooperative, on the contrary, faces rather severe restrictions on its number, determined primarily by the available production capacity.
Secondly, if the creation of a consumer cooperative is possible by pooling the funds of shareholders, then for a production cooperative such funds are completely insufficient. The complexity of the problem lies in the fact that the production cooperative being created cannot, as a rule, provide any substantial security for the loan it needs.
Finally, thirdly, citizens unite in consumer cooperatives to implement individual (certain) functions. For members of a production cooperative, work in it is the main field of activity and the main source of income.

Features of entrepreneurial activity of cooperatives

If we compare the entrepreneurial activity of cooperatives with the general definition of entrepreneurial activity according to all the criteria specified in the legislation (Article 2 of the Civil Code of the Russian Federation), then one cannot help but see that a cooperative is an organizational and legal form of entrepreneurship for which making a profit is a specific goal, since the main The goal of creating cooperation remains to satisfy the personal needs of the members of the cooperative on the basis of joint business management. Although cooperatives do not always serve only their members, in all cases the cooperative acts in the interests of its members.
Recognizing the close coexistence of the goal of mutual assistance and the goal of making a profit, it should be emphasized that the decisive purpose of the cooperative is to provide its members with goods, services or employment on more favorable terms than could be provided by the free market.
Thus, the entrepreneurial activity of a cooperative, although it is an activity that meets the general definition contained in Art. 2 of the Civil Code of the Russian Federation, is at the same time characterized by the presence of specific features relating to property, labor and management.

In modern economic realities, it is not easy for single producers to withstand competition, so they unite in voluntary unions to conduct joint economic activities. A production cooperative, or artel, is a commercial organization whose participants carry out their activities on the basis of a charter, pay shares and have general responsibility. What these communities are and whether such cooperation is so beneficial are questions whose answers require detailed consideration.

What is a production cooperative

Artels began to develop more than a century and a half ago. Their main goal is to unite capital and individuals to make profit from production (and not only) activities. Judging by the experience of different countries, cooperatives have an advantage over state-owned enterprises because they are formed by individuals for whom equality of rights is paramount, both in production and financial aspects. Members of the artel are interested in producing as many goods or services as possible and fairly dividing the profits.

We should not forget about the existing risks for cooperatives. Firstly, it is attracting investment. It is extremely difficult to ensure their influx for artels, so business there is based on accepting share contributions and the proceeds received from activities. There is a big risk in the financial plan, since markets for products are needed to make a profit, so it is important to take the right place in the economy of the country in the region, where the efficiency of doing business will be as profitable as possible.

Purposes of creation

According to some theorists, the goal of a cooperative is not to make a profit, but, as can be seen from practice, this principle is recognized as the main leitmotif of the association’s activities. An artel can conduct any business that is not prohibited by the state, but for some types it is necessary to obtain a license or special permission from government agencies. Organizations are allowed to operate under any taxation system. Check out the online service Taxation of the simplified tax system (registration, transition to the simplified tax system).

Federal Law on production cooperatives

Back in 1996, Russia adopted a federal law on artels, which declared them to be a legal entity operating on the basis of the Constitution and the Civil Code. It spells out the issues of organization and state registration of associations, the rights and obligations of all members. Attention is paid to labor relations and the specifics of termination of membership.

Separate chapters are devoted to the property of the cooperative and issues related to the management apparatus. The relationships within the body and the interaction of the community with government agencies are considered. The problems of reorganization and liquidation were not left without review. In this way, the legal status of production cooperatives was legislated.

Features of the legal status of agricultural cooperatives

An association of persons created for the purpose of joint production and sale of agricultural products and servicing farms is an agricultural cooperative. The legal status of such cooperatives is regulated by the Civil Code and the Law “On Agricultural Cooperation”. The normative act has undergone many changes, causing great debate during its adoption, but it has specified both the very concept of agricultural cooperation and the organizational and legal forms of the agricultural cooperative.

Signs of a cooperative

Artels have a number of features that help distinguish a production cooperative from other legal entities. The main thing is participation in the organization on a membership basis, with each citizen making shares and having the right to vote at general meetings. Artel participants receive profits depending on their own labor participation. Another characteristic feature is that shareholders can be both individuals and legal entities. Activities within the organization are carried out by personal efforts, and not by attracting workers from outside.

Participation in production activities

Since membership in a cooperative is based on share contributions, it is possible to participate in an artel without performing labor activities. Then the number of such shareholders cannot exceed 25% of the total number of members. Although labor activity within the team is based on personal participation, the law does not prohibit the involvement of hired workers, the number of whom is limited to 30% of the total number of representatives.

All team members participating in labor activities and hired workers have compulsory social and medical insurance, their work experience is reflected in the work book, and if necessary, a reference can be drawn up for anyone. Participants in a production cooperative may be subject to disciplinary sanctions, including termination of their powers. Separate standards are determined for women during pregnancy and persons under 18 years of age.

Subsidiary liability for debts

According to the law, all members of the team bear subsidiary, i.e. additional responsibility. Its amount is reflected in the charter of the artel, but it cannot be less than 5% of the participant’s share. On the other hand, the collective is not responsible for the debts of its members. If a new person joins a production cooperative, he is subject to all existing responsibilities up to that point, which he is obliged to fulfill.

After summing up the results of economic activities, members of the artel are obliged to pay off debts incurred in the process of conducting economic activities. Failure to fulfill the obligation may result in legal proceedings, which could lead to the liquidation of the cooperative. All members are liable for the debts of the enterprise with their personal property. Losses incurred by the organization due to one shareholder are covered by collecting funds from the share of this member.

One participant - one vote

The amount of contribution of each shareholder of the artel may differ, but at the general meeting everyone has one vote, regardless of the amount of funds contributed. Hired workers are deprived of this right - they do not participate in the management of the cooperative. It is worth noting that the constituent document of an organization may distribute the votes of participants differently, but, judging by practice, this happens extremely rarely.

Number of members of the production cooperative

The law does not in any way limit the maximum number of shareholders included in a production cooperative, but it clearly states that the minimum number of participants cannot be less than five. They all make a share contribution and participate in the management of the artel. The number of shareholders who are part of the collective, but are not engaged in labor activities, must exceed a quarter of all members.

Who can be a participant

People who meet certain criteria can enter industrial education. Firstly, they must make a share contribution and be over 16 years old. Citizenship doesn't matter here. These can be people with both Russian and foreign passports, as well as stateless persons. Legal entities registered in the Unified State Register of Legal Entities, represented by their representative, can also become participants.

If a person who is a member of a production cooperative as a shareholder dies, then his heirs can take the vacant seat. However, the charter may provide for other possibilities. For example, an artel can transfer the deceased’s share in the team by paying the heirs the full value of the share, the salary due to him and other compensation.

How capital and property are formed

Each person who wants to become a member of the artel is obliged to contribute a share, the size of which is fixed in the charter. Part, more precisely 10% of the total amount must be paid before the state registration of the artel, while the remaining part is paid during the first year of the organization’s existence. The contribution can be not only cash, but also securities (stocks, bonds, etc.), property rights, property, land, etc.

The entire authorized capital of the production cooperative's mutual fund must be formed from contributions from participants during the first year after state registration of the artel. For violation of the fulfillment of their obligations regarding contributions, shareholders are liable in accordance with the charter. The mutual fund itself is the minimum amount of the collective’s property. If after the second and subsequent years this figure decreases, the meeting of shareholders is obliged to notify about this in accordance with the established procedure.

What is an indivisible fund

According to the decision of the members of the production association, various types of funds can be formed. This must be indicated in the statutory documents. This way an indivisible fund can be organized, which includes part of the cooperative’s property. To form it, a general meeting is convened, the result of which should be 100% approval of all shareholders. Property included in an indivisible fund is not included in the shareholders’ shares, and funds from it cannot be recovered against the organization’s debts.

Mutual Fund Sizes

The exact size of the mutual fund is negotiated by future members of the production team. It is formed by making share contributions, the evaluation of which also takes into account prevailing market prices. New members of the artel pay the amount reflected in the charter, unless the shareholders make a different decision. According to the law, the share contribution should not exceed 250 times the minimum wage. Otherwise, an independent assessment must be ordered.

Constituent documents of a production cooperative

The founding document of the artel is the charter, which is adopted at the general meeting of shareholders. The text of the document may contain different amounts of data necessary for the activities of the cooperative. Among the basic information, it reflects the name of the organization and location, data on share contributions and their distribution, labor and other relations in the team, distribution of profits, responsibility of shareholders, etc.

Controls

The general meeting of members of the cooperative is the highest governing body of the artel. If the number of shareholders is more than 50, the creation of a supervisory board is allowed. The executive bodies consist of a chairman and members of the board. Only members of the artel can hold positions on the supervisory board, the board and be the chairman, and one person cannot perform the functions of the chairman and hold positions in each of them at the same time. An audit commission can be created in a cooperative to monitor the activities of management bodies.

Decision making and profit distribution

Decisions on all issues in the team are decided at a general meeting, and for making certain decisions there is a delicately defined number of votes. So, for example, to transform a cooperative into a business partnership or company, the consent of all participants is required, but for disciplinary action two-thirds of the total number is enough.

The mechanism for distributing profits between shareholders of the organization is simple - in proportion to their participation in labor activity and share contribution. If a participant does not take part in labor activities, he receives remuneration depending on the share contribution. It is important to understand that no more than 50% of the profit received, remaining after paying all taxes, fees and deductions, is distributed. If there is the consent of all shareholders, part of the profit can be distributed among employees.

Leaving the production cooperative

A shareholder can leave the artel independently or by decision of the general meeting. When leaving at their own request, a citizen must notify 2 weeks in advance. After this, he will be paid his due share of the share in money or in the form of property. If, after the expulsion of a collective member, he still has a debt to the cooperative, he must pay it off, otherwise collection may be carried out through the court.

Video

Found an error in the text? Select it, press Ctrl + Enter and we will fix everything!

Producer cooperatives

Short name of the organization: artel.

Name of participants.

Possibility of participation of citizens and legal entities. Citizens of the Russian Federation who have reached the age of sixteen years can be members of the cooperative who have made the share contribution established by the cooperative's charter.

Foreign citizens and stateless persons can be members of the cooperative on an equal basis with citizens of the Russian Federation. From one to fifty

Name of constituent documents.

The founding document of a cooperative is the charter, approved by the general meeting of members of the cooperative. The corporate name of a cooperative must contain its name and the words “production cooperative” or “artel”. The charter of the cooperative must define:

1. corporate name of the cooperative;
2. its location;
3. conditions on the amount of share contributions of members of the cooperative;
4. on the composition and procedure for making share contributions by members of the cooperative and on their responsibility for violation of obligations to make these contributions;
5. about the nature and procedure for labor and other participation of members of the cooperative in its activities and about their responsibility for violation of obligations regarding personal labor and other participation;
6. on the procedure for distributing profits and losses of the cooperative;
7. on the amount and conditions of subsidiary liability of members of the cooperative for its debts;
8. on the composition and competence of the management bodies of the cooperative and the procedure for their decision-making, including on issues on which decisions are made unanimously or by a qualified majority of votes;
9. on the procedure for paying the cost of a share or issuing the corresponding property to a person who has terminated membership in the cooperative;
10. on the procedure for new members to join the cooperative;
11. on the procedure for leaving the cooperative;
12. on the grounds and procedure for exclusion from members of the cooperative; on the procedure for forming the property of the cooperative;
13. on the list of branches and representative offices of the cooperative; on the procedure for reorganization and liquidation of the cooperative.

Form of capital.

The cooperative is liable for its obligations with all property owned by it. The subsidiary liability of members of the cooperative for the obligations of the cooperative is determined in the manner prescribed by the charter of the cooperative. The cooperative is not responsible for the obligations of its members. Foreclosure of a cooperative member's share for his personal debts is permitted only if there is insufficient other property to cover such debts in the manner prescribed by the cooperative's charter

The principle of profit distribution.

The profit of the cooperative is distributed among its members in accordance with their personal labor and (or) other participation, the size of the share contribution, and among members of the cooperative who do not take personal labor participation in the activities of the cooperative, in accordance with the size of their share contribution.

Management bodies of the organization.

The highest governing body of a cooperative is the general meeting of its members. In a cooperative with more than fifty members, a supervisory board may be created. The executive bodies of the cooperative include the board and (or) the chairman of the cooperative. Only members of the cooperative can be members of the supervisory board and board members of the cooperative, as well as the chairman of the cooperative. A member of the cooperative cannot simultaneously be a member of the supervisory board and a member of the board (chairman) of the cooperative

Participants' rights.

The law allows the founders to provide in the Charter the right to leave the LLC at any time with receipt of the actual value of the share in the manner established by the Charter

Responsibility of participants for the debts of the organization.

Collection of personal debts of a cooperative member cannot be applied to the indivisible fund of the cooperative.

Possible forms of transformation.

By unanimous decision of its members, a production cooperative can be transformed into a business partnership or society.