Our country is returning to the long-standing traditions of creating and developing cooperatives. Even before the revolution, Russia ranked first in the number of such unions, and now they are gaining special popularity. For many businesses, it becomes necessary to merge with their competitors in order to increase profits and not go bankrupt.
A cooperative is an association of organizations or people for the purpose of cooperation in the production sphere and the sale 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 the equity participation of all members. In addition, as a result of the work, the cooperative makes a profit and new property is bought. The main specificity of the cooperative's work is considered to be any participation of its members.
To achieve the goals set in the cooperative, a common fund is created. Each participant contributes to it his share of 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's work.
Today there are several types of cooperatives. The most common are production associations. They are created for the purpose of joint production or business activities. Each member of the society participates in the work of the organization (by share contributions or personal labor participation).
In order to satisfy the material or other needs of the shareholders without making a joint profit, consumer cooperatives are created. They can be commercial, service, horticultural, insurance, and so on. For example, a garage building cooperative brings together garage owners, and a credit cooperative brings together people to provide financial assistance.
The activities of production cooperatives are regulated by the Federal Law of the Russian Federation of May 8, 1996. For each cooperative, a constituent document must be created called the charter. 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 Russian law entitled "On consumer cooperatives in Russia", which was adopted in 1992.
