LAW OF UKRAINE

of July 21, 2020 No. 819-IX

About agricultural cooperation

This Law determines legal, organizational, economic and social basis of functioning of agricultural cooperation, feature of creation and activities of agricultural cooperatives, their associations.

Section I General provisions

Article 1. Basic concepts

1. In this Law the stated below terms are used in such value:

contribution of the member of cooperative (further - fee) - money or other property returnable contribution which is brought by the founder of agricultural cooperative during creation of agricultural cooperative, and members and associated members - in case of the accession to such cooperative;

the admission fee - property or money irrevocable contribution which size is determined by the charter of agricultural cooperative which person in case of the accession (creation) to agricultural cooperative shall introduce;

additional contribution - voluntary money or other property returnable contribution which is brought by the member (associated member) of agricultural cooperative over contribution;

advisory vote - the right of the associated member of agricultural cooperative to express on general meeting of agricultural cooperative the opinion concerning activities of cooperative and to provide the notes and offers on the agenda of general meeting without the right of participation in vote on such general meetings;

cooperative education - implementation of actions for training and advanced training of members of agricultural cooperatives, members of governing bodies and hired employees of such cooperatives in the field of activities of agricultural cooperative for increase in efficiency of its economic activity;

turnover of the member of agricultural cooperative with agricultural cooperative - total monetary value, acquired at agricultural cooperative (sold to such cooperative) his member of goods and received from agricultural cooperative (provided by such cooperative) his member of services during the accounting period;

agricultural cooperative - the legal entity formed by physical persons and/or legal entities which are producers of agricultural products and voluntarily united on the basis of membership and on the basis of self-government for implementation of joint economic and other activity for the purpose of satisfaction of economic, social and other requirements;

agricultural cooperative consolidation - the legal entity formed by agricultural cooperatives which voluntarily united on the basis of membership and on the basis of self-government for implementation of joint economic and other activity for the purpose of satisfaction of economic, social and other requirements;

agricultural cooperation - system of agricultural cooperatives and agricultural cooperative associations;

the authorized capital of agricultural cooperative (further - the authorized capital) - the capital of agricultural cooperative which is created of deposits and additional contributions of members and associated members of agricultural cooperative;

target fee - money or other property returnable or irrevocable contribution of the member of agricultural cooperative which can be provided by the decision of general meeting of the relevant cooperative for ensuring accomplishment of specific objectives of cooperative;

share in the authorized capital (further - share) - share of the member (associated member) of agricultural cooperative in the authorized capital of agricultural cooperative which consists of contribution and additional deposits in case of introduction;

the membership fee - money irrevocable contribution which can be provided by the charter of agricultural cooperative for ensuring the current activities of such cooperative which is periodically paid by the member of agricultural cooperative.

2. The term "producers of agricultural products" is used in this Law in the value given in the Law of Ukraine "About agricultural census".

Article 2. Law coverage

1. Operation of this Law extends to the public relations in the field of creation, activities and the termination of agricultural cooperatives, agricultural cooperative associations, and also the state support and state regulation of functioning of agricultural cooperation in Ukraine.

Article 3. Main objectives of agricultural cooperation

1. Main objectives of agricultural cooperation are:

1) increase in efficiency and competitiveness of producers of agricultural products in spheres of production, conversion, procurement, purchase, storage, sale, sales of agricultural products, providing with means of production and material resources;

2) satisfaction of economic, social and other needs of producers of agricultural products on the basis of combination of their private and collective interests, separations between them of risks, expenses and the income, development of their self-organization, self-government and self-checking, protection of their interests;

3) development of infrastructure of the market of agricultural products;

4) creation of conditions for cost reduction of producers of agricultural products in case of acquisition of necessary resources, implementation of productive and/or other economic activity;

5) increase in the income of producers of agricultural products.

Article 4. Basic principles of agricultural cooperation

1. Agricultural cooperatives, agricultural cooperative associations are created and perform the activities on the basis of the following principles:

1) voluntariness and openness of membership in agricultural cooperative, agricultural cooperative consolidation;

2) democratic character;

3) obligation of participation of the member of agricultural cooperative, agricultural cooperative in its economic and other activity;

4) autonomy and independence;

5) assistance to development of agricultural cooperation;

6) cooperation between cooperatives;

7) accounting of interests of territorial community.

2. The principles of voluntariness and openness of membership in agricultural cooperative, agricultural cooperative consolidation provide the right of the free accession to agricultural cooperative, agricultural cooperative consolidation of any person which meets the requirements of this Law, to provisions of the charter of the relevant agricultural cooperative, agricultural cooperative and is ready to undertake all connected with membership in such cooperative, cooperative consolidation of obligation, non-discriminatory on gender, social, racial, to political, religious or other signs, and also the right of free exit from such cooperative, cooperative consolidation.

3. The principle of democratic character assumes implementation of management and control of activities of agricultural cooperative, agricultural cooperative by his members, selectivity and accountability of governing bodies of such cooperative, cooperative consolidation to its general meeting, the equal rights of his members in decision making irrespective of the share size by the rule that one member of agricultural cooperative, agricultural cooperative has one voice ("one member - one voice").

The charter of agricultural cooperative, agricultural cooperative consolidation which is accepted only by the rule "one member-one voice", can be provided that in case of decision making members of agricultural cooperative, agricultural cooperative have additional number of votes in proportion to their participation in economic activity of such cooperative, cooperative consolidation (share of each of them in turnover with the relevant cooperative, cooperative consolidation and/or labor participation in activities of cooperative), taking into account the restrictions established by this Law.

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