Cooperative ownership and its main aspects

Cooperative ownership is one of the varieties of the collective and is based on the activities of voluntarily united members for the use of co-material and monetary resources. The high motivational potential of this form of ownership is due to the individual contribution (share). In turn, the cooperative form of ownership takes on diverse forms, here are some of them:

• Development in combination with state property
• On the basis of lease relations
• In the form of manufacturing enterprises
• Cooperative banks
• Consumer cooperatives
• Credit Cooperatives
• Housing cooperatives.

The property belonging to the cooperative is in the full enjoyment, possession and disposal of all its members. The meeting of members of the cooperative is recognized as its supreme governing body, in which each of them, in making decisions, has the right to a single vote. Based on this, it can be concluded that, in spite of the fact that the cooperative form of ownership is a private form, it is managed collectively by all the participants in the association.

The cooperative form of ownership, the basis of property independence of which is the statutory (unit) fund, is created at the expense of contributions by participants. It is intended to make a contribution by each participant at the time of registration documents in the state body in the amount that is provided for this cooperative law either in full or in the full. And although the Civil Code does not provide for a certain size of the fund for different cooperatives, it is clear that their minimum size will differ significantly, it is necessary to legislate the amount of contributions for a particular variety of cooperatives. For example, a cooperative established for the construction of a dwelling house must have a unit fund in the amount of a cost fully providing the costs of its construction.

The main drawback of this form of ownership is the introduction of additional share contributions, in the case where the main unit fund is not able to cover all costs to achieve a certain result. Thus, the cooperative form of ownership obliges to bear subsidiary responsibility jointly in amounts that have not been paid, as referred to in Section 4, Cl. 116 Civil Code, in the event of non-placement of an additional share.

However, in the event that, in practice, mutual funds are used to implement the project less than the contributions made by the participants, they are subject to return to its members without fail. Practically quite often it turns out, when the size of the authorized (share) fund of the cooperative is in fact much higher than the estimated cost of the constructed housing. As a result, participants receive a property with an understated value in comparison with the contributed contribution.

Privatization of a cooperative apartment implies a formal receipt of a document on state registration that confirms the right to property after submitting a package of relevant documents to the Federal Registration Service. Since the cooperative apartment becomes full ownership of its owner immediately after the final repayment of the share contribution, and in fact is already its property.

The property right of cooperatives excludes the possibility of illegal seizure of property belonging to organizations or individuals and is entitled to demand promptly, to liquidate all violations on this issue with compensation for damage caused to cooperative property, as a result of illegal actions. The rights of cooperatives include possession, use and disposition, property belonging to them or use of property on any other legal grounds.