Decoding of the SEC - why do we need cooperatives?

Cooperatives have been operating for many years, and their role in the world economy is very significant. Cooperation is a form of cooperation in which a certain number of people participate in one or different, but related processes of labor. Decryption of SEC (agricultural production cooperative) includes the unity of actions of participants to achieve common goals.

Production cooperatives - what are they for?

Production cooperatives are created for a specific purpose - it is a joint economic or industrial activity. Legislation provides for a clear procedure for the establishment of cooperatives. The charter, which is approved by all participants, is a constituent document. Members of the association are responsible not only to each other, but also to the cooperative itself. The Charter defines all the rules of operation and the conditions for participation in its activities. The document also provides information on the amount of shares.

The interpretation of the CPC assumes that such partnerships are created on a commercial basis and are effective due to joint labor participation. Therefore, the profit is distributed according to work, and not by the size of the contribution.

Agricultural cooperation

Today, almost everyone understands what SPK is. These organizations are created by commodity producers or citizens who have personal subsidiary plots. Membership takes place on a voluntary basis, and participants unite the common goals and share contributions. Most of the work in agricultural cooperation should be carried out by the members of the association.

Main types of cooperatives

The main types of SEC can be attributed such as:

• Agricultural artel;
• Fishing artel;
• Co-ops;
• Cooperatives.

An artel or collective farm is a cooperative association that is created by citizens voluntarily and produces activities that are not prohibited by law, in the production, processing and marketing of products. In the cooperative's fund, each participant contributes a share. For such organizations, personal participation in the management of the economy is mandatory.

The rights of agricultural cooperatives

The decree of the SEC says that the cooperative is a legal entity, therefore, it has certain powers. So, what can the SEC do?

1. On the territory of its functioning, to open representative offices or branches.
2. Carry out all types of activities that do not contradict the norms and laws.
3. Acquire, sell or pledge own property, including that which is transferred as a share contribution.
4. Create reserve funds and invest at your own discretion.
5. Conduct activities aimed at attracting borrowed funds.
6. Exercise all the rights that are necessary to achieve results.
7. To carry out foreign economic activity.
8. If necessary, reorganization or liquidation of the association can be carried out.

Who can become a member of the cooperative?

Those people who do not know what the SEC in agriculture, deciphering will help to understand this issue. Members of associations can be citizens who turned 16 years old. They must agree with the statute and strictly follow its rules. Work in the cooperative is the main one, and each member is given a membership card.

The main governing body is the meeting of all members of the society, the chairman and the supervisory board, which is created when the number of participants exceeds 50 people.

The interpretation of the CPC and the basic principles of the work of such communities suggest that in the event of the death of a participant, its heirs can be admitted to the cooperative. Those heirs who did not become members of the association can get the value of the share of the deceased.