Consumer society - what is it? Features and Activities

Many of us at least once in our lives have come across the concept of “consumer society”. What is this, however, not everyone knows, and the introduction of such an association for the majority seems a very dubious decision.

A consumer society (cooperative) is a non-profit organization formed to satisfy the material needs of its members. It can be anything: food, services, specific items.

The essence of the consumer cooperative is simple. A group of people who want to receive certain goods make contributions for which equipment for production is purchased and receive finished products. The organization’s budget is replenished exclusively at the expense of shares of participants.

Benefits of Participating in a Consumer Society

People joining such associations are most often interested in economic benefits. Goods made in cooperation cost participants much less than similar products on the market that have undergone official registration and quality control. The fact is that taxes are a commercial concept, a consumer society does not put up its products for sale, and therefore production of things requires less cost.

For the sale of goods, the organization is not obliged to receive any certificates, pass all kinds of checks. The activities of the association are a vicious circle - members of the company purchase everything necessary for production, and then receive the goods. Manufactured products are not delivered to the store and do not enter the market. Sometimes members of society not only make cash contributions, but also participate in the production process, for which they receive a regular salary.

Popular types of cooperatives

Despite the fact that the name "consumer society" is extremely rare, such organizations are not difficult to find. On the advertisements of associations, one can often find the word “cooperative”, but in most cases the type of organization is not indicated at all.

From the consumer societies familiar to us, we can distinguish housing and suburban construction cooperatives. Participants regularly contribute a certain amount, which is sent to purchase the territory, material and labor, and after the construction of the building they are settled in the apartment.

In addition, credit, agricultural, food and other consumer cooperatives are quite common. Some of them are becoming very large-scale and provide a wider range of needs.

Consumer Society Organization

Members of the cooperative are called shareholders. They can be ordinary citizens or firms, legal entities. The main governing body of consumer cooperation is the general meeting, which discusses the most important issues. In the period between fees, there is a council and board of the consumer society. In addition, bodies are created in the association that monitor the work of the cooperative’s officials, help to notice and eliminate shortcomings in its activities.

The consumer society can create various institutions to increase production efficiency. If shareholders live in different cities, branches of the cooperative are created in certain places. Nevertheless, the list of established institutions is not limited to representations - societies often found organizations to improve the living standards of their members. Separate associations are created, for example, by educational institutions that each shareholder has the opportunity to attend.

The legal basis of the company

The rights of members of the organization are protected by the legislation of the Russian Federation. The most comprehensive is the law on cooperatives, the requirements of which must be observed by every consumer society. What is it, its components and organizational aspects are considered in this document. Also, this issue is regulated by the Civil Code and other regulatory acts.

The said law is aimed at protecting the rights of consumer cooperation and its shareholders. Thus, the units or inventory that a member of the association brought into the organization cannot be confiscated through the court because of his debts. Equipment owned by the consumer society is not taxed. If the shareholder decided to leave the organization, all of his shares, except the introductory one, are returned to him. In the event that the court or members of the consumer society decide to liquidate the association, all its property, except for the indivisible fund, is returned to the shareholders.

Consumer Society Meetings

Cooperation operates on a democratic basis, management is carried out by all its members. Questions regarding the activities of the association are considered at meetings of participants. Any member of the organization can come to them. The decision of the consumer society is taken through a survey where one vote belongs to each shareholder.

At a meeting must be attended by at least half of the members who need to be notified about this no later than a week before the date of the meeting. Between the fees, the main functions are performed by the council - the representative body of the association. At meetings, the rights of participants, the size of contributions to the consumer society, programs with the main objectives of cooperation, and more are determined. At the training camp, you can exclude a shareholder who refuses to fulfill his duties, or accept a new member of the association.

The role of government in the consumer society

The cooperative has its own executive body responsible for economic activities. This role is carried out by the board of society. His powers are not the same in all associations - they are determined by the council. Each shareholder has the right to nominate himself for any position in the consumer society, and the election of candidates is the responsibility of the council. The chairman of the cooperative works on behalf of the association. An audit committee is created to control the governing bodies.

Consumer Society Membership

To become a member of a cooperative is possible in two ways: either upon registration of the organization, or as a result of joining an existing association. In the second case, a person striving to become a shareholder must submit an application to the council, which makes a decision on accepting a citizen into a cooperative. Upon joining the organization, the shareholder pays two installments: introductory and unit. The money invested by the members of the cooperative is transferred to a special fund, through which the consumer society operates. What it is and what types exist are described below.

A more detailed list of rights and obligations of shareholders can be presented in the charter of the company.

Funds in a consumer association

Production in the cooperative is due to contributions from shareholders. The funds received are used to purchase materials, equipment, pay for the work of specialists, and more. Contributions are held in the cooperative fund, which are of three types:

• share, which is formed from the contributions of participants and is intended directly to offset costs in the production process;
• reserve created for compensation for damage arising from emergency situations;
• an indivisible fund is property that cannot be alienated.

Upon liquidation of the association, its funds are transferred to the shareholders. This rule does not apply to an indivisible fund, property from which can be transferred to another commercial and consumer society. If the organization is required to pay the loan, the required amount is excluded in the first place.

How to create a consumer society?

Cooperation cannot be founded by one citizen - the organization is registered by future shareholders, the number of which must be at least five people or three legal entities. First you need to hold a constituent assembly, where the charter of the consumer cooperative and the list of its members are adopted, and governing bodies are elected. Then the company is registered as a legal entity in state institutions, after which it acquires official status. Each creator is charged an entry and share fee and the production process begins.

What you need to know about consumer unions?

To cooperate and improve product quality, cooperatives may be part of associations. The main documents governing the foundations of the union and interaction with its members are the charter and the memorandum of association. Consumer society operates through contributions from its members. Representatives of the association control the activities of cooperatives, increase the efficiency of their production. Most often, such organizations are formed on a territorial basis, forming district, district, regional and regional consumer unions. The society included in the association retains its independence and remains a separate legal entity.

Benefits of Central Union Members

This is the largest organization that can include a regional association or a separate consumer society. What it is and what benefits the participation in the organization provides is determined by law. Members of the organization receive the right to use the word "Russia" in the name. The Central Union of Consumer Societies represents the interests of its members at the international level. He is engaged in the procurement of agricultural products and food products from its members. Do not confuse the concept of “central consumer society” with the union. The first is often called an ordinary cooperative.

Popularity in the CIS countries

Cooperation is a common phenomenon on the territory of the member states of the former Soviet Union. One of the largest is the Bright Way Consumer Society, operating in the Russian Federation. The organization is designed to improve the quality of life of its members. The association sells apartments at a low price, issues loans for cars, and provides medical and legal support.

In Belarus, the Grodno branch of the Grodno regional consumer society, which provides its services to citizens and residents of the region, is quite successful. The organization has a wide network of stores where shareholders can purchase quality food, specialized clothing and building materials.