A credit cooperative is a frequent occurrence in the Russian state. That is why there is a separate federal law that regulates in detail its activities and the foundations of functioning. This is 190- "On credit cooperation." The most important provisions of this normative act will be considered in the article.
What is the law about?
The presented normative act consolidates the economic and legal principles of creating consumer-type credit cooperatives. What is a credit cooperative? Article 1 No. 190- "On Credit Cooperation" refers to the voluntary association of individuals based on the principles of membership and the satisfaction of the financial needs of representatives of the organization. The cooperative includes shareholders - ordinary citizens or persons of a legal nature, legally accepted into the organization.
Cooperatives are often combined into cooperatives - an integrated system of credit organizations of various types and levels. Such systems are divided according to form. So, there may exist a civilian cooperative (exclusively with individuals) and a second-level cooperative (exclusively with legal entities). In both cases, members of organizations are required to make assessed contributions - the so-called units that go to cover the costs of the cooperative.
What does a credit cooperative do?
Finally, it is worth talking about the activities of the organizations in question. According to Article 3 No. 190- "On Credit Cooperation", the cooperatives themselves are not organizations of a commercial type. All functioning of the enterprise is based on mutual financial assistance of shareholders. There are several ways to achieve the quality work of a credit cooperative:
- by placing part of the finances through the provision of loans;
- by combining stockpiling and attracting finance from registered members of the organization.
On what principles, according to 190- "On credit cooperation", do cooperatives work? Here are some points to note here:
- mutual financial assistance to shareholders;
- self management;
- voluntary entry;
- equal rights of members and equal access;
- joint liability.
It is worth noting that cooperatives are involved in attracting finance on the basis of concluding loan agreements and documents on the transfer of personal savings.
Creation of a credit cooperative
According to Article 7 of the Law 190- "On Credit Cooperation", cooperatives can be created and carry out their activities only if there are at least 15 ordinary citizens or 5 legal entities. In the case of "mixing" of both groups, the minimum number of persons sufficient to create a cooperative will be seven.
The cooperative itself must be formed on a separate condition: professional, regional, etc. State registration is an integral and mandatory element in the entire process of forming cooperatives. However, for a successful registration, an enterprise should already have a name, registered capital, the required number of members and a charter that is in accordance with the law.
By the way, the charter of a credit cooperative should include:
- the name of the organization and its location;
- specific goals and subject of activity;
- the procedure and conditions for admission to membership;
- terms of contributions;
- obligations, powers and elements of liability of shareholders, etc.
According to Article 10 of the Federal Law 190- “On Credit Cooperation”, liquidation of an organization is possible either by a joint decision of the shareholders or by a court decision.
The basics of the functioning of the cooperative
The organization in question is managed by a meeting of shareholders. The structure of the cooperative may also include additional institutions such as control and audit, audit or some other bodies. All shareholders must be listed in the Unified State Register. The same applies to representatives from the loan committee, the board of the cooperative or additional authorities.
The property of the organization must be subject to statutory accounting and auditing. The distribution of income must occur strictly in accordance with the law. It is also worth noting the possibility of creating a union of cooperatives. In this case, a whole hierarchy will be formed, because the cooperative itself - this is the association consisting of cooperatives.
What are the latest amendments to the law? In 190- “On Credit Cooperation”, as amended on July 3, 2016, Article 5 was supplemented, which describes organizational regulation. In the new edition, there are provisions on the need to request documentation, access to which is limited (we are talking about state checks of insiders), as well as the powers of the Bank of Russia.