The cooperative form of ownership is one of the varieties of collective ownership and is based on the activities of voluntarily joined members for the use of material and monetary funds. The high motivational potential of this form of ownership is explained by making an individual contribution (share). In turn, the cooperative form of ownership takes on many forms, here are some of them:
• Development combined with state ownership
• Based on rental relationships
• In the form of manufacturing enterprises
• Cooperative banks
• Consumer cooperatives
• Credit cooperatives
• Housing cooperatives.
The property belonging to the cooperative is in full use, possession and disposal of all its members. The meeting of members of the cooperative is recognized by its highest governing body, at which each of them, when making decisions, has the right to one single vote. Based on this, we can conclude that, despite the fact that the cooperative form of ownership is a private form - it is managed collectively by all members of the association.
A cooperative form of ownership, the basis of property independence of which is the authorized (unit) fund, is created by making contributions by participants. It is intended to make a contribution by each participant at the time of registration with the state body in the amount that is provided for this cooperative legislatively or in full. And although the Civil Code of the Russian Federation does not provide for a certain size of the fund for different cooperatives, it is clear that their minimum size will differ significantly, legislative approval of contributions for a particular type of cooperative is necessary. For example, a cooperative created for the construction of a residential building must have a mutual fund in the amount of the cost that fully ensures the costs of its construction.
The main disadvantage of this form of ownership is the introduction of additional shares in the case when 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 liability jointly and severally in amounts that have not been contributed, as described in paragraph 4 of Art. 116 of the Civil Code of the Russian Federation, in case of non-payment of an additional share.
However, in the event that, in practice, the unit funds spent on the project are less than contributed by the participants, they must be returned to its members without fail. Practically quite often it turns out when the size of the charter (unit) fund of the cooperative actually turns out to be much higher than the estimated cost of the housing built. As a result, participants receive property with a lower value in comparison with the share contribution made.
The privatization of a cooperative apartment implies the formal receipt of a state registration document confirming the right to property after submitting a package of relevant documents to the Federal Registration Service. Since the cooperative apartment becomes the full property of its owner immediately after the final repayment of the share fee by him and in fact is already his property.
The ownership right of cooperatives excludes the possibility of unlawful seizure of property owned by organizations or individuals and has the right to demand immediately to liquidate all violations on this issue with compensation for damage caused to cooperative property as a result of unlawful actions. The rights of cooperatives include the possession, use and disposal of property owned by them or the use of property on any other legal grounds.