To achieve various economic and social goals (satisfying material and other needs), people and entire organizations create associations based on membership - cooperatives. In a market economy, they are the third force and an alternative to the public and private sectors. The cooperative has a direct relationship with the economic (or other) interests of its participants.
To form such an association and achieve its goals, a fund is created, which is formed by membership fees. This is a kind of direct investment called a “share contribution”. This is the money contributed by shareholders (participants) at various stages to ensure the charter activities of the cooperative and in exchange for a share in its property. We will talk in more detail about what a share is and what it gives to the members of a cooperative.
Share payment: determination
The concept of a share contribution is given, in particular, in the Federal Law of 1995 “On Agricultural Cooperation”. According to him, a share is a property contribution to a mutual fund made by a member of a cooperative in cash or other property (this can be various property rights, land, buildings, etc.).
In civil law, a share is represented as:
- the right to participate in the property of the cooperative obtained after payment of shares (either by investing money or other property, or by direct participation of a citizen in the activities of the cooperative);
- that part of the cooperative property allocated to one of its members, which consists of the share contributions made by it and the corresponding share of property created in the course of the cooperative’s activity.
The size of the share contribution has a direct impact on the distribution of profits between the participants in the cooperative. Moreover, it does not affect the right to participate in management: each member of the society has exactly one vote at the general meeting. The occupation of certain posts in the cooperative also does not depend on the size of the participant made the share contribution. This is an important feature, which is reflected in the Civil Code of the Russian Federation.
The order of entry into the cooperative
Citizens and legal entities that have made entrance and share contributions and are accepted as members of a cooperative are called shareholders. They can become both when creating, and when entering into an already existing society. In the first case, the participants act as its founders and become shareholders only after state registration of the company as a legal entity. In the second, those who want to join the cooperative first submit an application to their council, which is considered within a month, after which an appropriate decision is made. If it is positive, then it follows:
- to make an entrance fee - it goes mainly to cover the costs associated with entry;
- pay a share fee - this property is credited to the fund (the amount is established by the charter of the company);
- get a shareholder’s book - a document confirming membership in a cooperative.
In proportion to the contribution made, dividends are accrued which are paid upon disposal or transferred to the unit heir.
Shareholders also have the right to apply for a job in a cooperative as a matter of priority in comparison with other citizens (Federal Law "On Consumer Cooperatives"). The maximum number of members participating in a cooperative is not limited.
Agreement between the shareholder and the cooperative
The main document determining the payment by the shareholder of money or other property is the share contribution agreement. It establishes all the main points associated with the entry and participation of a citizen in a cooperative organization:
- terms and sizes of payment of shares;
- rights and obligations of shareholders;
- rules for termination of this contract;
- the procedure for the return of funds to the shareholder upon exit from the cooperative.
The agreement may also spell out the rules for holding meetings of cooperative members, determine the special rights of the shareholder, and regulate the division of the cooperative’s property in various cases.
The share agreement determines the form of the share contribution. Mandatory shares in a production cooperative are set in the same for all sizes, in the consumer - in proportion to the planned volume of citizen participation in the economic activities of this cooperative.
In addition to the mandatory, members of the company can make voluntary contributions to the mutual fund in order to increase their share of property participation in the cooperative. At the expense of them, paeno-accumulations of participants are formed, which include annual cooperative payments in proportion to the size and circulation period of these accumulations for each shareholder.
Cooperative Benefits: Mutual Fund
A mutual fund formed by contributions from members of a cooperative is one of its strongest sides. The Russian legislation does not declare and is not subject to taxation made by a citizen upon joining a cooperative cooperative contribution. This gives a certain share of freedom in the use and transfer of property of the participants, which makes up joint, joint-stock capital.
So, for example, in a mutual fund you can contribute not only money, but also buildings, equipment, land, securities and other property that has a monetary value. At the same time, its legal regime, the regime of taxation and other payments associated with its use are changing. Under the agreement, you can even make a contribution as a contribution by discussing its cost only with the leaders of the cooperative. In this case, the return of the share contribution can be received in money without paying any taxes from these funds. In addition, shareholders can safely use the property (their own and other members of the cooperative), including money that they receive on the security of their share contribution.
The property constituting the mutual fund is well protected from external interference in the activities of the cooperative on the basis of this legislation of the Russian Federation. Therefore, cooperatives are often called alternative to the public and private sectors of the economy.
Conclusion
From the article you learned about what a share fee is. This is not just a fee for joining a cooperative, it is the right to receive a share of its property and income derived from its use. These are wider opportunities for the effective use of one's (and not only) property on more loyal terms (no need for licensing, declaration, taxation, etc.).