home » Companies » Production cooperative pros and cons. Production cooperative - what are its advantages and disadvantages

Production cooperative pros and cons. Production cooperative - what are its advantages and disadvantages

People tend to unite according to their interests, to solve common problems and meet any specific needs. In a team, all issues are resolved easier. For this, there is such a thing as a consumer cooperative. This legal form is not as common as commercial organizations, but it exists and is actively used in some areas of society. This article deals with the interpretation of the concept of "consumer cooperative", the forms and types of such communities, the content of the charter and other useful information on the topic.

Deciphering the concept

The activities of consumer cooperatives are aimed at meeting certain needs of citizens or legal entities that are members of it. Basically, the goals are material in nature. Any person who has reached the age of sixteen, as well as various legal entities, can join the cooperative. The minimum number of participants is five individuals or three legal entities.

A consumer cooperative is a phenomenon regulated by the state at the legislative level. The main provisions are reflected in the Civil Code of the Russian Federation. More detailed decoding and subtleties of regulation are reflected in the Federal Law "On consumer cooperation in the Russian Federation" No. 3085-1 of 06/19/1992. The federal law contains information on the creation of cooperatives, their structure, participation features, property issues, as well as issues of reorganization, liquidation and merger of already existing companies.

What do cooperatives do

A consumer cooperative is a community of people founded to achieve certain economic goals. Decision-making is carried out by voting. Each member of the cooperative has a vote, which he has the right to give for a certain variant of the further development of events. That is, one payer of contributions - one vote. At the same time, the direction of the company's activity can be any: there are construction, housing, garage, dacha, agricultural and other cooperatives. The people in these organizations are united by one goal.

The state provides for the regulation of certain types of cooperatives by separate legislative acts. These include agricultural, credit and housing cooperatives. They are regulated, respectively, by the Housing Code and the Laws "On Agricultural Cooperation" and "On Credit Cooperation".

Forms of consumer cooperatives

Depending on the problem for which the consumer community is being created, cooperatives are divided into several forms. Below is a breakdown list.

Construction and consumer cooperative. It is created for the purpose of owning and using real estate objects (various buildings).
Housing and construction cooperative. Members of this community organized their own cooperative in order to build a residential building, in which they will subsequently live.
Garage cooperative. Includes owners of garages built on a separate territory.
Country cooperative. A group of people who own land used as a dacha or garden in a particular area.
Housing savings cooperative. Such societies are joined by citizens who jointly want to purchase or build housing.
Consumer society or consumer cooperative of citizens - cooperation between citizens and legal entities. This form was especially widespread in the USSR.
Agricultural cooperative. It includes agricultural enterprises, as well as individual farmers engaged in running their own farms.
service cooperatives. They can conduct quite extensive and diverse activities - insurance, transport services, resorts, medical care, repair work, consultations in various fields.
Credit consumer cooperative. Created to resolve the financial issues of the participants. Personal savings are attracted to the cooperative at an interest rate, loans are issued, financial mutual assistance is carried out.

The meaning of opening cooperatives

Non-commercial consumer cooperative - previously a very common organizational and legal form. Cooperatives opened everywhere territorially and in all economic spheres. Their number gradually decreased after perestroika times in 1991. The property of cooperatives was privatized by more enterprising people, and citizens forgot how to build relationships on trust. However, the practice of cooperatives has proven to be effective. People create such communities for very different purposes: to purchase goods at lower prices, to evenly distribute the cost of maintaining farms and repair services, to jointly accumulate capital and build housing. The advantages of cooperatives are obvious: due to the large number of participants, it is possible to carry out bulk purchases at prices much lower than market prices, it is possible to accumulate funds and rationally distribute it in matters of maintaining sites and other property. At the same time, the board in cooperatives is carried out by voting, which allows all members of society to speak out, and not to transfer all power into one hand. Some activities without cooperatives are unimaginable even today - garages, gardens, dachas, rural communities.

Pros and cons of opening a cooperative

Any organizational and legal form carries certain advantages and disadvantages. The same is true for cooperatives. The organization of a consumer cooperative has the following advantages for its participants:

Equality and resolving issues through voting. It doesn't matter what contribution the participant made, the amount may differ significantly, but the "weight" of the vote will be the same for everyone. Important issues are resolved only jointly, some decisions can only be made by unanimous vote.
In cooperatives, all participants work. Not more than a quarter of the total number of people can be unemployed. At the same time, employees are at a minimum.
The frequency of income distribution is also established in the cooperative through voting. At the same time, you can share what you earn at least daily. But the amount of dividends issued should not exceed half of the net income.
Work takes place in a team of "friends". Questions about the admission of a new member are also taken to the vote. If someone is against expanding the number of participants, a newcomer cannot be accepted.
The number of participants is not limited. There can be an infinite number of them. But there is a minimum threshold - 5 people.
The organization of a consumer cooperative is also good in terms of taxation. If the number of participants is less than 100, and the income is less than 80 thousand rubles, the cooperative has the right to apply the simplified tax system.
The minimum age threshold for participants is 16 years.

The downsides, of course, are also enough. If we look at all the listed positive aspects from a different angle, we will see the following picture:

It is impossible to decide on your own in which direction to continue development, where to spend profits and whether to accept a new participant.
You can leave the cooperative by taking your share and income due for the period. At the same time, property that cannot be divided remains free of charge with the cooperative. You can sell your share either to other participants, or to a third party, if this was allowed at the vote.
Hiring employees in a cooperative is quite difficult and not always allowed.
Participants in a cooperative are liable for debts with all their property, and not just the shares contributed to the organization.

The process of opening a cooperative

The organization of a consumer cooperative is not such a difficult task at the initial stage, as it might seem. The process of creating a society begins with the search for partners. There must be at least five. But it can be employed and unemployed, freelance and remote employees, pensioners and schoolchildren from 16 years old. A legal organization can act as a sponsor. Of course, she will not work at the level with everyone, but she can provide funds for the first time. As a reward, she is allocated a share, and hence a part of deferred income.

Complete anarchy is impossible in any society, so the cooperative also needs a person who will represent the interests. This person is called the chairman. On behalf of the cooperative, he carries out all legally significant actions: registration, liquidation, reorganization, representation in courts and tax inspections. With a number of ten people, the creation of a board will be required. With the number of participants from fifty people - a supervisory board.

Next, the charter of the consumer cooperative and the minutes of the meeting on the creation are written. After that, the participants pay the amount of share contributions in the amount of at least 10 percent of the contribution of each of them. A temporary account is opened, funds are deposited in cash or non-cash marked "share contribution". Not only money is accepted, the contribution can be paid with property. Participants evaluate it and draw up an act in a free form. After this procedure, you must pay the state fee. Its size is 4,000 rubles. After paying the fee, you can submit documents to the tax office for registration of a legal entity. A few days later, you need to receive a finished certificate.

What is written in the statute

The charter is the most important document of any organization. It describes all the nuances of the work. Cooperatives are no exception. There are legal provisions that must be included in the charter. For a company of this nature, the following data must be present in the constituent documents:

full name of the legal entity;
actual and legal address;
the purpose of creation and the main direction of activity;
the rules adopted by the participants on the procedure for admission and withdrawal from the cooperative;
information on contributions, their amounts, the procedure for making payments, sanctions for delay;
structure and composition of the management apparatus;
list of rights and obligations of participants;
information on how profits and losses are distributed among members of the company;
description of the reorganization and liquidation procedure.

If the charter is drawn up with errors, it will not be accepted by the tax authorities. You will have to make adjustments, then pay the state fee again, and only after that apply again for registration. This is not only a waste of time, but also money. Therefore, people who do not understand the nuances of office work prefer to hire a lawyer. You can also manage on your own. There are a lot of templates on the Internet. The founders of the society will only need to carefully replace the data of the fictitious organization with their own.

Consumer cooperative: capital

The main source of funds for any cooperative is the contributions of its members. The primary funds of a consumer cooperative are formed exclusively at the expense of the participants. In the future, capital can be increased in various ways, depending on the direction of the organization. For example, a trade and production cooperative may raise funds by selling goods and services. At the same time, the garage cooperative exists solely on the contributions of the participants.

The size of a mutual fund is not fixed and not limited in size by law, unlike a limited liability company. Its size is determined by the general meeting before registration with the tax office. In the future, the general meeting may also decide to change the main fund.

Credit consumer cooperative

A credit cooperative is created by citizens or legal entities on a voluntary basis. The minimum number of members is 15 individuals or 5 legal entities. The purpose of creation is to satisfy the financial interests and needs of its members. There are two varieties:

a credit cooperative of individuals (there can be no legal entities in such a cooperative);
2nd level credit cooperative (this form combines several credit cooperatives).

A credit cooperative is a non-profit organization designed to meet the needs of shareholders. To achieve these goals, he pools the funds contributed by the participants, then offers them, if necessary, as a loan to his shareholders. In addition, other actions can be carried out that should lead to the goal for which the society was created. The activities of such cooperatives are regulated by the Bank of Russia and the Law "On Credit Cooperation".

Participation in a credit cooperative is often a much more profitable option than loans and credits from banks. For its shareholders, the company sets the most optimal loan conditions. The interest rate at which a loan is issued is almost always lower than the average bank rate, and the term may be more optimal for a cooperative member. Participation in such a cooperative is most relevant for people whose activities are constantly associated with borrowed funds.

SPK

An agricultural consumer cooperative is the most common type of community in our time. Naturally, the bulk of all these organizations are located in villages and rural areas. It is there that it makes sense to engage in this activity. An agricultural consumer cooperative can be of any direction:

livestock;
horticultural;
horticultural;
supply;
serving;
trade;
processing;
SPC of a different kind.

You can open it with a minimum number of participants of 5 people or 2 organizations. At the same time, there is a condition for the work to be carried out for members of the SPK. Namely, at least 50% of all work must be done for the participants.

The process of opening a company begins with the development of a plan, the submission of applications for participation from shareholders and the holding of a general meeting. Documents for registration of a cooperative are submitted after completion of these stages.

For individual farmers and rural residents who run their own farms, participation in the SEC is beneficial. It is difficult and time-consuming to cultivate vast areas of land without expensive equipment, and when a SEC is opened, this equipment can be purchased with benefits for each participant. The same applies to equipment for poultry and livestock breeders. Special buildings, equipment for care, medical care of animals, purchase of feed - all this becomes much more profitable when opening a legal entity. Thus, the quality of products, their quantity increases, and the costs of each individual participant become lower.

A production cooperative is an organization in which auxiliary workers or owners of farms gather in order to be able to conduct common business activities and defend their interests most effectively. This approach is common in the field of agriculture and gained popularity in the early twentieth century.

There are two options in which cooperatives can exist:

Kolkhoz. In turn, this can be either an agricultural cooperative engaged in farming or cattle breeding, or a fishing artel that catches and harvests fish. In both cases, the members of the cooperative are grouped for the production and marketing of products, combining their property (both money and real estate, land, agricultural equipment) on a share basis. The difference between the collective farm is that all members are obliged to work in it, and at the same time all of them are considered producers of goods, regardless of what function they perform. In the name of the association, the word “collective farm” or “artel” must necessarily appear, so that everyone who wants to use its services understands what he is dealing with.
Koophoz. If the collective farm can be joined by people who, of all assets, have their hands and head on their shoulders, only the heads who own the land can join the collective farm in order to work it together, harvest and defend their rights from anyone who encroaches on them . General labor participation is not required, as well as the transfer of all the land that a particular member has to a common farm - a fairly small plot. The name of the association must contain the word "koopkhoz".

In general, associations are voluntary and are created solely in order to make a profit together in the most profitable way.

Founders and founding documents

The founders of the collective farm can be several people who have agreed among themselves and on share terms have collected the initial capital.

The only founding document by which they must be guided and which they themselves draw up is Charter which must contain the following information:

Name and address of the cooperative.
The term for which it is created, or, if it is going to be valid indefinitely, an indication of this intention.
The goals that this subject of activity will pursue in the future - they can be both clear and vague, the main thing is to indicate that the association can be engaged in any activity that fits into it.
The order in which the collective farm is going to recruit new members: under what conditions and for what contribution they are ready to accept them. It should also be indicated on what conditions membership can be terminated and on whose initiative this can happen.
The amount of share contributions that are expected from members of the cooperative, the procedure for their payment and punishment for delay.
Conditions for the formation of any funds that may be required by the association.
How profit and loss will be distributed.
Rights and obligations of members, their responsibility for obligations.
Governing bodies, as well as all the important points that can be found here: the conditions for making decisions, the conditions for joining and exiting them, the limits of their power.
The beginning and end of the financial year that the cooperative is going to navigate.
Conditions for participation in common work: minimum, maximum size, dependence of profit on participation, cases when a person may refuse to work and not be punished for this.
In what order will the property contributed as a contribution be assessed.
In what order can the association be reorganized or liquidated: under what conditions, within what time frame, what documents will be required for this.

The law allows members of a production cooperative to exercise certain freedom in drawing up the Charter - they are free to choose everything based on their own conditions and on what opportunities they have.

You can learn the definition of the legal form under the Civil Code of the Russian Federation from the following video:

Authorized capital

In order for an organization to start functioning, it needs money, as well as in order to conduct activities. Therefore, its participants must from time to time make membership fees that form the so-called authorized capital.

In what order this will happen, what punishment awaits those who delay the contribution and other similar details, each economic entity independently determines at the very beginning of its existence.

There is no minimum or maximum authorized capital.

There is only one rule associated with it: by the time the cooperative is created and registered with the state, each of its members must pay not less than ten percent of the share contribution.

Participants, their number, rights and obligations

There are two types of members in this association:

Members of the cooperative: those who made a share contribution and are a full member of the organization. They can participate in the work, they can take part in decisions that will affect the future fate of the subject. Number of them cannot be less than five people.
Employees: those who are hired under an employment contract as specialists in any other field. They do not have the right to vote, do not have to participate in shares, work in conditions that are usual for wage labor. Excluding those who work during the season and therefore not for long, their total number should not be greater than the total number of members of the household.

The duties of employees are very simple:

Do not violate the law and corporate ethics.
Adhere to safety precautions.
Do not miss work without good reason.
Perform your duties honestly.

In general, not too different from the duties of any wage workers, as well as their rights:

Receive salary in the amount specified in the contract and on time.
Have the opportunity to go on sick leave and vacation.

Member duties are more specific:

To take part in the labor activity of the cooperative or, if for some reason this is not possible, to invest financially.
Take part in important votes on issues that determine the future fate of the organization, with no more than one vote per person, regardless of the size of labor or financial contributions.
Make your part of the contribution - both in the share and any additional contributions.
Be responsible for the association's debts with your personal property.

At the same time, their rights:

Transfer a share to any other member and protest against its transfer to a person or organization if this does not suit the member of the organization.
Leave the association at will with all the payments provided for in the Charter.
Take part in voting.

Purpose of activity

The purpose of each economy is determined by its members, but the functions always remain approximately the same, as well as the tasks. Cooperatives are needed to:

To prevent the social isolation of participants and allow them to unite with their own kind to achieve common goals.
Allow people to implement the principles that allow them to survive, namely: cooperation, responsibility, helping others.
To allow citizens to make friends, to get used to showing an active social position, to have an opinion on many issues.
Provide people who alone can not achieve it, social protection and justice.
Create new jobs for the unemployed.
Create new infrastructure.
To achieve profit where it is unprofitable for one person to act, and as a result to improve their own living conditions.
To market environmentally friendly products created by a small association of people tied to the earth.

The cooperative helps fight the system, which is negative about the attempts of one person to create his own business - where one cannot cope, the union will easily pass.

Governing bodies

Each such entity has several authorities that allow it to conduct business most efficiently. This:

General council of members of the cooperative where everyone can gather and decide on important issues. It is he who determines the charter, directions of work, accepts new members and excludes old ones, collects dues, determines punishments, decides on reorganization or liquidation - deals with all issues that somehow affect the life of the association.
Supervisory Board, which is created in large farms, where there are more than fifty members. It is necessary to control the executive bodies of the organization.
Governing body- an executive body that is created in an association with more than ten members. Monitors the activities of the cooperative at a time when general meetings are not held, and makes decisions on issues that do not require discussion by the whole staff.
Auditor– cannot be a member of the executive bodies or the supervisory board. Its main function is to exercise control over the financial and economic side of the life of the organization. He has access to documents and can check the quality of work of any of those who work on the farm. If there are more than twenty members in the subject, three members of the audit commission are elected instead of the auditor, which performs the same functions.

Small cooperatives, with less than ten members, have a single governing body - a common council.

Profit distribution

The rules by which the distribution of profits takes place are established in the Charter. It can be divided into clearly fixed parts and issued within a certain period, or it can be divided depending on the size of the labor and financial contribution of each participant. It can even be issued to employees on an equal basis with the rest.

It all depends on what was written in the Charter when the association was created.

Advantages and disadvantages of the legal form

A production cooperative is generally considered to have the following advantages:

Cooperation. Communication, camaraderie and helping each other among the members of the organization are considered the norm and greatly raise morale.
Opportunity to defend your interests. Where one individual entrepreneur cannot cope, the union will take place.
Voluntary labor participation. If a person cannot work, he can pay.
Flexibility. In the economy, everything is determined by its members depending on their needs and desires.

Its cons:

Members pay their debts out of their own money.
The complexity of management - without experience and special education, you may not be able to cope with the organization of a cooperative.

Artel as a form of organization

A special form of organizational activity is a production cooperative. An alternative name for this type of organization is the artel. The etymology of such a name determines that each of the members of such a company must directly participate in labor activity, investing not only money, but also their own strength. This limits the circle of persons involved, cutting off the possibility of attracting to the activities of the organization those who have not reached the age of sixteen and are not able to invest labor resources.

Where can this form of activity be applied

A production cooperative allows you to conduct almost any activity related to the production of goods and their subsequent marketing. The only restriction is the need to register manufactured goods in accordance with all laws of the Russian Federation, as well as not to create or sell those types of products that are legally prohibited for any reason. Separately, agricultural cooperatives can be distinguished. They are the same type of firm, organized under the same legal documents, but their activities are regulated by an additional federal law.

Basic provisions for artels

A production cooperative cannot issue and, accordingly, sell shares. Such activity is inaccessible to him and is suppressed by law. Any member of such a firm is obliged to contribute ten percent of the authorized capital immediately at the time of the organization's creation, the remaining amount must be paid without fail within a year from the date of foundation. All property owned by a production cooperative is divided into shares among the comrades. There may also be indivisible property. The creation of this type of capital is regulated by all members of the labor cooperative and is recorded in the Charter.

Founding document of the artel

The production cooperative operates on the basis of the Charter, which is created and signed by all participants. All important points are entered in this document, which include the amount of share contributions, the procedure for making them, the percentage of labor participation of each shareholder, the procedure for distributing income and the amount of liability for debts. In addition, the Charter contains all the information about the existing management bodies within the organization, as well as the consequences that will occur in the event of a violation of the order.

The best field of activity for the artel

A production cooperative, the pros and cons of which balance each other, is great for the activities of firms related to the agricultural sector. Fisheries, agricultural cooperatives, and simply economic cooperatives organized according to this principle will be the most profitable and convenient to manage. This is due to the fact that in all the above areas, serious labor participation is necessary, and only a person who understands the principles of operation of such structures is able to organize effective activities within them.

In fact, a production cooperative is a commercial organization that is created by shareholders to conduct joint activities. The activities of the cooperative are regulated by the Charter adopted by the general meeting. All members of the cooperative take part in its activities, which is manifested by labor participation, provision of transport, financing or the introduction of material resources. Members of the cooperative decide all issues at meetings of shareholders, each is given one vote for decision-making.

Who can be the founder of a cooperative

The founders of a cooperative can be several people who have decided to create it on a share basis. The constituent document of the organization is the Charter, it is adopted at the general meeting of the founders and must contain the following items:

Name and address of the cooperative.
For what period it is created, if it will be valid indefinitely, you need to specify this.
The goals that the subject of activity sets for himself, the proposed activity of the cooperative should be indicated.
The procedure for accepting new members, the amount of the initial contribution.
The amount of subsequent contributions and the procedure for their payment, etc.

Where does this type of activity apply?

You can create a production cooperative in any field of activity that is related to the production of goods and their marketing. Restrictions relate to the creation of associations for the sale of those types of products that are prohibited by law.

This form of management is most often used in agriculture when creating collective farms or cooperatives, they are similar to each other, and their activities are regulated by the relevant Law. Any cooperatives are created voluntarily by shareholders in order to make a profit in the most profitable way.

What are the advantages of a production cooperative

Production cooperatives have advantages, among them:

Profit is distributed among the members of the association according to their labor contribution. The common property is also distributed after its liquidation. This approach to distribution contributes to the material interest of each member of the organization, motivates him to improve the results of his work.
No restrictions on the number of its members This allows more people to join the organization.
The presence of equal rights in the management of the association. All members of the organization are required to regularly make share contributions to form a share cooperative fund. If the property of the organization is insufficient to compensate for its debts, all its members must compensate for the missing finances with their own funds. Thus, the face of subsidiary liability for the debts of the organization.

The most important advantage of a cooperative association is the principle inherent in it - “ One for all and all for one". It is not uncommon for shareholders to leave the cooperative after a while, but most members adhere to the established rules and work for the result. There is no bureaucratic red tape here, when joining a cooperative, members only need to present a passport and a copy of the work book. Adults have the right to join the cooperative, who may not take personal labor participation, but are required to contribute an additional share (up to 25% of the total number of members).

Everyone can, if desired, leave the cooperative and take their share. The profit is divided according to the participation of each. It is positive that all members of the organization have information about the state of affairs and have the right to participate in decision-making. It is allowed to have a certain number of shareholders that do not participate in the activities of the enterprise. In general, the management of the cooperative is carried out on democratic principles.

What are the disadvantages of a production cooperative

Along with the positive aspects, there are also negative ones in the activities of the cooperative, among them it can be noted: the cooperative cannot issue and sell shares, members of the organization are required to contribute 10% of the amount of the authorized capital when creating the association, and the remaining amount to be paid within a year after its foundation. The existing property is divided into shares among the founders, and the indivisible property is entered into the Charter and regulated by all its members.

The downside is that a cooperative can be created at least 5 people- this is a limitation. For the debts of the cooperative, each of its members bears subsidiary liability, and the shareholder who left the association is given not a share in the net assets, but a share contribution.

conclusions

A production cooperative, as a production-legal form of activity, is not a mass phenomenon in the Russian Federation, this is due to the fact that it does not combine capital, but personal labor contributions, which is not suitable for doing serious business. And the subsidiary liability of the members of the organization for obligations is also a deterrent.

A production cooperative (artel) is a voluntary association of citizens on the basis of membership for joint production or economic activities based on their personal labor and other participation and the association of property shares by its members (participants).

Art. 107 of the Civil Code of the Russian Federation

The production cooperatives that exist in our country are actually close to limited liability companies in their essence and organizational and legal basis. Indeed, the property of cooperatives is formed on a shared basis, at the expense of contributions from its members, made in monetary and material forms. The products of the cooperative and the income received from its sale and other activities also serve as sources for the formation of property. The supreme governing body of the cooperative is the general meeting.

The executive bodies are represented by a board headed by a chairman. The managerial functions of the general meeting and the board in cooperatives and societies are very similar, the mechanism for creating and registering cooperatives and societies, the content of the charters regulating their activities are also close.

Production cooperatives are created for joint production, processing, marketing of industrial, agricultural and other products, trade, and provision of services.

The words "production cooperative" or "artel" must be included in the corporate name of the cooperative.

The founding document of a production cooperative is the charter approved by the general meeting of its members. The number of members of the cooperative should not be less than five people. The property owned by the production cooperative is divided into shares of its members. The profit of the cooperative is distributed among its members in accordance with their labor participation, unless otherwise provided by law and the charter of the cooperative. The property remaining after the liquidation of the cooperative and the satisfaction of the claims of its creditors is also distributed.

The supreme governing body of a cooperative is the general meeting of its members. A member of a cooperative has one vote in making decisions by the general meeting. He has the right to leave the cooperative at his own discretion. In this case, he must be paid the value of the share or given property corresponding to his share, as well as other payments provided for by the charter of this organization.

A production cooperative may be voluntarily reorganized into a business partnership or company by unanimous decision of its members, or liquidated. A production cooperative differs both from partnerships and from societies:

· It is based on a voluntary association of individuals - citizens who are not individual entrepreneurs, but who participate in the activities of the cooperative through their own labor. Accordingly, each member of the cooperative has one vote in managing its affairs, regardless of the size of its property contribution;

· the profit received in the cooperative is distributed, first of all, taking into account the labor participation, and not the property contribution (share). That is why the production cooperative is characterized in the Civil Code of the Russian Federation as an artel.

The Civil Code of the Russian Federation supplemented the classical construction of a cooperative artel with important provisions:

ü members of the cooperative bear additional liability for its debts, although not with all their property, but in the amount predetermined by the charter (this to some extent brings it closer to a company with additional liability). Usually this amount is a multiple of the share contribution or equity participation of a member of the cooperative, but cannot be lower than the minimum provided by law;

ü membership in a cooperative is possible for both legal entities and individuals who are not directly involved in its activities, but who make certain property contributions (and, accordingly, receive a certain income from them).

The Civil Code of the Russian Federation provides for a mandatory minimum of members of a cooperative - at least five, because, unlike societies, a cooperative cannot function as a "company of one person". The cooperative has the possibility of creating indivisible funds (or fund), the property of which can be divided between its participants only in the event of liquidation of the cooperative after satisfaction of the claims of all its creditors. This property cannot be levied by creditors for personal debts of members of the cooperative.

An important feature of the cooperative is the fact that, taking into account labor participation, not only profit is usually shared here, but also the liquidation quota.

Advantages of a production cooperative:

· the profit of the cooperative is distributed among its members not in proportion to the shares, but in accordance with their labor contribution. The property remaining after the liquidation of the cooperative and satisfaction of the claims of its creditors is distributed in the same manner. This distribution procedure materially interests each member of the cooperative to treat his work more conscientiously;

· the legislation does not limit the number of members of the cooperative, which presents great opportunities for individuals to join it;

· equal rights of all members in the management of the cooperative, since each of them has only one vote.

Disadvantages of a production cooperative:

ü due to the fact that the number of members in a cooperative should not be less than five, the possibilities of its creation are significantly limited;

ü each member of the cooperative bears limited subsidiary liability for the debts of the cooperative.