COOPERATIVE

National law – CZ – Business law – chapter 4

There are close relationships between business and cooperative societies, even if they are separate from each other.

Basic characters

a community of uncommitted number of persons established for the purpose of mutual support of its members or third parties, possibly for the purpose of doing business

has at least 3 members

– the founder of the cooperative is the person who submitted the application to the founding cooperative no later than the start of the constituent meeting, did not take it back, its application was approved and fulfilled the conditions for membership and its creation, except for the fulfillment of the deposit obligation or the creation of an employment relationship

– the cooperative may be residential = in order to secure the housing needs of its members, it can manage houses with apartments and non-residential premises owned by other persons

social = systematically develops community-based activities aimed at promoting social cohesion for the purpose of labor and social integration of disadvantaged persons into society, with the priority of meeting local needs and using local resources according to the place of residence and the competence of the social cooperative, especially in the field of job creation, social services and health care, education, housing and sustainable development

Statutes

– the constituent meeting of the cooperative shall, in addition to the adoption of the Articles of Association, elect members of the cooperative bodies and approve the method of fulfillment of the basic membership fee and, if necessary, the entry fee

– the draft statutes shall be drafted by a co-author, who is a natural person in writing authorized to do so by the applicant for founding a cooperative

Statutory authority

– Cooperative bodies are

  1. Membership meeting – the members of the cooperative, the liquidator and the persons to whom a different legal regulation has the right to participate in a member meeting shall be able to resign if a majority of all members having a majority of all votes are present, the members of the cooperative , each member shall have 1 vote in a poll
  2. the Board of Directors – it is the statutory body of a cooperative, it is responsible for the management of the cooperative, it fulfills the resolutions of a member meeting, if it is not in conflict with the legal regulations, ensures the proper keeping of the accounting, presents to the member meeting for approval the financial statements and, profits or losses, has three members, elects its chairman and, if appropriate, one or more Vice-Presidents, unless the statutes determine that they are elected by a general meeting, by majority vote of all its members
  3. the Audit Commission – controls all activity of the cooperative, discusses members’ complaints and may require any information and documents on the management of the cooperative, in the exercise of its competence the commission is independent of the other bodies of the cooperative, gives a written opinion on each financial statement, payment of the loss of the cooperative and the proposal for a decision on the payment of the members’ fees, to the deficiencies noted by the Audit Committee, to the Board of Directors, to supervise the recovery, to 3 members, to elect its chairman and, if necessary, one or more vice-chairpersons
  4. other bodies set up by statutes

– a member of the cooperative body may be only a member of the cooperative, each member of the cooperative having one vote in the body of the cooperative, the term of office shall not exceed 5 years, the term of office of the members of the elected body ends with all its members in the same way

– in a cooperative with fewer than 50 members, the statutes may stipulate that the board of directors is not established and the statutory body is the chairman of the cooperative

– each member participates in the basic capital of the cooperative by a basic membership fee

– the amount of the basic membership is equal for all members of the cooperative, the deposit obligation within the range of the difference between the basic membership deposit and the entry deposit must be fulfilled within the time limit specified in the statutes, which may not exceed 3 years

Dissolution of the company

– the cooperative is canceled by a resolution of a member meeting, by a court decision, upon expiry of the period for which the cooperative was established, by the achievement of the purpose

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