THE LEGAL NATURE AND THE FRAMEWORK FOR COOPERATIVE ACTIVITIES

Miodrag Mićović

doi:10.5937/ekoPolj1703205M

Authors

Miodrag Mi?ovi?, PhD University of Kragujevac, Faculty of Law, Kragujevac

DOI:

https://doi.org/10.5937/ekoPolj1703205M

Keywords:

cooperative, cooperative member, voting right, principles, investor members

Abstract

The subject of the paper are issues related to the legal nature of cooperatives and legal framework for the cooperative activities. When it comes to the legal nature of the cooperatives, newly enacted rules have not made substantial changes with regard to the previously applicable classical concept of cooperatives. Along with that, legal framework for cooperatives is consisted of certain special rules, which differ from the rules that apply for companies, such as: number of founders of the cooperative; persons who may be members of the cooperative; activity; basic capital; the right to vote, quorum and decision-making; proft distribution. The aim of this paper is to highlight the role of cooperatives in the stabilization of the economy, as well as to point out the need to amend the rules contained in the Law on Cooperatives in accordance with the latest developments of the cooperative organization. The legal analysis has shown that it is necessary to: alter the attitude of the cooperative as a form of organization of natural persons; relativize the effect of the principle of one cooperative member - one vote, self-help and identity in order to strengthen the market functions of the cooperatives. The analysis of the co-operative rules and conclusions are drawn out using the comparative legal method.

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