A share fee is what?

To achieve various economic and social goals (satisfaction of material and other needs), people and entire organizations create associations based on membership - cooperatives. In a market economy, they are the third force and are an alternative to the public and private sectors. The cooperative has a direct connection with the economic (or other) interests of its participants.

To create such an association and achieve its goals, a fund is created, which is formed from membership dues. This is a kind of direct investment, called a "share contribution". These are cash funds contributed by shareholders (participants) at different stages to ensure the statutory activities of the cooperative and in exchange for a share in its property. More details about what the unit is and what it gives to the members of the cooperative, we will talk in the article.

Unit contribution: definition

The notion 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 share fund made by a cooperative member in cash or other property (this may 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, received after payment of share contributions (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 the property created in the course of the cooperative's activities.

The size of the share contribution has a direct impact on the distribution of profits between the members of the cooperative. However, it does not affect the right to participate in management: each member of the society has exactly one vote at the general meeting. The employment of certain posts in the co-op is also independent of the size of the participant making the share contribution. This is an important feature, which is reflected in the Civil Code of the Russian Federation.

The order of joining the cooperative

Citizens and legal entities that have made introductory and share contributions and are accepted as members of a cooperative are called shareholders. They can be both in the creation and in entering into an already functioning society. In the first case, participants act as its founders and become shareholders only after the state registration of the company as a legal entity. In the second - those wishing to join the cooperative, first submit an application to its council, which is considered within a month, after which a corresponding decision is made. If it is positive, then follows:

• Make an entrance fee - is mainly to cover the costs associated with the entry;
• Pay a share contribution - this property is credited to the fund (the amount is established by the charter of the company);
• Get a shareholder's book - a certificate of membership in the cooperative.

Dividends are paid commensurate with the contribution made, which are paid on retirement or transferred to the unit's successor.

Shareholders also have the right to claim to work in a cooperative as a matter of priority in comparison with other citizens (the Federal Law "On Consumer Cooperatives"). The maximum number of participants in the cooperative's shareholders is not limited.

The contract between the shareholder and the co-operative

The main document determining the procedure for payment by the shareholder of money or other property is the share agreement. It establishes all the main points associated with the entry and participation of a citizen in a cooperative organization:

• Terms and amounts of payment of share contributions;
• Rights and obligations of the shareholders;
• Rules for the termination of this contract;
• The procedure for the return of cash to the shareholder upon withdrawal from the cooperative.

The agreement may also specify the rules for holding meetings of members of the cooperative, determine the special rights of the shareholder, regulate the division of the property of the cooperative in various cases.

A share agreement determines the form of the share contribution. Mandatory shares in the production cooperative are established in the same amount for all sizes, in the consumer unit - in proportion to the planned amount of participation of a citizen in the economic activities of this cooperative.

In addition to mandatory, members of society can make voluntary contributions to a mutual fund in order to increase their share of property participation in the cooperative. Due to them, the participants are accumulated, which include annual co-operative payments in proportion to the amount and period of circulation of these savings for each shareholder.

Advantages of the cooperative: share fund

The share fund, formed due to the contributions of participants in the cooperative, is one of its strongest sides. In the Russian legislation, a contribution made by a citizen upon joining a cooperative is not declared and is not subject to taxation. This gives a certain share of freedom for the use and transfer of property of the participants, which makes up joint, joint-stock capital.

So, for example, in a mutual fund it is possible to make not only money resources, but also buildings, equipment, land, securities and other property that has a monetary value. This changes its legal regime, the taxation regime and other payments associated with its use. Under the contract, you can contribute as a fee, even a computer, negotiating its value only with the leaders of the cooperative. In this case, the refund of the share contribution can be received in cash, 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 that constitutes a unit fund is well protected against external interference in the activities of the cooperative on the basis of this legislation of the Russian Federation. Therefore, cooperatives are often called alternative public and private sectors of the economy.

Conclusion

From the article you learned about what is a share contribution. 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 their (and not only) property in more loyal conditions (no need for licensing, declaration, taxation, etc.).