2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16
"Association" is a capacious word that came to us from Latin through French in the middle of the 19th century.
A bit of history
In the beginning, the concept was quite actively used in psychology. It denotes the connection between psychological images in the form of representations, perceptions, sensations and motor acts. This connection finds its expression in the fact that one image subjectively evokes the next. Such a call is based on adjacency, similarity or opposite.
In the second half of the 19th century, the term "association" was already used in economics. This name has come to mean a group of organizations or individuals who come together to solve one common problem.
Modern interpretation of the term "association"
What is invested in the concept of "association" today? This is an association of enterprises or organizations, which is characterized by the following three properties: openness, voluntariness and coordination of efforts.
As an association, associations are formed on a voluntary basis. This organization has not such strict restrictions formembers compared to other associations (for example, a concern or a trust). Also, the "soft" nature of this association is expressed in the optional agreement between its members on joining other associations.
Since an association is a free association, including the participation of any economic entities, any legal or natural persons at various stages of their activities can join it.
The main task of the functioning of associations is the concentration and coordination of funds and work performed.
The liquidation or reorganization of these associations takes place in the manner adopted for ordinary legal entities. They can also be transformed into funds, partnerships or business companies (if the founders entrust them with the responsibility of doing business).
The difference between associations and holdings
In order to distinguish between associations and holding type associations, which include so-called "parent" companies, the following terms must be defined.
Firstly, national associations are independent legal entities. Secondly, their activities are based on the achievement of non-commercial goals, which are based on the coordination of the activities of the participants and the protection of their common property interests. As mentioned above, they are formed only on a voluntary basis and cannot perform any managerial functions onattitude towards the participants. Therefore, the members of the association, in accordance with the current legislation, retain their full independence and the right of a legal entity.
Types and founders of associations
Regional (territorial) consumer unions, interterritorial and territorial associations of trade unions can be considered as varieties of this type of non-profit organizations.
Founders of associations can be both commercial and non-commercial business entities. Often in practice, the need to coordinate activities or joint protection of interests arises for groups of legal entities that are identical in nature of the activities carried out. One and the same independent business entity can be a member of several associations and unions at the same time.
The corresponding agreement and charter act as constituent documents of such associations. Thus, the organization of the association, the goals and conditions of participation in it are prescribed in the memorandum of association. The charter also indicates the definition of the status of such an association. If a discrepancy is found with the conditions contained in these documents, preference is given to the charter, as a document that determines the status of this association in relations with other business entities.
In addition to general information, constituent documents should outline the tasks, goals of the association's activities, which determine the nature and scope of its legal capacity. Also, these acts should contain information about the competence and structure of the bodymanagement and decision making. In addition, they define the procedure for dividing the property that remains after the collapse (liquidation) of the association.
The will-forming (supreme) body of this association is the general meeting of its members (or their representatives). The order of its work is determined by the charter already mentioned above. Will-declaring (executive) bodies - representatives of the participants or individuals elected by the supreme body.
International Association
If the participants of these associations are business entities of different countries, then such associations are assigned international status. An example is the International Bar Association, organized back in 1946 and uniting lawyers from many countries, including Russia.
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