Consumer society - what is it? Features and activities

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Many of us at least once in our lives have come across the concept of "consumer society". What it is, however, not everyone knows, and joining such an association for the majority seems to be a very dubious decision.

A consumer society (cooperative) is a non-profit organization formed to meet the material needs of its members. It can be anything: food, services, specific items.

The essence of the consumer cooperative is simple. A group of people who want to receive certain goods make contributions, which are used to purchase equipment for production, and receive finished products. The budget of the organization is replenished exclusively from the shares of the participants.

Benefits of participating in a consumer society

People joining such associations are most often interested in economic benefits. Goods made in cooperation cost its participants much less than similar products on the market that have passed the procedure of official registration and quality control. The point is that taxes area commercial, consumer society does not put its products up for sale, and therefore the production of things requires less cost.

For the sale of goods, the organization is not required to obtain any certificates, undergo all kinds of checks. The activity of the association is a vicious circle - members of the society buy everything necessary for production, and then receive the goods. Manufactured products are not delivered to the store and do not enter the market. Sometimes members of society not only make financial contributions, but also participate in the production process, for which they receive a regular salary.

Popular types of cooperatives

Despite the fact that the name "consumer society" sounds extremely rare, such organizations are easy to find. On advertisements for associations, the word “cooperative” is more common, but in most cases the type of organization is not indicated at all.

From the consumer societies we are accustomed to, we can single out housing and dacha-building cooperatives. Participants regularly contribute a certain amount, which is used to purchase territory, material and labor, and after the construction of the building they move into an apartment.

In addition, credit, agricultural, food and other consumer cooperatives are quite common. Some of them are getting very large and serve a wider range of needs.

Consumer society organization

Memberscooperatives are called shareholders. They can be ordinary citizens or firms, legal entities. The main governing body of consumer cooperation is the general meeting, where the most important issues are discussed. In the period between the fees, the council and the board of the consumer society function. In addition, bodies are being created in the association that control the work of officials of the cooperative, help to notice and eliminate shortcomings in its activities.

The consumer society can create various institutions to improve production efficiency. If shareholders live in different cities, branches of the cooperative are created in certain places. However, the list of established institutions is not limited to representative offices - societies often found organizations to improve the living standards of their members. Separate associations create, for example, educational institutions that each shareholder has the opportunity to attend.

Legal basis for the activities of the company

The rights of members of the organization are protected by the legislation of the Russian Federation. The most comprehensive is the law on cooperatives, the prescriptions of which must be observed by every consumer society. What it is, its components and organizational aspects are discussed in this document. Also, this issue is regulated by the Civil Code and other regulations.

This law is aimed at protecting the rights of consumer cooperation and its shareholders. So, shares or inventory that a member of the association has contributed to the organization,cannot be confiscated through the courts because of his debts. Equipment owned by a consumer society is not taxed. If the shareholder decides to leave the organization, all his shares are returned to him, except for the introductory one. In the event that the court or members of the consumer society decide to liquidate the association, all its property, except for the indivisible fund, is returned to the shareholders.

Consumer society meetings

Cooperation operates on a democratic basis, management is carried out by all its members. Questions regarding the activities of the association are considered at meetings of participants. Any member of the organization can attend. The decision of the consumer society is made by poll, where one vote belongs to each shareholder.

The meeting must be attended by at least half of the members, who must be warned about this no later than a week before the date of the meeting. Between the meetings, the main functions are performed by the council - the representative body of the association. At the meetings, the rights of participants, the amount of contributions to the consumer society, programs with the main goals of cooperation, and more are determined. At the training camp, you can exclude a shareholder who refuses to fulfill his duties, or accept a new member of the association.

The role of government in a consumer society

The cooperative has its own executive body responsible for economic activity. This role is performed by the board of the society. His powers are not the same in all associations - they are determined by the council. Eachthe shareholder has the right to nominate himself for any position of the consumer society, and the election of candidates is within the competence of the council. The chairman of the cooperative works on behalf of the association. An audit commission is being created to control the governing bodies.

Membership in the consumer society

There are two ways to become a member of a cooperative: either by registering an organization, or by joining an existing association. In the second case, a person seeking to become a shareholder must submit an application to the council, which makes a decision on admitting a citizen to a cooperative. When joining the organization, the shareholder pays two fees: entrance and share. The money invested by members of the cooperative goes to a special fund, through which the consumer society operates. What it is and what types it exists is described below.

Position of shareholders

Rights	Responsibilities
Voluntary withdrawal from the organization with the return of shares	Compliance with the provisions of the charter of the consumer cooperative
Receive co-op payments	Fulfilling the duties indicated in the status
Employment in the consumer society in the first place, enjoying special benefits	Subsidiary liability
The opportunity to put forward yourcandidature to the bodies of the cooperative, make proposals and complaints to the general meeting

A more detailed list of the rights and obligations of shareholders can be presented in the charter of the company.

Funds in consumer union

Production in the cooperative occurs at the expense of contributions from shareholders. The funds received are used to purchase materials, inventory, pay for the work of specialists and more. Contributions are kept in the cooperative fund, which are of three types:

• share, which is formed from the contributions of participants and is intended directly to compensate for costs in the production process;
• reserve, created to compensate for damage arising from emergencies;
• an indivisible fund is property that cannot be alienated.

When the association is liquidated, its funds go to the shareholders. This rule does not apply to an indivisible fund, the property from which can be transferred to another commercial and consumer society. If an organization is obligated to repay a loan, the required amount is excluded first.

How to create a consumer society?

Cooperation cannot be founded by one citizen - the organization is registered by future shareholders, the number of which must be at least five people or three legal entities. To begin with, it is necessary to hold a constituent assembly, where the charter of the consumer cooperative and the list of its members are adopted, and the governing bodies are also elected. Then the company is registered as a legal entity in stateinstitutions, after which it acquires official status. Each creator is charged an entry and share fee and the production process begins.

What do you need to know about unions of consumer societies?

To cooperate and improve the quality of products, cooperatives can join associations. The main documents regulating the foundations of the activities of the union and interaction with its members are the charter and the memorandum of association. The consumer society operates at the expense of the contributions of its members. Representatives of the association control the activities of cooperatives, increase the efficiency of their production. Most often, such organizations are formed on a territorial basis, forming district, district, regional and regional consumer unions. The company included in the association retains its independence and remains a separate legal entity.

Benefits for members of the central union

This is the largest organization, which can include both a regional association and a separate consumer society. What is it and what are the benefits of participation in the organization, defined by law. Members of the organization receive the right to use the word "Russia" in the name. The Central Union of Consumer Societies represents the interests of its members at the international level. It is engaged in the purchase of agricultural products and food from its members. Do not confuse the concept of "central consumer society" with the union. Firstoften referred to as an ordinary cooperative.

Popularity in CIS countries

Cooperation is a common phenomenon in the territory of the member states of the former Soviet Union. One of the largest is the Consumer Society "Svetly Put", operating in the Russian Federation. The activities of the organization are designed to improve the quality of life of its members. The association is engaged in the sale of apartments at a small price, issues loans for cars, provides medical and legal support.

In Belarus, the Grodno branch of the Grodno Regional Consumer Society is quite successful, providing its services to citizens and residents of the region. The organization has a wide network of stores where shareholders can purchase quality food, specialized clothing and building materials.