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Amended Cooperative Society Law

Original Language Title: Grozījumi Kooperatīvo sabiedrību likumā

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The Saeima has adopted and the President promulgated the following laws: the law on cooperative societies do cooperative societies Act (Republic of Latvia Saeima and the Cabinet of Ministers rapporteur, 1998, 6., 2000, nr. 10. no) the following amendments: 1. in article 1 point 2: turn off;
make paragraph 5 by the following: "5) voluntary cooperative — natural and legal persons Association, the purpose of which is to provide services to its members, operating efficiency;";
turn off paragraph 6;
turn off paragraph 7, the words "or the Union of cooperative societies";
make paragraph 10 by the following: ' 10) papildpaj-paja, which provides cooperative society members are entitled to receive a dividend and profit, but do not give voting rights; "
Add to paragraph 11, after the word "profit" by the words "(agricultural service cooperative society — surplus)";
to supplement the article with paragraphs 12 and 13 of the following: "12") agricultural service cooperative, cooperative society, which provides services to agricultural producers, but not engaged in the production of agricultural products;
13) surplus agricultural service cooperative society — for services paid in excess of the amount over actual costs. "
2. in article 2: express the title as follows: "article 2. The purpose of the law and the activities of cooperative societies legal basis ";
Add to paragraph 1 the first subparagraph following the words "to promote cooperative society" with the word "effective";
turn off the first part of paragraph 2, the words "and their Union";
to turn off the second paragraph, the words "and their Union."
3. Article 3: express points 3 and 4 by the following: ' 3) for each Member of the cooperative society at a general meeting of members has one vote;
4) cooperative society capital and controls, as well as for profit (agricultural service cooperative society — surplus) divided its members; "
turn off the 5, 6, 7 and 9.
4. Express 4, 5 and 6 of the article as follows: "article 4. The legal status of cooperatives (1) cooperative society is a legal entity.
(2) a cooperative shall be deemed established and acquires legal personality as of the date of the registered in the enterprise register of the Republic of Latvia (hereinafter register).
 5. article. Cooperative society delimitation of liability (1) cooperative societies for its obligations with all its property.
(2) the cooperative society is not responsible for the obligations of its members.
(3) the members of the cooperative society is not responsible for the obligations of the cooperative society.
 6. article. Cooperative society cooperative society the status of authorized economic operator is the operator, except for agricultural service cooperatives, housing cooperatives, the owner of the car in the garage owners ' cooperatives, boat owners in the garage of cooperatives and the cooperative society of horticulture. "
5. To make article 7, the first paragraph by the following: "(1) cooperative society name must contain the words" cooperative (collaborative) society "or" cooperative society ". Agricultural service cooperative society must also be in the title the words "agricultural services" or the name of the industry. "
6. turn off the third subparagraph of article 8.
7. Replace article 9, the word "company" with the word "company".
8. Replace article 10, the word "company" (the fold) with the word "company" (the fold).
9. Article 11: make the first part of paragraph 3 as follows: "the share capital specified 3) disbursement, to organise the effective cash contributions of the founders of the bank and receives the certificate of deposit, as well as assess the contribution (if property contributions are made);";
make the second paragraph as follows: "(2) if the cooperative society, established by reorganizing existing company, following the reorganisation of the applicable commercial rules.";
Supplement to the third part of the second sentence as follows: "the apartment owners ' cooperative society governed by this law, the law on apartment property", as well as other laws and regulations. ";
to supplement the article with the fourth paragraph as follows: "(4) agricultural service cooperative society the founders may be natural or legal persons, which produces agricultural products."
10. Article 13: make the first part of paragraph 6 and 7 by the following: ' 6) the rights and obligations of members;
7) Board and Council (if one is provided), fixing a number of the members of the Management Board entitled to represent the company jointly or separately; "
Add to paragraph 12, first paragraph after the word "profit" by the words "(agricultural service cooperative society — surplus)";
make the first part of paragraph 13 by the following: ' 13) company was founded, the reorganisation and winding-up order; "
turn off the first part of paragraph 16;
make the second paragraph as follows: "(2) the statutes may prescribe other provisions not inconsistent with the law. If the statutes are in conflict with the law, applicable law. "
11. in article 16: turn off the second sentence of the first subparagraph;
make the second subparagraph of paragraph 4 by the following: "4) bank certificate on payment of the share capital (if that part or share capital paid in cash), as well as documents proving the value of each property contribution (if property contributions are made);";
turn off the second part of paragraph 5;
to make the second part of paragraph 6 by the following: "6) other documents in accordance with the law" on the enterprise register of the Republic of Latvia '. ";
to supplement the article with the fourth paragraph as follows: "(4) agricultural service cooperatives submitted documents for registration and the order in which these companies to register in the register of the company, be determined by the Cabinet of Ministers."
12. in article 17: replace the first paragraph, the words "which recognise the statutes of the society" with the words "used the services of the public recognize and fulfill the society statutes";
off in the third paragraph, the words "but on its Executive Board or a member of the Audit Commission, the only person that has reached 16 years of age".
13. Add to article 18 of the eighth by the following: "(8) for the agricultural service cooperative society membership may be a natural or legal person who, in the holdings of their deals with the production of agricultural products and agricultural services cooperative use of public services under the requirements of the Statute."
14. Article 19: turn off the first part of paragraph 1, the words "citizenship" and "licence";
to turn off the second paragraph, the words "and its creditor".
15. Add to article 20, the first paragraph with the sentence by the following: "agricultural service cooperative society members will receive a refund of the excess under the volume used, but in the event of liquidation of the company, liquidation quota according to the number of shares owned by the members."
16. Add to article 21, paragraph 2 of the first subparagraph following the words "labour input" a "(agricultural service cooperative society — to get the volume of the services)."
17. in article 22, second paragraph: to make paragraph 1 by the following: "1) to participate in the operation and administration of the public;"
2. turn off the point;
supplement paragraph 5, after the words "dividend refund" and by the words "or surplus (agricultural service cooperative society)".
18. Article 23: Add to fourth with a new second sentence by the following: "agricultural service cooperative society shares payable to the members of the statutory deadline.";
turn off the fifth;
Add to sixth after the word "dividend" with the words "(agricultural service cooperative society, a surplus of assent)";
off the seventh;
Supplement to the eighth article as follows: "(8) agricultural service cooperative society members who dropped out of society, cooperative shares payable within the time limit laid down in the statutes."
19. the title of chapter IV, Expressed as follows: "(IV) chapter. Cooperative society capital and economic activities ".
20. Make article 24, third subparagraph the second sentence by the following: "housing cooperatives, the owner of the car in the garage of cooperatives of owners, boat owners garage cooperatives, agricultural service cooperative society and the Betterment of the cooperatives share capital minimum size is 200 lats."
21. Article 25: turn off the first part of paragraph 3;
express the sixth part as follows: "(6) if the society's statutes provided for the entry fee, its the same for all members. The statutes may regulate the size of the membership fee and the detection criteria. "
22. Supplement article 26, paragraph 4 of the second paragraph, after the words "dividend and profit" by the words "(agricultural service cooperative society — surplus)."
23. Article 27: adding to the second paragraph after the words "Member" with the words "request (except agricultural service cooperative society)";
to supplement the article with the third part as follows:

"(3) agricultural service cooperative society members can dispose of papildpaj after his request to the Board of the cooperative society, pursuant to the procedure laid down in the statutes."
24. Turn off article 28.
25. Article 30 of the expression as follows: "article 30. Property investment (1) in respect of the financial contribution applicable to the commercial law article 153 and 154 of the first, third, fourth and sixth.
(2) the investor is assigned a property investment value corresponding to the number of shares.
(3) the owner of a housing cooperative society, car garage owners cooperative society, a boat garage owners ' cooperatives and horticultural cooperative society pay equity only in cash. "
26. Article 31: turn off the second part of paragraph 2;
Add to the second subparagraph of paragraph 3, after the word "dividend" with the words "(agricultural service cooperative society — surplus)."
27. Express article 33 the following: ' article 33. Tax incentives for cooperatives and tax payments of agricultural service cooperatives (1) tax incentives for cooperative society receives the tax laws.
(2) subject to the tax laws to be followed, the agricultural service cooperative society corporate income tax does not pay its own but each agricultural service cooperative society pays for the personal income tax or corporate income tax from surplus parts, due to the agricultural service cooperative society members. "
28. Article 36: replace the title and in the text, the words "the company" (the fold) with the word "company" (the fold);
turn off third and fourth.
29. Add to article 37, second subparagraph with the sentence the following wording: "the apartment owners ' cooperative society, which has more than 200 members, may call an authorized meeting only the approval of cooperative society in the meantime."
30. Article 38: make the first paragraph by the following: "(1) cooperative society, the highest governing body is the general meeting of the members of the cooperative society. It may be routine and extraordinary. "
replace the third paragraph, the words "the Audit Commission (Auditor) or the Union of cooperative societies, which is a member of the society" with the words "or the Audit Commission (Auditor)".
31. Article 39: make the first paragraph by the following: "(1) the Only cooperative society members ' meeting has the right to: 1) elect and reverse proxies, which authorized the meeting are entitled to decide the second part of this article in specific competence of members;
2) to elect and recall members of the Management Board and the Council, the members of the Commission (Auditor) or certified auditor and the members of the Commission of liquidation;
3) to determine the remuneration of the Board and the members of the Council, the members of the Commission (Auditor) or sworn auditor and the members of the Commission of liquidation;
4) set changes the representation of the members of the Executive Board of the law. ";
turn off the second part of the introductory paragraph, the word "exclusively";
turn off the second part of paragraph 5;
turn off the second part of paragraph 7, the words "its membership of the Union of cooperative societies and" and replace the word "companies" with the word "company";
replace the second subparagraph of paragraph 8, the words "public company (company)" with the word "company";
Add to paragraph 10 of the second paragraph after the word "profit" by the words "(agricultural service cooperative society — surplus)";
turn off the second part of paragraph 13.
32. in article 41: make the first part of the first sentence as follows: "the general meeting of members (authorised meeting), housing cooperatives, the owner trustee election meeting that the notified and organized society in accordance with the procedure laid down in the statutes, is entitled, if it represented more than half of the eligible members.";
turn off the fourth paragraph, the words "join the Union of cooperative societies and unsubscribe from them";
to make a fifth by the following: "(5) If the general meeting of members (authorised meeting), housing cooperatives, the owner trustee election meeting is not entitled to 10 days of repeated general meeting is convened (the notified meeting), housing cooperatives, the owner trustee election meeting with the same agenda, and it is entitled regardless of the number of members present."
33. Article 42: turn off in the first paragraph, the words "(authorized meeting)";
in the fourth paragraph, replace the word "five" with the word "three".
34. To exclude article 43 (4).
35. Make 46., 47 and 48 of the article as follows: "article 46. Cooperative society (1) the Management Board of the Board of the cooperative society is a society that controls the Executive and representative of the cooperative society.
(2) the Management Board is familiar with and run by cooperatives. It is responsible for the company's business operations, as well as to organize public accounting in compliance with the law.
(3) the Management Board shall manage the property of the cooperative society and the features are handled according to the law, the Statute of the cooperative society and members of the general meeting (the meeting authorised).
(4) Board members to the cooperative society statutes provided for a period of not more than three years, elected by the general meeting of members, and by secret ballot. Chairman of the Management Board elected by the general meeting of members, but his Deputy, the members of the Management Board from among the statutes, unless otherwise specified.
(5) the Management Board is valid, if they participate in the hearing, more than half of the members of the Executive Board. The minutes of the proceedings of the Board signed by all present members of the Board, if the cooperative society statute provides otherwise.
(6) the Management Board takes a decision by the members of the Board present a simple majority. Votes by a similar, Chairman of the Board shall have a casting vote, but in the absence of the Chairman, his Deputy.
(7) If the Board does not agree with the decision of the Board and vote against it, his the different at his request a writable Board meeting minutes.
(8) the operating year end the Board shall report on its activities to the general meeting of members (authorised meeting). The report reflects the results of economic activity, the planned economic policy next year, the economic activities and other related activities of the cooperative society of the essential questions.
(9) the owner of a housing cooperative society, the Governing Board shall organise the election of the authorised persons of each meeting in a private home at the cooperative society statutes certain representations provisions for a period of not more than three years.
 47. article. Cooperative Society Board the right to manage the cooperative society and its competence (1) Cooperative Society Board members are cooperative societies run by only jointly.
(2) the Management Board of the cooperative society decides all the company issues, which is not a member of the general meeting (the meeting authorised) or the competence of the Council.
(3) cooperative societies in their statutes may stipulate that the Board of important issues in the decision of the general meeting of members needed (authorized meeting) or Council (if one exists). Important considered the following issues: 1) acquisition of other companies, they increase or decrease;
2) real estate purchase, sale, or expanding to a case law;
3) affiliates and representative offices opening or closing;
4) lending, not connected with the cooperative society of ordinary economic activity;
5) new activities started, as well as the termination of existing activities.
(4) if the Council rejects the proposals submitted by the Board, the Management Board has the right to convene an extraordinary general meeting of members (authorised meeting).
 48. article. Cooperative Society Board representation rights (1) each cooperative society Board members have right of representation. The members of the Management Board of the company shall represent the joint where the statutes do not provide otherwise. The statutes may provide that the public represented by the members of the Management Board jointly with prokūrist.
(2) in the case of a joint representative may empower the members of the Executive Board from among its members one or more Board members to conclude certain transactions or certain kinds of transactions. This provision is applicable even if the society represents the members of the Management Board jointly with prokūrist.
(3) the right of representation of the Board with respect to third parties cannot be restricted. The statutes of the cooperative society in certain members of the Management Board entitled to represent the company jointly or separately or together with prokūrist is not considered to represent a restriction of the Board for the purposes of this article.
(4) with regard to the cooperative society Board members must respect the limits of representation in its statutes, the members of the general meeting and the Board (if any) decisions.
(5) changes in the cooperative society to represent the members of the Management Board of the Company to the registration of the piesakām in the registry, the application of the general meeting of members by adding the Protocol statement with the decision. "
36. Express article 49, the second subparagraph by the following:

"(2) the Audit Commission (Auditor) to the cooperative society's statutory period of not more than three years, elected by the general meeting of the members of the cooperative society. The Audit Commission can elect a certified auditor who is not a member of the public. "
37. Article 51: make the first part of paragraph 3 as follows: "3) if the number of members of the public not less than three consecutive months have been less than three;"
turn off the first part of paragraph 6;
to turn off the second part.
52. Article 38. off.
39. Turn off article 54, first paragraph, second sentence.
40. Article 55 of the expression as follows: "article 55. Cooperative Society Board and the responsibility of the members of the Council (1) for each cooperative society Board and the Governing Council shall perform its obligations as a good and careful owner.
(2) the cooperative society and Council members of the Management Board jointly and severally liable for the damage they caused to the public.
(3) cooperative society and a member of the Council of the Board does not respond in accordance with the second paragraph of this article, if it is shown that acted as a good and thorough landlord.
(4) the Board and the members of the Council are not responsible for damage if done in accordance with the members ' general meeting (the meeting authorized) a legitimate decision. The fact that the Council has approved the action of the Board, does not exclude the responsibility of the members of the Executive Board of the society. "
41. To supplement the law with article 55.1 of the following: ' article 55.1. Responsibility of the Board of the cooperative society and the influence of the members of the Council (1) the Person with the evil intention of achieving that cooperative society Board Member, prokūrist or komercpilnvarniek to act contrary to the public interest, or its members, the public response to the behaviour of such damage.
(2) If in the first case referred to is the basis for the cooperative society Board members accountable for prosecution in accordance with article 55 of this law, he shall be responsible jointly and severally with the person who used its influence. If there are grounds to prosecute prokūrist or komercpilnvarniek, he is responsible jointly and severally with the person who used its influence.
(3) Cooperative Society Board Member, Council Member, prokūrist or komercpilnvarniek is not responding in accordance with the second paragraph of this article, if it is shown that acted as a good and thorough landlord.
(4) in the first and second parts, these claims to lapse within five years from the occurrence of the claim. "
42. off Chapter VIII.
43. transitional provisions be supplemented with 4-paragraph 8 by the following: "4. Cabinet of Ministers until 2002 December 1, draw up and submit to Parliament necessary amendments to tax laws and other regulations, to ensure that this law, the second subparagraph of article 33.
5. This law, article 33, paragraph 2 shall enter into force simultaneously with the amendments to the tax laws and other legislation.
6. Register of enterprises registered cooperative society and the Union of cooperative societies in accordance with the requirements of the law be made accordingly in its statutes, no later than 31 December 2002.
7. If the Board of the cooperative society, the Council (if one exists) and the Audit Commission (Auditor) cooperative society elected trustee meeting, these institutions not later than until 2002 December 31 directly elected by the general meeting of the cooperative society.
8. The Ministry of Justice and to the development of 1 September published the newspaper "Latvian Journal of housing cooperatives, the owner of the car in the garage of cooperatives of owners, boat owners in the garage of cooperatives and horticultural cooperative society statute."
The Parliament adopted the law of 20 June 2002.
State v. President Vaira Vīķe-Freiberga in Riga in 2002 July 10 Editorial Note: the law shall enter into force 24 July 2002.