An enterprise is an economic entity that is created in accordance with the law to provide services, produce products, perform any work in order to meet the needs of society and make a profit.
There are some legal forms:
1. Partnership (full, limited).
2. Company (joint-stock company, with additional liability, limited liability).
3. Production cooperatives.
4. Unitary enterprises.
Production cooperative - an association of persons created with the aim of jointly conducting any business activity based on their personal labor participation. The initial capital consists of the share contributions of each of the participants. Production cooperatives should consist of five or more people. However, they may not have the status of individual entrepreneurs.
The initial contributions of all members of a cooperative need not be equal. However, when solving various issues, they have the same rights. Distribution of profits is made according to their labor participation. In the event of withdrawal from the cooperative, each member has the right only to pay the share (its down payment).
Production cooperatives have the following management system:
- general meeting;
- supervisory board;
- executive bodies (board, chairman).
Production cooperatives give their participants the right to independently leave it or transfer their personal share to another member of the cooperative. The transfer of the share to a third party is carried out exclusively with the consent of the general meeting.
They can be excluded from the cooperative only if they do not fulfill their direct duties. In addition, only the general meeting can do this.
One of the most common varieties of such organizations is the agricultural production cooperative. Its activity is based on the personal labor participation of each member for the purpose of production, processing and / or marketing of agricultural products.
The supreme body is the general meeting. The contribution must be equal to 10% of the share. The remaining amount is paid throughout the year. Profit generated as a result of the activities of an agricultural cooperative is paid to its members depending on the degree of labor participation. At the same time (according to the legislation) at least half of the work should be carried out by the members of the cooperative.
Unitary enterprises are a widespread organizational form. First of all, their distinguishing features include the fact that their property (state or municipal) is not divided in any way.
The unitary enterprise is headed by the head. This can be a director or CEO. It is appointed by the owner or authorized body. The head is the sole executive body and acts on the basis of an employment contract concluded with him. His responsibilities include the following:
- conclusion of contracts;
- opening bank accounts;
- issuance of powers of attorney;
- drawing up orders for employees of the enterprise;
- organization of the implementation of decisions of the owner of the enterprise.
Due to the fact that the property of unitary enterprises is state or municipal, the legislation limits their rights and opportunities. This is done in order to avoid various abuses.
Unitary enterprises cannot be (according to the current legislation) participants in credit organizations. The head has the right to participate in the activities of commercial, non - profit organizations, as well as dispose of property only with the consent of the owner.