"Association" is a big word that came to us from the Latin language through French in the middle of the XIX century.
A bit of history
At first, the concept was quite actively used in psychology. He denotes the relationship between psychological images in the form of representations, perceptions, sensations and motor acts. This connection finds expression in the fact that one image subjectively causes the next. The basis of such a call is the adjacency, similarity or opposite.
In the second half of the XIX century, the term "association" is already used in economics. This name began to designate a group of organizations or individuals that are united to solve one common problem.
Modern interpretation of the concept of "association"
What is invested in the concept of "association" today? This is an association of enterprises or organizations, which are characterized by these three properties: openness, voluntariness and coordination of efforts.
As an association, associations are formed on a voluntary basis. This organization does not have such severe restrictions for participants 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 participants on joining other associations.
Since the association is a free association, including the participation of any business entities, any legal or natural persons can join it at various stages of the activity.
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 foundations, partnerships or business entities (if the founders have the responsibility of doing business).
The difference between associations and holdings
To distinguish between associations and holding-type associations, which include the so-called "parent" companies, the following terms must be defined.
Firstly, national associations are independent legal entities. Secondly, the basis of their activities is the achievement of non-profit goals, which are based on the coordination of the activities of participants and the protection of their common property interests. As already mentioned above, they are formed only on a voluntary basis and cannot carry out any managerial functions in relation to the participants. Therefore, the members of the association, in accordance with applicable law, retain in full their independence and the right of a legal entity.
Types and founders of associations
As varieties of this type of non-profit organizations, regional (territorial) consumer unions, inter-territorial and territorial associations of trade unions can be considered.
The founders of associations can be both commercial and non-profit 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 to the activities being carried out. One and the same independent business entity may simultaneously belong to several associations and unions.
The constituent documents of such associations are the relevant contract and charter. So, in the
memorandum of association the organization of the association, the goals and conditions for participation in it are prescribed. The charter also defines the definition of the status of such an association. If a discrepancy is found between the conditions contained in these documents, preference is given to the charter, as a document determining the status of this association in relations with other business entities.
In addition to general information, constituent documents should outline the tasks and goals of the association, which determine the nature and extent of its legal capacity. Also, these acts should contain information on the competence and structure of the governing body, the procedure for making decisions. In addition, they determine the procedure for the division of property that remains after the dissolution (liquidation) of the association.
The volitional (highest) body of this association is the general meeting of its participants (or their representatives). The procedure for its operation is determined by the above-mentioned charter. Willful (executive) bodies - representatives of participants or individuals elected by the supreme body.
International Association
If the participants in these associations are business entities of different countries, then such associations are assigned international status. An example is the International Bar Association, which was organized back in 1946 and unites lawyers from many countries, including Russia.