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Law of Georgia on Agricultural Cooperatives | |
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Document number | 816-რს |
Document issuer | Parliament of Georgia |
Date of issuing | 12/07/2013 |
Document type | Law of Georgia |
Source and date of publishing | Website, 05/08/2013 |
Registration code | 240070000.05.001.017022 |
Consolidated publications |
Initial version (05/08/2013 - 12/12/2014)
Article 2 - Purpose of the Law
The purpose of this Law shall be the following:
a) developing family households, organising them into cooperatives, and strengthening their viability;
b) promoting the revival of rural areas and agriculture;
c) ensuring the social and economic development of rural areas;
d) eliminating rural poverty;
e) stopping migration from rural areas;
f) increasing agricultural productivity, improving competitiveness and raising profitability, as well as developing the national economy;
g) promoting the development of biological farming.
Article 3 - Definition of terms
For the purposes of this Law, the terms used in this Law shall have the following meaning:
a) agricultural activity – all kinds of farming activity on agricultural land or land-related property, and other related services that includes the production, processing, packing, packaging, storage, transportation, and marketing of plant and animal (including poultry, fish, silkworm, bee, etc.) products;
b) land-related property - movable and immovable property used for the production, processing, packing, packaging, storage, transportation, and marketing of plant and animal (including poultry, fish, silkworm, bee, etc.) products;
c) agricultural products - products from agricultural activity;
d) agricultural cooperative – a legal entity organised under private law and legally established as a cooperative according to the Law of Georgia on Entrepreneurs, which carries out agricultural activity and which has been given the status of an agricultural cooperative under this Law;
e) economic participation of members (shareholders) – participation of members (shareholders) of an agricultural cooperative in any agricultural activity carried out by the cooperative;
f) contribution (share) – contribution of money or property expressed in monetary value by a member of an agricultural cooperative;
g) democratic management - equal opportunity for members of an agricultural cooperative to manage and control the cooperative’s activity, for which each member of the cooperative has one vote;
h) biological farming – an ordered system of agricultural activity that encourages such interdependence between living organisms and the environment when the balance of nature is maintained.
Article 4 - Legislation of Georgia on agricultural cooperatives
Article 5 - Main principles of activity of agricultural cooperatives
Main principles of activity of agricultural cooperatives shall be as follows:
a) voluntary membership
b) democratic management
c) economic participation of members (shareholders)
d) social responsibility, fairness and mutual assistance.
Article 6 - Areas of activity of agricultural cooperatives
Article 7 - Obtaining and terminating the status of an agricultural cooperative
2. The application must be accompanied by the following documents:
a) an extract from the Registry of Entrepreneurs and Non-entrepreneurial (Non-commercial) Legal Persons evidencing the registration of the legal person and the applicant’s powers;
b) if necessary, an extract from the Public Registry evidencing the title of the legal person to agricultural land and/or property;
c) the charter of the cooperative.
3. The Minister shall approve the Statute of the Agency.
5. The main competencies of the Agency shall be as follows:
a) taking government support measures for agricultural cooperatives;
b) preparing proposals and recommendations to promote and develop agricultural cooperatives;
c) within its competence, providing consultation to agricultural cooperatives;
d) creating a database on the activity of agricultural cooperatives to contain information about implemented, current, and/or planned agricultural activity of agricultural cooperatives, as well as data on the crops grown and sold, types and number of services provided and other related data;
e) granting and terminating the status of an agricultural cooperative;
f) cooperating with the International Co-operative Alliance (ICA), international organisations, and cooperative associations of other countries;
g) supporting the training and re-training of staff for agricultural cooperatives, as well as upgrading professional skills for the management staff of agricultural cooperatives;
h) organising scientific-practical conferences, exhibitions, seminars, and meetings to exchange experience and information in the field of agricultural cooperation;
i) monitoring the activity of agricultural cooperatives. To this end, the Agency may:
i. request and receive all necessary information from agricultural cooperatives on implemented and/or planned agricultural activity;
ii. send, if necessary, authorised persons to study the activity of agricultural cooperatives on site to ensure the monitoring of agricultural cooperatives;
iii. exercising any other powers as determined by the legislation of Georgia and the Statute of the Agency.
6. Funding sources of the Agency shall be as follows:
a) target funds allocated from the state budget of Georgia
b) grant funds
c) other income permitted by the legislation of Georgia.
Article 9 - Management of the Agency
2. The Minister shall appoint and dismiss the Chairperson of the Agency.
3. The Chairperson of the Agency shall:
a) represent the Agency in its relations with third parties;
b) make a decision (issue an individual-administrative legal act) on issues falling within the competence of the Agency;
c) appoint and dismiss Agency staff;
d) administer funds and property of the Agency in the manner provided for by the legislation of Georgia;
e) perform other duties as determined by the Statute of the Agency.
Article 10 - Charter of an agricultural cooperative
2. The charter of an agricultural cooperative must cover the following main issues:
a) the procedure for establishing and administering a mandatory reserve fund;
b) the powers and the procedure for convening representatives’ or general meetings;
c) the amount of contributions (shares);
d) the procedure for maintaining the registry of members (shareholders);
e) the rules and procedures for distributing income and dividends;
f) the procedure for distributing losses;
g) the procedure for registering mutual obligations in written form between an agricultural cooperative and its members (shareholders);
h) the procedure for distributing the assets remaining during and after liquidation of the agricultural cooperative.
Article 11 - A member of an agricultural cooperative
1. A member of an agricultural cooperative may be:
a) an 18-year or older citizen of Georgia, who is directly involved in agricultural activity carried out by the agricultural cooperative and who owns shares;
b) an agricultural cooperative as defined by this Law.
Article 12 - Terminating the membership of an agricultural cooperative
1. Grounds for termination of membership of an agricultural cooperative shall be as follows:
a) withdrawal from membership
b) exclusion of a member
c) death of a member
d) liquidation of an agricultural cooperative.
3. A member of an agricultural cooperative may be expelled if he/she:
a) does not fulfill his/her obligations;
b) grossly violates the charter of an agricultural cooperative and/or does not implement decisions of the management bodies of an agricultural cooperative.
Article 13 - Property of an agricultural cooperative
Article 14 - Government support to agricultural cooperatives
Government support measures to agricultural cooperatives shall be as follows:
a) drafting development projects and programs for agricultural cooperatives;
b) providing agricultural cooperatives with an opportunity to enjoy preferential credit resources and grants;
c) providing consultation and giving respective recommendations to agricultural cooperatives;
d) defining tax privileges for agricultural cooperatives.
Article 15 - Transitional provisions
President of Georgia Mikheil Saakashvili
Kutaisi
12 July 2013
No 816-ES
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