Share contribution - what is it?

To achieve various economic and social goals (satisfying material and other needs), people and entire organizations create associations based on membership - cooperatives. In a market economy, they act as a third force and are an alternative to the public and private sectors. The cooperative has a direct connection with the economic (or other) interests of its participants.

To form such an association and achieve its goals, a fund is created, which is formed from membership fees. This is a kind of direct investment called a “share contribution”. These are funds contributed by shareholders (participants) at different stages to ensure the statutory activities of the cooperative and in exchange for a share in its property. We will talk in more detail about what a share is and what it gives to the participants of the cooperative in the article.

Share contribution: definition

The concept of a share contribution is given, in particular, in the Federal Law of 1995 “On Agricultural Cooperation”. According to it, a share is a property contribution to a mutual fund made by a member of the cooperative in cash or other property (this can be various property rights, land, buildings, etc.).

In civil law, a share is represented as:

the right to participate in the property of the cooperative, obtained after paying share contributions (either by investing money or other property, or by direct participation of a citizen in the activities of the cooperative);
that part of the cooperative property allocated to one of its members, which consists of the share contributions made by him and the corresponding share of the property created in the course of the activities of the cooperative.

The size of the share contribution has a direct impact on the distribution of profits between the participants of the cooperative. However, it does not affect the right to participate in management: each member of the company has exactly one vote at the general meeting. Occupation of certain positions in the cooperative also does not depend on the size of the share contribution made by the participant. This is an important feature that is reflected in the Civil Code of the Russian Federation.

Procedure for joining the cooperative

Citizens and legal entities who have made entrance and share contributions and are accepted as members of the cooperative are called shareholders. You can become one both when creating and when entering an existing society. In the first case, the participants act as its founders and become shareholders only after state registration of the company as a legal entity. In the second, those wishing to join the cooperative first submit an application to its council, which is considered within a month, after which an appropriate decision is made. If it is positive, then the following follows:

pay an entry fee - goes mainly to cover the costs associated with entry;
pay a share contribution - this property is credited to the fund (the amount is established by the company’s charter);
receive a shareholder's book - a document certifying membership in the cooperative.

Dividends are calculated in proportion to the contribution made, which are paid upon disposal or transferred to the heir of the share.

Shareholders also have the right to apply for work in a cooperative on a priority basis compared to other citizens (Federal Law “On Consumer Cooperation”). The maximum number of shareholders of the cooperative is not limited.

Rules for the return of paid shares

Payment of the actual value of the share, in accordance with current legislation, is provided only upon termination of membership in the Cooperative. Information on payment of the actual value of the share is disclosed: 1) Art. 32 Federal Law dated December 30, 2004 No. 215-FZ “On Housing Accumulative Cooperatives” 2) in Part 9 of the Charter of the ZhNC “Housing Opportunities”. So, in accordance with paragraph 4 of Article 32 No. 215-FZ of December 30, 2004. “The cooperative is obliged to pay the retired member of the cooperative or other persons entitled to a share the actual value of the share within six months from the end of the financial year during which the grounds for termination of membership in the cooperative arose, unless a different period is provided for by the charter of the cooperative. In this case, the period provided for by the charter of the cooperative cannot exceed two years from the end of the financial year during which the grounds for termination of membership in the cooperative arose. If a retired member of the cooperative was given residential premises for use by the cooperative, payment of the actual value of the share is carried out after the vacancy of the said residential premises by him and the persons living with him.”

In accordance with clause 9.3. Charter of the Cooperative “The actual value of the share is paid by the Cooperative to a retired member of the Cooperative or other persons entitled to a share within a period of no less than six months and no more than two years from the end of the financial year during which the grounds for termination of membership in the Cooperative arose. a member of the cooperative was transferred by the Cooperative to a residential premises for use, payment of the actual value of the share is carried out only after the vacancy of the specified residential premises by him and the persons living with him.”

At the same time, the actual value of the share, which must be paid by the cooperative to the retired member of the cooperative or other persons entitled to the share, can be reduced by: 1) the amount of expenses of the cooperative associated with the sale of residential premises transferred for use to the retired member of the cooperative; 2) the amount of debt of the retired member of the cooperative for making membership and other contributions, with the exception of the share contribution, as well as the amount of the penalty established in accordance with the legislation of the Russian Federation and the charter of the cooperative for violation of obligations to make share contributions; 3) the amount of debt of the retired member of the cooperative, to whom the cooperative transferred residential premises for use, for payment of utilities provided by specialized operating and resource supply organizations.

Partial refund of share contributions is not provided for by law.

Agreement between the shareholder and the cooperative

The main document defining the procedure for the shareholder to pay money or other property is the share contribution agreement. It establishes all the main points related to the entry and participation of a citizen in a cooperative organization:

terms and amounts of payment of share contributions;
rights and obligations of shareholders;
rules for terminating this agreement;
the procedure for returning funds to a shareholder upon leaving the cooperative.

The agreement may also stipulate the rules for holding meetings of members of the cooperative, define the special rights of the shareholder, and regulate the division of the cooperative’s property in various cases.

The share agreement also determines the form of the share contribution. Mandatory shares in a production cooperative are established in the same amounts for all, while in a consumer cooperative they are set in proportion to the planned volume of citizen participation in the economic activities of this cooperative.

In addition to the mandatory ones, members of the society can make voluntary contributions to the mutual fund in order to increase their share of property participation in the cooperative. Due to them, shares of the participants are formed, which include annual cooperative payments in proportion to the size and period of circulation of these savings for each shareholder.

Advantages of a cooperative: mutual fund

The mutual fund formed from contributions from the cooperative's participants is one of its strongest aspects. In Russian legislation, the share contribution made by a citizen upon joining a cooperative is not declared and is not subject to taxation. This gives a certain amount of freedom to use and transfer the property of the participants, which makes up the joint capital.

For example, you can contribute not only cash to a mutual fund, but also buildings, equipment, land, securities and other property that has a monetary value. At the same time, its legal regime, tax regime and other payments associated with its use change. According to the agreement, you can even contribute a computer, having discussed its cost only with the leaders of the cooperative. In this case, the share contribution can be returned in cash without paying any taxes on these funds. In addition, shareholders can safely use the property (their own and that of other members of the cooperative), including the money they receive as collateral for their share contribution.

The property that makes up the mutual fund is well protected from external interference in the activities of the cooperative on the basis of this legislation of the Russian Federation. Therefore, cooperatives are often called an alternative to the public and private sectors of the economy.

Membership fee information

Extract

from the Regulations on the procedure for the formation and use of property of the CPC "Unity"

Membership fee - funds contributed by a member of the Cooperative (shareholder) to cover the expenses of the Cooperative, the formation of funds and for other purposes, in the manner determined by the Charter and internal regulations of the Cooperative.

The membership fee (membership fees) is targeted income for the maintenance of the Cooperative and the conduct of its statutory activities, received free of charge from the members of the Cooperative (shareholders) and used by the Cooperative for its intended purpose. The ownership of the membership fee passes to the Cooperative from the moment it is paid.

Membership fees of the Cooperative members (shareholders) are used in accordance with the Estimate of income and expenses for the maintenance of the Cooperative, approved by the General Meeting of the Cooperative members (shareholders).

Membership fees are mandatory for payment by all members of the Cooperative (shareholders) and are paid by all members of the Cooperative (shareholders) in the manner established by the decision of the Board of the Cooperative and these Regulations.

Payment of membership fees is the primary responsibility of a member of the Cooperative (shareholder) if there are other monetary obligations outstanding to the Cooperative.

Membership fees are paid both in cash to the Cooperative's cash desk and by non-cash transfer to the Cooperative's bank account.

The amount, procedure, timing and purpose of paying membership fees are determined by the Board of the Cooperative, based on the Methodology approved by these Regulations.

The methodology for calculating the amount of membership fees is established by these Regulations, approved by the General Meeting of the Cooperative members (shareholders), depending on the volume of participation of the Cooperative member (shareholder) in the financial activities of the Cooperative, the degree of use of the Cooperative services and property of the Cooperative by the Cooperative member (shareholder), as well as the terms of participation member of the Cooperative (shareholder) in the financial mutual assistance of the Cooperative.

Members of the Cooperative (shareholders) who are temporarily not participating in the financial (Loan and Savings) programs of the Cooperative, as well as those who terminated their participation in financial programs ahead of schedule, pay membership fees in accordance with clause 5.7.1. of this Regulation.

The amount and types of membership fees for different categories of Cooperative members (shareholders) may be different.

Membership fees for the formation of funds of the Cooperative are calculated according to the following Methodology:

ChV = ChVyr + ChVz + ChVsb;

CHYyr – annual membership fees;
PVZ - membership fees of shareholders - borrowers;
CHVSB - membership fees of shareholders - savers.

The debt on the membership fee can be repaid by non-cash write-off due to the accumulation (share) of a member of the Cooperative (shareholder), including when submitting documents to the judicial authorities.

Membership fees are non-refundable.

Membership fees are divided into:

Annual membership fee of a member of the Cooperative (shareholder) - CHY year

The basis for paying an annual membership fee is membership in the Cooperative.

The annual membership fee is:

for a member of the Cooperative (shareholder) - an individual and individual entrepreneur who does not participate in the Loan and Savings programs of the Cooperative (who does not use the funds of the Mutual Financial Assistance Fund (MFAF) and does not form the MFAF) - 40 rubles,
for a member of the Cooperative (shareholder) - a legal entity that does not participate in the Loan and Savings programs of the Cooperative (that does not use the funds of the Mutual Financial Assistance Fund (MFAF) and does not form the MFAF) - 1000 rubles.

The annual membership fee is calculated quarterly, on the first day of the month following the reporting quarter, provided that the member of the Cooperative (shareholder) did not participate in the Loan and Savings programs of the Cooperative in the reporting quarter.

The annual membership fee is paid in installments (quarterly) in the amount of 10 rubles. per quarter, after accrual:

— in cash to the Cooperative cash desk;

— by non-cash transfer to the Cooperative bank account.

The annual membership fee is directed towards the formation of the Cooperative Activities Fund.

If the membership fee is not paid, on the last day of the quarter, by decision of the Cooperative Board, a member of the Cooperative (shareholder) may be excluded from the membership of the Cooperative (shareholders), in accordance with the act of recording the payment of membership fees. At the same time, all funds of a member of the Cooperative (shareholder) are transferred non-cash through a routine operation to a separate deposit account.

When re-entering the Cooperative, the shareholder pays the annual membership fee accrued to him for the previous period of his membership in the Cooperative.

Membership fees of shareholders - borrowers related to the use of funds from the Mutual Financial Assistance Fund (MFAF) - ChVz

The basis for their contribution is the use of funds from the Mutual Financial Assistance Fund; they are used to finance the statutory activities of the Cooperative, to form the funds of the Cooperative and are contributed by members of the Cooperative (shareholders) on the terms determined by the Board of the Cooperative.

A member of the Cooperative (shareholder) pays the above-mentioned membership fees for the use of the Fund's funds in the manner and under the terms of these Regulations and the agreement on the payment of membership fees for the formation of funds and the conduct of statutory activities.

A member of the Cooperative (shareholder) using the Mutual Financial Assistance Fund pays a membership fee in proportion to the volume, timing and intensity of consumption of funds from the Mutual Financial Assistance Fund.

The procedure, terms, amounts, purposes of use and other conditions for making membership fees are authorized to change and supplement the Board of the Cooperative. In the event of the development and implementation of new loan programs, the Board has the right, depending on the degree of risk, to establish a different amount of membership fees. In this case, the new conditions begin to apply from the moment they are accepted by the Board of the Cooperative.

A member of the Cooperative (shareholder), participating in the Loan programs of the Cooperative and using funds from the Mutual Financial Assistance Fund, in accordance with the decision of the Board of the Cooperative, pays a membership fee in the amount determined by the agreement on the payment of membership fees for the formation of funds and the conduct of statutory activities:

in cash to the Cooperative cash desk,
non-cash transfer to the Cooperative bank account,

— in any other way not prohibited by the legislation of the Russian Federation.

The membership fee of shareholders - borrowers in the amount determined by the Board of the Cooperative is paid in a lump sum and (or) in installments (monthly) and is directed towards the formation of the Operations Support Fund.

The amount of the membership fee of shareholders - borrowers, allocated for the formation of the Operations Support Fund is determined according to the following Methodology:

Membership fees of shareholders - borrowers (PBZ) are determined as a percentage, calculated using the formula:

where is the amount of funds used by the Fund;

KO - turnover ratio k, taking into account the timing of issuance and payment of the membership fee, is determined in the following order:

Ko=1.25+Ks;

Kc is the urgency coefficient that determines the period for paying the membership fee;

Kp is an adjustment factor used to adjust the size, applied for the purpose of forming, during a calendar year, the necessary and sufficient size of the Cooperative’s funds.

KS and KP - approved by the Board of the Cooperative at least once a year.

Membership fees of shareholders - borrowers, calculated in the prescribed manner for the new calendar year, are annually approved by the Board of the Cooperative.

Information on the procedure for paying membership fees by shareholders - borrowers is posted in the places where the Cooperative services are provided.

If a member of the Cooperative (shareholder) fails to fulfill the obligation to pay the membership fee, the Cooperative has the right:

indisputably withhold the amount of the unpaid membership fee from the funds of a member of the Cooperative (shareholder) located in the Cooperative in the form of shares (shares) and other contributions, through partial or full repayment of mutual claims;
send materials to the judicial authorities for forced collection of the amount of debt on the membership fee;
expel from the members of the Cooperative (shareholders) on the basis of the Charter and Regulations on Membership of the Cooperative.

Membership fees of shareholders - savers related to the formation of the Mutual Financial Assistance Fund (MFAF) - ChVsb

The basis for their payment is the deposit and storage of funds in the Mutual Financial Assistance Fund in the form of transfer of personal savings to the Cooperative. These contributions are directed towards the formation of the Sustainability Fund and are made by a member of the Cooperative (shareholder) on the terms determined by the Board of the Cooperative.

A member of the Cooperative (shareholder) pays the above membership fees in accordance with these Regulations, in the manner and under the terms of the agreement on the payment of membership fees for the formation of funds and the conduct of statutory activities.

The procedure, terms, amounts and other conditions for paying membership fees are authorized to be changed and supplemented by the Board of the Cooperative. In this case, the new conditions begin to apply from the moment they are accepted by the Management Board.

A member of the cooperative (shareholder) participating in the Savings Programs of the Cooperative pays a membership fee in the amount of 1% of the amount of accrued interest in accordance with the agreement on the transfer of personal savings. The membership fee is paid upon receipt of accrued interest under agreements for the transfer of personal savings in cash to the cash desk of the Cooperative.

If a member of the Cooperative (shareholder) fails to fulfill the obligation to pay the membership fee, the Cooperative has the right:

indisputably withhold the amount of the unpaid membership fee from the funds of a member of the Cooperative (shareholder) located in the Cooperative in the form of a share accumulation (share), by partially or fully repaying mutual claims;
terminate the contract for the transfer of personal savings, while simultaneously withholding the membership fee;
expel from the members of the Cooperative (shareholders) on the basis of the Charter and Regulations on Membership of the Cooperative.

Membership fee to cover expenses is a sum of money contributed by members of the Cooperative (shareholders) participating in the formation and (or) use of the Mutual Financial Assistance Fund and instructing the Cooperative to transfer personal savings and (or) borrowed funds to individuals and (or) legal entities, including to your accounts, cards, as well as to cover expenses associated with receiving cash from your current account.

The membership fee is paid in a lump sum in the amount covering the expenses of the Cooperative for carrying out the relevant operation, in accordance with the agreement on cash settlement services of the servicing bank, on behalf of a member of the Cooperative (shareholder):

in cash to the Cooperative cash desk;
non-cash transfer to the Cooperative's bank account;
in any other way not prohibited by the legislation of the Russian Federation.

Additional membership fee to cover losses.

If the Cooperative incurs losses, the Cooperative Board calculates the amount of additional contribution for the Cooperative members (shareholders) to cover these losses. The amount of the additional membership fee established by the Board of the Cooperative is necessarily approved by the decision of the General Meeting of the Cooperative members (shareholders).

The amount of additional contributions may be equal for all members of the Cooperative (shareholders) or proportional to the accumulation of each member of the Cooperative (shareholder).

Making an additional contribution to cover losses is mandatory for all members of the Cooperative (shareholders) and is carried out by depositing funds into the cash desk or into the current account of the Cooperative within 3 months after approval of the annual balance sheet.

Members of the Cooperative (shareholders) jointly and severally bear subsidiary liability for its obligations within the limits of the unpaid portion of the additional membership fee of each of the members of the Cooperative (shareholders).