Attorney Dragana Djordjevic » "Law on Cooperatives"

Business associations

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Business entities join business associations because, in this way, companies and entrepreneurs, especially micro, small and medium enterprises, can strengthen their position on the market, coordinate activities, reduce costs, master new knowledge and experience (know-how), improve products and services, acquire missing complementary advantages, promote their brands and business, and thus increase their competitiveness and innovation, which leads to market expansion and, ultimately, higher profits.

At the macro level, all this helps increase employment, entrepreneurship and self-employment, more balanced regional development, strengthening of the economic sector, export growth and economic progress.

Business associations are divided into two types:

  • business associations with legal status effect (business associations in the status sense) and
  • business associations without status-legal effect (business associations in the contractual sense).

Article 578 of the Law on Business Companies regulates business associations with status-legal effect, stipulating that a business association is a legal person established by two or more companies or sole traders to achieve common goals. Continue reading Business associations →

Establishment of a cooperative

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The Law on Cooperatives regulates the legal status of cooperatives, their establishment, management and bodies of cooperatives, acquisition and termination of the status of cooperatives, book of cooperatives, property and operations of cooperatives, funds, distribution of profits and coverage of losses in cooperatives, termination of cooperatives, alliances of cooperatives, complex cooperatives, cooperative registration, cooperative audit, as well as other issues vital for the position and work of the cooperative.

The provisions of the Law governing the legal status of limited liability companies shall apply accordingly to all matters related to cooperatives, which are not explicitly regulated by the Law on Cooperatives.

The concept of cooperative and cooperative members

A cooperative is a legal entity representing a unique form of organization of natural persons (from now on: cooperative) who realize their economic, social, cultural and other interests by operating on cooperative principles and managing and controlling the cooperative business. Continue reading Establishment of a cooperative →