Producer cooperative is a legal entity created with the purpose of agricultural products within the framework of united enterprise by citizens. In this case, participants of the cooperative set a share fund by combining certain portion of their property or money. The entity’s income is distributed among its members in accordance with the ratio of their share in the fund. No less than 70 percent of the works should be carried out by cooperative. The involvement of hired employees is allowed, but their number should not exceed 30 percent of total workers.
Consumer cooperative is a non-profit entity created by income from the consumers of agricultural products with the view of meeting its members’ needs for produce and financial resources and an effective sale of products to make savings or generate additional funds. Producer- consumer cooperative is a commercial entity created to produce, sell and process agricultural products, provide its members with the means of production and material and technical resources, provide services to its members to meet social and other demands.
The draft law also includes duties of state in the agricultural cooperatives and an article o n organization of cooperative markets. The cooperative markets will operate under the consumer cooperatives. Creation of cooperative markets and allocation of plot of land for them will be carried out by relevant executive powers and municipalities. Only products of Azerbaijan-based cooperatives will be sold and individuals and legal entities which are only agricultural producers will be allowed to make a sale. Creation of agricultural cooperatives in Azerbaijan is voluntarily.
The draft law was adopted by voting.
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