Research On Cooperative Legislation

The author makes a study on cooperatives and legislation with respect to cooperatives in P.R.C. in the dissertation.Cooperatives originated from the Rochdale Society of Equitable Pioneers, flourishing in the most barren soil of the first Industrial Revolution. With the rapid changes in economic and social life, cooperatives undergone obvious changes in the worldwide scope in its practice since World War n, whereas the general principles of cooperatives are adhered to. Cooperatives also developed in our nation, thereby promoting the agricultural and industrial production. Yet when cooperatives became the implementation tool of the government policy, they fell into failure, leaving lessons for the following lawmakers.It is necessary to clarify the definition, character and general principles of cooperatives. A cooperative is an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly owned and democratically controlled enterprise. A cooperative is a not-for-profit association. Cooperatives are guided by the general cooperative principles, i.e.: voluntary and open membership; democratic member control; member economic participation; autonomy and independence; education, training and information; cooperation among cooperatives; and concern for community.As to the legislation of cooperatives, the forms and focus of legislation vary from one nation to another. The cooperative legislation in the developed countries focuses on regulating cooperatives by more flexible rules, thereby offering cooperatives a fare chance to compete with other economic organizations. The cooperative legislation in the developing countries emphasizes in setting forth the autonomous and self-help nature of cooperatives, adhering to principles such as voluntary membership and democratic member control. And new trends with regard to cooperative legislation can be discerned, i.e.: participatory law making, regulation role of the government and flexibility in cooperative organization structure, etc..Cooperative rules are promulgated by governments of China, among which the draft of Cooperative Act of the P.R.C. is an important one. Several issues should be discussed for thecurrent cooperative legislation of our nation. First, cooperatives should be stipulated as autonomous and self-help associations. The government can regulate, promote and supervise the development of cooperatives, whereas intervention of cooperatives should be discouraged. Second, the organs and management of cooperatives. All decisions concerning the cooperative must be taken by the General Assembly. The Board of Directors represents the cooperative in all acts of civil life, administering and managing the cooperative. And the Supervisory Committee carries out the control function in the interest of the members. Third, issues such as capital formation and distribution of surplus, dispute settlement and the transition of cooperatives to the corporations.