Article 11. Termination of membership in a production cooperative and changes in the composition of its members of the Law on Production Cooperatives

Home / RLA / Article 11. Termination of membership in a production cooperative and changes in the composition of its members of the Law on Production Cooperatives

1. A member of a cooperative has the right to withdraw from it at his discretion, notifying the chairman of the board (chairman) of the cooperative in writing at least two weeks before leaving. The constituent documents may provide for a longer period of warning, but it should not exceed two months. Upon expiration of these terms, a member of the production cooperative is considered to have left the cooperative.

2. A member of a cooperative may be excluded from it by a decision of the general meeting.:

1) in case of systematic non-fulfillment or improper fulfillment of the duties assigned to him by the charter of the cooperative;

2) in connection with membership in a similar cooperative;

3) in other cases stipulated by the constituent documents.

The decision to exclude members of a production cooperative may be appealed in court.

3. Membership in a cooperative is terminated in the following cases::

1) the death of a cooperative member, declaring him dead, or declaring him missing;

2) transfer by a cooperative member of his share to another person in accordance with the procedure provided for in paragraph 5 of this Article.;

3) the creditor's (creditors') foreclosure on the share of a cooperative member;

3-1) refusal of a cooperative member from personal labor participation in the activities of a production cooperative.

4. In the event of the death of a cooperative member, his heirs may be accepted as members of the cooperative, unless otherwise provided by the cooperative's charter.

5. A member of the cooperative has the right to sell or otherwise transfer his share or part of it to another member(s) of the cooperative, unless otherwise provided by the founding documents of the cooperative or legislative acts.

The transfer of a share (part of it) to a citizen who is not a member of the cooperative is allowed only with the consent of the members of the cooperative, unless otherwise provided by legislative acts. In this case, other members of the cooperative shall enjoy the pre-emptive right to purchase such a share (part of it), with the exception of the cases provided for by this Law.

6. A person who is not a member of a cooperative, to whom a share or part of it has been transferred in accordance with the procedure laid down in this article and who has expressed a desire to join the cooperative, is subject to admission to its membership.

7. Members of the cooperative who have reached retirement age may retain membership in the cooperative on the terms stipulated by the cooperative's charter.

8. The admission of new members of the cooperative is carried out by the general meeting of the cooperative members in accordance with the procedure provided for in Article 15 of this Law.

The Law of the Republic of Kazakhstan dated October 5, 1995 N 2486.

President

Republic of Kazakhstan

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