On 1 April 2004 reform began in the area of adjusting of activity of public organizations and unprofitable societies, into place of which the new forms of public organizations – societies (biedriba) and establishments came (nodibinajums). The order of functioning of new forms of public organizations and order of transition of before operating public organizations and unprofitable societies regulate Law of Latvian Republic on societies and establishments, Law of Latvian Republic on the order of going into effect law on societies and establishments and Law of Latvian Republic on the order of going into effect the Commercial law.
Existing at the present moment public organizations must hand in applications on re-registering in a new register until December, 31, 2005, to organizations of non-profits it must it was be done until December, 31, 2004, otherwise Register of enterprises will begin liquidation of such organizations and unprofitable societies.
1. Basic description of Societies.
By a basic normatively-legal act, regulates the order of establishment (grounds) and activity of Societies there is a Law of Latvian Republic on“ societies and associations”, accepted by LR Saeima 30.10.2003 and entered into force on 01.04.2004. A law sets that Society is a voluntarily association of a few persons, which is founded for achieving certain goals in the Statutes which do not carry character of profit receipt (p. 2 p.1). The founders of Society can be both physical and legal persons, and also personal societies. The least of founders of Society – 2.
Society possesses status of legal person from the moment of his registration in Register of Societies and Associations (st.3), which conducts proper state institution (Commercial register). On all obligations Society answers with all their property; Society does not answer to the obligations of the members;
Article 7 of the Law foresees Society a right to carry out and conduct economic activity. However, point 1 of this article expressly and determines unequivocally, that as additional work it is let Society to conduct economic activity which is related to maintenance (by service) and use of the property, and also to carry out other economic activity which is needed for achievement indicated and Statutes of aims. Thus, a characterizing sign for realization Society of economic activity its direct connection is with declared Society aims. In addition, point 2 article 7 sets that all profits of Society can be used also only for achieving the aims indicated in Statutes.
Article 8 Law allows Society to hire employees on voluntarily work without foundation of legal relations of labors, and work of these persons must be directed only on achievement set in the Statutes of Society of aims. If, however, a person for discharging the duties gets a reward (payment), he is determined the volume of his work and financial position of Society (p.9).
To society for achievement set in his Statutes of aims it is let to carry out activity which does not conflict with normatively-legal acts, in particular case – freely to diffuse information about the activity, to produce the printing editions and other mass medias, organize collections, processions and pickets, and also to carry out other public activity (article 10 Law).
In order to found a Society its founders must make about it proper Decision (a.24 p.1), which is designed as a separate, document and in which specified:
- name of Society,
- aims of Society,
- the personal information of founders is the name, last name, and personal code– for physical persons, name, registration number and legal address – for legal persons,
- rights and duties of founders, if they agreed about such,
- plenary powers to the separate founders for signing of Regulation and Statement for registration of Society (if such were given),
- other information about which founders consider necessary to mention,
- date and place of making this decision about establishment of Society.
All founders of Society sign a decision about establishment of Society, or on behalf of founder of Society this decision can sign the person who participated in making this decision authorized founders. At that rate, a writing warrant must be put to the decision (a.24 p. 4). Since a decision is accepted about establishment of Society, founders assert Regulation of Society and elect executive institution of Society (Rule).
Requirements, produced Law (a.25) to Regulation of Society:
- name of Society,
- aims of Society,
- term of action of Society, if it is founded on the set time,
- terms of reception and exception of members,
- right duties of members of Society,
- order rights and duties of structural and territorial subdivisions of Society (if such are founded) can be certain in which,
- order of convocation of Collection of members and decision-making order,
- name of executive structure of Society (Rule), his numerical strength, right for members Rule to present Society together or separately,
- structure of auditing institution, order of its electing, jurisdiction, decision-making order and term of their appointments, or order of setting of both inspector and term of his appointments,
- other positions, not conflicting with the law,
- date and place of claim of this Regulation.
All founders sign regulation or at least two founders, which in the Constituent agreement are authorized to sign the Regulation.
3. Executive institutions of the Society.
Executive institutions of Society are Collection of participants and Ruling members. A rule can consist of one or few members (persons of physical capability). All members of the Ruling institution have a right to present Society.
Ruling members manage property of the Society and dispose of its facilities in accordance with the law, Statutes, decisions of Collection of members. A ruling institution organize the record-keeping of Society (st.43).
The members of Ruling institution carry out the duties without a reward, if Regulation does not foresee payment of reward (a.47 p.1).
4. Order of registration of Societies
In order to register Society founders hand in an Application about the record of Society in a register and to him join the followings documents:
- Decision about establishment of Society,
- Statutes of Society (two copies),
- list of members of Ruling institution, with pointing the name, last name, personal code and place of inhabitation of every member of Ruling institution,
- document, certifying payment of state duty for registration.
All founders sign statement or, at least, two founders, which in Decision about establishment of Society authorized to sign the Statement. A founder or other authorized person which founders charged to carry out this commission can hand in this Application to the register.
State duty for registration of Society in accordance with the point 2.1.rules of LR Minister Cabinet Nr. 308 “About a state duty for realization of records in the register of Societies and Associations” from 15.04.2004 is 8 lats. From a tollage in accordance with the point 5 of the same Rules are freed those Societies, invalids, orphans or having many the children families, are incorporated in which, or if the aims of Society it is been organization of sporting measures of children’s or schools.
A statement about the record of Society in a register is examined in 15 day term.
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