Planning of expanding the chairmen’s powers of agricultural cooperatives
Transactions that are not related to the disposal of land plots can be made by decision of the chairman on behalf of entire cooperative. Amendments proposing such a change were recently made to the State Duma. It is proposed to bring them into the Federal Law "On Agricultural Cooperation". The initiative belongs to deputies of Samara Provincial Duma.
It is necessary in order to improve the business process. A cooperative makes many transactions, each of which requires the approval of its joint body. This makes it difficult to quickly make important decisions for the cooperative. At the same time, according to authors, frequent meetings of the board of cooperative distract workers from their job duties. And this, in turn, may lead to decline in economic indicators.
Deputies propose to fix in the charters of the cooperative that transactions not related to the ownership, use and disposal of land plots, as well as the acquisition of land, can be made by the chairman solely on behalf of the cooperative.
However, the authors have also provided the deterrent mechanisms against possible abuse by a chairman. The marginal value of such transactions is established by the charter of the cooperative, but may not exceed 10% of the total value of the cooperative’s assets minus the value of land plots and fixed assets.