Civil law: concept and characteristics of a legal entity

Today, active participants in legal relations of a civil nature, along with individuals (citizens), stateless persons and foreign citizens, can be legal entities, concept, signs, types which are discussed in detail in this article. The legal meaning of this construction can be explained on the basis of various concepts of scientific origin, among which the theory of fiction and organic theory play a huge role. In addition, theories of interest, collective, and, of course, directors are known. It is important to supplement that concept and characteristics of a legal entity it is possible to determine thanks to absolutely each of the above concepts. By the way, the Civil Code of the Russian Federation interprets the personification of property complexes as a fundamental feature of any organization. In practice, he usually identifies the legal personality of a legal entity. It is interesting to know that in order to obtain the status of a participant in a public turnover, an enterprise must possess certain property, which must be separated from the property complexes of other participants.

Interpretation of the concept

Distinctive and at the same time characterizing legal entities concept, signs, typescertainly have a unique nature. Thus, a legal entity must be understood as an organization that has at its disposal, an operational kind of management or an economic type of maintaining property of a separate nature. In addition, in accordance with the term, this company must in any case be liable for its financial obligations through these property complexes. The concept and characteristics of a legal entity they say that in one way or another it has the ability to exercise or acquire property and personal non-property rights on its own behalf, as well as to be a defendant or plaintiff in the judiciary and to bear obligations specified by law. It is important to add that any company must have an independent estimate or balance.

By the way, public associations, as a rule, have a formalized or informal orientation. The first type of systems is determined legal entity, concept, signs, liability of a legal entity. In this case, another status permitted by law is also appropriate: for example, a branch or representative office of a legal entity. When a social association is informal in nature, we are talking about the exclusion of design.

Legal entities: concept, features, legal capacity, classification

According to the Civil Code of the Russian Federation (Article 48), “a legal entity is nothing more than an organization that has at its disposal, an operational type of management, or an economic type of management, property of a separate type that is responsible in accordance with its own obligations to creditors through this property and is capable of of his person to exercise or acquire rights of property and personal non-property nature, as well as to be a plaintiff and defendant in the judicial authorities and bear certain responsibilities. ” Important to consider concept and main features of a legal entityAmong which are the following items:

• The ownership of a structure of property of a separate nature. By the way, it can be taken into account in accordance with the legislative acts of the Russian state, as well as with the rights of the operational type of management or economic management.In the first case, accounting is carried out through the formation of an independent balance sheet.
• The presence of property liability of a legal entity with everything on its balance sheet, which is isolated directly from the property complexes of the founders (owners). In this case, the latter should not be liable for the obligations of the organization they formed, and vice versa. By the way, there are exceptions to this rule. Their order is provided by law.
• The concept and characteristics of a legal entity imply independent participation in civil relations on their own behalf, but not on behalf of their owners (founders). This should include the implementation and acquisition of property rights, as well as non-property rights of a personal orientation, the fulfillment of duties that are implicitly permitted by current legislation.
• Defining legal entities as subjects of the concept and features withrelate to the right to protect their interests in accordance with the law. In other words, the legal entity can freely act in the judicial authorities both as a plaintiff and as a defendant.
• The presence of a legally issued certificate confirming state registration as a legal entity.

Legal Issue

Argumentative legal entity concept and features consists of the following paragraphs in accordance with Article 49 of the Civil Code of Russia:

• The legal entity may be endowed with civil rights corresponding to the target area of ​​activity, which is provided for by the constituent documentation, and, of course, bear obligations directly related to this activity. It is important to add that organizations of a commercial type (with the exception of unitary structures and other types of enterprises that are prescribed by law) may bear the civil obligations necessary for organizing various types of activities that are in accordance with the law and be vested with civil rights. By the way, in some cases that are not prohibited by law, the legal entity has the opportunity to promote individual activities solely on the basis of a specialized permit, called a license, a certificate of admission to a particular type of work issued by a self-regulatory organization, or membership in such a structure.
• Explaining legal entity concept and features says that the legal entity is subject to certain restrictions on rights solely in the case and in the manner prescribed by relevant legislative acts. By the way, a legal entity has the right to challenge the relevant decision by applying to the judicial authorities.
• Legal capacity in relation to legal entities is endowed with force from the moment when information on its formation is entered in the unified register of state significance, and loses its force when data on its termination are entered in the same register. The concept, features and legal personality of a legal entity they speak about the emergence of his right to develop activities for which a special permit, called a license today, a certificate of admission to a specific type of work from the organization of self-regulation, or membership in this kind of structure, from the moment of the direct acquisition of this permissive document, is mandatory.
• The position of legal entities in the civil law aspect, as well as the current procedure for their participation in the circulation of civil significance are regulated by this Code. It is important to note that the features of the situation of legal entities of certain categories of organizational forms, types and types, as well as legal entities, formed for the development of activities in specific production areas,in the civil law aspect are determined in accordance with this Code of the Russian Federation, as well as other laws and acts of a legal orientation.
• The concept, characteristics and classification of legal entities assumes that the applicable provisions of this Code apply to such entities. A prerequisite for this is the formation of these organizations on the territory of the Russian Federation.

Classification for legal entities

The concept, value, features of legal entities suggest a special classification in relation to them. So, all organizations are divided into groups in accordance with the following areas:

• According to the objectives of the activity (obtaining a certain amount of profit or achieving some other goals permitted by the legislation of the Russian state).
• According to the organizational form, in other words, in relation to the permitted types of enterprises.
• By the nature of the relationship between the founders (owners) and directly legal entities in terms of the absence or presence of the founders of ownership rights to the contributions that they make to the property complexes of the respective legal entities.

Business objectives

The concept, characteristics and classification of legal entities according to the objectives of the activity, it involves dividing the entire population into two large-scale classes: organizations of a commercial and non-profit type. A commercial enterprise should be understood as a structure that directly promotes commercial activity, or of a market participant who sets his key goal in activity as nothing more than maximizing profit. By a non-profit type organization, it is necessary to mean an enterprise that carries out non-profit activities, or a structure that sets the main goal of its own activities as any of the options that exist today, but not to make a profit. By the way, if a non-profit organization has a profit, in any case it is not divided between its participants. The concept and characteristics of a legal entity briefly describe some of the distinguishing features of a commercial organization from a nonprofit in legal terms. So, the modern Civil Code of our state says that both types of structures can have some profit, but in the first case it is subject to equal distribution among the participants, and in the second it is not, and, as a rule, it is spent on statutory purposes.

Organizational form

Under the organizational form of the organization should be borne in mind the cumulative system of certain features that stand out directly in the social structure of the characteristics of a legal entity and significantly distinguish this group of legal entities from the rest. It is important to note that in accordance with the legal form, absolutely every class of legal entities is divided into separate groups. Regulatory civil law concept and characteristics of a legal entity involves the formation of organizations of a commercial type exclusively in the following forms:

• Economic partnership.
• Economical society.
• Production cooperative.
• State unitary enterprises.
• Municipal unitary enterprises.

In what forms can non-profit structures be created? The main ones are consumer cooperatives, public and religious associations, institutions financed by the owner, charitable foundations, as well as structures organized in other formations permitted by the legislation of the Russian Federation.

Relationship Characterization

The concept and characteristics of a legal entity suggest that in accordance with the nature of the relationship directly between him and the founder, two types of organizations can be distinguished.In the first case, the owners in one way or another retain the absolute right of ownership in relation to their investments made earlier in the legal entity being formed, and the latter, in turn, is not endowed with the right of ownership of these deposits. In the second case, the owners completely lose their ownership of previously made deposits. In any case, it passes to the legal entity. As a rule, the first item refers to enterprises and institutions of a unitary type, organized by municipal or state bodies. They are funded directly by the owner. The second paragraph should include all other legal entities. It is important to add that the final type of structure is subject to classification in accordance with two subgroups:

• Organizations where the owner, instead of his contribution, receives some obligations in relation to the legal entity.
• Organizations where the owner does not have the right to receive, in exchange for his previously made contributions, certain rights in relation to the legal entity established by him.

It is important to know that in the first case, economic companies, business partnerships, consumer and production cooperatives can serve as vivid examples of the above kind of organizations. In the second case, as an example, we can take associations (organizations) of a public nature of activity, religious structures, charity funds, unions and associations that collect legal entities into one aggregate, as well as other organizations of a non-commercial plan.

Legal regime of property

Concept, legal capacity, signs, types of legal entities in relation to law, they mean their corresponding classification:

• The subjects of property rights, where it is necessary to include business companies and partnerships, cooperatives and other organizations of a non-commercial plan, in addition to institutions).
• The subjects of law in relation to economic management, where it would be appropriate to attribute unitary enterprises (both state and municipal), subsidiaries, and so on.
• The subjects of operational management law, where enterprises and institutions of a federal state nature should be included.

It is important to add that in terms of world practice, namely the legislation of other countries, there are other options for organizing legal entities. This fact primarily reflects a long and very interesting history of the formation of a market economy, as well as the national characteristics of each country in the world individually. Thus, in relation to the Russian Federation in the future, other types of legal entities may appear, of course, if there is a need on the part of market participants.

Legal entity and bankruptcy

Characterizing legal entities concept, signs, types, provision of a lawyer qualified assistance to structures will ensure their healthy functioning and avoid difficult economic situations. What can be attributed to those? Firstly, what’s not very scary is a decrease in sales when it comes to commercial organizations. Secondly, it is financial insolvency, which, of course, affects the structure much worse, up to its liquidation.

That is why in this chapter we will consider in detail concept and signs of bankruptcy of a legal entity, which may be recognized as economically insolvent either in connection with the decision of the commercial (arbitration) judicial authorities, or by its own application (registration of such a case indicates voluntary bankruptcy). The second case is appropriate when the legal entity is not able to satisfy current creditor requirements for financial obligations, as well as make payments of a mandatory nature (taxation, rental of premises, and so on).It is important to add that for voluntary bankruptcy this debt should not be repaid within three months.

With what and with whom does the bankruptcy procedure usually begin? Today, the starting point for this process can put the following persons:

• Head of a legal entity (executive authority).
• Owner of a state legal entity.
• Founders (participants) of the debtor enterprise.
• Creditors of the debtor.
• Any interested party (tax authorities, social funds and other structures).
• State Attorney

The important thing is that in any case, the debtor is declared economically insolvent only by decision of the judiciary. The corresponding procedure begins directly with the submission of a petition to the commercial court declaring the debtor company financially insolvent when the entire amount owed to creditors is higher than five hundred times the minimum wage.

After the arbitral tribunal has accepted the application, the creditors can no longer, according to the legislation, disturb the debtor in an individual manner, because from this moment the interests of the creditors are defended by the meeting of creditors. In addition, the execution of all decisions of the judiciary in relation to the debtor enterprise must be stopped for a certain period of time. The court, in turn, provides guarantees for the consideration of cases of economic insolvency within a certain time frame, which, as a rule, should not exceed three months from the day the application was accepted. It is important to add that the consideration of the case may be delayed by the judicial authorities for a period not exceeding two months.

Bankruptcy procedures that are relevant today

The legislation provides for the following key procedures for the economic insolvency of a legal entity:

• Supervision, which is carried out in relation to the debtor enterprise immediately from the moment of submission to the judicial authorities of the application document until the introduction of management from external positions or production on a competitive basis.
• External management is introduced by a commercial court on the basis of a decision adopted by a meeting of creditors for a period not exceeding one year. It is important to add that this period of time can be extended for another six months.
• Bankruptcy proceedings are opened by the arbitral tribunal and the starting point directly sets the appointment of the manager. By the way, the duration of this kind of procedure should not exceed twelve months, but in case of urgent need it can be extended for another six calendar months.
• As a rule, a settlement is concluded at any stage of consideration of a case on economic insolvency. It must be added that the decision to conclude an appropriate agreement is made by the meeting of creditors by the majority vote method. In addition, it is subject to confirmation by the judiciary.