The property of associations, along with property complexes of individuals, is a private type of property. If the organization has separate property, this is one of the obvious signs of ownership of legal entities. It is important to note that far from always property complexes belong to the association in accordance with the right to ownership. So, today it is possible to have property in operational management or economic management in accordance with article 48 of the Civil Code. For most of the forms of organizational and legal significance that relate to legal entities, their formation and further functioning is precisely characteristic as owners of property belonging to them.
Subjects of law
You need to know that the subjects of ownership of legal entities in accordance with paragraph three of Article 213 of the current civil law are associations of a commercial and non-commercial plan. It should be added that this does not include municipal and state enterprises, as well as structures that are financed by the direct owner. A number of legal entities endowed with property complexes on the basis of the right of ownership are extremely wide. So, today it is customary to distinguish the following legal entities having the right of ownership:
- Economic partnerships as well as societies.
- Cooperatives of consumer and industrial purposes.
- Religious and public associations.
- All kinds of unions and associations.
- Other organizations provided by applicable law.
Authority of the legal entity
The concept of the ownership right of legal entities suggests that they, like other owners, exercise the right in accordance with their own interest at their own discretion. The organization is vested with the absolute right to freely carry out any actions regarding its property complexes that do not contradict the current legislation, other legal acts, as well as do not violate the interests protected by law, and the rights of others (clause 2 of Article 209 of the Civil Code).
You must be aware that restrictions on the unrestricted exercise of the right of ownership may be established exclusively by law. This provision is directly read out in paragraph four of Article 213 of the Civil Code. In accordance with it, such legal entities of a non-commercial type as religious and public associations, as well as charitable foundations are vested with the absolute right to apply the property rights of legal entities belonging to them to property solely in order to achieve the goals that are provided for by the relevant constituent documentation.
Objects of title to property
You need to know that the object of the right to ownership of property complexes can be absolutely any property (both immovable and movable). Exceptions to the category of property rights of legal entities are certain types of property, which under current Russian law (paragraph one of Article 213 of the Civil Code of the Russian Federation) cannot belong to organizations.
Property YUL
What is the ownership of the above associations? Registration of ownership of a legal entity is possible in the case of socio-cultural, industrial, charitable, educational and other nature of the orientation of property complexes.It is important to note that this includes land, enterprises, complexes of sanatorium-resort, sports or tourist destinations, buildings, equipment, housing, money, securities (stocks, bonds) and so on.
It should be noted that the range of property complexes is somewhat different in relation to organizations of a commercial and non-commercial type. So, the latter are vested with the private property right of legal entities only in terms of property necessary for the implementation of the main goals of the activities of these structures. For example, trade unions have the full right to own such property complexes that they need to fulfill the goals prescribed in the charter. As a rule, they are associated with the approval and protection of social and labor interests and the rights of members of the represented associations.
Interesting to know
It is important to note that in the case of any type of legal capacity of associations (general or special), certain types of property, one way or another, cannot belong to organizations when, in accordance with the law, they belong to property complexes withdrawn from circulation or limited in terms of turnover. Based on the materials of Article 129 of civil law, those types of objects of private property of legal entities that have undergone withdrawal from circulation should be explicitly specified in the law. Varieties of objects that are somewhat limited in terms of turnover are identified in the manner prescribed by applicable law. Thus, the legal entity does not have the right to own natural mineral resources (healing mud, mineral water and other natural objects), since they are the property of the state.
Then, when the legal entity owns property complexes that, in accordance with the current legislation, cannot belong to it, the legal entity’s ownership right, one way or another, ceases and the property is alienated in accordance with the procedure provided for in Article 238 of the Civil Code.
Regarding property complexes that may be owned by the association under Russian law, a clause is defined by the second paragraph of Article 213 of the Civil Code regarding the inadmissibility of quantitative and cost restrictions in terms of objects of ownership by organizations. It is important to note that such restrictions can be established by federal law, but only to the extent necessary to protect the foundations of morality, the constitutional order, the legitimate interests and rights of others, the health of the nation, the security of the state and the country's defense.
Acquisition and Termination
Currently, good reasons for the acquisition, as well as termination of the ownership of citizens and legal entities, are the general grounds that are provided for by current civil law. In addition, in accordance with the third paragraph of Article 212 of the Civil Code, the characteristics of both the acquisition and absolute termination of the right to ownership of property complexes by legal entities can be established at the legislative level. Thus, the sources of creating the property of a charitable association can be revenues from local and state budgets, charitable donations, voluntary work, and, of course, other facts of a legal nature that have nothing to do with the general grounds related to the acquisition of the right to own.
Business partnerships
In this chapter, it will be appropriate to consider the ownership of legal entities that are business partnerships or companies.It is important to note that the latter, acting as commercial associations, are vested with the absolute right, in accordance with their own discretion, to carry out any actions related to the ownership, use and absolute disposal of property complexes belonging to them when they are not in conflict with the current law, as well as not violate the interests protected by law and the rights of others. For example, under article 575 of civil law, relations between organizations of a commercial type do not allow disposition of property complexes in the form of donations. An exception, subject to the circumstances considered, may be ordinary gifts.
Powers of the owner of partnerships and companies
Having fully examined the concept of the ownership right of legal entities in relation to partnerships and companies of an economic type, it would be advisable to refer to the relevant powers. Thus, the powers of the owner of an economic partnership are exercised through a combination of unity of command and collegiality. In addition, the following persons are entitled to act on behalf of the structure:
- Each member of the association, unless other rules are established by the memorandum of association.
- One or more founders who are entrusted with the development of affairs under a memorandum of association.
- All founders together in accordance with the memorandum of association.
It should be noted that only full partners are entitled to manage the affairs of the considered variety of associations strictly according to the rules defined by the Civil Code in Articles 72 and 84. Among the reasons for acquiring ownership rights in relation to legal entities as partnerships and business plan companies, the following points should be highlighted:
- Socialization of property complexes.
- The formation of property in the process of economic activity.
- Civil law transactions.
It should be emphasized that the objects of the right to ownership of property complexes on the part of partnerships and economic companies in this case are property that was transferred as contributions or deposits, as well as property complexes acquired or produced in accordance with other grounds, for example, as product placement of shares, bonds, and so on.
Composition of property
You should be aware that in the structure of property of legal entities today allocated and authorized capital. Its name is strictly dependent on the constituent documentation in accordance with which the structure operates. For example, in faith partnerships, as well as full partnerships, capital is called collateral because they do not have a charter and operate on the basis of a memorandum of association. It should be noted that in those economic societies that have a charter, capital is called charter capital. In addition, the size of any of the presented types of capital, one way or another, is fixed through constituent documentation.
Ownership rights of cooperatives, public and religious organizations
You need to know that the subject of property rights of citizens and legal entities as cooperatives is a cooperative association of any consumer or industrial type. So, the first include housing and housing cooperatives, homeowners associations, and so on. Production structures include agricultural associations, as well as cooperatives in the field of services and production. The boundaries of the exercise of the ownership right of individuals and legal entities as a cooperative are completely dependent on its type, as well as the legal capacity.It should be noted that the cooperative association exercises its own powers as the owner through the following management bodies: the general meeting of its members, the chairman of the board, the board of the cooperative, as well as the supervisory board. The basis for the emergence of the right to own property complexes of the cooperative is the unification by all members of the organization of share contributions.
Bringing together religious and social structures, as well as charitable organizations and associations of legal entities, can be explained by the fact that in the legal regime of their property complexes there is a lot in common. Represented legal entities are those for the property complexes of which their participants are not endowed with property or liability rights. So, the rights to property that is transferred by the participants to the ownership of the organizations represented are instantly lost in accordance with paragraph three of Article 48, as well as paragraph four of Article 213 of the Civil Code. It is important to know that they are formed in order to fully satisfy the non-material needs inherent to citizens and legal entities. In addition, the rights to property complexes in this case involve the use of property acquired by associations solely to achieve the goals provided for in the constituent documentation.
When summarizing, it is important to highlight the most significant signs of legal ownership:
- A legal entity is the sole owner of property complexes.
- Participants of legal entities may or may not have obligations to property.
- The legal entity is entitled to carry out any actions regarding its property that do not contradict the law.
- The property is owned by legal entities transferred to it as a contribution (contribution) from the founders.
- The ownership of legal entities on land, for example, may be limited by law.