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4. The concept and features of the legal entity. The kinds and forms of the legal entities.

1. The legal entity shall be recognized as an organization, which has in its ownership, economic management or operative management the set-apart property and which is answerable by its obligations with this property and may on its own behalf acquire and exercise the property and the personal non- property rights, to discharge duties and to come out as a plaintiff and as a defendant in the court.

Signs of the legal entity are:

  • organizational unity is shown, first of all, in a hierarchy, the hierarchy of management bodies, the components of its structure and in the clear regulation of relations between its participants, that allows to transform will of many persons-participants into a single will of the legal entity as a whole, and also consistently to express this will outside;

  • property independence - refers to its belonging to a legal entity, is the material base of the legal entity and is fixed in the independent estimates; the isolation of the double since the property of the legal entity, separate from the property of other legal entities and from the property of the participants of the legal entity;

  • independent civil-law responsibility (self-civil-legal responsibility) – having certain material resources (bases), legal entity has possibility to answer under the obligations all property;

  • performance in the civil turnover from his name - means the obligation of a legal entity to make all transactions and other legally significant actions, using only its registered name, but not on behalf of the head (manager), the founders or the state.

The legal capacity of the legal entity shall arise at the moment of its establishment and shall cease at the moment, when its liquidation is completed The right of the legal entity to engage in an activity, for the performance of which a license shall be drawn, shall arise from the moment of its obtaining such a license, or from the time indicated in the license, and shall cease after the expiry of the term of its operation, unless otherwise stipulated by the law or by the other legal acts.

The legal entities may be either the organizations, which see deriving profits as the chief goal of their activity (the commercial organizations), or those organizations, which do not see deriving profits as such a goal and which do not distribute the derived profit among their participants (the non-profit organizations).

The legal entities that are commercial organizations, may be set up in the form of the economic partnerships, of the production cooperatives, of the joint-stock company and of the state enterprises.

The legal entities that are non-profit organizations, may be set up in the form of the consumer cooperatives, of the public or religious organizations, of the institutions, of the charity funds, and of the commercial and (or) the non-profit organizations in the form of associations and unions shall be admissible

The non-profit organizations shall engage in the business activity only so far as it helps them to achieve the goals, in the name of which they have been established, and of the kind that corresponds to these goals.

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