Practical Q&A on the Farmers' Professional Cooperative Society Law

Author: Editor: China Legal Publishing House
Publisher:
Publish Date: 2006-11-01
Features:
1. Why was the Law of the People's Republic of China on Farmers' Professional Cooperatives (hereinafter referred to as the Farmers' Professional Cooperatives Law) formulated?
Answer: The legislative purpose primarily addresses three issues. , to clarify the market entity status of farmers' professional cooperatives. The entities regulated by the Farmers' Professional Cooperatives Law are, under market economy conditions, producers or providers of similar agricultural products based on the rural household contract economy, or those offering similar production and service operations. They voluntarily establish farmers' professional cooperatives to address the challenges of decentralized household-based operations and market integration, achieving democratic management. In recent years, with the support of relevant departments and leadership at all levels, farmers' professional cooperatives have developed rapidly and have achieved a certain scale. However, until now, no law has explicitly defined their legal status, leading to numerous difficulties in registration and development. To resolve these issues, the Farmers' Professional Cooperatives Law clearly stipulates that farmers' professional cooperatives obtain legal personhood upon registration under this law, establishing their market entity status. This addresses the first issue.
The second issue is to appropriately regulate the organizations and activities of farmers' professional cooperatives.