Under the first article of the 1163 numbered Cooperatives Code, cooperatives are defines as follows:
"Partnerships with legal personality that have convertible partners and convertible capitals that are founded by real and legal persons with the objectives of providing and maintaining the partners' specific economic interests and especially their necessities regarding their occupation and subsistence through help, support and surety with the contribution of their labor force and money are called as cooperatives."
As the definition indicates, unlike the commercial partnerships, cooperatives do not pursue a commercial goal of profit sharing. They aim at improving the persons' economy. Thus, cooperatives carry out transactions merely with their partners and not with third parties. In case of violation of this rule, cooperatives would not acquire any distinction from commercial partnerships. This is because cooperatives, by their nature, shall enjoy an introverted composition since they are unions established as a result of a social necessity to provide and maintain the common economic interests of the partners through mutual help, support and surety.
The primary transactions that are encountered in the area of cooperatives law are as follows:
As Günal Law Office, we are always prepared to provide you with legal assistance and consultancy services regarding the problems you may face in the area of cooperative law.