Association - a voluntary association of entities for joint management

"Association" - is a capacious word that came to us from the Latin language through French in the middle of the XIX century.

A bit of history

Initially, the concept was used extensively in psychology. He denotes the connection between psychological images in the form of representations, perceptions, sensations and motor acts. This relationship is expressed in the fact that one image subjectively causes the following. At the heart of such a call, contiguity, similarity or opposite is laid.

In the second half of the XIX century, the term "association" is already used in economics. This name began to denote a group of organizations or individuals that combine to solve one common task.

Modern interpretation of the concept of "association"

What is being invested in the concept of "association" today? This is a union of enterprises or organizations, which are characterized by such three properties: openness, voluntariness and coordination of efforts.

As associations, associations are formed on a voluntary basis. This organization has not such strict limitations for the participants as compared to other associations (for example, a concern or a trust). Also, the "soft" character of this association is expressed in the optional agreement between its members about joining other associations.

Since the association is a free association, involving the participation of any business entities, it may be entered by any legal or natural person at various stages of the activity.

The main task of the functioning of associations is the concentration and coordination of funds and work performed.

The liquidation or reorganization of these associations takes place in the manner adopted for ordinary legal entities. They can also be transformed into funds, partnerships or business entities (if the founders are entrusted with the duties of doing business).

The difference between associations and holdings

To determine the differences between associations and associations of a holding type that include so-called "parent" companies, it is necessary to define the following terms. First, national associations are independent legal entities. Secondly, the basis of their activities is the achievement of non-commercial goals, which are based on coordinating the activities of participants and protecting their common property interests. As mentioned above, they are formed only on a voluntary basis and can not exercise any managerial functions in relation to the participants. Therefore, in accordance with the current legislation, the members of the association retain their full independence and the right of the legal entity.

Types and founders of associations

As the varieties of this type of non-profit organizations, regional (territorial) consumer unions, interterritorial and territorial unions of trade unions can be considered.

Founders of associations can be both commercial and non-commercial business entities. Often in practice, the need for coordination of activities or joint protection of interests arises in groups of legal entities that are similar in nature to the activities carried out. One and the same independent business entity can simultaneously enter into several associations and unions.

As the constituent documents of such associations, there is a relevant treaty and charter. So, in the memorandum of association the organization of the association, the purposes and conditions of participation in it are prescribed. Charter defines the status of such association. If there is a discrepancy between the conditions that are contained in these documents, the preference is given to the charter, as a document that determines the status of this association in relations with other business entities.

In addition to general information, the constituent documents must outline the objectives, objectives of the association, determining the nature and extent of its legal capacity. Also these acts should contain information on the competence and structure of the management body, the procedure for making decisions. In addition, they determine the order of division of property, which remains after the dissolution (elimination) of the association.

The will-forming (supreme) body of this association is the general meeting of its participants (or their representatives). The order of its work is determined by the statute mentioned above. Voluntary (executive) bodies are representatives of participants or individuals elected by the supreme body.

International Association

If the participants in these associations are business entities of different countries, then such associations are given an international status. An example is the International Bar Association, which was organized back in 1946 and unites jurists of many countries, including Russia.