Public legal entity

09 March 20240

Public legal entity - is an organization created on behalf of a municipality, engaged in activities of public and national importance, and not a municipal or state body.

Establishment of a public legal entity

Creation of a public legal entity is carried out:

  • by the institution determined by the executive authority on behalf of the state;
  • by the relevant municipal authorities on behalf of the municipality.

"About public legal entities" Other issues are regulated by the Civil Code, taking into account the characteristics determined by the AR Law.

According to the AR Law "On State Registration and State Register of Legal Entities", a public legal entity is state registered by the executive authority. After that, it acquires the status of a legal entity. Even if the members of the management bodies of a public legal entity are not fully appointed, its state registration is carried out.

Activity of a public legal entity

Public legal entities can engage in entrepreneurial activity if it is in accordance with the goals determined by their charter and serves their implementation. He can create economic societies and participate in them if it is specified in the charter. For purposes not provided for in the charter, the profit of a public legal entity can be transferred to the local budget or the state budget only by the decision of the founder.

In the event that a public legal entity performs the legal actions and provides the services provided for in the Law of AR "On State Fee", it collects the state fee in the amount and manner determined by the law.

Charter of a public legal entity

The model charter of a public legal entity can be determined by the executive authority in various fields.

The charter contains the following information:

  • name, address and public legal entity;
  • charter fund;
  • adoption of the charter, procedure for making changes to the charter;
  • rules related to management;
  • directions of activity, its rights and duties;
  • the form and scope of control over the public legal entity;
  • the basis of financial activity, sources of property formation, whether the prices of the public legal entity's products are regulated or not;
  • the right to engage in entrepreneurial activity;
  • establishment of economic societies, the right to participate in them (if granted);
  • procedure for informing the public about the activity;
  • liquidation of a public legal entity and the procedure for its reorganization.

Approval of the charter of a public legal entity

Charter of a public legal entity:

  • By the institution determined by the executive authority when it is created on behalf of the state;
  • by the municipality when created on behalf of the municipality

is confirmed.

Employees of a public legal entity providing services related to the registration of legal facts in the cases defined by the AR Law "On State Duties" are equal to civil servants if specified in the statute.

Property of a public legal entity

The charter fund of a public legal entity is formed at the expense of property given by the founder.

The property of a public legal entity can be formed:

  • from the charter fund;
  • from the property given by the founders;
  • from funds allocated from the local or state budget;
  • from the works done according to the directions of activity;
  • from the receipts obtained from the services rendered;
  • from donations;
  • from grants;
  • at the expense of funds received from other sources mentioned in the charter.

The rules for the ownership, disposal and exercise of the rights to use the property are determined by the charter of the public legal entity.

Municipal and state property given to public legal entities is used by them only if it is in accordance with the goals defined in the charter.

As a Macis Consulting company, we provide a number of services to business owners who want to operate both as an individual entrepreneur and as a legal entity. Our company has been providing its business partners with both forms of business creation, accounting services, audit and legal process services for years. Contact us get all the accounting, financial and legal services your business needs.

SEE ALSO: Suspension and Revocation of License or Permit

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Development is inevitable
Our mission is to help entrepreneurs who want to develop their business, protect it from external influences, and ensure the success and sustainability of their future activities in the areas we are professionals.
Our offices
Where are we?
https://www.macisconsulting.az/wp-content/uploads/2020/04/img-footer-map.png
Baku
Just a click away
We on social media
You can get useful information for your business by following our social media accounts.

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