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Law No. 7850, dated July 29, 1994, published in,

11-14 FLETORJA ZYRTARE (August-November 1994)


B) Associations

Establishment of Associations

Article 39

Associations are social organizations that pursue political, scientific, cultural, religious, charitable or any other non-profit goals.

Article 40

The will of the founding members is expressed in the statute of the association, which must be in writing and must contain in particular:

a) the name and purpose of the association, its center, and territory where it will conduct its activity;

b) the conditions of admission and removal of members, as well as their obligations and rights;

c) the management organs of the association, the manner of their establishment, and their competencies;

c) the terms, the manner of notification, and competencies of general meetings and the delegates;

d) the sources of funding, as well as the contributions and dues which are required from each member.

dh) the manner in which the statute is amended and the association is terminated.

Article 41

After a meeting of the founders has approved the statute and established its managing organ, the association must file a request for registration at the district court of the district where the association will center its activity.

The court checks statute for its conformity with law.

Membership in the Association

Article 48

Candidates for membership, who fulfil the necessary conditions, may be admitted at any time.

The right to resign is guaranteed, however, notice of resignation must be presented at least six months before the end of the calendar year, or within the term specified by statute.

Article 49

The membership rights in an association cannot be alienated or transferred by inheritance.

Article 50

The members who have resigned or been expelled from the association have no right to the capital or basic property of the association. However, they do have the obligation to pay dues for the time period in which they were members of the association.

Article 51

Every member has the right to reject any decision of association which is contrary to law or the statute. Members have one month from the day they received notice of the decision to reject it.


Article 52

An association may be dissolved by the following:

a) a decision of a special session of the general meeting;

b) the number of members falls below the number specified in the statute, or when its purpose is fulfilled, or it has become impossible to fulfil it;

c) the association becomes insolvent;

ç) a competent court decides that the association does not intend to fulfill the purposes specified in the statute or the association has started an illegal activity.

Article 53

When it is determined that an association should be dissolved, its registration is canceled, it ceases its activity, and it placed under liquidation by a commission of liquidation, which is established and acts according to the respective rules in force.

These state institutions are specifically charged with ensuring that the monetary funds and other property of the foundation are employed in accordance with the purposes of the foundation.

Article 60

The head of the supervising institution has the right to demand in the competent court that the decision of a foundation organ be annulled when it clearly contradicts the relevant purposes or legal provisions or the statute of the foundation.

The court can suspend the execution of this decision until the court renders a final decision.

Article 61

Property disagreements, to which the foundation is a party, are to be resolved in the competent court.

Article 62

A foundation is dissolved:

a) based on law, when the purpose for which it was established is fulfilled or can no longer be fulfilled;

b) by the decision of a court that verifies that the foundation has started to engage in illegal or immoral activity.

The dissolution of a foundation can be sought by the head of the supervising institution or any other interested subject.

Article 63

For properties that remain following the dissolution of a foundation, at the request of the supervising institution or any other interested person, the court decides upon their disposition taking in consideration their uses and the main purpose for which the foundation was created.


Article 1167

Law No. 6340, dated 26.6.1981 "For the Civil Code" except the provisions for joint ownership between spouses, Law No. 2362, dated 16.11.1956 "For Non-profit Social Organizations," Law No. 7688, dated 13.3.1993, "For the Joint Ownership of Homes," Law No. 76965, dated 7.4.1993, "For Foundations," articles 1-15, and Decree No. 600, dated 22.7.1993 "For Pledges and Mortgages, approved with changes by Law No. 7753, 30.9.1993, are repealed.

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