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El blog de Maria

Your daily Spanish Law reporter. Have it with a cafe con leche.

Legal tip 274. Northern europeans, sun and cooperatives in Spain I
18 May 2010 @ 10:06

Current over-supply of houses and in some cases almost entire uncompleted developments in Spain these days,+ low prices,+low euribor rate gives to Northern Europeans a fabulous opportunity for business related to sun, retirement and elderly.  

The establishment of cooperatives to buy, rent with option to buy or any other possible legal formula is a good option for the access to the current over supply of these sun-units in Spain.
Some hints about cooperatives in Spain:

Provision 1 of Cooperatives Act. Dated July 16, 1999 defines cooperatives as a corporation of affiliated persons, with full freedom to enter and leave in order to conduct business activities designed to meet their needs and social and economic aspirations, with democratic structure and functioning in accordance with the principles formulated by the International Cooperative Alliance.

Indeed, the cooperative is a “personalist” business, which follows from the fact that capital is important but not essential. Its role is limited to the financing instrument of the corporate structure and activity in cooperatives. The contribution of each of the partners in the capital of the cooperative will not determine or the right to vote (which will be one for each member, except for exceptional cases) and involvement in social surplus.

This association of persons must meet a number of features, such as the free membership scheme and voluntary resignation and democratic structure and functioning. But in addition, the cooperative will act in accordance with the principles formulated by the International Cooperative Alliance. This is because the legislature has incorporated as mandatory those guidelines from the Declaration of the International Cooperative Alliance on the Cooperative Identity (Manchester, 1995).

We will know more about this legal formula tomorrow.

Have a good Tuesday!

"El Cachón: the river of Zahara de los Atunes", by Luis López-Cortijo



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