The Nature of the Liability of Persons Acting in the Interest of the Cooperative Before its Registration

Abstract

The author considers the liability of the cooperative’s founders and proxies for the legal actions undertaken in the interest of the cooperative before its entry to the court register. Since the cooperative is not established until its registration, the founders and proxies are considered as joint and several debtors against parties to the transactions concluded in the interest of the cooperative. Only after its entry to the court register, the cooperative takes over these debts but may file the recourse claim against its founders or proxies.