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Distribution of Profits Among Participants (Members, Founders) in Non-Profit Legal Entities
- Authors: Efimov A.V.1
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Affiliations:
- Russian State University of Justice
- Issue: No 12 (2024)
- Pages: 23-33
- Section: Private law (civil law) studies
- URL: https://medbiosci.ru/2072-909X/article/view/364544
- DOI: https://doi.org/10.37399/issn2072-909X.2024.12.23-33
- ID: 364544
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Abstract
The legislation of the Russian Federation allows for the possibility of non-profit legal entities (organizations) to carry out profitable activities (business activities). At the same time non-profit organizations are prohibited from distributing the profits among the participants (members, founders). However, the validity of such a general ban is questionable. Thus, the issue of legalization of profit-sharing mechanisms in non-profit organizations is being updated.
The purpose of the study is to develop a scientific approach to the distribution of profits in non-profit organizations.
When writing this article, general scientific methods (system, functional, group of logical methods) and special legal methods (formal legal, legal modeling method) were applied.
The article describes the differentiation of legal entities into commercial and non-commercial, where the main criterion is the possibility of profit distribution. It is concluded that the prohibition of profit distribution in non-profit organizations is not absolute due to legal exceptions and hidden methods of property withdrawal. A flexible model of controlled reduction of the property (assets) of a non-profit organization through profit distribution is proposed. Within the framework of such a model, various economic characteristics can be taken into account, ensuring a balance of interests of a non-profit organization, its participants (members, founders) and other stakeholders.
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About the authors
Anatolij V. Efimov
Russian State University of Justice
Author for correspondence.
Email: av_efimov@inbox.ru
ORCID iD: 0000-0002-8222-4432
Candidate of Science (Law), Associate Professor of the Department.
Russian Federation, MoscowReferences
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