NGO - Legal Point of View

NGO Law

An association is a voluntary union of persons founded to achieve the goal specified in the articles of association, which shall not have a profit-making nature. A foundation, also a fund, is an aggregate of property that has been set aside for the achievement of a goal specified by the founder, which shall not have a profit-making nature. NGO obtain the status of a legal person at the moment when it is entered into the Register of Associations and Foundations

The name of an association and a foundation shall not be contrary to regulatory enactments and good morals, i.e., the name of a military body or the name of such organization or group which has been recognized as criminal or anti-constitutional, for example, "Hitler, The Nazi etc." shall not be included therein, it shall not create a positive attitude toward violence, and similar.

The name of a foundation shall contain the word "foundation" or "fund". The name shall differ clearly and distinctly from other names of associations and foundations already registered or under application for registration in the Register of Associations and Foundations.

An association and a foundation have the right to perform economic activity in the form of complementary activity, which pertains to the maintenance and utilization of its own property, as well as to perform other economic activity to achieve the goals of the association or foundation. Profit obtained from economic activity of an association or a foundation may not be divided among the members of an association or the founders of a foundation. If a person receives remuneration (consideration) for activity in an association or a foundation this remuneration (consideration) shall be determined in accordance with the scope of the duties of the respective person and the financial situation of the association or foundation.

An association and a foundation may apply to State and local government authorities in matters related to the goals of the activities of the respective association or foundation, as well as to maintain the rights of its members or interests protected by law in a court.

The administrative bodies of an association are the members' meeting (general assembly) and the executive board. Other administrative bodies may be provided for in the articles of association, determining the procedures for the establishment and the competence thereof. The members' meeting is the supreme body of an association. All members of an association have the right to participate in a members' meeting. A member may participate in a members' meeting also with the intermediation of a representative, if it is not otherwise provided for in the articles of association of the association. An authorisation to participate and vote at a members' meeting shall be issued in writing. The competence of a members' meeting shall include - the making of amendments to the articles of association, the election and recall of the executive board and audit institutions, if such rights are not granted to another administrative body in the articles of association, he taking of a decision regarding the termination, continuation or reorganisation of the activities of the association and other matters which under the Associations and Foundation Law or the articles of association are in the competence of a members' meeting.

The legal form of NGOs is diverse and depends upon homegrown variations in each country's laws and practices. However, four main family groups of NGOs can be found worldwide

Unincorporated and voluntary association

Trusts, charities and foundations

Companies not just for profit

Entities formed or registered under special NGO or nonprofit laws

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NGOs are not subjects of international law, as states are. An exception is the International Committee of the Red Cross, which is subject to certain specific matters, mainly relating to the Geneva Convention.

 
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