Approved by the decision of the General meeting of the members of the INTERCABLE Association (Interregional Civic Organization of cable and cable production equipment manufacturers) of 30 June, 2003, Minutes of meeting ą 1

 

                          Amendments made:

Minutes ą 44 of the General meeting of the members of

    NON-PROFIT PARTNERSHIP OF CABLE AND WIRE   MANUFACTURERS

 “INTERNATIONAL ASSOCIATION “INTERCABLE”

of 20 November, 2012

 

ARTICLES OF ASSOCIATION

 

 

 

NON-PROFIT PARTNERSHIP

OF CABLE AND WIRE MANUFACTURERS

“INTERNATIONAL Association “INTERCABLE”

 

Moscow – 2012

 

 

1. GENERAL PROVISIONS

 

1.1. The NON-PROFIT PARTNERSHIP OF CABLE AND WIRE MANUFACTURERS INTERNATIONAL Association “INTERCABLE”, hereinafter referred to as “Association”, was formed by way of reorganization in the form of transformation of the Interregional Civic Organization of cable and cable production equipment manufacturers “INTERCABLE” (ICO “INTERCABLE”), registered by the Moscow Registration Chamber on 13 December, 1990, ą 1353, and entered into the Unified State Register of Legal Entities on 6 September, ą ÎĂĐÍ 1027739156499.

The transformation of ICO “INTERCABLE” into the NON-PROFIT PARTNERSHIP OF CABLE AND WIRE MANUFACTURERS INTERNATIONAL ASSOCIATION “INTERCABLE” was carried out in accordance with the norms of the Civil Code of the Russian Federation, the Federal Law “On public Associations” ą 85-ÔÇ, of 19 May, 1995. The “Association” executes its activities on the basis of the Federal Law “On non-profit organizations” ą 7-ÔÇ, of 12 January, 1996 and the present Articles of Association.   

1.2. The “Association” is the legal successor of ICO “INTERCABLE” in respect of all the rights and obligations of the latter as of the date of transformation in accordance with the Deed of Assignment of 30 June, 2003, approved by the General meeting of the members of ICO “INTERCABLE”, Minutes of the meeting ą 1 of 30 June, 2003.  

1.3. The “Association” is a legal entity – a non-profit organization based on the membership, established to assist its members in their activities aimed at achieving the goals set by the present Articles of Association.         

1.4. Profit earning  is not the main aim of the activities.

1.5. The “Association” accrues the rights of legal entity from the moment of its state registration.       

1.6. The time of the “Association” activities is unlimited.

1.7. The full name of the “Association” in Russian:

ÍĹĘÎĚĚĹĐ×ĹŃĘÎĹ ĎŔĐŇÍĹĐŃŇÂÎ ĎĐÎČÇÂÎÄČŇĹËĹÉ ĘŔÁĹËÜÍÎÉ ĎĐÎÄÓĘÖČČ «ĚĹĆÄÓÍŔĐÎÄÍŔß ŔŃŃÎÖČŔÖČß «ČÍŇĹĐĘŔÁĹËÜ»

The abridged name in Russian:

ÍĎ «ŔŃŃÎÖČŔÖČß «ČÍŇĹĐĘŔÁĹËÜ»

1.8. The full name of the “Association” in English:

NON-PROFIT PARTNERSHIP OF CABLE AND WIRE MANUFACTURERS “INTERNATIONAL ASSOCIATION “INTERCABLE”

The abridged name in English:           

IA “INTERCABLE”

1.9. The “Association” residence address:  5, Shosse Entuziastov,

Moscow, Russian Federation, 111024.

Mailing address and document storing place of the “Association”:  5, Shosse Entuziastov,

Moscow, Russian Federation, 111024.

1.10. The “Association” has a seal with its full name in Russian.  The “Association” has a right to have stamps and letterheads with its name, a logo registered in accordance with the established procedure and other means of visual identification.

1.11. The “Association” has an independent balance-sheet, budget, settlement and other accounts in bank institutions of the Russian Federation and foreign banks, owns defined property and is liable for its obligations to the extent of this property.  The “Association” may on its behalf acquire and exercise property rights and personal non-property rights, incur liabilities, be a plaintiff and a respondent in court.  

1.12. The “Association” maintains book-keeping, statistical reports and paperwork in accordance with the procedure established by the Russian Federation legislation.  

1.13. The “Association” may set up branch offices and representative offices on the territory of the Russian Federation and abroad. The branch offices and the representative offices act on behalf of the “Association”.  

1.14. The members of the “Association” are not liable for its obligations and the “Association” is not liable for the obligations of its members.

1.15. The state bears no responsibility for the “Association” obligations, as well as the “Association” bears no responsibility for the state obligations.

 

 

2. GOALS AND SCOPE (KINDS) OF ACTIVITIES

 

2.1. The goals of the “Association” activities are the following:

        rendering of assistance to its members in their business initiatives in the field of cable products, cable manufacturing equipment and materials;

        rendering of assistance in production and scientific and technical cooperation, modernization of production capacities and creation of joint ventures;

        rendering of assistance in performing measures for environmental protection and handling ecological problems that may arise during production and use of cable products, cable materials and processing equipment;  

        rendering of assistance in solving problems of material and energy consumption decrease during cable and wire production;  

        rendering of help in cooperation of its members in the area of quality improvement and raising the competitive capacity of manufactured products;

        search of potential partners among the enterprises, unions and organizations within the “Association”, as well as organizations and companies not belonging to the “Association” in order to establish direct contacts between them;

        improvement of relations with industry branches involved in the development and production of materials applied in cable and wire manufacturing; 

        participation in international exhibitions and fairs;

         providing the “Association” members with information about scientific  and technical achievements in the field of cable technology;

         professional development and raising the level of scientific and technical skills of  the “Association” members;

         rendering of help to the “Association” members in protection of their legal rights and dispute settlement.

Expenses for the abovementioned services rendered to the “Association” members are incurred out of membership, entrance, registration fees and other earnings.  

2.2. In order to fulfill the required duties in accordance with the procedure established by the current legislation of the country of residence the “Association” has a right to perform the following kinds of activities:

        at its own discretion to develop and approve programs of its activities;

        to have business contacts with enterprises, organizations and companies not belonging to the “Association” with regard to those issues that are within the competence of the “Association”;

        to take part in exhibitions and fairs, to organize specialized exhibitions, symposiums and seminars, to publish and distribute advertising and reference literature, to distribute printed and radio-electronic  information, as well as to perform other information activities necessary for the achievement of the “Association” goals; 

        at its own discretion to approve the “Association” staff and the staff of the representative offices (bureaus) if such offices are formed;

        to involve specialists for the performance of work, to form temporary teams acting on a contract basis; 

        to send (with payment of traveling expenses) the “Association” President and employees on business trips abroad and in the country of residence, as well as in case of need to recover expenses related to the fulfillment of the established duties by the Vice-President and the members of the Audit Commission of the “Association;

        to receive specialists of other organizations in the country of residence and in other countries where the “Association” events take place in order to solve problems relating to the “Association” activities.  

2.3 The “Association” may be involved in entrepreneurial and other income generating activities only so far as these activities contribute to the achievement of the goals for which it was set up and comply with them. All profits gained from such activities shall not be shared between the members of the “Association” but shall be used to achieve the goals for which the “Association” was set up.

2.4. The “Association” has a right to use loans from Russian and foreign banks both in Russian and foreign currency, to purchase currency in accordance with the procedure established by the current legislation of the country of residence.

2.5. The “Association” has a right, in accordance with the procedure established by the current legislation for the purpose of protecting the cash assets against inflation, to invest in securities and other assets, to deposit funds with credit institutions.

2.6. The licensed types of activities are performed by the “Association” based on the licenses obtained in accordance with the established procedure.   

 

3. MEMBERSHIP

 

3.1. The “Association” may consist of the following members: Russian and foreign legal entities which are manufacturers of cable products and/or cable processing equipment, and/or cable materials, as well as research organizations, trade and intermediate organizations involved in the cable industry that share the “Association” goals, the provisions of the Articles of Association and are admitted to the “Association” according to the procedure and on terms provided by the present Articles of Association and the Regulations on entry into the NON-PROFIT PARTNERSHIP OF CABLE AND WIRE MANUFACTURERS “INTERNATIONAL ASSOCIATION “INTERCABLE”.

3.2. The “Association” membership is on a voluntary basis. The “Association”

is open for admittance of new members according to the procedure defined by the present Articles of Association and the internal documents of the “Association”.

 

 

 

4. RIGHTS AND OBLIGATIONS OF THE “ASSOCIATION” MEMBERS

 

4.1. All members of the “Association” have equal rights and obligations.

4.2. The “Association” members must: 

        observe the requirements of the present Articles of Association and the internal documents of the “Association”;

        fulfill the obligations assumed with respect to the “Association”;

        provide information required for the solution of problems relating to the “Association” activities;

        take an active part in the settlement of problems that the “Association” is faced with, promote the “Association” activity development;

        pay in proper time the entrance, membership and other fees that are specified by the present Articles of Association; 

        fulfill the decisions of the “Association” management;

        not exploit the potentialities of the “Association” membership for purposes other than stated in the Articles of Association; 

        fulfill other obligations stipulated by the Russian Federation legislation and the internal documents of the “Association”.

4.3. The “Association” members have a right to:

        elect and be elected to the “Association” governing bodies;

        participate in the “Association” management, take part in the settlement of all questions related to the “Association” activities;

        take part in the meetings, scientific and technical symposiums and other events held by the “Association”;

        receive information about the “Association” activities, its plans and programs in accordance with the procedure specified by the internal documents of the “Association”;

        submit suggestions for discussion to the “Association” governing bodies, including suggestions for the agenda of the General meetings of the “Association” members, take part in their discussions and voting during decision making; 

         apply to the “Association” governing bodies for any questions relating to the “Association” activities, receive advisory, methodical and other kind of assistance from the “Association”; 

        inquire the “Association” governing bodies about the state of fulfillment of the “Association” General meeting decisions and implementation of the suggestions made;

        take part in the implementation of projects and programs developed and financed by the “Association”;

        transfer cash assets, securities and other property into ownership or use of the “Association”;

        have access to the information databases of the “Association”;

        enjoy the support and protection of their rights and interests by the “Association”; 

        obtain, in case of liquidation of the “Association”, a part of its residual property after the settlement of accounts with the creditors, within the amount of their entrance property contribution;      

        withdraw from the “Association” at their own discretion;

        exercise other rights provided by the Russian Federation legislation and the internal documents of the “Association”.

4.4. The rights and obligations of the “Association” members cannot be transferred to the third parties with the exception of cases stated in the Articles of Association.

4.5. The damage to the “Association” caused through the fault of its members shall be reimbursed by them in accordance with the decision of the “Association” General meeting.  The amounts due as the compensation of the damage caused shall be credited to the settlement account within 30 days from the date of the decision.

4.6. The “Association” members retain their legal and economic independence.  

 

 

5. PROCEDURES OF ADMISSION TO THE “ASSOCIATION” AND WITHDRAWAL FROM IT

 

5.1. The “Association” is open for the entrance of new members. New members are admitted to the “Association” by the General meeting of the “Association” members upon the recommendation of the “Association” Management Board on the basis of the application of the organization wishing to join the “Association” and the written recommendation of one of the “Association” members.

5.2. The legal entity having an intention to become a member of the “Association” (hereinafter referred to as “Applicant”) must submit the following documents:

- application addressed to the President of the “Association” signed by the authorized body of the Applicant  and containing the following: a short characteristic of the Applicant’s production capabilities; contact information including telephone numbers, faxes, e-mail addresses and other data;

- properly attested copies of the documents confirming the authority of the bodies that signed the application; 

- recommendation of one of the “Association” members.

5.3. The President of the “Association” verifies the availability of the required documents and submits the proposal about the admission of a new member into the agenda of the next meeting of the “Association” Management Board.

5.4. After the recommendation of the Management Board the President of the “Association” submits the question about the admission of the Applicant to the next General meeting of the “Association” members that is held after filing of the application. The presence of the Applicant representative at this General meeting is obligatory.

5.5. The Applicant is admitted to the “Association” if more than half of the “Association” members present at the General meeting vote for the Applicant.

5.6. The Applicant admitted to the “Association” must without fail be acquainted with the Articles of Association and the Regulations on the membership in the “Association”.

5.7. The Applicant must pay the entrance fee within 30 days from the date of the “Association” General meeting decision about the admission of the Applicant to the “Association”. The membership comes into effect from the moment the entrance fee is credited to the bank account of the “Association”.

5.8. The rates of the entrance and membership fees are defined by the decisions of the General meetings.

5.9. Any “Association” member may withdraw from it at its own discretion.

5.10. The withdrawal of a member from the “Association” is preceded by the submission of a written application. Within six months after the member submits the application about the withdrawal from the “Association” the Management Board of the “Association” shall put the question about the withdrawal to the next General meeting. The “Association” membership is terminated after the decision of the General meeting to expel the Applicant from the “Association”. The membership fees shall be paid by the member withdrawing from the “Association” up to the moment the decision about the withdrawal of this member is taken at the General meeting.

5.11. Readmission to the “Association” is allowed only after at least two years from the moment of withdrawal and provided that the organization had no debts to the “Association” at the time of its withdrawal. In case of debt it shall be paid off in full.

5.12. The “Association” member may be expelled from the “Association” in the following cases:

- in case of failure to pay the membership fees within a year and a half after the due date for payment;

- if the member’s activities no longer comply with the Articles of Association;

- in case of repeated gross violations of the Articles of Association hampering or

seriously complicating the “Association” activities;

- in case of activities that violate the current legislation and discredit the “Association”;

- in case of breach of obligations undertaken in respect of the “Association”.

5.13. The procedure for expulsion of a member of the “Association”:

- any member of the “Association” may initiate the expulsion from the “Association”;

- the decision about expulsion from the “Association” is taken by the General meeting of the “Association” members at the suggestion of the Management Board;

- the “Association” member is considered expelled from the day following the date of the decision taken;

- the General meeting decision about expulsion is final and shall be sent to the expelled member by registered mail or handed over against receipt.

5.14. The “Association” member that was expelled from the “Association” or left it voluntarily has no right for receiving part of the “Association” property and/or cost of its property, including the cost of the property transferred by the member to the ownership of the “Association”, neither has this member the right for the return of the membership fees or their part.

 

 

6.  MANAGEMENT SCHEME 

 

6.1. The superior body of the “Association” is the General meeting of its members. The main function of the General meeting is to ensure the observance of the goals in the interests of which the “Association” was founded. The General meeting of the “Association” members is formed of the representatives of the organizations-members of the “Association” appointed according to the procedure specified in the foundation documents of the organizations-members of the “Association”. The General meeting decisions are obligatory for all members of the “Association”.

6.2. The General meeting scope of authority covers the following issues: 

1.      Determination of the priority directions of the “Association” activities, principles of formation and use of its property;

2.      Amendments to the Articles of Association;

3.      Election (appointment) of members of the Management Board, President, Vice-President, Executive Director, Audit Commission and early termination of their powers;

4.      Reorganization and liquidation of the “Association”;

5.      Taking decisions about expulsion of the “Association” members and approval of decisions about admission of new members to the “Association” upon the recommendation of the Management Board, approval of the procedures for admission of new members and expulsion from the “Association”;

6.      Approval of the rates and procedures for making special purpose contributions to cover the running costs of the “Association”, fixing the rates of the membership and entrance fees of the “Association” members;

7.      Approval (amendment) of the financial plan of the “Association”;

8.      Approval of the annual report and the annual balance sheet ;

9.      Establishing of subsidiaries and opening of representative offices, participation in other organizations;

10.  Specifying the number of members of the Management Board;

11. Approval of the Audit Commission reports;

12.  Approval of the reports on the financial activities of the “Association”;

13.  Approval of the “Association” budget of expenditure and amendments to it;

14.  Approval of the internal documents of the “Association”;

15.  Other issues by consent of the “Association” members.

          

6.3. General meetings of the “Association” members are summoned by the Chairman of the Management Board – the President of the “Association” as may be necessary, but at least once a year.  The members of the “Association” are informed in written form about the calling of the General meeting at the latest of 30 days before the date of the meeting.

6.4. The Chairman of the General meeting is the Chairman of the Management Board – the President of the “Association”. The Chairman of the General meeting presides over the meeting and checks up the authority of the representatives of the “Association” members. In the absence of the President his duties are fulfilled by the Vice-President.

6.5. The General meeting is considered legally qualified if representatives of no less than half of the “Association” members are present. The decisions are taken by a simple majority vote. The form of voting is determined by the General meeting.

6.6. Unscheduled General meetings of the “Association” members may be held at the initiative of no less than one third of the “Association” members, of the President, as well as upon request of the “Association” Management Board or Audit Commission.

6.7. The issues specified in sub-items 1, 2, 3, 4 of item 6.2 refer to the exclusive competence of the General meeting. The decisions referring to the exclusive competence of the General meeting are taken by a qualified majority of 2/3 votes of the “Association” members present at the General meeting. The decision about reorganization is taken unanimously by all of the “Association” members present at the General meeting.

 6.8. The “Association” members may put issues for consideration on the agenda of the General meeting with the President being informed about it. The final agenda is formed by the Management Board.

6.9. The permanent collective body of the “Association” is the Management Board headed by the Chairman of the Management Board being at the same time the President of the “Association”. The Management Board reports to the General meeting of the “Association” members. The number of members of the Management Board is specified by the decision of the General meeting depending on the total number of the “Association” members, but no less than seven persons including the President and the Vice-President who are members of the Management Board by virtue of their positions. The members of the Management Board are elected by a simple majority vote at the General meeting of the “Association” members for the period of 3 years. The elections are considered valid if 2/3 of the “Association” members are present at the General meeting. Voting by proxy in accordance with the current legislation is allowed. 

6.10. The members of the Management Board shall find new opportunities for expanding the “Association” activities and facilitate the establishment of essential business connections.

6.11. The following issues are within the competence of the Management Board:

-         drawing up of the General meeting agenda;

-         recommendations on admission of new members and expulsion from the “Association”;

-         determination of current lines and future prospects of the “Association” activities;

-         formation of working groups according to particular lines and kinds of the “Association” activities;

-         signing of labour contract with the Executive Director;

-         appointment of the Chief Accountant and signing of labour contract with him;

-         selection of topics to be discussed at technical symposiums of the “Association” with appropriate approval by the General meeting;

-         selection of venue and time of scheduled General meetings;

-         approval of internal statutory documents of the “Association”;

-         decisions about participation of the “Association” in other organizations;

-         authorities transferred to the competence of the Management Board by the General meeting of the “Association”.

   6.12. During the intervals between the General meetings the President and in case of his absence – the Vice-President – is in charge of the “Association” activities. The President and the Vice-President are elected by the General meeting of the “Association” members from among the management or owners of the enterprises-members of the “Association” for a period of 3 years. The elections are considered valid if no less than 2/3 of the members of the “Association” are present at the meeting. Voting by proxy shall be allowed. The President and the Vice-President are elected by a simple majority vote. The President represents the interests of the “Association” and acts in the name thereof based on the present Articles of Association with full authority when dealing with governmental and supervisory authorities, community organizations and enterprises.

He presides at all General meetings of the “Association” members, signs minutes of the meetings and sessions of the Management Board. The President takes no part in the voting. However he has a voting right as a representative of an “Association” member in case he is the only representative of his organization at the General meeting of the “Association” members.

The “Association” documents are certified by the President’s or the Vice-President’s signatures.                

The Management Board is authorized to decide the issues within its competence by a simple majority vote provided no less than fifty percent of the Management Board members are present.

The President summons the sessions of the Management Board and presides at the sessions, he arranges taking of minutes at the Management Board sessions, gives tasks to the members of the Management Board and controls their fulfillment.

Facsimile and electronic communication shall be allowed to be used during these sessions.   

6.13. The sole executive body of the “Association” is the Executive Director who is appointed by the General meeting of its members.  The Executive Director reports to the General meeting and during the period between the General meetings he also reports to the Management Board of the “Association”.  During the periods between the General meetings and sessions of the Management Board of the “Association” the Executive Director reports to the President and in the absence of the President – to the Vice-President.

6.14. By virtue of his competence the Executive Director:

- administers the day-to-day operations of the “Association”;

- arranges the “Association” activities and bears personal responsibility for the results before the General meeting and the Management Board of the “Association”;

- in accordance with the current legislation and the present Articles of Association acts with full authority in the name of the “Association” when dealing with any Russian and foreign legal entities and individual persons, concludes contracts and agreements, including labour ones, in the Russian Federation and abroad, makes bargains;

- opens accounts in banks and other credit institutions;

- manages the “Association” property and funds within the budget approved by the General meeting;

- takes decisions about filing of suits and claims against organizations and individual persons both in the Russian Federation and abroad according to the current legislation;

- engages and dismisses employees of the “Association”, uses measures of stimulation and disciplinary actions for them;

- issues orders, regulations, approves job descriptions, personnel arrangements and other aspects regulating the working conditions of the “Association” employees;

- assures observance of labour law and labour discipline, fulfillment of necessary safety and accident prevention measures and sanitary regulations by the “Association” employees;

- arranges registration and book-keeping and bears responsibility for the adequacy of data;

- certifies with his signature financial and in-house documents of the “Association”, issues powers of attorney;

- presents draft estimates of administrative and maintenance expenditures of the “Association” to be further approved by the General meeting of the “Association” members and submits such drafts to the Management Board;

- prepares all materials required for the General meetings of the “Association” members;

- manages the fulfillment of the General meeting decisions and presents the appropriate reports;

- arranges the “Association” Management Board sessions and takes the minutes of the Management Board sessions;

- prepares and forwards information and other materials concerning the “Association” activities to the members of the “Association” Management Board and to the “Association” members;

- fulfills other functions by order of the General meeting of the “Association” members and the “Association” Management Board.

6.15. The Executive Director fulfills his duties on the basis of a fixed-term employment contract.

6.16. Early termination of the Executive Director authorities may be possible by the General meeting decision in accordance with the current labour legislation of the RF.

 

 

              7. SUPERVISORY AND AUDIT BODY

 

7.1. The supervisory body of the “Association” is the Audit Commission elected by the General meeting for the period of three years and consisting of at least three members.

7.2. The Executive Director and the members of the Management Board including the President and the Vice-President may not be members of the Audit Commission.

7.3. The Audit Commission prepares a report containing its conclusion decision on the annual statement and balance sheet and submits it to the Management Board. The report is approved by General meeting.

7.4. The members of the Audit Commission have a right to compensation of the expenses directly related to their participation in the Audit Commission activities.

7.5. The Audit Commission:

 - conducts audits of the “Association” financial and economic activities at least once a year.  It shall be allowed to involve  auditing services;

- monitors the fulfillment of the decisions of the “Association” management;

- ensures the observance of the current legislation by the “Association” management;

- checks the annual balance sheet, the administration of the budget, submits its conclusion decision for consideration and approval by the General meeting. 

7.6. The members of the Audit Commission have a right to demand from the “Association” officials to provide any kind of required documents and if necessary – personal explanations.

7.7. The Audit Commission has a right to demand calling of an extraordinary

General meeting if a real threat to the “Association” interests has occurred or

any kind of abuse from the officials has been revealed.    

 

 

8. THE SOURCES OF THE “ASSOCIATION” FUNDS AND   PROPERTY

 

8.1. The “Association” may own buildings, facilities, housing stock, equipment, tools, cash assets in roubles and foreign currency, securities and other property. The “Association” may own or have the right of perpetual use of land.

8.2. The sources of the “Association” property in monetary and other forms are the following:

- entrance contributions;

- membership fees;

- registration fees;

- income (dividends, interest) arising from the investment of the “Association” funds into bank deposits and other assets;  

- income arising from the “Association” property and borrowed funds;

- other types of earnings not prohibited by the existing legislation.

8.3. The income arising from the “Association” activities shall not be redistributed among the “Association” members and shall be used only and exclusively for the aims stipulated by the Articles of Association in accordance with the approved budget.

8.4. The owner of the property is the “Association”, each particular member of the “Association” has no right of ownership for the part of property belonging to the “Association”. 

8.5. The “Association” disposes of its funds on its own. The “Association” funds may be used exclusively to achieve its goals, which include the required real estate acquisition, remuneration of the employees’ labour, remuneration of the subcontractors’ labour, formation of or participation in companies performing the activities necessary for the “Association”, gratuitous transfer to the third parties in accordance with the budget.  

8.6. The “Association” has the right to transfer, dispose of, rent or lease its own movable and immovable property and intangible assets, not prohibited for circulation by the Russian Federation statutory acts.

8.7. The property transferred to the “Association” by its members shall be in the “Association” ownership.  

8.8. The supervision over the use of the “Association” property and funds shall be carried out according to the procedure established by the present Articles of Association. 

8.9. The initial entrance fee shall be paid by each new member of the “Association” within 30 days from the date of entrance. The next annual membership fees are paid by each member of the “Association” once a year before the 1st of March of the current year. The fees are paid in cash.

The fee rates, as well as the changes related to the terms and forms of payments are specified by the General meeting of the “Association”.

8.10. Cash assets of the “Association” are used for:

- organization and holding of General meetings of the “Association” members;

- salary of the “Association” employees;

- financing of the “Association” activities;

- travel expenses of the “Association” employees;

- reimbursement of expenses related to the performance of duties by the President, Vice-President and members of the Audit Commission within the framework of the “Association”;

- other purposes related to the “Association” activities and defined by its management.

8.11. Financial activities of the “Association” are carried out based on the budget for each fiscal year approved by the General meeting.  The fiscal year begins on the 1st of January and ends on the 31st of December of the calendar year.  At the end of the fiscal year the President of the “Association” submits the financial statement for the approval by the General meeting of the “Association” members. The interim financial statement may be also discussed at the General meeting.

8.12. The “Association” budget is drafted in euros and approved by the General meeting of the “Association” members. The “Association” keeps the books, prepares financial and statistical reports in accordance with the procedure existing in the country of residence. Amendments to the budget line items may be made based on the decision of the “Association” Management Board within the approved budget amount. In any case the management expenses and the cost of the “Association” activities shall not exceed the incomes.   

8.13. The power to sign financial documents belongs to the President, the Executive Director and the Chief Accountant.   

 

 

9. REORGANIZATION AND LOQUIDATION OF THE “ASSOCIATION” 

 

9.1. The reorganization of the “Association” shall be carried out according to the procedure established by the current legislation of the Russian Federation. The reorganization may be implemented in the form of merging, joining, split up, detachment and transformation into civic organization (union), fund, independent nonprofit organization.    

9.2. The liquidation of the “Association” shall be carried out based on the decision of the General meeting of the “Association” members, the court or other authorized bodies.

9.3. The General meeting of the “Association” or the body that has taken the decision about the liquidation shall appoint the liquidation committee and establish the procedure and terms of the liquidation.       

9.4. From the moment the liquidation committee is appointed the powers to manage the “Association” activities and to represent it in court are delegated to the liquidation committee.  

9.5. The liquidation committee shall place in the printed media an announcement about the liquidation of the “Association”, the procedure and the term for the creditors’ claims.

9.6. After the expiration of the period for the creditors’ claims the liquidation committee prepares an interim liquidation balance. The interim liquidation balance shall be approved by the General meeting of the “Association” members or by the body that has taken the decision about its liquidation.       

9.7. After the settlement of the creditors’ claims the liquidation committee prepares a liquidation balance to be approved by the General meeting of the “Association” members or by the body that has taken the decision about its liquidation.   

9.8. After the creditors’ claims are met the remaining property or its value is to be distributed among the “Association” members within the amount of the entrance property contribution. The rest of the property, the value of which exceeds the amount of the property contribution fees of the “Association” members, shall be used for the purposes the “Association” was formed for and/or for charitable purposes.          

9.9. In case of termination of the “Association” activities all the documents (administrative, financial, economic, personnel, etc.) shall be handed down to its legal successor according to the established rules.      

In the absence of the legal successor the persistent storage documents having scientific and historical value shall be forwarded for storage to the state archives (“Mosgorarchiv”), the personnel documents (orders, personal files, record sheets, personal accounts, etc.) shall be forwarded for storage to the archives of the administrative district where the “Association” is based. The transfer and sorting of the documents shall be made by the “Association” itself and at its own expense in accordance with the archives requirements.         

9.10. The “Association” liquidation is considered completed and the “Association” itself terminated after the appropriate entry in the unified state register of legal entities is made.   

9.11. The decisions concerning amendments to the Articles of Association are within the competence of the General meeting.   

9.12. The amendments are made provided that a qualified majority of 2/3 of the “Association” members present at the meeting voted for the amendments.