Management of small agricultural cooperation and corporatization

Alexey Tolmachev,Denis Syromyatnikov,Vitaliy Smirnov,Evgeniy Grishin,I Tkachenko

doi:10.1051/shsconf/20208901001

Alexey Tolmachev, Denis Syromyatnikov + Show 3 more

Open Access

https://doi.org/10.1051/shsconf/20208901001

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Abstract

The possibility of applying the principles of corporate governance in the practice of small agricultural businesses is considered. The authors believe that cooperative associations of small market participants can transform into corporate associations at a certain stage of development. The scientific novelty is represented by an improved economic mechanism of two-level cooperation of small agricultural enterprises with the financial participation of municipalities, regional and Federal authorities and the formation of their own cooperative Bank. The mechanism recommended by the authors is aimed at motivating small business participants to cooperate by the possibility of subsequent corporatization. The implementation of the cooperation development plan will require temporary exemption of its participants from the tax burden, while the state should practice joint construction of processing, logistics and other necessary facilities in the agricultural sector, with the subsequent transfer of its shares to consumer cooperatives of small businesses.

Highlights

To date, there is no short complete definition of corporate management that meets all the set goals
The scientific novelty is represented by an improved economic mechanism of threelevel cooperation of small agricultural enterprises united by the efforts of their participants with the financial support of municipalities, regional and Federal government entities with the formation of their own cooperative bank
Since 2014, the amount of state support funding has been significantly reduced due to the well-known sequestration of Federal spending, and so far, even without taking annual inflation into account, which has not reached the level of 2013. This lag has reached 23.1% by 2017, while capital investment has been transferring to legal entities, individual entrepreneurs and other market participants at the expense of regional budgeting funds that were growing significantly

Summary

Introduction

There is no short complete definition of corporate management that meets all the set goals. There is no such precise definition in Russian-language literary sources, and in foreign ones [1, 2, 3] In our opinion, this definition includes a systematic method of managing a cooperative Association, aimed at a fair distribution of the final result of economic activity in the agricultural sector. According to the Civil code of the Russian Federation (paragraph 1, article 65), in our country, corporate participants are considered to be founders, who form their own Supreme management body, beginning with a Chief Executive Officer (CEO). This may include all legal entities of a business that bring profits – or losses – to their majority and minority owners, regardless of whether they call themselves corporations or not

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