NOTICES REIvATING TO CO-OPERATION AND ASSOCIATION 

 IN VARIOUS COUNTRIES. 



GREECE. 



KAIylTSINAKIS (Dr. Jur. D. E.) : Die genossenschaftliche Beuegung in Griechenland (The 

 Co-operative Movement in Greece). Balkan-Revue, No. 4-5, Year III, 1916. 



In 1 91 1 a new department, called the Ministry of National Economy, 

 was created in Greece, and the State has since interv^ened more importantly 

 than before in the country's economic life. In 1914 this department pro- 

 posed a law as to co-operative societies which has had force since 24 Jan- 

 uary 1915 and on which the article here cited bears. 



In drawing up the law the Greek legislature was influenced by the cha- 

 racter of the co-operative movement in Germany, and therefore the measure 

 presents a combination of Raiffeisen and Schulzte-Delitsch principles and 

 reproduces almost literally many provisions of the German law of 1889 on 

 co-operative purchase and labour {Erwerbs- und Wirtschajts genossenschajten) . 

 But to some extent the Greek legislature took into account the special cir- 

 cumstances of the country, and thus there are in the law certain devia- 

 tions from the line traced by German principles. 



The following are the characteristic features of the Greek law : 

 i) In the case of co-operative societies of everj^ kind, whether credit, 

 agrictdtural, industrial or other, the law allows their formation on the prin- 

 ciple of either limited or unlimited liability. The form selected has merely 

 to be noted in the by-laws (article 22). As is known the rural co-operative 

 societies, especially those which are credit societies, almost all have unli- 

 mited liability. 



2) In the matter of the territorial sphere of an association the Greek 

 law adopts the principles of Raiflteisen, in that of the admission of members 

 those of Schultze-Delitsch : thus the sphere of co-operative action is li- 

 mited to a village or a commune, and the admission of members depends on 

 the obligatory purchase of shares. The members of an unlimited liability 

 society are obliged to pay the amount of one share, but the by-laws of a 

 limited liability society may prescribe the subscription of two or even more 

 shares (article 20). 



3) Articles 14 to 67 and 68 of the law prescribe the obligatory for- 

 mation of a reserve fund in accordance with Raiffeisen principles. Ten per 

 cent, of the net profits are paid into the reserve fund annually, and such pay- 

 ments cannot be interrupted until this fund becomes equal to the share 

 capital. The reserve fund serves to cover eventual losses and may not be 

 used as working capital. It is invested in State securities. It is considered 



