Cooperative Law (No. I-164).

The State of Lithuania supports the cooperative movement, recognizes the provision of services to its members as the most important purpose of cooperative societies (cooperatives), promotes the activities of cooperative societies, and legitimizes their independence. Cooperative company shall be intended in accordance with the procedure established by law, natural persons and/or legal entities established in the Republic of Lithuania, legal persons established in another Member State of the European Union or a state of the European Economic Area and their branches to meet the economic, social and cultural needs of its members. Its members contribute to the capital, share the risks and rewards according to the turnover of the members' goods and services with that company and take an active part in the management of the cooperative society. A cooperative society is a legal person with limited civil liability. A cooperative society shall have at least 5 members. This Law governs the formation, membership, internal organization and functioning and winding-up of cooperatives in general. Cooperatives have full legal personality, with liability for their obligations limited to the extent of their property (art. 3). Requirements are laid down for the formation of cooperatives, including, in particular, registration in the Register of Enterprises; membership in a cooperative; the running of cooperatives' business, including the auditing of their accounts. Cooperatives may join and form associations. (22 articles divided into 7 Chapters). The criteria chosen by the cooperative company (cooperative) for recognition as an agricultural cooperative company (cooperative): (a) more than 80 percent of its members are natural and/or legal persons whose share of income from agricultural activities in the previous year was more than 50 percent of total income and whose income received last year from agricultural commodities sold to the cooperative company (cooperative), of a cooperative company (cooperative), constitutes more than 50 percent of the income received from these agricultural commodities, sold to all economic entities, and the quantity of each agricultural commodity sold to the cooperative company (cooperative), of a cooperative company (cooperative) is more than 50 percent of the amount of this agricultural commodity sold to all economic entities, and the total value of the shares of these members is more than 80 percent of the value of the shares of all members of the cooperative company (cooperative). In this point, agricultural commodities are understood as they are defined in the Law on Agriculture, Food Industry and Rural Development of the Republic of Lithuania; (b) more than 80 percent of its members are natural and/or legal persons, whose share of income from agricultural activities in the last year was more than 50 percent of total income and whose goods and/or services were purchased from the cooperative company (cooperative) last year, sold by the cooperative company (cooperative), the value of these goods and services purchased from all economic entities is more than 50 percent, and the total value of the shares of these members is more than 80 percent of the value of the shares of all members of the cooperative company (cooperative); (c) has more than 30 members and more than 70 percent of its members are natural and/or legal persons whose production standard value is the economic size of the agricultural holding according to the calculations made in accordance with the procedure established by the Minister of Agriculture during the period of the previous year from January 1 to December 31 is at least 2,000 euros, and the total value of the shares of these members is more than 70 percent of the value of the shares of all members of the cooperative company (cooperative); and (d) more than 90 percent of the value of the shares of its members consists of the value of the shares of agricultural cooperative companies (cooperatives) of the members. The founders of the cooperative company must be at least 5 natural and/or legal persons. Every founder of a cooperative company must become its member. The founders of the cooperative company conclude the contract of establishment of the cooperative company, prepare the draft articles of association of the cooperative company, convene the founding meeting. The memorandum of association is a public document.