Law No. 113-III “On daihan associations”.

This Law determines economic, legal and social grounds for the creation and functioning of daihan associations. Daihan association shall be legal person created for carrying out agricultural production and based on mixed ownership (Art. 1). Daihan association shall have the following purposes: (a) production, processing and trade of agricultural commodities; (b) agricultural development; (c) fulfilment of contractual arrangements related to supply of agricultural commodities; (d) rational use of allotted agricultural land and natural resources; and (e) improvement of social conditions of the rural population (Art. 2). The Act consists of 5 Sections divided into 20 articles: (1) general provisions; (2) basis for economic activity of daihan association; (3) organizational and legal basis for the functioning of daihan association; (4) basis for social development of daihan association; and (5) conclusive provisions. Economic bases of daihan associations shall be: (a) agricultural land allotted in tenancy; and (b) agricultural commodities produced by daihan associations (Art. 5).