Article 66. Basic Provisions on Business Partnerships and Associations

1. The business partnerships and associations are corporate commercial organisations with a charter (contributed) capital divided into stakes (contributions) of the founders (participants). The property formed with the contributions of the founders (participants) and also produced and acquired by the business partnership or association in the course of activities shall belong by the right of ownership to the business partnership or association.

The scope of powers of the participants in a business association is defined pro rata to their stakes in the charter capital of the association. The charter of the association and also a corporate agreement may envisage another scope of powers of the participants in a non-public business association on the condition that information on the existence of such agreement and on the scope of powers of the participants in the association envisaged by it is entered in the comprehensive state register of legal entities.

2. In the cases envisaged by the present Code a business association may be formed by one person that becomes its sole participant.

A business association shall not have another business association constituted of one person as its sole participant, except as otherwise established by the present Code or another law.

3. Business associations may be formed in the organisational legal form of general partnership or partnership in commendam (partnership en commandite).

4. Business associations may be formed in the organisational legal form of joint stock company or limited liability company.

5. Individual entrepreneurs and commercial organisations may be participants in general partnerships and be general partners in partnerships in commendam.

Citizens and legal persons and also public-law entities may be participants in business associations and contributors in partnerships in commendam (Article 125).

6. State bodies and local self-government bodies are not entitled to participate in the name thereof in business partnerships and associations.

Institutions may be participants in business associations and contributors in partnerships in commendam on the permission of the owner of the institution's property, except as otherwise established by a law.

A law may impose a ban or restriction on the participation of specific categories of persons in business partnerships and associations.

Business partnerships and associations may be founders of (participants in) other business partnerships and associations, except for the cases envisaged by a law.

7. The details of the legal status of credit organisations, insurance organisations, clearing organisations, specialised financial associations, specialised project financing associations, professional participants in the securities market, joint stock investment companies, the managing companies of investment companies, unit investment trusts and non-state pension funds, non-state pension funds and other non-credit financial organisations, joint stock companies of employees (people's enterprises), and also the rights and duties of their participants shall be defined by the laws regulating the activities of such organisations.