MEGÉR-TÉSZ Agricultural Sales Cooperative

2473 Vál, Burgundia utca 63.   megertesz@gmail.com   +36 20 469-96-55

F.A.Q. – Frequently Asked Questions

  1. What was the reason for founding MEGÉR-TÉSZ Cooperative?
  2. How is the principle of democracy guaranteed within the cooperative?
  3. How can I join MEGÉR-TÉSZ Cooperative?
  4. What administrative obligations do producers have during the year?
  5. Cooperation in harvest time, in order to alleviate the organisation of logistics activity
  6. Do I have to sell all that I produce to the Cooperative?
  7. What sanctions can I expect if I have my products registered but still sell some of my products outside the Cooperative?
  8. What other administrative sanctions are in effect for failures in data provision?
  9. How can a member leave the Cooperative?

What was the reason for founding MEGÉR-TÉSZ Cooperative?

The main objective of the creation of MEGÉR-TÉSZ Cooperative was to overcome the negative stereotypes that many people have about cooperatives.

This is why we founded on 26 April 2015 this active, producer friendly and innovative cooperative organisation that focuses on research and tendering possibilities.

Combining the experiences of our older members with the momentum of the younger producers we want to operate a competitive cooperative that is unique in the agricultural sector of Hungary.

The main objectives of the Cooperative include, for the promotion of the production of the members, the implementation of their sales, the coordination of their procurements and the increase of the processing level of their products. We place a great emphasis on the promotion of the application of environment friendly farming methods, and the marketing of the products of our members, and also on the planning of production and matching it to the demand. We provide access to professional counselling for our members, and also assist members in the application of the integrated technology that they introduce.

Further information about the objective of the Cooperative can be read in Par. 1.2 in the Deed of Foundation.

How is the principle of democracy guaranteed within the cooperative?

In MEGÉR-TÉSZ Cooperative the principle of one member – one vote is applied, so at the general assemblies each member has one vote, irrespective of the size of their financial contribution.

No right of vote can be practiced by members who have not paid their financial contribution due in accordance with the Deed of Foundation.

Members can make proposals in connection with the issues on the agenda of the meetings and can vote about issues. If a member is unable to show up at an assembly, s/he can vote with an authorised representative. Authorisation must in all cases be proved by written document, with a notarial document or a private document providing full evidence. No authorisation can be given to the chairperson or member of the board of directors and the supervisory committee, and also to the auditor.

One authorised person can represent several members, but the number of members represented by them cannot exceed 10% of the cooperative members. In the assembly a member can only represent other producing members this way if s/he holds a written authorisation, with the specification of the vote to be given. The proportion of votes by related businesses and close relatives cannot exceed 49% of all votes given.

For more details check Par. 3 of the Deed of Foundation on the body of the General Assembly of the Cooperative.

How can I join MEGÉR-TÉSZ Cooperative?

The cooperative works by the principle of open membership. Anyone who accepts the obligations in the Deed of Foundation and pays the minimum of HUF 100,000 financial contribution can join the Cooperative. Members must declare that they will not quit the Cooperative within one year after the admission. With respect to personal contribution it must be specified in the request of admission if s/he wished to be a producer member or a non-producer member.

The request for admission can be downloaded from the website (F.A.Q. documents), and has to be sent to the address of the Cooperative – MEGÉR- TÉSZ Szövetkezet, H – 2473 Vál, Burgundia u. 63 – by post. Decision on the admission is made on the next session of the Board of Directors after the submission of the request. The Board of Directors will inform the General Assembly and the applicant about their decision.

For more details check Par. 5 of the Deed of Foundation on the Membership.

What administrative obligations do producers have during the year?

Members of the Cooperative are obliged to provide data, using data sheet introduced by the Board of Directors, about the farming area, volume and yield of the harvested crops.

In case of sales of products done outside the Cooperative, despite the prohibition defined in Par. 5.8 of the Deed of Foundation, the leadership of the Cooperative must be notified thereof so that the Cooperative can fulfil its reporting and data provision obligations in accordance with the Deed of Foundation and the legal regulation concerning cooperatives.

In possession of all these data the Cooperative is able to have an up-to-date register of members including the identification data, registration number, producer status of the members, their products concerned by the membership, the registered farming areas thereof, and the quantity of the production. Furthermore, the name and address of the member (in case of business: headquarters and company registry data) are recorded.

Registry of members must contain the amount of financial contribution by the member and the date of the start and finish of membership. Registry of members is open to all who can prove their concern.

Answering the questions, the data listed above must be given to the Cooperative parallel to the filling out the request form for admission, and also interim, in case of change in the data (e.g. change of address, name, in the size of farming area etc.).

Simultaneously with the relevant authorities, the leadership of the Cooperative must be notified about natural disasters – hailstorm, frost, drought, flood – in order to alleviate the organisation of sales and harvest.

For more details check Par. 5.14 of the Deed of Foundation on the Content of Membership.

Cooperation in harvest time, in order to alleviate the organisation of logistics activity

In order to allow smooth harvest, a flexible and precise cooperation is needed in harvest time with the logistics staff of the Cooperative.

On the request of this staff, in case of collecting freights, the use of pallet identification is automatically necessary so as to alleviate the separation, and guarantee the traceability of the harvested crops.

Do I have to sell all that I produce to the Cooperative?

Yes, the Deed of Foundation obliges members for exclusive sales of products registered in the Cooperative.

This means that in the given year the agricultural producers must sell the total of their crops registered at the Cooperative through the Cooperative. A member of the Cooperative cannot be a member in any other vegetable or fruit producers group or producers organisation concerning the product that s/he sells as a member of MEGÉR-TÉSZ Cooperative.

With the permission of the Cooperative, however, producer members are allowed to sell up to twenty-five per cent of their crop or products directly by their business or outside that, to meet personal demands of customers. To do so they must have credible records of these sales and must give a credible notification thereof to the Cooperative.

Through other producers organisations members can sell those products which, by their features, usually do not fit into the ordinary commercial activity of the Cooperative.

For more details check Par. 5.14 of the Deed of Foundation on the Content of Membership.

What sanctions can I expect if I have my products registered but still sell some of my products outside the Cooperative?

MEGÉR-TÉSZ Cooperative, on the basis of Par. 5.14.4 e.), f.) in the Deed of Foundation introduces the following sanctions for the regulation of the failures of members to fulfil their obligations:

  • Members of the Cooperative – coming from their membership status – approve that Cooperative has the right to examine the documents and invoices concerning the crops or products concerned by the membership.
  • Producer members of the Cooperative, if they sell their products or crops outside the Cooperative, are obliged to pay 10% contract penalty as compensation within 30 days of the request by the Board of Directors.

The basis of the contract penalty is the net value of the crops sold elsewhere. In addition, an initiative for the exclusion of the member breeching the sales contract must be launched, as his/her action jeopardises the achievement of the objectives of the Cooperative and the conditions of recognition. For the initiative of the exclusion of the member, a decision made by a minimum two-thirds majority of all other members of the general assembly is needed. The member concerned has no right to vote in this issue.

For more details check Par. 5.14.4 of the Deed of Foundation on the Content of Membership.

What other administrative sanctions are in effect for failures in data provision?

A member of the Cooperative has administrative data provision obligation towards the Cooperative. A breech of this obligation is regulated by Par. 5.14.5 of the Deed of Foundation as follows:

In case of breech of the obligations coming from the membership status specified in the Deed of Foundation, a failure to meet deadlines, the presidency must call the member two times in registered letter to meet his/her data provision obligations within 5 days of the receipt of the call.

In case of failure of the repeated call, the authorised counsellor of the Cooperative will have a site inspection at the member. Member will be notified of its date by the President, 3 days prior to the site inspection. During the site inspection member is obliged, in accordance with Par. 5.14.4 e.) of the Deed of Foundation, provide an insight into the documents and invoices connected to his/her activity concerning the membership status, must also show his/her plantation and fill out an inspection diary with his/her signature, introduced by the Board of Directors for this purpose.

If a site inspection is necessary, member is obliged to pay a HUF 100,000 contract penalty to the Cooperative within 8 days after the site inspection.

This article of the Deed of Foundation is not relevant for the breech of sales through the TÉSZ Cooperative, the legal consequences of which are regulated in Par. 5.14.4 f.) of the Deed of Foundation.

It is not relevant furthermore for the non-payment of the financial contribution of the member, the consequences of which are regulated by Par. 5.14.6.1 b.) of the Deed of Foundation.

For more details about the consequences of failing to meet administrative obligations check Par. 5.14.5 of the Deed of Foundation. Procedures and legal consequences induced by the breech of members’ obligations, coming from the membership status, are regulated by Par. 5.14.3. c. and 5.14.4 of the Deed of Foundation.

How can a member leave the Cooperative?

If our co-operative can not meet your expectations, with the repayment of the financial contribution we will provide you a free way to terminate the member’s relationship. Termination of membership status is regulated by section 5.14.6 of the Articles of Association as follows: Membership Status is terminated:

If the member leaves the co-operative; or if he or she has not fulfilled his / her financial contribution (obligation to make a substitution) by the date specified in the Statutes (General assembly decision);

If the member fails to fulfill his / her financial contribution until the specified date, the management will call the member for delivery by setting a deadline of thirty days and indicating the consequences.

After the expiration of the thirty-day deadline, the member’s legal status, who does not fulfill his or her financial contribution shall expire on the day after expiry of the deadline. The termination of the membership shall be reported to the former member by the management in writing form .

If the former member’s failure to meet the financial contribution to the co-operative causes damage with breaching of the contract, the former broad will be charge by responsibility rules.

Membership status can also be terminated by withdrawal. The intent of withdrawal shall be reported to the Board of Directors by registered mail, in full form of evidence, in a private form, to the registered office of the Cooperative’s head office. The Board of Directors is required to negotiate the issue at the next meeting and to notify the Ministry of Agriculture in a specific form and in a timely manner through the membership register. Membership status shall be terminated on the day following the expiration of 3 months from the date of receipt of the written notification of the exit form in this form and manner.

If the membership relationship is terminated for any reason,with the former member must be accounted. The former member is entitled to the nominal value of the financial contribution and the amount of the capital contribution to the property contribution generated under the membership with the committed reserve in case it is used to cover the loss. The nominal value and the amount in excess shall be payable in year after termination of legal relationshipthe date, within 30 days of the Accounting Act on the Year of Termination.

The former member, as a non-financial contribution, which is still to be used as the assets of the cooperative,upon the request of the former member or his successor (successor) who does not apply for membership should be given out within 30 days after the report of the Accounting Act.

© 2016 – 2020. MEGÉR-TÉSZ Agricultural Sales Cooperative

© 2016 – 2020. MEGÉR-TÉSZ

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