Instruments for solving the crisis of cooperative societies

Abstract

Cooperative societies are organizations constituted by certain economic or social categories that aim to perform, for the common benefit, productive activities or the provision of services. Its importance transcends business limits, as it establishes an economic increase in the assets of the cooperative member and values social aspects that are transmuted into direct benefits to the affected community.At the same time, cooperative societies have expanded and consolidated their space in the market, demonstrating their quality and intensifying their business model. However, this production model does not have adequate treatment for moments of crisis, bringing problems to cooperation itself. There is an evident competitive disadvantage, contrary to the provisions of art. 174, §2, of the CF: while business companies can use legal tools derived from the principle of preserving the company, such as bankruptcy and judicial reorganization, cooperatives do not have a defined situation regarding the possibility of using such instruments.Therefore, cooperatives are forgotten by our legal system, and are usually subjected to the voluntary liquidation procedure, making the cooperative environment less and less attractive. Cooperatives need more legal solutions to deal with their crises and judicial recovery seems to be a useful instrument for the case in question.Therefore, the final objective of the research is to verify the insufficiency of instruments to solve the cooperative crisis, with an evident competitive disadvantage that violates constitutional provision. Thus, the current form of dissolution and liquidation will be analyzed, with the inadequacy of this procedure to allow the uplift of the crisis, with preservation of the cooperative member's interest in continuing to participate in this mutualistic economy.