Doing Business in Azerbaijan 2009 - Azerbaijan Export ...

40 DOING BUSINESS IN AZERBAIJAN
own name, maintain an independent balance sheet, maintain
settlement and other bank accounts, and act as a claimant and
defendant in courts and arbitration. Azerbaijani non-commercial
organizations are presumed to engage in non-commercial activities.
Under the Civil Code, non-commercial organizations may be created
in any of the following forms: public association, foundation and
union of legal entities. Other forms permitted include federations,
schools, universities and clubs.
Public Associations
A public association is a voluntary, not-for-profit organization
created by its members to engage in activities of their mutual
interest. Azerbaijani law authorizes both individual and corporate
membership in public associations. A member in a public organization
loses any ownership or other rights to property transferred to
the public association, including their membership contributions.
Members of the public association are not responsible for its
obligations and, likewise, the public association is not responsible
for the obligations of its members.
In the event of the liquidation of a public association, any property
remaining after liquidation is allocated for the purposes specified in
the charter. If this is not possible, such property is remitted to the
state budget.
Foundations
A foundation is a not-for-profit organization created by individuals
and/or legal entities to engage in public, charitable, educational
and other kinds of social activities. Since an Azerbaijani foundation
is not subject to a minimum requirement for the number of
founders, it may be created by one individual or legal entity.
Moreover, they are not based on membership, i.e. the founders do
not become its members. A foundation’s founders are not