Non-Entrepreneurial Legal Entity: The Theoretical And Legal Analysis Of The Concept And Characteristics

Abstract

The article is devoted to the theoretical and legal analysis of issues related to the range of problems connected with development of such legal model as ‘nonentrepreneurial legal entity’. In the scientific work the author makes an analysis of those concepts which are submitted by the leading Ukrainian scholars and concern the formation of civil-law terminology in general and that is applied to the nonentrepreneurial legal entities, in particular.

The author has concluded that it is expedient to apply the set of criteria during formation of the non-entrepreneurial legal entity. The article gives the definition of non-entrepreneurial legal entity in the narrow and broad meanings.

It is proved that a non-business entity should be singled out as a separate category according to the non-distribution of profit (income) rather than to the specifics of its business activity. The author demonstrates the feasibility to change classification criteria and levels while classifying the legal entities and on the mentioned ground she has singled out: 1) procedure for establishment of the legal entity; 2) structure of the legal entity as a criterion of the second classification level; 3) specific character of the profit distribution as a criterion of the third level of classification. It is based on the argument that non-business entities are an independent group of the legal entities, which is divided into subgroups: the non-business entities of corporate type and the non-business entities of unitary type. Each subgroup of the non-business legal entity distinguishes several legal forms within of which specific types of non-business entities are allocated.

The author presents one’s own definition of the non-entrepreneurial legal entity, as a legal entity of public or private law, whether of corporate or unitary type, which is specially established in the different areas of social life and endowed with a special legal capacity.

The non-entrepreneurial legal entity shall be entitled to carry out activities with a view to profit but it doesn’t distribute it among participants (members).