Article 13. Property of a Collective Enterprise

1. The property of a collective enterprise arises in cases where leased property is purchased or other methods of acquisition of property are provided for by law. The property of a collective enterprise, including manufactured products and income received, is the common property of the collective.

2. Within the property of a collective enterprise, the contributions of its employees shall be allocated. Such contributions include the total value of property added by the employees to the leased enterprise that served as the basis for the establishment of the collective enterprise, as well as the shares contributed by employees to increase the property of the enterprise after its establishment.

The amount of an employeeʼs share in increasing the property shall be determined according to his/her participation in the enterpriseʼs activity and, based on the results of economic activity, interest shall be allocated and paid in the amount determined by the labor collective.

An employee who terminates labor relations with the enterprise, as well as the heirs of a deceased employee, shall be paid the value of their contributed share.

In the event of the liquidation of the collective enterprise, the value of shares shall be paid to employees (or their heirs) from the remaining property after settlements with the budget, banks, and other creditors.