Non-profit Status of Cooperatives Leads to Widespread Negligence, Kamo Areyan

The non-profit mechanism of cooperatives has led to widespread irresponsibility. This was stated today, September 4, during a regular operational meeting at the Yerevan City Hall by Kamo Areyan, the advisor to the Mayor of Yerevan, while discussing the draft amendments to the Law on Cooperatives.

“Ten days ago, we had a meeting under the chairmanship of Deputy Prime Minister Mher Grigoryan, where representatives from other departments were also invited. A draft of the concept was presented, based on which a new law should be formed. As a result of the discussions, it was decided to adopt new principles, making the imperative part more dominant. Based on that concept, work has begun on formulating the provisions of the law. This process will take considerable time. The next discussion date has not been set yet. I would suggest providing another two months until we see the preliminary version of the draft from the interdepartmental commission,” he stated.

Addressing the content of the concept, Kamo Areyan noted, “The challenge of transforming the institution is being presented, liberating from the voluntary-compulsory provisions of that assembly, and establishing a clear management institution. First of all, who can be a manager, how to select a manager, and the responsibilities and obligations of the manager, as well as establishing contractual relationships between residents and managers, which do not currently exist. The non-profit mechanism of cooperatives has led to widespread irresponsibility. The relationships between the building management authority and the community leaders are emphasized, which are currently very weak in terms of oversight. Additionally, the costs of building maintenance, modernization, and strengthening must become calculable.”