1. Enabling Legal Framework for Associations European Center for Not-for-Profit Law (ECNL)

2. European Center for Not-for-Profit Law (ECNL)
ECNL promotes the strengthening of a supportive legal environment for civil society in Europe.
Program Areas
Legal Framework for CSOs
Financial Sustainability of CSOs
Public Participation
EU Enlargement

3. EIDHR Project of the European Commission
Strengthening the Legal Framework for Citizen Action through Freedom of Association
ECNL = Resource Organization
Support Government, Parliament, Civic Sector
Partnership with Eco-Tiras
Coordination with international organizations
Comparative legal expertise / not advocacy

4. Issues for Consideration
Definition of “Association”
Formal and Informal Associations
Regulatory Treatment of Members
Regulatory Treatment of Boards
Registration Procedures
Dissolution Procedures

5. Definition of Association
Membership organization
Non-governmental
Independent, self-governing
Not-for-profit mission
Bound by non-distribution constraint
Permissible purposes: mutual + public benefit
Voluntary
Exclusions: political parties, religious organizations, cooperatives

6. As Membership Organization
Minimum number of members: 3
Natural and legal persons
Foreign and domestic persons
Minors

7. Permissible Purposes Not-for-profit purpose
Mutual benefit or public benefit
Limitations (conform to ECHR)
National security or public safety
Public order
Protection of public health or morals
Protection of rights and freedoms of others

8. Formal and Informal Associations
Freedom of association embraces both informal groups and registered entities
Informal groups = unregistered
Formal groups = legal entities, subject to Law
Importance of voluntary registration
Mandatory registration = violation of Article 11 of ECHR

9. Right Not to Register
Article 19(1) commendably affirms voluntary nature of registration.
Recommendation: Retain this provision.

10. Regulatory Treatment of Members
Freedom to regulate internal governance
Law may set certain minimum standards
Law must afford flexibility to founders
Public benefit organizations
More stringent governance requirements
State obligation to protect members

11. Regulatory Treatment of Members
Members generally protected against mandatory membership
Associations generally permitted to set conditions on membership, exclude members
Associations generally permitted to create categories of members

12. Regulatory Treatment of Managing and Governing Bodies
According to European Country Practice
No citizenship/domicile requirement for board service
Domicile requirement for some/majority of board Ms
According to European Convention
Burden on state to justify restriction
According to European Court of Justice
Belgium case (1999): Nationality and residency requirements violated rights of citizens of other EU member states

13. Registration Procedures
Goal = facilitate registration
Clear, easy and inexpensive process
Procedural requirements:
Filing of clearly defined documentation
Registration fee – not burdensome
Limited government discretion
Strict time limits for review
Written notice of denial / right to appeal

14. Dissolution Procedures: Transfer of Assets
Payment of creditors
Transfer of remaining assets
PBOs: Another PBO with similar objectives
MBOs: Members

15. Thank you! www.ecnl.org.hu www.icnl.org