This Law sets forth legal grounds for setting up, functioning, reorganization and liquidation of agricultural cooperatives (shirkats), regulates the rights and the duties thereof, and also the interrelations with other legal and natural persons. The Act consists of seven Chapters divided into 33 Articles: (1) general provisions; (2) membership; (3) managing body of agricultural cooperative (shirkat); (4) allotment of land to agricultural cooperative (shirkat), landownership, land use and water use; (5) property of agricultural cooperative (shirkat); (6) functional basis of agricultural cooperative (shirkat); and (7) final provisions. The activity performed by agricultural cooperative (shirkat) shall be based upon the following principles: (a) voluntary membership; (b) unimpeded withdrawal; (c) compulsory labour activity; (d) household (collective) labour organization; (e) equal decision-making rights; and (f) purposeful use of land, soil protection and soil fertility improvement. The main activity of agricultural cooperative (shirkat) shall be the production of agricultural commodities and also processing of agricultural raw materials and manufacturing of foodstuffs. Agricultural cooperatives (shirkats) shall be allotted plots of agricultural land on condition of open-ended land use that can be transferred in life-long hereditary possession but cannot be objects of purchase and sale, mortgage, donation or exchange.