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Abstract
In this paper, the author highlights the unresolved issue of property ownership of cooperatives, which makes the development and functioning of most of the cooperatives impossible. The ownership issue can only be resolved by establishing a general rule: to deal with it on a case by case basis. One of the main issues as far as cooperatives in Serbia are concerned is also the fact that a large number of cooperatives do not obey the cooperative rules, that is, they are not run by cooperators but by the employees of the cooperatives who have overpowered. The rules are not obeyed in private cooperatives either because they are registered as cooperatives but are, in fact, private companies owned by one or several individuals. Despite all these problems, cooperatives and farmer unions are essential organizational units in respect of production increase, merchantability and development of villages.