THE RIGHT OF NON-GOVERNMENTAL ORGANIZATIONS TO CARRY OUT DIRECT ECONOMIC ACTIVITIES
THE RIGHT OF NON-GOVERNMENTAL ORGANIZATIONS TO CARRY OUT DIRECT ECONOMIC ACTIVITIES

Summary/Abstract: The paper analyses the right of associations and foundations as non-governmental organizations to carry out direct economic activities, a controversial aspect in the jurisprudence of Romanian courts. Starting from the definition of associations and foundations, we will demonstrate that the character of non-profit organization is not incompatible with the conduct of direct economic activities, as long as these activities are ancillary and are performed to achieve the main purpose of the association or foundation. The paper also analyses the controversy of the need to concretely name the direct economic activities from the moment of drafting the Statute of the association or foundation and the sanction in the case where the direct economic activities are not performed according to the express provisions of the law. In the non-unitary jurisprudence of the Romanian courts the sanction is considered to be either the rejection of the application for establishment or the dissolution of the association or foundation. According to the latter opinion, the verification of direct economic activities being performed to achieve the main purpose of the organization can be done only after the establishment of the association.

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