The legal nature of relations in non-entrepreneurial societies and foundations in Ukraine and EU member states is based on private law, as they are formed according to the personal non-property right to freedom of association (for non-entrepreneurial societies) or the owner's right to allocate property (for foundations). Public-law features of non-entrepreneurial societies and foundations form the appropriate status for participation in public relevant relations (state-confessional, electoral, collective agreements, protection of public order, etc.). The structure of the mechanism of legal regulation of relations in non-entrepreneurial societies and foundations corresponds to the general model of regulation of civil relations and is reduced to: 1) legal regulation; 2) law implementation (realization); 3) law enforcement.
Taxons (classification units) of legal entities of private law are distinguished: 1) subtype – according to the substrate (basis) of creation of a legal entity of private law; 2) genus – in accordance with the purpose of creation and the legal share of the received profit (income); 3) group – in accordance with the economic interests realized by legal entities; 4) subgroup – in accordance with the details of the interests that are realized, and the availability of power (the possibility of self-regulation of relations within and outside the organisation); 5) form – in accordance with the organisational and legal form of legal entities of private law, enshrined in law; 6) supporting form – in accordance with the specifics of the relations that arise in accordance with the organisational and legal form. Non-entrepreneurial societies that pursue privately useful interests provide: (a) personal non-property rights of participants and are the “simplest” form of organisation of public relations, which does not require a complex system of governing bodies; (b) the exercise of property rights, in particular the allocation of joint ownership rights or the formation of capital for the purpose of obtaining future cash benefits, therefore requiring the formation of additional management bodies of competent specialists or the conclusion of contractual relations with professional market participants. Legal regulation of the model of non-entrepreneurial societies aimed at the realization of public rights and interests is based on the realization of freedom of association, so public associations and trade unions, depending on the direction of their activities and relations with public authorities, can be both privately useful and publicly useful. Special legislative regulation may require a separate consolidation of the legal status of political parties, charitable and religious organisations, in accordance with the peculiarities of the legal order of the state. The use of the term “institution” (заклад) in the legislation is made in order to give a legal entity the appropriate legal status (educational institution, health care institution, restaurant institution, etc.) and does not correspond to the organisational and legal form of the foundation because it is a conditional marking. Cooperation is considered within the non-entrepreneurial sector on the basis of a common feature of creation (association of persons), as well as preferential terms (such as non-profit organisations, according to the TC of Ukraine). The realization of the rights and performance of duties by the participants in the relations in non-entrepreneurial societies and foundations is reduced to the achievement of the interests of the legal entity (private initiative or public benefit). The limits of the realization of subjective rights are defined by “internal”, agreed governing bodies, as well as “external”, formed by “umbrella” organisations (eg, federation), norms that are generally reduced to corporate governance (in the narrow sense – the organisation, and in the broad – to motivate the actions of persons in other private relationships). The status of “umbrella” organisations is characterized by public restrictions on their activities. Improving the legislation on non-entrepreneurial societies and foundations is reduced to the following areas: 1) the Ciliv Code of Ukraine, general provisions that develop the right to freedom of association and disposal of property, provisions on corporate acts with the establishment of features for entrepreneurial / non-entrepreneurial societies and foundations, the general model of the system of government, determining the conditions of need for a two-tier model, the provisions for the establishment of foundations); Economic Code of Ukraine (general provisions on state regulation of economic activity; special provisions on state regulation of non-entrepreneurial (non-commercial) activities); 2) special laws establishing the peculiarities of the activities of non-entrepreneurial companies and institutions in accordance with the codified acts.
