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Articles of Association

BY-LAWS OF THE NONPROFIT ORGANIZATION

BULGARIAN ASSOCIATION
OF FINANCIAL ANALYSTS

Contents

Chapter I
Chapter II
Chapter III
Chapter IV
Chapter V
Chapter VI
Chapter VII
Chapter VIII


Chapter I
NAME, REGISTERED OFFICE, VALIDITY PERIOD


Art. 1. (1) The following articles hereby constitute and regulate a nonprofit organization found by its members and named ÀÑÎÖÈÀÖÈß ÍÀ ÔÈÍÀÍÑÎÂÈÒÅ ÀÍÀËÈÒÈÖÈ (ÀÔÀ) in Bulgarian and THE Bulgarian CFA Society (BCFAS ) in English, hereinafter referred to as the ASSOCIATION.

(2) The Association is a Member of the Association for Investment Management and Research (AIMR) and a voluntary and independent organization of physical persons engaged in the sphere of finance. The Association will also observe the Bylaws of AIMR. When there are changes in any laws and applicable rules, regulating the activities of AIMR, including those approved by its Governing Bodies, the Association will undertake immediately the requisite measures to bring its Bylaws in conformity with those changes to the extent that they do not contradict the Bulgarian Law.

Art. 2. (1) The registered office of the Association is in Sofia, 113 G. S. Rakovski Str.

Art. 3. (1) The Association is not limited by a validity period.

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Chapter II
PURPOSES AND MEANS TO ACHIEVE THEM

Art. 4. (1) The purposes for which the Association is formed are as follows:

a) establishment of professional and ethical standards of the activity of the financial analysts in Bulgaria;
b) promotion and recognition of the professional designation Chartered Financial Analyst (CFA) in Bulgaria;
c) development and implementation of continuing education programs;
d) providing opportunities for contacts and exchange of professional experience and knowledge among the members;
e) fulfillment of the requirements for membership in the American Association for Investment Management and Research (AIMR);
2) The Association adopts Internal Rules and Procedures and develops a Program for its activity.

(3) Means to achieve the objectives:

a) provides information about the requirements to be awarded the CFA Charter and its meaning;
b) organizes meetings with educational purposes;
c) provides readings for preparation and taking the CFA examinations;
d) establishes and maintains contacts with similar organizations in Bulgaria and abroad;
e) represents the interests of its members before government institutions, international organizations and companies.

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Chapter III
TYPE OF ACTIVITY


Art. 5. The Association is founded with the purpose of working to PRIVATE BENEFIT.

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Chapter IV
PROPERTY

Art. 6. (1) The Association acquires its property and is supported by:

a) Registration charges by the members;
b) Membership dues;
c) Sponsorship, donations and bequeathals;
d) Other sources not prohibited by law.

Art. 7. (1) The property of the Association consists of short-term and long-term tangible and financial assets and intellectual property rights. The property shall be registered in a special register of the Association.

(2) The actions and orders concerning the assets of the Association shall be conducted by resolution of the Managing Board after being approved by the General Meeting.

(3) The expenses related to the operation and the management of the Association shall be covered by its revenues.

(4) The Managing Board may allocate part of the revenues to a capital fund of the Association.

(5) The fiscal year shall be the calendar year.

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Chapter V
MEMBERSHIP, RIGHTS AND OBLIGATIONS. MANNER OF DETERMINING THE AMOUNT AND PAYMENT OF CHARGES AND DUES

Art. 8. (1) Members shall join the Association based on a written application in which the applicant states his/her agreement with the By-laws and goals of the Association. The application shall be submitted to the Managing Board. Each applicant seeking to become a Regular Member of the Association shall accept the by-laws and the objectives of the Association and be a Regular Member of AIMR and:

a) Hold a bachelor's degree from an accredited academic institution or have equivalent education or work experience;

b) Have attained one or more of the following:

1) Have three years of acceptable professional work experience and have passed Level I of the CFA® Program or such other appropriate examination as may be approved by the AIMR;

2) Be a CFA Charterholder;

c) At the time of application, either be engaged in employment described under the definition of “acceptable professional work experience” or be a Charterholder.

d) Agree to adhere to and sign the Member's Agreement, a Professional Conduct Statement, and any additional documentation requested by AIMR

2) To qualify for Affiliate membership, an applicant must accept the by-laws and the objectives of the Association, be an Affiliate Member of AIMR and meet the following criteria:

a) Be enrolled to sit for an examination and have acceptable professional work experience or have passed Level I of the CFA Program;
b) Agree to adhere to and sign the Member's Agreement and Professional Conduct Statement, and any additional documentation requested by AIMR.

3) Each member of the Association shall have the following rights:

a) To receive information about the activity of the Association as well as to have access to any other information available to the Association;

b) To require assistance and discussion of matters concerning the activity of the Association;

c) To take part in the initiatives and the activities of the Association;

d) To benefit from the results of the overall activity.

4) Each regular member shall have the right to:

a) Vote, elect and be elected in the governing bodies of the Association.

5) Within the Regular Member and Affiliate Member Classes of membership, a retired status will be available.

(a) A Regular Member or Affiliate Member of the Association may assume retired status if he or she:

(i) has been a Regular Member or Affiliate Member of AIMR and/or such a member of the Association for one year;
(ii) is not currently engaged in professional activities which qualify as Acceptable Professional Work Experience sufficient to receive the CFA charter or fulfil Regular Membership requirements;
(iii) completes an application provided by the Association; and
(iv) fulfils such other requirements as the Association may impose.

(6) A Regular Member or Affiliate Member of the Association may assume an Observer status if he or she:
(i) completes an application provided by the Association; and
(ii) fulfils such other requirements as the Association may impose.

7) Each member of the Association shall:

a) adhere to all applicable rules and regulations of the Association and of AIMR, including but not limited to their Articles of Incorporation, their Bylaws, the Code and Standards, and other rules relating to professional conduct and membership, all of which may be amended from time to time;
b) Adhere to the professional standards of the Association;
c) Submit to the Association any information necessary for the fulfillment of its goals and resolutions;
d) Pay membership dues within the specified term and amount and not undertake any actions offensive to the reputation of the Association.
e) Pay a single registration charge in the amount determined by the General Meeting.
f) Be subject to the disciplinary jurisdiction and sanctions of the Association and AIMR.
g) Maintain membership In Good Standing with AIMR. “In Good Standing” refers to a member who has paid all applicable AIMR dues in full, has submitted a Professional Conduct Statement to AIMR, and is not currently the subject of a Formal Proceeding or Disciplinary Sanction, as provided in the AIMR Bylaws.
h) Members with retired and Observer status can participate in all events, organized by the Association, benefit from the activities of the Association and express their opinion at General Meetings.

8) The Association adopts the AIMR Code and Standards, which are incorporated by reference. All Regular Members and Affiliate Members must comply with the provisions thereof. The Association and its Board:

a) delegate to AIMR all authority and responsibility for enforcement of the Code and Standards with respect to all Regular Members and Affiliate Members of the Association; and

b) shall report to AIMR any violations of the Code and Standards that come to the Association’s attention.

Any person may, in writing, address the Association or an officer or Director
thereof concerning a charge or charges of breach of the Code and Standards by a member. The Board shall promptly forward all such complaints to the AIMR Professional Conduct Program. The complainant may request that the complaint remain sealed until it is received by AIMR.


Art. 9. Membership may be terminated upon:

1) A written notice of voluntary resignation submitted by the individual member to the Managing Board. The notice shall be submitted at least one month before the specified date of the resignation. By the end of that period the member shall fulfill all his duties to the Association;

2) Through revocation of membership upon regular violation of the by-laws and non-fullfillment of the resolutions of the General Meeting;

3) Through revocation of membership upon non payment of membership dues within the terms determined by the General Meeting.

4) Revocation of membership for actions damaging the good reputation of the Association.

5) Upon termination of the Association.

6) Upon termination of membership the property relations between the member and the Association shall be settled.

7) Suspension or termination of AIMR membership.

Art. 10. AIMR members, who are not members of the Association and are on the terirorry of the Republic of Bulgaria, shall assume a non-primary status in the Association and shall have the rights of members with retired and observer status.

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Chapter VI
GOVERNING BODIES

Art. 11. (1) The governing bodies of the Association are:

1. General Meeting
2. Managing Board (the Board)
3. Chairman of the Managing Board.

Art. 12. (1) The supreme authority of the Association is the General Meeting.

(2) The General Meeting consists of all regular members of the Association.

Art. 13. Powers of the General Meeting

(1) The General Meeting shall have the power to:

1. Amend the By-laws;
2. Adopt other internal regulations;
3. Elect, appoint or dismiss members of the Managing Board and its Chairman;
4. Dismiss members;
5. Decide on opening or closing branches;
6. Decide on joining other organizations;
7. Decide on the reorganization or termination of the Association;
8. Adopt the major directions and the program of the activity of the Association;
9. Approve the budget of the Association;
10. Decide on the terms and the amounts of the membership dues or the registration charges;
11. Approve the Activity Report of the Managing Board;
12. Revokes resolutions of other Association bodies which are contradictory to law, the by-laws or other regulations regulating the activity of the Association;
13. Resolve any other matters entrusted to its powers by these articles.

(2) The powers under paragraph 1, sections 1, 3, 7, 9, 11 and 12 shall not be assigned to any other body of the Association;

(3) The resolutions of the General Meeting shall be obligatory to all other bodies of the Association;

(4) The resolutions of the General Meeting are subject to judicial control concerning their legality and compliance with the by-laws.

(5) Resolutions of the governing bodies of the Association, taken contrary to law, the by-laws or a previous resolution of the General Meeting, are contestable before the General Meeting at a request of the interested members or body of the Association addressed within one month from the date the resolution became familiar but not later than one year from the date the resolution was taken.

(6) Arguments under paragraph 4 can be brought to the respective court according to registration of the Association by any of the members or the bodies, or by the district attorney within one-month term from the date they become familiar but not later than the date the resolution was taken.

Art. 14. Convocation of the General Meeting

(1) The General Meeting shall be summoned by the Managing Board or on the demand of one third of the members of the Association of the area the registered office is situated. If the meeting is not convened by the Board through a written notice within one month from the notice of demand of the members they can notify the Court to undertake the actions stipulated by law.

(2) The written notice of meetings shall state the agenda, the date, time and place of the meeting and on whose initiative it is called.

(3) The notice of the meeting shall be published in the State Gazette and placed on the billboard in the premises of the headquarters of the Association at least one month before the meeting date.

Art. 15. Quorum

(1) The General Meeting is legitimate and may take action if more than 50 per cent of the members are present. If the quorum is not present another meeting shall be held one hour thereafter at the same place and with the same agenda. At this second meeting quorum shall be considered to be present notwithstanding the number of members present.

Art. 16. Voting

(1) Each Member shall be entitled to one (1) vote.

(2) A members shall not be entitled to vote on matters concerning:

1. Himself/herself, his/her spouse or relatives in a direct line, without limitation, in indirect line – up to fourth degree, or connected by marriage – to second degree, inclusive;

2. Legal entities in which he/she is a manager or where he/she may force or impede a resolution.

(3) Each member may represent no more than three of the members absent by a written proxy, except for the cases where another type of delegation or meeting of representatives is provided in the by-laws. Re-delegation shall not be allowed.

Art. 17. Resolutions

(1) Resolutions of the General Meeting shall be taken by a majority of the members present.

(2) The resolutions under art. 12, para 1, sections 1 and 7 shall be taken by a majority of at least 2/3 of the members present.

(3) The General Meeting can not resolve on issues not included in the announced agenda.

Art. 18. The Managing Board

1) The Managing Board shall consist of five members – Chairman and four members elected by the General Meeting from amongst the regular members of the Association for a term of one year. The Board shall perform its functions until the time a new Board is elected by the General Meeting.

2) Regular meetings of the Managing Board shall be held at least once in every three months and the resolutions shall be taken by a simple majority.

Art. 19. Meetings of the Managing Board

(1) Meetings of the Managing Board shall be held upon a call of the Chairman thereof. The Chairman shall summon the meeting upon demand by one third of the members of the Board. If the Chairman fails to call the meeting within a term of one week, the members who submitted the demand may call the meeting themselves. Upon absence of the Chairman, the Managing Board shall appoint another person out of its members to chair the meeting.

(2) The Board may take action if a majority of the members are present.

(3) A member shall be considered present also through a bilateral telephone or other communication, guaranteeing his identification and allowing his participation in the discussions and in the decision-making. The vote of that member shall be certified in the minutes by the Chairman of the meeting.

(4) Resolutions of the Managing Board shall be taken with the affirmative vote of at least a majority of the members and resolutions for liquidation and on art. 19, sections 3 and 6 by the majority of all members.

(5) The Board may take action without meeting by a protocol signed by all members of the Board without any objections.

(6) By resolution of the General meeting the functions of the Board may be executed by one person only, a Director.

(7) The members of the Board may resign by a written notice given at least three months in advance. The notice shall be submitted for discussion at the General Meeting, which may accept the resignation without considering the term of notification.

Art. 20. The Managing Board shall have the powers to:

1. represent the Association and determine the extent of the representative powers of its members;
2. provide for the execution of the decisions of the General Meeting;
3. manage the property of the Association in conformity with the provisions of the by-laws;
4. prepare the budget and submit for approval by the General Meeting;
5. prepare the Activity Report of the Association and submit it to the consideration of the General Meeting;
6. determine the order and organize and bear the responsibility of the activity of the Association;
7. determine the address of the Association;
8. resolve any other matter which is not entrusted to any other Association authority by law or by these by-laws;
9. fulfill its obligations provisioned herewith;
10. adopt and submit to the consideration of the General Meeting the Internal Rules and Procedures;
11. propose amendments to the by-laws and the regulations of the Association;
12. accept members and proposes members to be dismissed at the General Meeting of the Association;
13. make proposals on the amount of the membership dues;
14. establish and maintain contacts with organizations in Bulgaria and abroad.


Art. 21. The Chairman shall:

1) Organize and coordinate the activity of the Board;
2) Manage the current activity of the Association;
3) Represent the Association before third parties.

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Chapter VII
DISSOLUTION OF THE ASSOCIATION. LIQUIDATION. DISTRIBUTION OF THE ASSETS IN EXCESS OF THE LIABILITIES. TERMINATION OF THE ASSOCIATION

Art. 22. Dissolution

(1) A non-profit legal entity shall be dissolved:

1. upon expiry of the term for which it has been established (should such term be fixed);
2. by decision of its supreme body;
3. by decision of the district court by domicile of the non-profit legal entity, where:
a) it has not been established in compliance with the legal procedure;
b) it pursues activities contrary to the law or the public order or the good morals;
c) it has been declared bankrupt.

(2) The court decision under paragraph (1), sub-paragraphs 1 and 3 shall be issued on the grounds of claim by any interested party or the public prosecutor.

(3) The court may rule to grant appropriate term for removal of the reasons for dissolution and the consequences thereof.

(4) Under the circumstances of paragraph (2) the dissolution shall be registered ex officio and the court shall assign a liquidator.


Art. 23. Liquidation

(1) The dissolution of non-profit legal entity shall involve procedure for liquidation.

(2) The liquidation shall be conducted by the managing body or a person assigned thereby.

(3) Where no liquidator has been assigned pursuant to paragraph (2), as well as under the circumstances of Article 21, paragraph (1), sub-paragraph 2, such person shall be assigned by the district court by domicile of the non-profit legal entity.

(4) The relevant provisions of the Commerce Act shall apply to insolvency, bankruptcy, the liquidation procedure and the authority of the liquidator, respectively.

Art. 24. Property after liquidation

(1) The property remaining after the satisfaction of creditors shall be distributed equally among all regular members.

(2) Where there are no persons in existence under paragraph (1), or where they cannot be identified, the property shall be delivered into possession of the municipality by domicile of the non-profit legal entity. The municipality shall be bound to use the property for purposes approximating to the maximum possible the objectives of the dissolved non-profit legal entity.

(3) The property under the preceding paragraphs may not be distributed, sold or assigned in any way whatsoever to liquidator appointed beyond the circle of persons under paragraph (2), except for valuable consideration due thereto.

(4) Persons who have acquired property in result of the liquidation conducted pursuant to paragraphs (1) – (3), shall be liable for the obligations of the dissolved non-profit legal entity to the amount of the gain.

Art. 25. Deletion of the Association.

(1) Following the distribution of the property, the liquidator shall be bound to request deletion of the registration of the non-profit legal entity by the district court by domicile of the non-profit legal entity.

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Chapter VIII.
FINAL PROVISIONS

§ 1. Competent on all controversial matters concerning the application of these by-laws shall be the General Meeting and between its sessions – the Managing Board.

§ 2. These By-laws were adopted by the General Meeting of the members of the Association, held on ____________________.

Members:

1. Deyan Delchev Dinev
2. Stoyan Todorov Toshev
3. Illian Ivanov Komitsky
4. Veneta Paraskevova Illieva
5. Plamen Nenkov Pavlov
6. Ivo Stoyanov Blagoev
7. Hrisimira Georgieva Marinova
8. Ralitza Georgieva Marinova
9. Andrey Ivanov Guenev
10. Teodor Valentinov Marinov
11. Chavdar Petrov Rissin
12. Dimitar Ivanov Mitev
13. Lidiya Naydenova Bratanova – Petkova
14. Nadezhda Dragova Tisheva

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