Council of Ministers Regulation to provide for the implementation of Cooperative Societies Proclamation No. 147/1998 (No. 106/2004)

1. Short Title f,u f.1-n "f,.,of1l..'}' JPt- OIJ,.,nt-.'}' tt'P~ ~'I'C ?ifij~! This Regulation may be cited as "Coucils of Ministers Iilf1li /\OIJilt.ft9" fmll} fOl/.~il.'}'C'1' 9"hc 0.-10f.1-n Regulation No. 106/2004 to Provide for the implemen- ~<rc lif?;!Iilf1?;" -"of1"" t\.lIl<l>ilf,:-'-'''A :: tation of Cooperative Societies Proclamation No.147/ ~. .'}'c:}OJt 1998." f:Jot\- tt111-n /\.1\ -rC1'9" fOlJ,!(}lIlm- itArr~ n<l>c f1tlU 2. Definition f.1-n m-il<r i In this Regulation, unless the context requires otherwise. ?i) "tt'P~" OIJ/\.'}'f,.,-nl.-} JPt- 0IJ,.,nt-.1. tt'P~ ~'I'C 1/ "Proclamation" means cooperative societies ~m-:: Proclamation No. 147/1998. lifij~!IP.f1li 2/ "Regular meeting" means a general assembly ~) "UlJf.n~ ilof1(}I1" 0IJ/\-1' ntt'P~ ~'I'C ?if.ij~!j?i convened pursuant to sub article 1 of article 22 of tt1<1>~ ?}~ 1o-il tt1<1>~ li UlJIPI..'}' fOl/.f,I.'" 1Il:""" proclamation No 147/1998 1.11q. 0IJ/\-1' ~m-:: 3/ "Cooperative society" Means an entity that has got a r.) "f,.,-nl.-1, JPt- tIIJ,.,nc" OIJ/\.'}' ntt'P:ct tt1<1>~ ~(~) definition referred to (indicated) under article 2(2) of f-"lIl<l>(}m- -1.c"J-,9" f,'i I.'PA :: the proclamation. _f1J;. 'P;J 3.40 .,;Jt.}. ;JfI_flJ ;r..., .<t.. 'U'i1:{i Unit Price Negarit G.P.O.Box 80,001 r' Federal Negarit Gazeta No. 47- 28th June, 2004-Page 2642 'IX' ~ir.?;y.~~ t,.Yut.-lA '1:JI.'} :JfLflJ '/:'}'I: ':.i'f, M. "?!"?i""} :r:!!Y.:t~'Hu. ~) "A "IIHI _f1\en' Ill\p' Ann" °'/1\ -} nAq>:~ ":'rc: 4/ "Appropriate Authority" means Cooperatives Com- ~~(~~/:o!t~~ A-H''''' ~(?i) UIJIJ'I.-} f-"**uP f'HII.-} mission established pursuant to article 2( I) of P't. 11O'J:li-} "hej nfnAI\' f-"**{IU' f')-nl.-} P't, proclamation 274/2002 and includes cooperative O'J')nt..} O'JY.t';{J;ej 0'/1l4,&-_f n,(~9".)'.ej ""C)1&,-} promotion Bureaus and offices established in I".,ach a.-Y.:-;'-},f.{,L1.UlJt.A :: . region. (;) "')-nl.'}" (f,~f-}) °'/1\_)'hA-H~'nl\,f. flf~. -"uPl)l),f. 5/ "Union" means a union composed of more than one ql\O'/ _fl\:':m' uPlJ'I.:J'q~ f'HII.-} P't. o,/')nt..} pnmary cooperative socieities that have similar ') -n t. c). 'I en' :: objecties. :~) "&..Yut.-li'}" o'/I\'} hA'} Y.:nl\,f. flf~. -"uPl)l),f. ql\°,/ 6/ "Federaton" means a group consists of unions and _fl\:,:en' ').nt..y.:y. (f,~fe;'':;') "hej fC)1.nt.-} P't. cooperative socieities with similar objectives o,/')nt.-} ll.nll-n 'len- :: 7/ "League" means cooperative society league of Ethiopia established by cooperative societies at the %) "1\...," O'/I\-} f')-nl.-} P't. o,/')nt..} nA'1C A<"if: national level. -{>.t.~ fO'J,uPlJ.J(:-I:-} fh.-}\"A'_f f')-nl.-} P't. O'/')nt.-} 1\."1 'len' :: SECTION TWO Establishment of Cooperative Societies nif:A v'I\-}

3. Establishment of Primary Cooperative Societies lll\ ')-nt.-} P't. O'/')nt.-} AuPLPt.t.-} 1/Primary cooperative society shall be established by i:. fuPLPI.:J'~ f')-nl.-)' P't, O'J')nt.-} AuPLPt.t.-} voluntary individuals who live or work in the same ?i) uPLPt.;J'~ O'J')nc {H'W(a'l AilltO, nO'J.t;'.;, w,f.9u area or engaged in the same profession. Number of nO'J,LP';, m ,f.9u {H'W(a'l {IU'f {H'(aO'/';, &,:1>Y:''/ members establishing the society shall not be less ..,I\(a{l:-'" ,e**O'JA:: fuPP't.:-", AIlI\-} ":<rC hAP'C than ten. The appropriate authotiry shall, taking into Af,}1l9u :: A..,IH1 fl\en' l11\P'Afll'} hh.11e;'O'J..f~ account the economic efficiency, determine the least -n:1>-} A~_f -"uPAn'Y' fAIlI\'},} uP'I7i ":<rC number of establishing members through directives l\oPm(a'} fA4."''''9u oPoPl.f fmfllA :: issued by itself. 2/ The operational area of primary cooperative society ~) nllU A'}"'?\ n'}o,ll A'}"''''' Ii oPLPt.-} fO'J,uPLPI.-)' established pursuant to article I of this article may be oPLPt.:},~ O'/')nc fP't. nAA nA'}.r.: nAA m,f.lJD confined to one region or cover more than one hA'}_r.' nl\,f. flf~, nAI\":Y''} fO'J,fiif:'} 1\.1f,} ,f.':;'I\A :: regions. 1:) {HLU A'}"''''' {1'}O'll A'}"''''' ~ {H'uPl\h-,'m' fP't. 3/ Different kinds of primary cooperative societies may nAA m-ll<r hA'} Y.:nl\,f. f-"I\_ff.. q,e'l'Y':-'" oPlJ'I.:}'~ be established in the operational area indicated in sub f').nt.-} P't. O'/')nt.-} l\.oPLPt.-1: ,f.':;'I\I\':: article 2 this article, (j. f').nt.-} P't- ').nt.-} (f,~f,}) AuPLPt.t.-} 4. Establishment of a union 1/ Subject to the provision of this Regulation and that of ?i) fllU ch..,ej 1\.1\"-:;'f').nt.-} P't. O'J')nt..}'} fO'J,uP other relevant laws on coperative society, primary I\h-': ,kf:;' Y:'};J-1.sP:Y- "h,}Y.-hnn4: If 'Ien' cooperative societies having similar objective may "'oPVjVj,e ql\O'J fl\:,:m- uPLPt.:}.~ o,/')nt.-} establish a union. fC)1.{1t.-} P't, ').nt.-1' (f..~f,}) l\.oPLPI.-': ,f.:-"'I\I\':: 2/ Subject to the Provision of this Regulation and that of ~) IHlU ch"'CJ nl\./\":Y' :Jt-):Y' f"'Y.'11m' "h'}Y.-hnn4: other laws an individual who carries out similar If'lm- h').nt.-': ;JC "'oPVjVj,e "''''l1C fO'J.fhCJm''}CJ activities to that of a union and who is willing to fO'J')n-r '} oPClf:Y' f-".,.n/\ ..,/\(a.n f1.nt.-': (f..~ f,}) observe the principles of the society may become a Al1A I\.lf,} ,e:Y'I\A:: member of the union. (;. f')nt..} P't- &..Yut.-li'} AoPLPt-t.-} 5. Establishment of Cooperative Federation 1/ Subject to the provison of this Regulaton and that of Ii) fflU AC; fl\./\"':;' :Jt-)':}', Y.:'};J'1.sP:Y' "h'}Y.'hnn4: other relevant laws, unions having similar objectives If'lm- "'oPVjVj~ ql\O'J fl\:,:m, ').nt.T':f' n&..Yut.A at Federal level may establish a Federation. Y,t.~ &..Yut.'li'} l\.oPLPC-f: ,e':f'I\/\- :: 2) Subject to the provision of this Regulation and that of ~) fflU "hCJ fl\./\":Y' :Jt-):Y' y':'};J1.sP':f' "h'}Y."'m{}4: other relevant law, cooperative societies and an If'lm- h&.-Yut. 'li~, ;JC -"oPVjVj,e ,"..,l1C fO'J.fhCJw,'} individual that carries out similar activities with that f :Jt.n t. -1' P't. 0'J'1n C "hCJ .., 1\(a-n A l1A 1\.1f,} of the Federation may become a member of the ,e':f'I\&\:: Federation. 'k f')-n t.-1'P't- 1\.'" AOIJ LP t-t. -1' 6. Establishment of Cooperative League (i\ fflU "hCJ fl\.l\":-'" Ch-):Y' y':1;J1.9'':f' "h'}f."'mn4: I) Subject to the provision of this Regulation and that of "'lcn- OIJLPt.;J-~ ').nt."" P't. 0'/')nt--1': ').nt.-":Y' "hCJ other relevant laws, primary cooperative societies. &..Yu&.7icr':f' nh.-1-f-A'f en-ll<r f i\- 0'/')nt--1''} unions. and federations may establish a league that fO'J,mtJ&\ 1\.'" I\.OIJLPC1: ,e':f'I\i\-:: represents all cooperative societies in Ethiopia. 'lX' ~i'I:}Y.~i: J..Y..t.A ~;Jt.)- ;JILal '/11'C ~'f, /'I). ?Iii ""} H1Y.:i% 'HI". Federal Negarit Gazeta - No. 47 28'hJune. 2004-Page 2643 !t) fllLtJ n'}4'R' O'}O.i\ n,}"'R' fi ODIPt..).fOl/.ODIPt..). 2) The number of the league establsihed pursuant to sub l\.'" 4~1'C hn'}.r.: l\.OA1' n~1'A'J":: article 1 of this article may not exceed one. :1. . fPt. hAA 7. Operational Area fi) flIUJ 1.'}'0 n,}"'R' !! m~'J" ?; f"'ODIPt..,. DIJ'}'?':lD'9u . 1) The operational area of a union or a Federation Established pursuant to Article 4 or 5 of this 'HIt..). m~9u &..1ot.'ii'} f Pt. hAA (1'HIt..,: (J)~'J" regulation shall be determined by the by-laws of the 0&..Y..t.7i). OD"'~1.tf 1.,}'0 ODIPt..} ~mf1c;A :: union or the Federation. !t) fl\.1' fPt. hAA On1C n4'lj: 1.t.~ ~lfc;A:: 2) The league shall have an operational area through out the territory of Ethiopia. hlj:A ~i\'} SECTION THREE f'HIt..). Pt. 01/..,01,..). "'''''It..).c; q~~.y.:')'. Types and Functions of ~. f""Ot..). Pt. °7"'01,..). "''''111,..). Cooperative Societies OI/cic'':m.'J''f""Ot..). Pt. OI/..,OCf07'J"t..). m~9u n1A

8. Functions of Cooperative society ..,I\"'} fODi\m')' m~9u f0l/9ut.,}ci n1A..,I\",)' fODi\m')' A cooperative society may engage in production or "'''''It..). l\. c:-~.). ~:')"l\I\' :: service rendering activities or in both production and service rendering activities. iI' fOl/'J"t..). "'''''IC fOl/.fhC;lD''} f""Ot..). Pt. DIJ..,OC fOl/'J"t..). "''''I1C fOl/.fhc.'lD''} f""Ot..). PI,. °710C 9. Cooperative Society Engaged in Production Activities 00l/'J"t..). Pt-l\~ f"'f101/t. m~'J" 1't. iJ:J> m1. nl\<1:iJ.' Cooperative Societies Engaged in Production Activities shall be one which takes part in production process or fOl/.4'~C m~'J" Oht.A f"'IP"")''} m1. nl\~ 9uC'}~')' which converts raw materials or semi-finished products fOl/.+~C ~lfc.'A:: to finishedd products. I' fn1A..,I\",)' "'..,I1CfOl/.fhc.'lD.'} f""Ot..} pt.OI/..,nc 10. Cooperative Societies engaged in serVIce rendering fn 1A.., 1\"')' "'''''IC fOl/.J'hC;lD.'} f..,.nt..). Pt. DlJ1nC activities I\nl1l\"" f"'l\ff. n1A"'I\"'Y':')"'} fOl/.f11' lD~9u h'},vl..r'fr. A cooperative society engaged in service rendering fOl/.f1.C'" ~1fC;A :: activities shall deliver various services to members or cause them to obtain the same. Ifi' fOl/'J"t..).C; fn-,A..,I\"')' "'''''IC fOl/.fhC;lD.'} f1.nt..}

11. Cooperatives Societies Engaged in Production and Pt. 01/..,OC Service rendering activities ffl77t..).~. fn1A..,I\",)' "''''I1C fOl/..rhcilD.'} f..,.nt..} A cooperative society engaged in production and service rt. OI/..,nc flILtJ 1.'}.n nn'}<I'~' iI hC; I f"'ODl\h'I::"-} rendering shall carry out both activities indicated under .,...,'It."', 01lJ9Ut. fOl/..rhC;lD.'} ~1fC; A :: article 9 and 10 of this regulation. I!t. f..,.nt..). Pt. °7"'01,..). q~~.y.:')'. 12. Types of Cooperative Societies fi) f"'I\.rf. f..,.nt..} Pt. q~~'Y'1' U.It.,: nDIJ/:-t..). 1/ Cooperative Societies of different type may be nJ11:-0I/..r<r.ci OI/..,nt.<r. f F t. IICC.::').'lD.i\... l\..~.t:~: organized in any economic or social sector of the country. ~:')"l\ 1\':: 2) Cooperative societies differ from others based on ~) f""Ot..). Pt. 01/..,01,..). q~~'f'<;: ODl\f 'l:htf:':lD'j their unique nature such as their working place, nOl/.IP"")' f Pt. n 1111O. : nnODlPt.t.;J':':lD.: 0"''''11 establishment, function and legal personality they t-:':m-C; nOl/,c:-t.:':m- f :h;J<r. f1lD.~'} fOl/.I\~ nave. 3) The unique nature of cooperative societies shall be ~1f~'A:: determined by a directive issued by the appropriate e) i\1\..,.nt..). Pt. OI/..,nt..} q~~.,.<;: 11,.11tf'} n..,l1.n Authority. .rl\lD. '1I\PAIlJ'} ODODt.r .rmnIA:: SECTION FOUR htt:A i\t..} Registration of Cooperative societies i\l\ ..,.nl.')' Pt. °7..,111,..). 9u'1I1'1 h '}:"i\:J>~ 13. Registration. 1) The Federal Cooperative commission shall register :0:' 'J"11111 the league and the federations as well as unions at the {i) 1\.1"} h~' t..Y..t.'ii).'} t.L1.l}uC'IHlch.t.tf~ 1.t.i>,'fOl/.** national level. oo..).'} f.~ fl:-:')'. f..,.nt..). Pt. f101/:ii'} ~ODII"I'IA:: 2) Any society established pursuant to this regulation !t) lULU 1.'}.n ODIPt..). f,"ODII1n 0I/'}<;:lD.9u OI/..,nc shall have legal personality as of the date of its h"'OD"'UuH. 4"} :f.9U{': :h;J<r. f1lD.~')' .r"~'':A:: registration. 'IX' !{j'i':4h!! t..,I!../..A ~:}/..} :1/1.") '/:'1'(; i~i/, M. 'Mi ,/"} Dik:i% 'HI". Fetkral Negarit Gazeta - No..n 2X'"JuneMareh. 2004-Page 2644 :O!, f'Hll. -} r I.. o'/",nc UI1-",v,J',/.,r J':Hl {}/\o,/,f. ,,:,: CD' 14. Particulars ot'by-laws ot'a Codperative society 'U C'JI{~' ""', Suhject to the provision of article 11 of the Proclamation, nhtp:~: ~\'H'?t' X?! f-",lJ, "-1'1co. h'HJ,-hnn." Il"i' f°,/'} any hy-law of a cooperative society shall contain the following particulars: ~:CO'9u f'Hll.-} rl., o,/..,nc UI1",,v,,e,/.,r .e:Hl ftJ'/Jl'I' .. (a) Ohjecties, values and principles of cooperative /\")"} ul1.r'" h/\IH,: societies; (u) f°'/..,n~"} qt\°'/ : f.."nl.-} rl., h((.'Y':}"c;uI1CII".r,: (h) Administrative structure of the society; (/\) f°'/'" n~"} h {}.",v,.e,I.,q~Ul1tp:"C: (c) Budget year of the soeiety' (eh) f°'/..,n~"} fn:~:.} quo.}: (d) Manner of keeping the fuM of the socieity and ways (UO) f°'/..,n~"} '1'}II,n h.r,rl'e.,' hm.,,,.,'9u: of its utilization; (u..) f°'/..,n~"} ,n.e.,c hCOItO'}: (e) Procedures on loans; (t) procedure to be applied in the instance of with- (I.) hllt\.} h°'/..,n~. 0./\":: o.ol;n.,: CDf.9uWI"'} O./\f. drawal, dismissal or death of members; ,"t.1.O'/. fO'/.U''} rCq.}: (g) Rules of procedures for the meeting of the society (0) f°,/..,IH. f{},nO'l r" rCq.}c.' /\hllt\.} fO'/.O'J' and notifications to be given to members; o'/{}:hD"~,r: (h) Procedures for the appointment or employment of (Ii) f°,/..,IH, rl.. h{}h..r:~: h'}.';.1J'9u /\./\,.:}',;'Jt\t,9':r managers and other officers of the society, their f°'/""m~,IH': fOI/.ul1l.m.n,} I"'Cq,}: rAn)'p; powers and duties and term of office; "'''I'1/.,:':CO' h'}.';.1J'9u f r I.. IIUI1I;:':CO': (i) Administration of employee of the society; ) f°'/..,n~. wl,..,,1f",}', h{}"',v,y,C: (j) Matters requiring special or quorum resolutions «" (decision); (n) Af. CO'Uj)S f9uAq." .,.Ill}, CO"'1).fO'/..r{}t./\;J:':CO' (k) Procedure to be applied in cases where the by-law of 1.,v,f''''''.: the society is amended or in cases where the society (-I') fO'/..,n~"} uo.",v,Y.t.,r y,'}.n /\o'/'It"'iA "'t,1.O'/. is dissolved, divided or amalgamated with other fO'/.U',} rCq.}'} o'/..,n~. o.ht.A: O.t.C{} CDf,9u societies; h/\./\"""" o,/..,I1/..,} ;JC O.tp'l y.: .,.t.1.O'/. fO'/.Ir} (I) Other appropriate particulars; rCq,}: (:,:) /\./\, ,', h"IIH1"'} ,rt\:':co. ".,v,f,:r,:: 15. Share certificate of members of a cooperative society 1) Any member shall be granted certificate for the H;' f.."nl.'} rl,. o.,..,OChl1t\.} f6nJ OC.,.t.h.'} amount of full shares he has paid for. .?!) 0'/'}~:CO'9uhl1A /\1"CO' 00'/\' f6n) uom'} Oc.,.t.h.'} 2) The share certificate shall be printed in confidence f.omtpA:: (secretly) and shall contain the following particulars: ~) f6nJ OC.,.t.h.": O?"{}m.C fO'/.:J""9u Irli' fO'/Jl'I' (a) Name, address and emblem of the society; /\..).'} uo,rl' h/\O')' (b) Date of registration and registration number of (u) fO'/..,n~ (}?": hY.:I,,'lie.,'qc°'/; the society; (c) Identification number of share certificate; (/\) o'/..,n~ f",uoll1no.), .,,'}I; f9ul",'l <l:'J'C: (d) par value of each share; (ell) f6nJ OC."t.h.')' uo/\.r <kIf'C: (e) Name and identification number of the mem- (uo) fh'}Y.: 6nJ tp.'1: ber; (w) fhl1/\. (}9U: fh'1A"')' uo/\f <':1'C: (f) The amount of shares he has paid for (bought) (I.) f1"CO' f6nJ UOm'}lj tp.'1: and the price of the share he has bought; (0) O'/"'O~,} /\UO?"I,.,} rAnJ'} f/\co. OCO.t.C°,/: (g) Signature of a person entrusted with a power of (Ii) fO'/..,O-:.0'/"""9° : leading the society; (.,,) .,,'} : mCIj quo." (h) Seal of the society; OC."t.h.": f"'om{H. (i) Date, month and year of issuance of certificate; 9°UI.')': 3) The share of the society may not be transferred from j=) f""OI.')' rl,. O'/"'O~ 6nJ hh'}Y.' fO'/"'O~ hl1A mY. one member to the other or from a member to a third /\.t\ hl1A mf.?" hh'}Y.' fO'/"'O~ hl1A mY. Y'{}.,,~: party. m1'} t\..,.t\/\~ hf.':j'A?,,::

16. Dismissal of members Ir.' rc'h.nt..). Fl,. O'/..,nc ;\11t\.), h/\"tolj{1-f:n.). o-).:J' 1) A member who failed to meet his obligation shall be /i) "lYu;J'm.'} fA'l-cnn) h'}JJ.: hl1A hO'/"'O~ f.OIj dismissed from the society. The member shall be O;J'A:: h'1/\. "lYu;J'm.'} h'},v,A,,'mnJ fO'/A"ml.co'; deemed not to meet his obligation where he: (a) has failed to pay fully for the shares within a (u) O,"mo"m. f1.11. 1Y.'0 f6nJ h~f1 ft\mlj<l'<l' period specified, h'}Y,U''' : (b) has failed to meet his oblitation emanated from (/\) 00'/..,0-:. O"tomm' fP'I,. IIC~ ho-/\'} 1.11. the occupational sector granted by the society Ot\f. "lYu:J'CO,'},tJA,,'mnJ : for more than two times; (ch) 0'/..,0-:. OO'/.onJ:':co, h1A"l/\,..f':j. CDf.?" (c) has not participated for a year in any transacdon °Hlf,.y.':j. /\h'}Y.' quo.} fA."It.,.t. : or services rendered by the society; (\). rti'i ""J XUX:t?;'HI". Federal Negarit Gazeta - No. 47 28thJune, 2004-Page 2645 1R' j(it}X~?; 4..YvU\ ~;J{.'} ;JILfll '/:'I'C ~:~ (uP) fl\net 9"h'}.f.). 1\v.1\-} 'Hl;J.:J..f, -LIL (d) Has not participated in two consecutive regular nuPy,n;;: "l-Il(}Il9':Y' I\.f, .f,A.,.ta-hC. h'}Y,If~ meetings of the society without sufficient ~w':: reason. 2) Any member who has committed a fault shall be ~) ''~"" ft.KuP h'}Y: ht1A hOl/'~n.;. .f,(}C;n:J'A:: h{1I\' .. dismissed from membership. The member shall be '1'~.). h'} Y,t,KuP fOlJ.~mlw'; deemed to have committed a fault where he has: (u) hOl/~n~ I}I\OI/;JC fOlJ.1tlC ."..,flC f t,KuPl (a) Committed a fault which is contrary to the (1\) nOl/~n-r '}.nl''':Y' I\.f, If~ -nl\" hY.;J fY,l(} objective of the society; W.f,9" h'}JtY,Cit .fY.l1t (b) Deliberately caused harm or caused to be (ch) (H'l\ff 9"h')f-} nh~: f111lD-'} fOl/~n.;.'} harmed the properties of the society '}.nl'} I\..,A "":"00' f'Pl\l (c) Misappropriate the properties of the society that (uP) fOl/~n.;.'} 1'}tHIIf~ .nl\" f1Y,1\ w.f,9" v.);;J' he has received for various reason; 9'";..1.'}fuP;J::':1 (d) Deliberately misappropriate the fund of the (IP) nOl/~n.;. it9" uPY.l\f w.f,9" 1.(1 f(}m m.f,9" society or facilitate conditions for the same f,"'" n1\t action to be committed; (l) nOl/~(H. fOlJ.11f' CD.f,9" fOlJ.71 m- '}-nl-f':Y',} (e) Bribed somebody or been bribed by somebody '1':"9° I\OI/""'j.). :"l.A h1nf 'P;J n;J':Y' f7lm in the name of the society; CD.f,9" h-,n.f 'P;J nl\.f, f-'" CD.f,9" h'}Jt7l.... (f) Sold or caused to be sold under price or bought CD.f,9"h'},c;,1" fY.l11 or caused to be bought over price the properties ((}) I\OI/~n.;. fOlJ,f.,.cnCD''} 9"C-} CD.f,9" h1A of the society with view to derive unlawful advantage; ..,1\"')' 'P;J h'}~f1~ 'I'&--I:,} f~Y.1\ m.f,9" (g) Reduced the amount or the quality of product or uPm"',} f"'~(} h'}Y,If~ ~CD':: service that the society supplies. I?, itl\ h~.f 17. Charges OI/'}~:CD'9" ~-nl-} P'1r OI/~nc f9"ithC CDl"'-}' Any cooperative society shall pay charges indicated in 1\000lD-ClJ""CD.f,9" 9"""h f9"ithC CDl.,.'} 1\01/"")"')' h.tU the schedule attached thereto to government upon y.'}.n ;JC "'f.f", nOlJ.11W' IP'}ml~-f I\.f, f"'uPl\h"'CD''} receiving a share certificate or its substitute. h~f l\uP'}"'P"} .f,h~I\A ::

18. Grant of substitute certificate If;- 9"..,.h f9" ith C CDl.,."" it 1\uP itm"" 1) A cooperate society that has lost its certificate may ji) f"'(}mw, f9"ithC CDl.,."" f m1-n-} OI/'};;:CD"9" apply to appropriate authority for the grant of ~.nl')' P'1r OI/~nc 9"-)'h f9"ithC CDl""} h'}Jt substitute certificate; (}mw' h..,ll-n fl\lD-') IlI\P'AClJ'} l\.m.f,:" .f,:Y'I\A :: 2) The appropri~te authority shall grant the substitute ~) h..,t1.n fl\lD-'} t11\P'AClJ'} 'l'f4:CD' n.,.lnl\')' nI"',} certificate within 10 days as of the submission of the request. 1.n CD'it 9"')'h f9"ithC Wl.,.-t:'} .f,(}ClJA:: 3/ The appropriate authority shall issue directives on r) h..,ll-n fl\lD- IlI\P'AClJ'} itl\ 9"""h f9°ithc CDl.,.'} the manner of granting substituted certificate; h(}ClJ'I' 11C11C uPuPtf fCDClJA::

19. Conditions for the Prohibition of Registration IU- 9"11111 itl\OIJ.hl\hAn"" v.);;J' 0I/'}~lD-9" ~.nl"" P' Ir OI/~nCI Any cooperative society shall not get registered and be granted certificate where: Ii) hit.,. Y.:1fDh"'uPlf1n OI/~nc ;JC "'uPU/U/.f, it9"e; 1) It has got similar name and emblem with the society I}COI/ fl\lD- hlf~t that has already registered; ~) flr(}. flf~ fT£:1:h..,' 'l'e;.). fl\.l\lD- hlf~t 2) It lacks its own project proposal; r) n,tU Y.'}-n he; nh'P)t. uPIPl""I\9"11111 fOlJ.fitt.A1' 3) It doesn't observe registration requirements V.);;J'9'1''} fl\lIJ.l\ hlf~1 specified in this regulaton and the proclamation; 2) I}I\OI/CD' .f,U'} y,'}.n t h'P~ CD.f,9" h..,ll.n 1l1\lD- 4) Its objective is found contrary to this regulation, the IlI\P'AClJ'} fCDtn- uPuPtf9'1''} fOlJ.'lC hlf~; proclamation and directive issued by the appropriate ,"uP11"'(1 f9"ithc CDl.,."" 0IJ"'1"" 1'-..e1'A9" :: authority. h~A h9"it"" SECTION FIVE itl\ ~.nl"" P'1r OI/~n.;. it.n(}Il9':Y' Meetings of a Cooperative society r;' uPY.n~ m:"l\" ?-lll}. 20. Regular Meeting of the general Assambly . Ii) 0I/'}~lD-9" f~-nl"" P'1r OI/~nc O.f'}it nl}uP"" 1) Any cooperative society shall convene its regular h'}~' 1.,L uPY.n~ m:"1\1\ 1.111}.fY.C;JA:: general assembly at least once in a year. ~) hm:"1\1\ ?-t1I}.lD- hlll\"" h..,OI/7i nl\.f, (}.11- 9"'}I}.,. 2) There shall be a quorum where more than half ?-lll}. .f,lfe; A:: members of the general assembly are present. ~,;Jt.} ,;JILIlJ "11'C ~%(}); ?if! Federal Negarit Gazeta - No. 47 28thJune, 2004-Page 2646 1K' jlitno:n 4..1.".&\ ""J XiitiJ; '}.9". i:) OO~O~ mop"" 1-1I~ .f-mC'" 9"AI}.f- 1~1I~(I)- 3. Where there is no quorum of the general assembly called, the second general assembly shall be called ttAT"'-" OI~ +lj.1- (I)-il1' o-I\'f-~: mop"" 1-1I~ f,m~A I\o-I\'f-~: 1.IL f'f-m~(I)- ooY-O~: mop"l\ II within 15 days as of the date of the first general assembly. Where there is no quorum for general 1-1I1}. 9"AI}"- 1-1Ih. ttA.f-"'-" 0'f-11-"'- hll"'r assembly called for the second time, the meeting OO~O~ mop"" 1~1I1}. f ,tt~'&;AII shall be convenced by members present. §) OtLtJ h1+1\ 01'O-il h"}"'1\ r OOlPl."'- 9"A'H-1-lIl}. ~

4. The decision passed by the general assembly, which itf,'iC f'f-tt~Y- ooY-O~ mop"" 1~1I~ f"7..fitA4.~:(I)- is convenced in a situation where there is no quorum m-un.9'-:;~ 0-l\-9" f1~1I~m- hll""" 0"-11-0"'- h1~'f- as is indicated in sub article 3 of this article, shall be "I\~ f,~m~AII deemed to have been made in the presence of all members. '(}fi' hilTI).f, mop"" 1~1I~

21. Emergemcy meeting of the General Assembly fi) Oh":( h1+1\ f)'~ OOlPl..}- f"-m~(I)' hil:t:i),f,

1. Where there is no quorum in an emergency meeting mop"" 1~1I~ 9"AI}.,- 1-1Ih.m- ttA"-",-" OI~ +lj"'- called as per article 22 of the proclamation, the m-il'l' f r t- hoot-C \'1111!'I:(I)'l\o-l\'f-~:1.lt hil:':i),.e managment commi~~eesshall call the second emer- mop"" 1.1I1}. f,m~AII I\o-I\'f-~: 1.1t f'''m~(I)' gency meeting within 15 days as of the date of the hilTI).f, mop"" 1.1I1}. 9"A'H- 1-1I~ ttA'f-",-" first meeting. Where there is no quorum in emer- h..,lI-o fl\m- 1II\rAtfJ1 1'~ fIP/Y:I..., rAtfJ1 gency meeting called for the second time, the f,'i I."A II appropriate authority may call another meeting. I) hmop""(I)' hll""" 0-1\')- Y'il'f-~m- ft.11- 9"A'H' 2. There shall be quorum where two third of members 1-1I~ f,lflj A II of the general assembly are present. t)~. 'I'~ ill\IP/ 1:1..., 22. Call for the meeting The managment committee shall make a call, as per the OlltJ h"~ OOlPl."" hilTI).f, mop"" 1-1I1}.hoo~l.1- hI~ provisions of the proclamation to all members 15 days .,.1 0,(,"" fIP/10';. f r ~ hOO~C t\hll"-f: 01C h+~ before the emergency meeting is convened through a rC6J.1-"" 1I1\m-;JlttfJ (l)f,9" hOO:f If'i 0"-11(1)' 0011Y: . News Paper having nation wide circulation or using any ..,.II 'I' ~ IP/Y: I..., h 1\0 means found convenient. f)'f.' f,"h'OI."" r~ IP/10C fy...9"1\ h(}tfJ'I' rCI}"" 23. Voting Procedure of a Cooperative society fi) 0IP/10';' oo"-.&;~~f ~1-o O'f-I\f o-~:r ttA"-11\~ 1) Unless and otherwise provided in the by-law of the society, decision of regular or emergency meeting O+C OooY-O~ (l)f,9" OhilTI).f, 1-1I~m- f°7.:f-"I\4- shall be passed by a majority vote. (I)""'~9'-:;' Ohll"-f: fh-O"6liJ. 1:9"1\ f,lfljA II 2) In cases of a tie, the chairperson of the general ~) f1:9"1\ h(}tfJ'I' hh.A Oh.A fTht.1\ ft.1f1 f1-lI~m- assembly, shall have a casting vote. (}-Oito. (l)it~ 1:9"1\ f,'i I."A II SECTION SIX h~A il1:il.1. Assets and funds of the Cooperative society il" ,"h-Ol."'-r~ IP/10C 1-o1."'-lj 11"-0

24. Allocation of Net profit f)'§' fTtfJ~ "'-C~ hY.I\~A 1. 30% of the net profit of the society shall be deducted fi) hIP/10';' fTtfJ~ .1-c~ "f, en 000'" hf.f-+Hl and allocated for the reserve fund. The amount OoomllO-tf "£""-0 f,+ootfJA II foomllO-tf "£.,.,0' allocated for the reserve shall be deposited only IIntil fIP/.+oomm- hIP/10';' tt1:;J-A t!) 000.,. hilhIP/.Y,Cil it shall not exeed 30% of the capital of the society. -O;r- '1 (I)' II 2. The amount of fund deducted from the net profit and ~, Ofl}oo-f: hIP/10';' f-f-mt- "'-C~ (I)'il1' hf-f-+Hl allocated for the reserve shall be deposited in a saving account opened in the name of the society. OoomllO-tf f"7..oo~Om- 11"-0 0IP/10';' il9" The utilizationlaplication of this fund shall be fckmll "£""-0 -t-h~"'I\"'- f,+ootfJA II ill\hm:J>+oo' determined by directive issued by appropriate h..,lI-o fl\m- 1II\rAtfJ1 oooo~f f(l)tfJA II authority. f)-~' ill\,"h-Ol."" r~ IP/10C fIP/f,h4.t.A 1-01."'- 25. Indivisibility of Assets of the society IP/1~m-9" fIP/10';' 1.01.-}-t Where the asset of the society is: (0) OoomllO-tf ,£.,.,-0 m-il'l' f-t-00"10 hlf'1t (a) Registered as a reserve fund account. (1\) Oil{l\;J- (l)f,9" Om-Cil f.f-1'f hlf'1 fmA 1-nl.') (b) Obtained through donation or inheritance it shall f,IfCjA II remain indivisible and common asset of the society. 1;"';, ..- ..- f,"h-Ol.'r rt- IP/1nC (}..t.Cil 26. Distribution of Assets of Dissolved Cooperative society. ill\"7.'iI.(I)' 1-nl.'} h h4-t.A The assets of a dissolved cooperative society left after the creditors are paid as is indicated under Article 44 sub IP/1~:m-9" 1-nl."'- rt- IP/1nC O,"h.., 00 lP1."'- (}.t.Cil article 4 of the proclamation shall be distributed to a Oh":( h1+1\ -:i§ 10-il h1"'1\ § OOlPl."'-,"h-nl.') rt. member who is active at the time when dissolution 1\' 11n.;. 11"-0 mf-t9'i- "-h~l\" f"7..+I.(I). 1-nl.'}- pronounced, to a member who is dismissed for the reason ,"h.nl.'}- r~ IP/1n.;. (}.t.Cill\'1n.;. hll"') t ,"h-nl..1-rl.. other than committing a fault. and to a substitute of a 0I/1n.;. hoo~I."" Ot."'- fl\'I'4-.1- I\.'-(}ljn'f: hI)".}'.' deceased member. Manner of distribution of the asset 1\":1_-:;-hll""'- -t-"-h.9".J- h1Y-f~-c7i:t:(I). .eh~t.l\AII shall be determined by a directive issued by the ap- lll\hh~t_l\' h..,lI-O fl\m- 1I1\P'AtfJ1 oooo~f fOJtfJA II propriate authority. 1A'Ii't/,;~~:~ t..Y..t.l\ '1;Jk}' ;JILIlJ"~'I'G~:~ f'tll?Ii! "") :W~:i~ 'Ha. Federal Negarit Gazeta - No. 47 28"' June, 2004-Page 2647 '6":;.. f.f'7i.;. :lt1:1. 27. Repealed laws Regulations or a directives inconsistent with this f..tJ'} '.'}.n fn<J.:J>l.,}n<J'}~'':m'9°,.'}.n m~9° uuuut,f . regulation shall be inapplicable. 'h'-Rn<J.',.1, ft\m-9°::

28. Power to issue a Directive

7.'-:'t.. uuuut, .f fn<Jm-"l'} P'A"I'} , .." .-" The appropriate authority shall issue a directive ne~es- "o,'Hl .ft\m-I}t\P'A"I'} f.tJ,} ,.'}.n t\"7ilt.R9° uuuut,f sary for the implementation of this regulation. iL.fm"l f.1'''A ::

29. Effective Date ?;'i!' ,. '}n. fn<JJ~C;(H''l.1I. This regulation shall come in to force on the date of its f.tJ '.'}.n n~;Jt,.} ;JII."I ;J"1'qu hm"ln.} .,.'} ~e.9~(-:fOCi publication in the Negarit Gazeta. f. If c.'A :: Done at Addis Ababa, this 28"1day of June 2004 ".&til "nl} (a~ r;"fi .,.') Hn:~:4 l}.lJD. uut\il II.c.'~ MELES ZEN AWI fh..1'f'A'f to~t."~ .&tquht.(a.f~ t,T.nt\.h PRIME MINISTER OF THE FEDERAL {fl:"" f. n<J.~ il.1'c DEMOCRATIC REPUBLIC OF ETillOPIA nh..}f'A'f to~t."~ .&tquht.(a.f~ t,'r:.nt\.h The Federal Democratic Republic of Ethiopia f..,.n l. .1' P't. 1'1n<J:li'} Cooperative Commission flJDilhc ml.""} "1A..,t\°.1. htt:.f lP'}{fll.~'f Schedule of fees for certificate service flJDilhc ml."''': l}f.~'} fhtt:.f 9°cuut. No DESCRIPTION FEE/BIRR REMARK 'f"'''~ UU{fl'}/.nc 1 ".&tillJD1'11} 60 1 NEW REGISTRATION 60 2 lJD""h 30 2 SUBSTITUTION 30 30 3 TEMPORAR Y CERTIFICATE 30 3 'l.lI.f~ I l1C'I1'1 "t\SJO CTlJ1'DIl.f Y:C~T ~