Afghan Co-operative Act

Article 6 l0.1y co-o,,eri;;,tive .society will hc.ve to aio/t i:.. set of l.lylc.,'fS in u.cco:r::.e,,,.1.ce witl1 ti.1is Co-o,,~rat,ive Act. J.rt i cle 1 Ey:i. c...'li'S will 'oe in writ b,~ i s i.,,1.:•;:i. ,:,y ul 1 ;:i.e::::iter f ou.'lri.e rs L.aii. will be fonn.rtlecl to t;1e t..ut'.10rit7 c:mcen:.1:H.:. for E;c-1,Jrovc.l 11.1J. re~istrt:.tioa, krticle& Zach set of co-o,?arative bylaw must contain the followin~ items: I1 Nt,.;:;.1e of the co-o,?;,r"-tive society IIj Ty;e of activitie~ III) Place t..;.Hi ca.dress rv; aighta and otiligations of □ e~bers V) Tl1e -value of ea. ch .share c:.nJ. Jr o ced.ure s of 2ayuen t VI) The lilc:..ximlliil auuber of shc..res a member can obtain VII) The araolli,.t of ud...:issioa fae VIII 'j ,.'1emoers -·, 11{) 1 v:i..h. 1:· t, :::.rf.va '... 1 an~ ex,?lasion Jroceaures I~) Administrative set-uJ X) Business vith non- .,enbers XI) ~stabliBilfilent of r~serv2 fu.,<ls an~ ~istribution of annual sur")lus XII) :.:istribution of' ~rofits e..'1.J losses XIII)l'roced.ures of :..isbursin~ loc;.ns o.nC:. their ret)aym2nt XIV) Convocatio~ of genar~l rnaetin~s an~ ~etho~s of election

Article9 in case the ~ur&tion of~ co-o~Erative society 18 not fixeci in the bylaw, iG is unliLliteci .!crticle l:J The est~Diish:Jent of a co-o~erative socie~y or~ co-o~er~tive U.'lion res,1ectively is comt1leterl with the registn..tion at the re~istr~r 1 s office anti u;on recei;t of a written confircation,

Article 11 A~~licationo for re~is~r~ticn h~ve to contain the following items: t..) ;•fo..u2 of th2 co-o.,erc.·;:,iv2 society L) Pluce un~ ~~Jr2su oi th~ co-o.,erl.-tive society c) A list of ~embers tl) A set of by- h ..v~ e) Th2 nw~as of the elected reJr8sentLtivas of the co-o;ar~tive sochity or the co-J,_;erf.;.tivee u:aion res 1Jectiv.,ly t..i1-.. u co,_;y of the ~in~tas Jrovinb their LuthorizLtion (ainuteo of the foun.:kr 1 ,:; 'c:18\cltin;c,;),

Article 12 The raJistr&tion will be ~cc0aJlishe- at the Ratist2r's office within tha National Co-oJ2rLtiv2 Bohr~ (NCB) to b~ eatLriliohe~ in confor;::iLnce vi·;.,~; i..rticla G9 of ,Jr6Gb1t. D..d,, :U,..f'T.21. III): ,Jer.1berc;hi,_; J..rticle 13 \ &i be Lfghan natiunLle b) enjoy ull leg~l ri~hta i~ full, c) huve ~irect ~conooic intarest 1~ the busines3 of the co-o.,er~tive eociety 1 ..;.) !1Lve pt.itl in the ra,.uireJ aUL,ber af sh;.;.res a.nd./or a.ti...:1issi,:;a faB:J, e) decL.. re their k.c,o·,:le<lr;e a.a..;, c.cc2._)t[;.11ce af th8 co-o,)ert.tive society';.; IJyL•. :r, 0

Article 14 deLlb~rship is re"1uest8{J. in ·:.crit-in'=' i;1 e,.ccorcic.nce to ,,hut is sti,ml5.ted in th2 bylu,,s c;.n_i.l c..ccegte.nce or rejection ,..iust t..lso be 110tified i:l a writ·t2n for □ wiL1in 30 a<.1.ys.

Article 15 :Jhuul,1 t:ne co-o,Jer::..tivG society 1 :. 01:.nt..~inc:; coCll!littee reject th>:: f.l.,.1;>.i.icatio,1 fox· l.W.auersnit', the re2..,on for rejection l..71..i..;,t be ~ivan in writin~, The rejecte~ ar;lic~ilt h~o tha ri~ht to ~~JJ~l to th~ GenarC,.l ~~atinG of the co-o;er~tive society wi.i.ose uecisiou !Jhull oa fint..l.

Article 16 Houo~y c&.n be ut the sD..me tiw-? c. u,;;:w.b.:!r of t,10 co-o,Jerr~tive societias cora;eting in tha s&~e fi~l~ . .Arti cla 17 :;c.:ch ;,:;ember hr.13 t!1i;) ri4,ht to witi11lrc.1;- from th'° co-o,.Jer1:.tive society l-Y writte.1 notice to th-2 raa:.,a.(:.;in"' co~itt"'e. L written &,n;.;, Je rs ona l ly u i 6 n2 ti ,1. ot ice o:i:' vi t i.:..:in:i.111 CTust re r. ch the !::Ian~ ini; c o:;.i~J it t 2 '° a o t L.., t 2 r t~1 c.a t L1re e .. rn;1 the b0 fore the ex;iirt..tion of currant fi,1w,.cird y-:ur. ,.1ithdra,.'lG becm:;.:! effective only at th'" forthco:~in 16 e,1c; of th2 fL1r..ncid yet.,r, J..rt i cle 1G a) If a ~eurier no lon~~r co~~liea with th~ re~uirouailtS set forth in Lrticle 13,

Article 18 i l I u) If he ~eta ~~&iast ~iJ;osition of Jresent lkw ~n~/or th2 obl i 6 c.t,i0,w -.:.eri vinb froi.1 the bylc..ws oi' bis co-olJcrt.ti ve socicty 1 ' I I b) If h0 ft..ils to re;ay lOLilS fallen ~ua receive~ fro □ the co-operbtiv8 society without r8a~oiluble j~stificutio... At leest 2/3 of th~ me~berB of the ~~il~~inb cocmittaa h&ve to uire~ on JroJOsLls for exJul~ion. ,.:;Jr,.,ulsion b:;;c0.:.:0 -ci'facti ve only l:.fter rt:.tificc.tion of 51,t of th.: tote.I ,-.iuub;.;r of uec:ib!e!r.s i.1 the cJursc of a f ~anerul ~e~ti~b' Article:: 2J In the case of tba de~th of~ ~adber ha i~ conoi~er ~s with~r~,m frOQ thG co-o~arative aociety witb the end ol th~ finbnciLl ye~r in which tne tle~th occurre~. aigbtH ~nd ~uti~s of the di.':cet..Get. Q(::,:iber e;~ce._1t to vote Lre taken cLre of t;y the le~al reJreaent~~ive of tta hiars, IV: 1,_rticle 21 '~'.,e stt.tu-t,ory· or.,_,L-:1s cf th2 c0-o,Jer.::.ti :,re sociaty or co-o,,erc.tive union re:J22cti"M2ly .:.re th.:: fo.ilo·,,i:1. 6 ; t~rticle 22

Article 23 The ,:;e ..err.l ,:,,,,:;tine, s consist of the ..01eubGro of t,h'-" co-o ,Jari::..t i ve I oociet..7 only. J,.rticle 24 ., i ....,f..c11. ::J-.:<.1ber h1;,.s on:o vote irr28,,0ctively of the: :.1.l.L:'.lher of Ghr.rc.s om1.efl. J.rti cle 2b ! Tha ,iuorum for th0 c.,1n,ual 1::,-'lu...,rc.l .:.11~cti,1'-' iG t.;.t let:cot GC of r.:,,ll wic:~7bers of th2 co-oe.;n... tive ::,ociety. In c;:..:.,;; th,:; ,,aorw:.1 i~ il.Ot ;ree~nt r.t 11.alu wit.ii,1 ~ ~uly convan~J cectin~, L secon~ ~eatin~ shell ba ,,..-eec, ,.,it,1 tdQS~ L1t:1IT:bcr'O ,'/;10 ,iill ,J~ ,)resent, c •• 8 I Articl0 ;,,;6 Tnc ,.;1;.rtici,n~tion c.·;; tai. 6 2cL,L-l :'..1,c:,d,inc:, i:.:. ,.J8i...Jl.J2r of i,lc. 8,.;.Ch Cu-u,J-c,Ti:.t.ive soci.:--:.yo 1;..!,::n.. re..:. ,;2r~onc.lly tiy Bylawo '-'1uy L:i r'21co 6 .,i.:.<iJ. ;.J.ri:i"'nt cuses c),,.,.t~iori:t-e votiilt6 u; t1ro.{iiae, 1ro vie;..::.• t.u.. t: b) the urii;eat ce..ae an .. tha written ~ro;q e.re recoij;.1ized a:.1d L. .J ;Jr ovaJ by th~ Sen(:) ra.l i.,e et in 6 • J. :.:1ei.!:lbcr cannot r-:,Jr;.;:Jent uon, tht.ul onJ t,i~rso,1 at the ..,enerel :JeetL1"". ,.i;;,.:jb,ffs •• ol...: in.., c,,d.'.JLd strc. ti v;, ~o sit i on.s wi ti.1in the co-oJerctive sociatJ ccn~ot vot~ Jroxies. a rel uH:a 8 t i.10 •a:1;:;.. l l l: l:- ~ l E: "'- UJ the: .Jcall L.1::, ins C os:.wi t t 2 e "'" st t,i O ,,'2 ei.:.; L: c.,.:.;. V L.;1 C2 L'-l:1 QU,.i. C in,; cc t... te 1 •.J 1 L. Ce 1 1::.nC:. l>J · hrou.gh 1 o ct... l ,12·.: 3 .JL. .~"' r c .....:..1w / o, t11r oubu ~l.il ow, cec.Jer. L.J • ,&:r:,_teve cen t· ,'..c;J c.:i .... ;-0r I ' (,;1T0u,,,n , o t·n.cr 2.c...,L~:.luve . -'- ,,.1'°w1co t.:.i;;ia,,, cow~:1itte.: i'Li.i..: to co,1V,:,,1;;, tb.e !.ikvtin6 th·2 CO[I.JLlctttoJ;.; {H,;.G t0 C0'.1V2i1C it witi.101At further c,i;:lL.Jo or 1 in ,n.s f1;:;:::;e,1c2, tne vic2-c;;,;__.,ir,nL.n oi' th2 ·-_ cotnnittee a1or·:1 .. ~lly ,Jr28iC.e::; th;;, ~-eaert.l neetin~ ual2s:J i~ting me~b0r2 ieai~~ oth0rwi3e. raeetii.. 6 el~ct"" secretar:,', 3~11_:;,li ,Jin.uts::,s of ting ht:. ve to 00 r2 co ru-: ,__; 0] th~ ;:;e c r2 tt.rJ v..,,.:;. h;:,. ve to eJ. b-.( th2 c~,t.. i r::;1&,1. J tl1<: ::,e c rt- t.:...ry J anC:. Lt l <:< L.st thre ~ 'present, ;::,e0olut10;1:::; ,n.ss-2'"" l..iy ar....jority votG c.r0 for t:.11 ·.:,eal.J2rs of th-c- co-o,1Gr&tive ::;ociety. of the ~en~r~l c~etin~ ht..G to ~e ~iven th~ N4tiantil Co-oJ~r~tive Eot..r~ wilich ~t it::; c&n ~~cid2 to s2n~ to tn~ u~~tid~ otle of 1~a us obs;;;rv..:r .:..a ... L-.,.,,vistor '.'fho C£..;l ,,crtici;:it.te i::i. but sh~ll hi:.ve ~u ri 6 ~t to vote. meeti~~ sni:.11 ~0 J~ld one~~ ye~r vitnin thr~e . ter th~ e::ic. .JJ t11" fi.1;;.:1cie-l y2b.r .__,1- r.6.2 to tri:.ns..,ct to r0:ject tn;;, Lt..l.:.,nce s,1e:et u,11;.i ,,rofit ~n0 iie,.irove the ulL:,ci:.tioD. of c.,.,.:;ut..l or los:.:,, ~, to elect or ~is~ias ~2~~drD of the 2&~~~i~~ con3ittee or the su;ervisory co-i;:;itt22 rasJ2ctivcly, e) to ~aci1e on the ra-i~tegr2.ti0n of the co-o;ar~tiva society's c2.~itLl, f) t9 decide on cr.~es of ex~ulsion (Art, 2J) or non~cimittance (Lrt. 15), iJ to ::i::ictws w.1ci.cleciC.e on th2 worl.:ir:.6· ,JrDi:,rt:..::Lcie for th2 fortbcomin~ ye~r L~d to fix cealin~s in the v~riouo of ~ctivities if 20ceO$E.,ry, h) to .:ecicie c.1 any re21Ll:i.eration t0 l:.2 -2::..ici to :.::ieobers of tne executive org&~s. Articb 33 :ecisioils s~~ll b2 Jf.53e~ by 2&jority vote of uli ~e~oere ;r2sent f:..>."1..;. re Jrz sent • J.rticli:! 34 ~xtraors:.inc,,ry Ge~~2rr.l ,:aeti:::1 s hc.vc to ;,,e cotlvm.12...-:. ay the .:J6-~!c.. 6 in 6 co~~ittaa witlout ~elay r.) on re q u2 st of u t, 1 e E...::; t 2C- 1t ,:; f tha Lit ,,1 :-: u::., ;,,er of we i:! be rs 1 but not l~ss t~~n sava~ ~~~b0rs, b) on reque.:.t of the s..:,.:,2rvii:lory COLlrJittee, c) o& reqaast of two thir_s of the oe~baro of the m&nL.Jin~ com;;:;itt2e, .t.rt i c le 35 The followin;; oL.tters need decisiono to be tc.:.lren by thE:e extraordi~&ry ~e~aral 8eetin 6 : e..) &Iteration c.r..d c.aend,;-:,;;nts of the byl£:;,,·, b) dissolution or e~tension of tb2 ~ur&tion of the co-o~erLtive society 1 ci) ad~esion to or wit~drawDl from uenberehi~ in co-o;arative unions, e) r..,.1y other c:::L.tter~ .:~10;::;2 i;;.,Jcrt&ace ::..ie..y r<:!q,uast convoc.:..tion. of ~n e~tr~or~in~ry ~e:2r~l we0tin~. t..rticlc 36 The quorum for a,. e:..:trc.or:iim:. ry generel s.22tin6 oi1all consist of 75~ of &11 rnd~~ars of the co-oJerative society. In caae the ~ uor'.lD is not pre sent at E- duly convened neet inJ, E. second oeetlng sh~ll be hdl~ wit~in on0 ~e0i wit~ those me~0ers wrio ~,rill be Jr2sent. .Jeci:;i...,::-.s of ;:n extrr..orJi;:,,t.ry i::;enen.. l rr:eetini;; lu.. ve to be ,;,t..sse:.1 b-J c., ua.,jarity of two tl-,ir::.'.o of c;embers ,;re:aent an:.:;. represent. J..rticle 37 Sboul~ the e~traor~i~LrJ ~en2ri:..l meatins be re~ua~ted to ~ecide on ::.mtters noru::1dly ci.2ciJ.ed by Ln orii;.11:.ry c..,1.i.1y.i:..l r.1eetinJ· it, will~ a/Jly tlH: ;JruC'::l,ure, :~uonJ..:-:1 1 c..nii 1..,t.jority foreseen for the ortli~&ry w~nual ~eetiu 0 • J..rti cle 3fi The co-o.:,en.tiv2 society ~hr..11 hava fi. ,::lf.d'.l.L. 6 inb co:.L...1ittee consistin 6 of ~t least thrae ne~bers of the co-oJarative Eociety 2lacte~ by the general ::ie ;at in 0 for e. LJe r i otl of thre o ye ;:,rs • The by l 1c.we ::i:lay fix u. Li1.,.:;~11a r o-li :u;.:.iber of ma@ba rs of the oc.n1;..gin 5 coct:Ji tte,2 anc. me.y also tJ rovid.e for t..he election of s uost it ute • J..rticlc 39 The m..:..n;:;..l!,ing coi:.;:.,,itt<:!e shall be r2s,:,>onsible for the execution of ~acision of the gener~l ~eetin~ c:...,~ th~ con~uct of ~11 business affuirs of th~ co-oJerative society. Ia ~r.rticui~r, it shdl us.sume the follo,1in 5 dutir:;s: I b) 2re,.1G.ro.tion of bah. ilce she2t, t>rofit an;.: loss r.cco\m.t) e..nd e,;.1;.1at.l re ,A,rt ~ a) to co-o_ierate -,1ith th;;, co-0,.;erati ve ur,.;,a:r.izLtio:.u:; 1:.ni NCE, f) ,-1ursue d _._ other o bja ct i vs::~ m.~t forth in the by 1 e.w.

Article 40 The respo~sibility of thi: ;;1L.n& 6 i:a 0 co111..-nittea is of r. collegiE.l and/or in<livitlual n&ture as case 8[;.Y be by decision of the general ra~e"LiniS• lcrt i chi 41 The :aa.n.c.gin1=; col:J.;Jitt<:!e ;:;hall elact u chuir,;.1an 1 e,, vice-chair~c.ilJ and a secret~rJ E..J.on 5 tha~s~lves.

Article 42 All deeds, docUwent::, i lett,;;rs E:.nd. other instrliw~nts cot.,~.• i ttin,; the co-oJerative society h&ve to be ei 0 ne~ lry the ch~irn&n &nC:. one other meaber o( the mf.:.m.Jin 0 co.n:::1ittee J.uly c.uthorizz-:l by the coi::w,i ttae. J..rticle 43 A member of tha □ ~na~in 6 co~1ittae of the co-oJerutive society or the ~anager cn..~not si □ ultuneously be u illenber of th~ supervisory com:;li ttee enJ. vice verse. or be involved in comJetin~ business. Lrticle 4~ Meetings of the r::1Ln1.. 6 ini cm:u:aittee have to be hel-.::. regul ... rly at l8ast once & conth ~nd wha:i.ever necessary, The ~ajority Jf the ;;.ie;:.ber af th-2 mc.ncl.ging co>ilrJ.ittee ~.as to be ,,;resent wJ. has to carry the decision,

Article 45 If ati,.,ul1..i.ted. in the U'Jh.,r the ;,Ju:J.ugini:i, C0.:.lr.litte-2 lJl€..Y eJ~oint a treasurer bain~ & □ ember of the Co-o~er~tive Society antl L full-tima ~€..n~gar, not necaBserily e aeaber, hhvin~ no other officic;,l ..:;.uties in the Co-o.:ierative 3ociety.. The ,:i.t.nt::.g2r woulci be fully rts,ionsi½le to the Cor..L.1itt28 for the ciu.y-to-uo.y OJerations an-i □ ay te.irn _;J(.;.rt in oe.-::tine;s nf tha ,;1o.nf.. 6 i11g· Car.LI it tee but shr.11 he:. ve no r ig;llt to vote •

Article 46 1\lalll be rs of the w1,;;..,. t.:. 6 in~ c m.!iili t t--a e cannot race i va ti.ny other re!l.nme-ro.tbn fr-::ir.: th8 co-o.iero.tive society tiw:a decide,.;. b;:- the gen~ral ~eeting,

Article 47 The co-o,:,erative ::iociety shall hLYe 1.,, su,;:iervisory coDLiittee of at leest tbre,a ~ew~ars of the co-o~erative society elected by the general ~eetinb for a ,:,eriod of one yecr. J..rt i c le 4-8 Tile :,u;ierviscry co~ittee ht..G to ;:;upervise c..:i~ contrcl the u.ffcirs of the co-o·,:.1erc,tive f:.OCit!ty t...,:.. snull he..vc: to this respect th~ right: e.1 to L:,spect books, c.ccou.-1.te, cc..:Jh 1 l.:,tters and contrt,,,cts of the co-oJer~tive society, b) to ch8ck the bclcnc~ sheet, the profit ~..n~ loss Lecount un;.;. the t.nnucl re ,Jort, c) to ma.ke r.:::coD1:10riG.l:i.tion:. for the .listribution of sur,Jlus j or loss"'s. The suJervisory coo:=ittee hes to present winucl re,;:iorts on its activities ~n~ fia~i~iB to th2 general ceetiag.

Article 49 The su2-crvisory co3r;;itte..: is obliged to give true c:.nd correct stcte@ents to thG 6 en2rcl ill88ting .:.n~ hus to convene g~ileral meetings in c.ccordcac2 with ~rticle 27 01 ?reoent lLw • .Article 50 Metudlers of the su,lervi.sory cowi..littee"'ca...ao1ot receLre c.ny otherrreiaunerr,tion fro~ thd co-o,Jer .. t·ive nociety thwi _even tuc.l ly deci1ed. by the gen.::rd ue;;;t in 0 ·• J~rticle 51 The sur1ervisory co::;;:iittae u1;:.,y c.t 2.."ly tiwe cc.11 on t.he NCB to cdvise o.i iesucs, ,1.1i ch t~r~ .:~~t11etl to be beyonci th.a coi;t.::.ittee I s Jowers ~n~ ~uthorities. Fiilf..,.~Cicl rrovisions Art i cl c 52 The financicl yeu.r shr,11 bG the .b.f 5 hc....-i calendar year. J.rticle 53 The balance sheet (;,,Il~ t~e Jrofit unG loss account have to be f)re,.:iareJ. in eccorC:.ance ,,.itb established accou.'1tini:; procedures as recog;:iizeJ. by NCB.

Article 54 The ~c.nsging co:::.i;.:;ittee is resJonsible for the ~ccurc.cy of c.11 finlincic.l doc0went,3 o..n('.. stcteraents.

Article 55 At le~st 25% of the &naual net sur~lus will be cllocc.teJ to e compulsory reserve fi.m~. Other fun::i.s to be r.,t the J.is,Josal of the □ £,.n;;,.,1:::,in~ committee for busin~ss E..nG social pur~oses mc.y also b~ establisheJ in accordunce with bylaw provisions ~~on decision of the generel 11eetinli:;, t Article 56 I The di str i but ion oi th2 ~.et surr1l us cfter bl l oc&ti on to the f V(;.r i ous f unci. s c.n-. re f.k, rv2 s sl11:.. ll l.)e ti.e c i detl by the gene rd .::ieetin 6 in t.:..ccor.:..c;ace 1,itl1 the .-1rL1.ci2les of p[::..tronL.ge refunJ.. I L-iterest o.-:. sh&res, if so ...;~ cic'.el by th.::: 6 enerul meating-, sh&ll in no cuse excae~ 5;, The general ueeting &lso has to decide on we.ys anu. w~ c,:i:, of cover in 6 l os se 5 , Afticl~ 57 The Ii ability of o.:::r:.be rs □ i 6 ht be lir.li ted or un li.::li te ::l. c.s st i ;JUlc..tecl in the bylc.:w. i:r'.ieml,;ers of a. co-oi,)ar&.ti ve society with li~ite<l liability are finc...-icic..lly ros~onsible for the oblig~tions of the soci~ty u~ to th~ value of the share(s) they ovn intli viJ. ... r.lly. ?,·1eabers of a cc-or1erc.tive society vith w1li.:1itec. licbility E.re financielly res~onsibl<J for the obligf:.tions of the society with all their indiviJuc..l Jro2arty.

Article 58 H.e serve f u.."'lGS cc.nnot b,::i .;: i st r i buted to ner.1 hers • In case e. mecber loses me1,1bcrsi1iJ w1Jer the Jrovisions of Ch(;.f)ter III of pre sent h.u, the c 1<.. i::i of the iii.ember is limited to the share(s) only.

Article 59 Sln,res c:.re nominal wu cE.nnot be trunsferr1.:tl; their originE-1 value i~ in no case subject to vati~tion. T.;:.R VI: t..uditin~ J.rticlc 60 In order to eve.I uate the c:i conor,.iic si tuc.t i.m af th>=? co-operi:..t i ve society c.,nu the correctness of th.: :.:;u1.:.geraent, t.t let.st once in twc ye r..rs al 1 Jro.,ierty, tht- f im.ncid ~usition an,.. the o.J.,.1inistrt.tiou of th.a co-02erative society nave to be ex6.DiJ~d by ~u~itors 2rovide~ by NCB. extr~ordinhrf exr.min~tion □ uy be ordereG hy the NCB 6t J,.n any tioe • .t.rticle 61 ~~en auciting the co-o~eretive society 1 s ~ffairs, the cujitors m&y inspect ~11 ccounts wi~ Jocuoents, cnsh in h[l,nd, stocks, re e,.l est o. te etc • The r.11:.n&~e r c.n<l/ .:>r the IDl.n E-g in 5 com:::i it tee hcve to ~iv~ £.ny inforw~tion re;uesteu, Lll fects givBa to the auuitor(s) n~ve to bo h~Jt confiJenticl, The result of the excmin~tion nus to be re~orted to the co-oJerr.,tive society in written:;iform, ~..<plcining the c.uditine:; ~roce.!ures, ull obj.,ctions to the accounts Ulh.... c. stc.tecent on the business con~uct, This ra~~rt to~ether with eventual recor.uienu~tions h~s to be read to th~ next gener~l ceetiu~; the au<.i. i tvrs .;:ic.y ;:,re ~are u s1.EJD.Lry of their re ,~ort e.:... d i:.gree th<i.t only ti1is s1LL:c1ry hE.s to be rec..C:. to the ~enert.,l meetin!:i.

Article 63 The au~itors are licble fo, nll de.i:Jages to the co-o~erctive society caused by negligence, inuul~;ence or not f'ulf illin~ duties cssi 6ne~. They h~ve to consider themselves ~a trustees of mecbers in order to SGfegucrd their interest.

Article 84 A co-o~er~tive society may be ~issolved following the decision of the extraordinery ganeral meeting. A decisio~ on the ~issolution re~uires & sajority of three quarters of &11 ~embers of the co-o~er~tive society at M extrLordincry genernl c.eeting. J..rt i cle 65 An extrt:.or-;;line.ry e;enerc.l meeting bas to decide on dissolution of the co-o~rc.tive society: e) if the nu:.:Jbe.r of ~esGers fe.lls below elev~n b) if the co-Ot>-c:rc.tive ...acie-~y l.}£..S lost 5J,; of thB s..-.~r,; c~;ital without ~ossi~ility of re-inte~r~tion c) if the tlurL.t i.:>n of the: c a-o ,Ja rt.ti ve s-oci~ty c:.a .lete r;:;iinecl in the bylaw ht..s ?X.Jire;.:. enC. no action ;_~t.s ~ n tc..ken to ,,u,tend. it. Becoaes o co-o~er~tive society liublB for illegal ections or defaults jeo,c1c.r~hing ,t:>Ublic welfare ,the .:,rinci.Jl.aa of co-o~er~tion or Jrovis1ons of t'resent luw e.n~ ~yluws th~ NCB ~ay dissolve cnd li;ui~utc the soci~ty,

Article 67 The liquid~tion in e.ny c~ae is the res~onsibility of NCB. J..rticle 68 J1ter co~~letion of liquid~tivn ~nd pt.yr::.ents of e.11 -6e bt s the remeininJ cssets will be c..t the tlis~osal of NCB for co- o~drative aducc..timn cntl ~remotion. A distribution c..~on6 m~~bers is exclutle<l. i..rticlc 6G The Government ia aerewitu re~ueste~ to establish within six month a..fter ~nforc8 □ ent of ~resent law u National Co-oJerative Bo~rd (NCB) which will have the following Q~in ~uties n) promotion of co-oper&tive societies ~11 over the country b) plucement ut the ~ia~osal of co-o~erative societies, co-oper~tive unions c.nd their meobers, legal, econocic nnd tecbniccl 4dvice c) registr~tion of co-o~erctive societies ~ncl co-o~erative unions {Art. 12) ~) supervision of their correct ae.uc.gement through auciiting, ins;ections ~tc~ (Art. 60). e) li'!uiir::.tion of co-o,,en..tive societies t.nd co-o;,ierati-ve unions (.b.rt. 66) f) other fu.£ctions es mey be JefineJ by its Cb~rter .Article 70 The est~blisw:ient of the NCE for an initial ~eriod of feve years is the rea~onsibility of th~ Pri~e Minister, a ch~rter a~s to be at'~rove~ oy the Cnbinet • .t.fter thG extdrr..tion of th!Q fir at five ye era, the co-ot1er1;;.tiva ..iove.:ient wi 11 elect the .:;ie □ ba,.~s of the NCB in c:.ccorci.a.nc.a w,th its chc:..rter.

Article 72 The government is herewith re~ueste~ to ~rovide the necessary bud6 etary funds out of the ~evelo~ent Bu<lget for an initial period of five years.

Article 73 The ch&rtar of NCB will Q~e Jrov1s1ons for contributions fro~ co-o?erative societies and their unions in order to become e.n inde~edent Netion~l Co-o;er~tive Organiz~tion as soon ~s ~ossible, controlled en~ su~~orte~ by the mecber societies, Fincl 2rovisions

Article 14 Each co-oflerativ~ society and co-o~er~tive union established wider ;resent law sh~ll be exempted from ull texes aJl~ Juties for the initi&l period of ten years . .Article 75 .AnyJispute crisiagfrom the business of the co-o~eretive society, disputes between m~ □ bers end their society e.ntl from orge.nizetion in co-operative unions shall be scboitteu to the NCB for o.rbitretion ~rior to MY leg~l cction in court. J..rticle 76 Any iteo not covere~ by present law or within byl~...- will be subject to jurisdiction in &Ccorlence with esteblished l&ws of the country.

Article 77 This l~v in 77 Lrticle will becoQe effective with the f)rora.u lge.t ion f..D.J. ,JU bli ca.ti on in tbe Off i c i r..l Gazette • I