Cooperative Societies Proclamation (No. 147/1998)

7. Types of Societies f"711lt--1· '¼f.H':f A society may engage in either production or service h11: "7111C f9"C-l- mVr fh11A"lh--l- m1,'r rendering activities or in hoth. f?'"CT'i fh1A"lfl•-l- +"IIJC f"'IJh'im-') l\..lf'> 2) The field of activities to be engaged in hy any society f,";f-1\A,fl shall be detennined by the hy-laws of the society. I· "'11i::m-9'" "711iC r"'1.1Pt. 1l-l- f P't.• ODl\h nou+JI 0 8. Name of a Society f./.,f f.')0- f,,m(l<;A " .1) Any society shall have its own name, ~- f"7111C l\9'" 2) Words "Cooperative Society and. Limited Liability'' shall appear in the name of every society. li· "'l'li::m-r "71llC oumt.,f M" II.. 'i t.m- f.11)/,\11 3) A name or distinguishing mark registered by one I· . tl"'l1'i'm-?'" "'l"tllC l\9" """'-l.?r ";)f\.C.H r+mM society shall not be used hy any other society. f"l-flt.-1- P'l.· "'IIJIIC:" f"'l.1\--1- .+l\-1- ""'l'i"! f,'iCI\ 4) The name of every society shall be written boldly :f<pf,\11 and be put at every place where the society's i:· 1'11: "711\C U-t-00111111\-l- l\'/"'i. out,._f ?"f!\h-1- 1\.1\ activities are performed. It should also be written or "'l"'IIIC A.m+?"ll-1- hJ','fA'l" 11 sealed on every notices letters, other specifications f"71'i'a>-f" "7111C ll?" 1·AIJ IJ''i' +it'-'.: f"'l"tll"• Md documents which are signed on behalf of the I"/.• 11"'7.ti't1:11-l· ll"'11i;:m-,- l"'i!t• ool\m~ society. Mll-l- " 1,M.u-9" 11"711l'r "'l(l:l"ID-1:ff''f I f.·0.11 9. Registration of a Co-operative Society ll,9'':f ' 1\,1\-';f OU"ll\""'t.J"°:f'i ll"'l"'lll'r M" I) Any society shall be registered b3/ the appropriate 1)"'7.4'.(..,... (l~f.':f l\f, OD'l'i"! (Df,,9" "'/1-t-9" t1Df.(."1 authority. Mll-l-" 2) Any society, when established, shall submit an i!· lll\"71IIC 9"11111 application for registration together with the following particulars to the appropriate authority: li· "'11:;<'0J-9" "'1"11\C h"l'l-0 1\1\fll- l\i\r'A"l1 (a) minutes of the founders meeting; IIPOD111-0 hllll.'f· " I· "'l'lll'm-r "'l"IIIC 1.,,..,.:t!t- f9"1111\ ...,,,..Ah (b) the hy-laws of the society in three copies; (c) names, address and signature of the members; ;f-m-1 h"'l.h-,.1\•.'f· ;1c h.l'f..11 h"IIJ-0 1\1\at- 111\I" (d) name, address and signature of the members of A"11 ,f-,.CIJA: the management committee of the society; ti) fODJ"(..:rpf• {l,f}(IIJ ,+II 'J-IJJ,.i (e) a detailed description which proves that the I\) f"'l11W} OU•f·P,f.l,,f f.'Hl V'l\-1- :,0:(9''fi registered members of the society have met the "1) f"'l11l'r11'•11\-l- M", hl':P'i'i il,C:"'I! requirements for membership in accordance or>) . f"'ltJll'r ft>'/.· 1'001,.c t>"'l.1:' Ml\-r (19" , with the provisions of this Proclamation and . M':t,. ?(<; il,C:"'I ' the by-laws of the society; IP) f"'l111c Mf\-1• ,nm- f"'l.""111&-l- "IMP'f (f) name, address and signature of members of the lllllJ h'f''.,:'i ll"'111l'r ua-,.'if.l,f f.1-0 IM·m societies above primary level; (l~tD• .....,,.,1.:,- >.11,:,. l\""tf1 -O-lt ua1rc;:fm·1 (g) plan of the society; f"'l..filV',. 11C11C UD"ll\""'LJ"':f, (h) documents showing that the amount of capital /.) hoowt.,-J•'f! "'1111C: 111\.l', hll'~ fMA "'1111 of the society and the capital has been collected /,,•1·1 M" , ,.,..t.,'li'i "-C:"'I ; and deposited in a hank account, if there is no (I) f"711l"-1 b;,, I: , bank in the area, that it has been deposited in a if) fuP~?j tiT.:J·l\·1 OD,n'}', 1-Mlr'tfl ll'11h '/.''Ml place where the appropriate authority has 111. un1.1.1•·> , •11ti 111\.1\11-l- >.titJn. tt,n designated; OO'ff.'.111.ID• OmMID- /1:J· """'""m-1 f"'l.fl (i) the description of the land on which the society :>"l'I' MY.·' operates; 4') "'11114- f"'l.•Pt.-fl•l· (l;J- OD"ll\""'t.i (j) other particulars that may he specified in the 11) .eu1 M''.,: l\"'IM.'NI" 11"'1.mm- 1.111':f m,e,r regulations or directives issued for the im- ODOD/,,f9'°:f· r"'l.m(l't- 1\,/1•':f OD"li\"'il"l-11 plementation of this Proclamation. i:· h"/11-fl ,ri\m- IJl\l"A"l1 r-,.t.fli\·l-1 f9"111'1 3) The appropriate authority shall register a society and "'IOUAh:F ""C:9"(.' f·l•..,_I\ OUlf't-1 (\.fl,;J"l1' III~ issue a certificate ofregistration within 15 days when .,.,,...,. m-h'I' "'1111,;..1 0011"111 rr11111 rrl\hc it is satisfied that the application for registration ID/.4'·1· f,(lm'f'A11 1IILIJ9" f9"/lhC mt.+:,. l\.l', submitted to it has fulfilled the requirements for "71114- f+oo1111111:i• .,., f.m+"A" registration. h"IIMl film- llt\/"A•1n t,o«>Atfli") ""l"4il!C 4) When the appropriate authot'ity reject~ the ap- ovov1111'l hf,1•lw-9" I\.A fllll'I~ 1.1.lc'..11''11"h'}.f·¥,"} plication for !lie registration , a society, it shall give n,i;.,1,.4! 11""1~1."l l\'''l·'iU~- lllh.l\•:f ll):?; .,,,;;1. ai-(i'l' a written explanation to the representatives of the 01' 0 111.K" n/111-r " ,l',U9"' (un fno»Alff. ""l'UIC society within 15 days. The representatives may appeal io high court wh,ch has jurisdiction on the roh.!\"'t ID-"l~fD-10""':J-air M~'r-l- l"'t\"11- 1\/'Hll'- dec1:mm of the appropriate authority. l'h<j::-t-i;' <j::C.i:: l'Vt- f,"'IIJ"'i "'J'J'l•l- f,1-1\fl-'ii I "-1) The certificate of registration i,sued to a society ?;· 111!.IJ h"H•·;r,..· "h,1,,'1 h"Hx· !:) ''"''"l·l· l'-Nlm i pnrsu.imt !O Sub·Art,dc 0) of this ;>:re.ck is an f?'"w111 f9"l'ltlc wt.+;?· "1"1il'.- nil.II i-,.•r:,f I evidence to prove thatr a is i'q!'.istt:rcd in ·nw- ,,..,.,1.-l· f•1•0"1no t. 0 "1r1>- ini "':ll'lt'.11' 1 1 accordance with this Proda.mation. f,lf'r'Ail JO. f .l,"I (lw-Ft•'i" ;'>1\,1, H· I Any society registered in pursuance , ,!' Article 9 of this Pmdamation shall juridka! personality ~) "'f"g'a,-'J" ""l"IIIC mu, h'I':~ h"H•r.· ij ,,.,,,,t:Jl, 11· from tlic date of registrati•rn h1•ov1111lfH• •n :«>:ll"r: tl,0°1 \'/'11»·'.r·} ""·ll•~" ~~l~A~ !!· '"l'}::'m-9" "'!"lilt: t11\ll»· ,n:/'11•\ 1·11,~;l. 111\J.', OM I Any society shall It has limited liability i !. Bv Jaws o{Socicty hahie beyond its total asset ·t-m,l'-1! >tf,IY19": ;~1\.::,-i, l'·t·m1n ~ro•i: Hi· f"'l'Hlc "·t·>:u.r .r:i-o 0 l ti· l\jJ>;'}}',. '"l"lliC fl,.fl• '"'•/·.~K,{l ?:HI !!· f,,.,.,...J{J!,l,f ,.·rn· J',jj:'j• \'"'I.Wh"rY> ,1',o,l.l.9",;t;., Iii f"'\l'•rn.;.:> 0'l 'i ;1,.1".·1;.,f , 0 i\) l'•":f•"Hl'i•"} ,Ii) 1'"'111H.,"} fl",t. il:1· i1,t11Ht f""/11\,;. j\11(,\ t'V'"'l!'"j 1:"'t.J(\'lt "'"""lll;'° J.''::f'}: i,•) /il\"1'111~· >,•lll+ ""·IH"•; '".lf~:l·l'''f·, ,'.) /il\"'l"'ill'r "'"'",:;.,.; J>.1111,:1 P'A•1n• ;~1\.1.H"'," ·l·''IIJC, ih; n) >,1111+ h"'l""lil4• llll""u1>1r,iH·', ll/\"'l.lll'I.V.,IH· 11"1,:h if) lh\"'l''Hl4- r;,. )'lov,,; . c !•"?.-!: >,,111:1•'," 11,ft•·f.. f /'' 1,.. ;">11:4'.l-'"1· 11uc••i., 7f•m••'l·'• l' P' t- }.'J>',.IJ•9" h:"l\d, H· Ml.''1.;l--1.>,-l!·l mf,¥'' '"i.111'1,~41:J· ll•i/h -I•) ill\"'J"~il'<• i'Hlfl'l tunt, .._: ,. I\I\Y.·? l\: n«•1)m;i, 0 ""11·r·•,· {1/U:'.·?u;ii., i,i'\"l"l'l to this fl) (lft,°j•C<,:: hm•lj;'.•fl'; )j<1: 1i::i;\: ·I·) ll/\'/."Ml '1"01"t, .. , J .1 the speciai :f) 1)(\r,•,:.,1.. l;-' fr,•r"lmC: However, the ·\) r.,n >. 'P:f f'''I Y'•.·" 1.,,. 11,1"1.'.f- ·1--.<>;1"-'.~.,. society shall be ( l'"'/"HlC ""-t->:r.,:,!' r:H) llrwl•I\I\ ·HU,. ,M'· (11-"''11 iuDmission to and 11..ififA f,.":j•l\f.\:: 1.l'':'11'' '"f"f<;'111·:r fa<>•l•-'\}:'.t,J' H.;gistralum :u~thority 4) Where the Society decides on the amendment of its r:t•ll "'?ifi'fJ' l\..'I.S l''"f.'.f·nm· f,'"1•111 l\f\11»-- 11/IJ" by-laws three copies of the amendment and the Ann <l'Cll h·l·""li'lllll·l· •/>"} h"}IH· f,lf'',A" resolmion of the society made in a,;cordance 1!· l'"'l'}?,'i»·? '"i'illt: foP•l·-"lr.,:.I' J'.'Hl ),'}-'l)f<tA 0 with this Proclamation shall be submitted to the n.mo·~ l'•t-r.1.w,- "'l'ti'li.l'<,' illLIJ h'l':f o.,,,.,d· appropriate authority witl1in 30 day, from lhe date ol f•M/1.t. l'"'l"IIH• mq>I\I\ "l·•U-,, Af. lB>-"tl:. IW'l)·"f- q'•'.!l: the decision. ·-1·.l'.C",., tll·"'/t.m• IM·l\1'1.l. l!i,•l\t) (,ij) ,i,,,-:,- l'.IJ•/l'I' ~) The appropriate authority shall register the ameml· }\"/11-fl 1\1\ID- lll\l''tt"n m•,l•,~•11 i't/\11-r·" Hl'-'nt and give evidence or ils registration to the society where II is satisfied that the amendment of the ?;- .h"l'l•·n .('t1111· IJl'll'"A"n f·l·f./.11D· \'t"'•l".i',,V..< .r ' by laws was made in a<.:cordance: with thii: f."Hl •"Ji'i?'i.l' f,ll"n i\'l'"f'i t',!!1 h"i'>';· fl'"ltlt.1.'I" Prncl,tmatiu.1 and regulations i,,~ucd for the im•· \'wan .l'.'Mi f"'lf,;.PI.'} ,m,r,.·i n.ft:.:1"1'1' "':/,Pf plementation of this Proclamation. fm•"> J.',O"ll"IIIA: "'l(lt.i'>,'l" l\'"1111~- :l',(lm'l't\" l2 Anwlgamation and Division of Societies /'lfl"nilt-·)· m·1H'.:}·•, 11"h4-t.A l) Without prejudice to Article 6 (3) and (4) of i.his ii· fll.11 M'~ 11:>-1•1,· ?;(iTh'i M >,H'.+m114• ll''i Proclamation, the general assembly of a society }','}J:'." "'l"IIIC llm.'.i•I\I\ 1·'1'i AV- 11>-•'f).! through a special resolution may form a new society:

1.A'. ~ IJJ.•A},?t.•l·_;JIL 111•/:•ri: '(;'.i, :J•IJ"fl"' t; -,., :,:Uf'.fi ,.,-. Federal NegaritGazeta- No, 27 29th December, 1998-Page947 11) t.•""·> 1111·1\·l· ,111f,'I" 111u' n11r, 111n "710t--l- (a) by dividing itself into two or more societies; or A.h<l-<i,:,:-.: (llf,'J" (h) by amalgamating itself with one or more · 11) hh'H': e11f,'I" 1111•.1' 111\f, tun- "'11flt.--r ;,q societies. ,i"'•'l''l.f.• >.>u, "'l·rn,: fl{ID11•1:•l· 2) The special resolution on the amalgamation or r:·.f•l\tv division of the society shall be effective on the date ~- f"'l'Wt: <JD'f''/.f.• //IJ!.'I" ,~11,f,t.A Af• !D••'I>. ·l·t.'1"'1. of its registration by the appropriate authority upon f"'l,11'~111·: verifying that; u) f"'/111~- >, 111\;I·',' ,-..<1 m.M:S":f, f·l·htA:f-,o. (a) the members and creditors of the society fully 1/lf,'r jJ{IDht,.t.l\· f·l·{l"'/OO•fl·l· I fIJf,'/" agree to the amalgamation or division; or I\) ,ri:1o•l·il"'I•"'· >,1111:1- 1; >.-'I m.M:S"1· f-l·ht. (b) · the members and creditors that do not agree l\:'i:111. 111f,'I" fh<1:.I' 'l'll·l·'i f-l·ll"l:f-w•, have been paid off or their payment is guaran- ""lr'1- •l·/.;J"l1n Af• 111•''/),ID- >,")1\,fl 1\I\ID- teed. 111\l"A"I"> (l,,,ull"l·fl ~e11-:: 3) The previous registration of societies shall be can- j:· 11111•\JY.·l- f•hl.,nl.111• "'111lC 0.""111-11 fIJf,'/" >,'}f.· celed from the register as soon as the newJy formed 0/1/.(D• "'1111C: fl.hof-t.A f-l·t.,M-·l· "'11111,,..,• society by amalgamation or by division are regis- tered. , fl.<JDU-111· r.,.,_.,,.,111. "'11111,.•l-mvr "'l111c -r11111 4) The rights and duties of societies which have lost 1/',1>•/.IIA" their identities by amalgamation shall be transferred !i· 1l111<Uf.•I: ,'hAIIJ<'i:flD-1 !tn- "'11111.,T ""-fl-r'i to the newly formed society. "11.:1-?'"f 1,,4.{l t\-,.t.mllV- "710C ,e-,.11M.w11 S) The rights and duties of a society which has lost its ?;· n-h<1-t.1r iht\lD-'im-"> ftrt111< "711lc 0011-r'i' ..,,._.,.,,l- llllll >i'>+K" '}O,.(I 1,'}4',r (I) Of'IP/.'T identity by division shall be transferred to the newly formed societies as specified in Sub-Article (2) of 11-,.0011111m- f"'l'\11~ Af. IV-"ft 1\.1', 11-,.001111-,.111< this Article. llL'11C -wl-r 1'-4.ll mf. -,.9;-!1,'.,...-r "71111.-T PARTTHREE ,,.,.1\11<1-l'r•• The Rights and Duties of Members of a Society tl<i:A 'l"il-r 13, Requirements Necessary for Membership of r: Society f"'l"IIIC Ml\-r oofl-r'i' "11.:J• Any individual may become a member of a society £1:• M10C MA I\ODlf'} f"'IJ'll-11 v-t:t-l"r- , where: r-,_h-,.l'r-l-'t f"'t.l''-11 "'l't7i'm-r (1111< f"7111C MA l) he has attained the age of 14 if it is a primary t\0911''} f,"fl\AI society; i· {/DIPl:J"'I! "'1111C hlf~ IJY:"'I.W- Iii '¼--r f..,..11111<• 2) he is able to pay the share capital and registration !(· M11W't {)"f l\"""l'l-r'i' fo,,0011111.,.1' h<i:,.1' fee required by the society; I\ODtJt.A f"'1.TA 1 3) he is willing to implement his obligation and f"'111W't '¼l\"'l'," flD-,.P,f./.f f.111 f-,.-,.11/\'i "11.:t' observe the objectives and by-laws of the society; ,.:,;, floPt.'l.r '-J'f.7i' r,,~, 4) he fulfills other requirements which may be ). 'J~U-9" f,,111 h'f';t: l\"'lllt.'1.'r ll"'l.mm-:,. specified in the regulations and directives issued for f.'Jfl°f'i Df'flD/..l''P1· f"'l.tDM• u-~;J-jJ'"f'} the implementation of this Proclamation; f"'t.t'?. I\! 5) it is registered with the appropriate authority if it is hDDwt.:t-'I! "'l~llt: w,.r. 111n ,....,,,-11 IJl\11>- 'lflP' a society above the primary society. A"J'} f·f•flDll'lll "'l'\flt:i: 14, Rights and Duties of Members II· f>ilJ'\•l· (/D-fl•h" "IY..:I· I) Any member of a society shall have the following I· "'l'}i;'11,-•r f"'l'Wt: >,•IA f"'l.h·t·l\••l- flD-fl-r-'f rights: f,'i"r-;l·A: (a) to obtain services and benefits according to his IJ) "'l'\ll"r• \''"/.(1111111•') "/A;Jl\••l·<; ,r:,,,r participation in the society; \''"l"ff:1., (b) to participate in the meetings of the society /\) ll"'111l"r• '1•11'¼.l'':)°, l\f, fflDl'Jt.A'i 1:9"~ and to vote; f""llm·l· , (c) to elect and be elected; ..h) r,m9'"l!l'',· f,,n,'"t:-r: (d) to withdraw from the society on his request ,,n) •1•:J,•r•:1, •t·ll·flt.111•1\•l- n•r.1'4:m• ""wl-r with payment of benefits. h'"l'\(1-,. f,,..,v,·11-1• :: 2) Any member of a society shall have the following !1· "'l'g'(ll•9" f"'l'\111: >,'IA f'"l.h·l•l\••l· "lf..:l·'P1· duties: f,'j,;.;J•A, (a) to respect the by-laws, directives and decisions 11) f"nn ..:> ,,..,,.>1r.1..I' r:>-11 , ,,0001,,l''P"f'i of the society; 111•"1>.l''"f f"'lhn1:, (b) to perform those activities which ought to be /\) fl"'l'\IJ,;. (/P,f•)l.l'./.,1' f.'HI'," (/D(/D/,,f ODIP/.-l- performed in accordance with the by-laws and 1'"'/.u•",• r•1,.9•·•r•·1 fm 1 1"t.-·l·, directives of the society; ,h) fi>"I'," ('(IP(/P'lf'/fl.,t' 11<,:.('l'':)",•1 f""ht.AI (c) to pay for share of capital and registration fee; ,m) f"'/'\(l',.'} \';JI,. 'Hll.-1· ftJD')h•Jh-1111 (d) to protect the common property of the society, · :(f.•, h>i•IM:I. (\{\,,o(l'ill-l- 15, Dismissal from Membership li· 0 '/'>li'lll•'J" >,IJA (1/,,f'\• t ..4'f.• h"'l"III~ fl.tD"I I) Any member of a society may leave the society on y,':)""/tAn his own intitiative; 1K' iit~;,; t..Y.t.•A ~ ;>t,,l· :>n"I •/:-re '6% :J•U"IP' '(; •n !iif'.16 'HI"· Federal Negarit Gazeta-No. 27 29"' December, 1998-Page 948 R· "'l1::'1D·ll MA ll·l·Y.;,;,"'l. "IJ!..:J•lJ11•'} '11\"'l 0 2) Any member of a society may leave the society trn,;. tDM" ll"'/111<;- l\f, -r-1.·l· nou,.f.ou- when it is decided by the general assembly to 110\n.N· h"'Vi(I,;. >.1~ro111 nm-rl\l\ 1·1J'i dismiss him from the society because of commit- h.,OJ(l'HJ•l- r,:}°-1\A" ting repeated faults; 3) The rights of any dismissed member shall be !:- h"'l"IIH• f•/•(l',"IJ•I· "'/'}:;'ro·II" >ttJt,\ f"'l"IIJ<;. respected in accordance with the by-laws of the (/D•/•P,Y.t..1' Y.'Hl 11"'1..<.-rY.t»- OOIP/.T 0011-1, society; J'.mll:,,t\;hl\ " 4) Without prejudice to the provisions of Article 13 ii· fl"'/'}l';ID•\1° ll"h'}.l'·l· f·M'i'IH· MA fllU hereof, any dismissed person may reapply for >-er;~ i'l'>4',,.. ii: J.':'>;,·1.lP1· >.'>Y.•t·mn<ll 1nro• membership. However. a member dismissed in -1•0°Ar n'IA l\ou1n .e.1·1\A " 1r'i11" llllU accordance with Sub-Article (2) of this Article }'14'?. ')o-(1 '1'}.,.?..' (g) ODIPd· f-f·(l'ill-t may become a member of the society only if he i'llJA •l•<IDA(I MA l\001n f"'l.1·1\ro• nm-rl\l\ obtains the approval of the general assembly. .,.,,,¼, ID•''I>, (l,.<.4'Y:t\•l· ·11:r ~OJ•,:

16. Payment of Shares I) The capital which enables the society to expand its :,:'i,· Mo"I h<,:J• work activities shall be obtained from paid up {.i· "'!1'ij'm•'>II" "'l"lllt: nooou{lt.·l·'i' P't.-w•'} t\"'11</' shares of each member in accordance of the ti</•{I f"'l..l'{l:r.n111··> ftn::hl\ oom'} m<rl\l\ -,..1]'¼,ID• decision of the general assembly; ll"'l.111{1~111• <JDr>•/.·l· h>..f'JP,'}?,. "'''" fo"I t,,.:,r 2) The society may sell additional shares if it is found f,(111 (l lj A:: necessary to promote the financial capacity of the ~- f"'l'~IW) f'l'>IHI '1:,,11° l\"'/>lllC Mtl.'\1. 1r'i (1.1'>; society subject to the decision of the general J-.'i' llm<rl\l\ 'I-fl>.. 1\,lll(l'} ·t•t1.l.'1'1t. o"l?''f oolr'I' assembly; 3) No member shall hold more than 10% of the total J',;fl\AU paid up share capital of such society. t· "'l'F.'w•11• J't•JA h·f-i'imm• m.'./>1\1\ fo"I oom'} :;:% 17. RegisterofMembers . ll/\f, J'..·ci)· I\. 'i t.<D· f,r,:fAII" " Every society shall keep a register wherein shall be I'k MJ't1J11:1- -11111 entered: "'!1::'W•9° "'l"IIIC l'"'l.h-1·1\--l-'} 1IC11C f,1'11 fMI\T I) the name, address, occupation, age and sex of each 0011·111 "'/Y.t.-:(!>·, ..,. o ,1'1I .ht\11."I·• 0 member; ?-i· l'J-..l''>P,'}?,. 1 .h•lA M"• l'\Y:t,.i'i , /"t., , oY.:"'IS 2) the date on which he became a member or ceased to be a member; l\;h 3) the amount of shares held and the registration fee !{· i',IJA l'tr~n-l•"> </'')}.','MAH,'} ,l'\l:t.mllT1 4'1 • paid, by each member; f.• f7,.f'>P,'}?,.'} i'liJA fo"I oom'} M' foooo11'lll.J' 4) the name and address of the heir of the member; h<,:f, 5) any other particulars that my be specified in the by- /i• fh,l''}P,'>,'',.. '} l'tiJA mt,.'li {19"'," n.f.•t,.i)", laws. ?;· 00 11«0 •1·?.f.t..f f:}(J• f·l·m(l',- f\,t\ :f 11C1lr.'T1 •• 18. Voting I:t· lit\ Y:9"?..' MtlJ'I' I) Every member shall, regardless of the number of ?-i· "'r't'i'<D•II° il•IA ,1'1\111· l'o"I oom'> h"lll"-l- ID•{l'f' shares he has.have only one vote at the meeting of ti.e,•11J IIMIM l\f, ·/··1'H l'"'l.JlmlD· Y:9"1, .h'H'.· the society; 2) Every member in a primary society shall personally •fl:f ,e1rc,·t1." be present at the meeting of the society to cast a ~.. "'/")li'CD•\1° f(IDLP/.;l·•r. u•1111c i'l/Jt\ IIM\(1(1 I\!?, vote; .,..,,~-r- t,.(I• .f.·'J"{J m•{lm·l- K,'iC:11:J•t\_,: 2) Every member in a primary society shall personally j:· !Juo,.,l:J•'f! "'l"IIIC 111\f, IJ/H· J'.l;tf l'"'l.9.'!l:11" be present at the meeting of the society to cast a "'l"IIIC Y:9"1.' f"'!.(lmw• ll•t·wt)r•':'i"· J?,11'',A" vote; :rn- otlJ'> wr.11° -r:i-11°·t M"'IM•l\t\{j: 3) · Members of a society above primary level shall cast ?-i· "'l')'ij'm•'I" MA t'Jt1J1D•'} lll,l',9" •r-rao•'} t\"'l{l-tl\t\<j: a vote through their representatives. f"'l.:r-11w•,

19. Transfer of Share or Benefit I) No transfer by a member of his share or benefit in a u) 011Jw-1 wM" 1•:,,ao-'} hl't'}.I'.· qoo:,.1111~(11.n society shall be valid unless: .e1•·l· 1'4'>1' (I.in,»',· ( a) the member has held such share or benefit for fl) l'"'lil·l•I\M· ·t· 0 l1JC Ill" t· .hoot.,C t>"'l. ,t; at least one year before he transfers; f•/·,< ..,,f. l).tn }ID!:, (b) the transfer is approved by the management ~- .h'}.l'; fODIPl;"'I! "'/"IIIC MA (I. 'l"i· OtlJID- IDM" committee. 'l'<r<fD• (1"'1"111<;. (/D'l/1•11 ID•{l'I' (IIDt,."l'i~T t\MODID- 2) On the death of a member of a primary society, his m!!,'Jv 0 :,_:,; 011,:[i ,l'A{lfoo htr~ 11.n"I t\ODID-1.{I share or benefit shall be transferred to one of his heirs designated as such in the register of society or fl"'l.°-1-A m1,.7t: K,•f-1\M,A" J?,tJ'/" f"'l.U'~ID- mt-71'· failing such designation to his legal heir at law, and l'"'/'HJ,;. MA hW~ mf,9" I\ODU''} .<...4'.1'.~H:'} where such heir is a member or is willing to be a lnt\Y. ~w•:i member. '11." iif.'.1ii 1..J!./.·A ~;Jt!-l- ;JIL"I </!'l'C: ti ;hJ"IP' ti' -,.1 Iiif'.Hi",·?"· Federal Negarit Gazeta-No. 27 29"' December, 1998-Page 949 i:· 1111,.jf. f"'/"1114- h1IA '1Air~ mvr hilt\ {\t1Dlr1 3) Where such heir is not i member and does not wish f"'lf,t.A "'I Olf,'J" f"'lf,t.</' f,:Nt· hlf~ f"l:,, fl,"1111- to become or is not admitted as a member, he shall '!' ;> }-', 'l'1''1" f,tli(.f\'PC\" be paid the value of the share or benefit of the deceased member. fl· n,w h1</',,,.. 10-fl t,1<1';,,· (I) ,,..,,,l:,. /)"I w.r.,r 4) If the shBres or benefit to be transferred to a member -r-l-'J" f"'t:tl\ft~f\-l• MA l,"J(I)< lllLIJ A'I'~ A1'1'?.· under Sub-Article (2) of this Articie are found to be I'!./l:I M·Ol{l',to-') ,,.,n rr'i f"'l._l'Alj: I\. '11 Af.H beyond the limitation prescribed in Sub-Article (3) ll11H·ll ,1',h.C.ll'l'A" of Article 16 hereof. the member shall be pilid the ?;· 11,w '11<1'l'i' 11H1 '1'>.,,,,,.. (!f) ""wt.•r frf.l.•1 difference in cash. w.,vr M~.r Y'il•ti:: w1rr'.f 11"7"111-:. l\f, "'lM•l\ftlj: 5) The transfer or payment concluded in pursuance of 11"'#.J'<l'CO·-l· 'l',N: '1"!11,1'-l· M',i'fCll"u Sub-Article (2) of this Aiticle shall not be reversed ti<,:A >,1, ..."j• due to the cl3ims paused by third parties on the society. {l(\AOPM: >,t11\-l· PART FOUR t;· flt\"'l"lllC: 1'111\,I', );tJA Management Bodies f"'l'>li'w·'J" "'#"Ille flll\J.', hl'JA f"'l"l!l?- m:'f>I\I\ 1••Hb 20. Supreme Organ ofa Societv J',tr•,A ,, The supreme organ ot any ,ociety shall be the general tli· rm:PI\I\ '1· 11h. l"A"l1',' ·t· 1•1c: 0 assembly. f},'}f; "'#'111lC m:PI\I\ 'l•IJh,: 21. Powers and Duties olthe Genernl Assembly The general assembly of a society shall: !i. f"7"1114-1 hm:1>11,e r,,.. 1,. >. 1:Pfl.<J>ll.9''.f >. f'lllP'I"" I) pass decisions after evaluating the general activities a>·••flr.?'1·'} .l'fl•MA4-A • of the societies; ~- f"'/111<:-1 OP•f','!f./.,1' .r.111•,· w·ilm f.111,l?llJt;.-.'A, 2) approve and amend the by-laws and in\ern,il i:· l'"'/111?-1 fr'/.· t,.,mt,,C '1"7.-1: , 1'4:'l''!'C t•"'l.-L·', regulations of the society: fll,/\•:r. 10·"11 l•"'l.•l:?':r. h(ll\.•l· J.',oPC"JA : 3) elect and dismiss the members of the management W/it.-A• committee, control committee and when necessarv ii· f"71fl<;.1 fh"I t.mm'} f,a>fl':A , the members of other sub-committees; ?;· f'"/1(1<;.1 f-t"l/., ·h:<j: !l.:M':A f,lllil',"A , 4) determine the amount of shares of the societv: 'i) decide on how the annual net profit of the society is }· ll'l"/11 ?"Coot,. t,;rc:,)- l\f, Ill-"!>. J',l'l"IA : distributed; '!,· \'p•t,. ll'>tD•'J t,;rc;.y.:f, .l'M""IA , •1'111./P-1 6) give decision on the audil report; OI•"/), .IMl"IA , 7) hear work reports and g:1vc proper decision; i· IIILtJ A'I'~ """'/.•} "'1111<;. hi1,I\ "'Mlle ;JC 8) decide that a ,odcty either be amalgamated with >,'}J;,'l'Y~ a>f,'J" "'#"Ill<;. h1>:J1LA f,in(l',t:,,, another society N he divided m p1Jrsuant::t or this !!· 'ioo:t•'I! f P't., l'):,>J'.•'}',' lll·l-1 J'?.Y::J•A, proclamation; 9) approve the annual work plan and budget; 1:- IIP'I.· h""l.·C: l>"'l.-1:'i' l\.f\•'.f '1"7.-t.·9'1· f"l'PCll· I 0) decide any issue submitted by the management fi·M "7',':f(l}o'}'J" ·1•>:1"'.f- ,l',a>(ISA ,, committee and other committees. ?;!{· m."/•1\-\ ·1-11>.. M""'l't.••l· 22. C:11/ling uf General Assembly Ii· f"7"111C m:,>1\1\ ·1-11>.. CU'1fl nq,m-r A1~· ·ut I) The general assembly shall meet at least once in a J.'_.J.'.l;JA" year; !1· f"'l"IIJ<;. fp•t,. h""l.·C 1>"7.·t· mf,9" hm•rl\-\ 2) If the rnanagemi;,nt committee or one-third of the hCJl\·I: ootihA h'}~ V-M·li'w• MIM h1~mt, members of the general assembly require a meeting !'l.mf,4: fJf, <J>'} :P.~"7.J' "'/fl,"1•0>4!,1' {l"'!IIN'l•r 10 be called, an emerg~ncy meeting may be held by giving 15 days prior notice. AM:1.\f. fm."/•1\-\ •1-11>,, t\.mt- f,'fl\lA" 3) Where the management committee fails 10 call an !:· llllU A1'P"' W·il A1'P"' (!{) ""a•t.-l- Mr\\!-', emergency general assembly in accordance with m:i.1\11 1-11>,, >.1~. e.t."1 rP't.• 1\or>t..c l'>"'B· •rt.. Sub-Article (2) of this Article such meeting shali be ,l'l\f.l'I >.1.r.rn A"'IIHJ .l'filll- C\/\P'A"l1 '!'/.Ill-'} called by the appropriate authority and shall in such ,l'J'.C.'.J/!\ ",l','fla>·V" m:,,1\1\ 1-11>.,io- llP'/.· hont,.c case be deemed to have been called by the '1"7.-1; 1,1.r.-t-mt• J'..f,mt•l\ " management committee. fr.· fp>t,. hoot,C \l"''l.:I: 23. Management Committee Ii· h.f'}>:1~ "'l"lllC 4:'l't•=f(l}o',' A""l.•l"l:flll- 11""·1- l) Every society shall have a management committee which is accountable to the genera\ assembly and P,f.t.J~ .r.111· f"'l.,OI(\'} Ml\-l-1 f,1'11 ftm,},1\1\ 't-llh. whose members and manner of election to be ·hn/. r,n fl"/.· h""l.·C: t,"7..-I; J','il'l'A" determined in the by-laws of the society. I· fl"/.· hOOt,C ti"'l..·I: Ml\..,. f P't• 11001 Y'l\-r 2) The term of office of the management committee '}(IP•} f,tr',t\ " shall be three years. !:· fl"/.· A""t•C: '1"7..-1: Ml\-l- hu-ti-l- -t-h:t-;t-f. 3) Members of the management committee shall not fl"/., 11""1 111\,l', /lOOlm, Af,'fft·'I" " II-toot. be elected for more than two consecutive terms. m-11-)• f l"'t• II""'} ID-{\'!' ll"'l',ra>-'I" 'I.IL llm;'f>I\I\ They may be dismissed at any time by the general 'J•IJ1,, ,\.q{. J','f,l\(\•ll assembly. 4) When members of the management committee 11· fr.-:- """t-c t>"'l.:t: ;..,11\•r 11"7,;:f"""" u->.:t· leave their office for whatever reasons, they have 1".,;.:r:w,1 l'l.ft-1: nrt., 1100<;:,:a>- .rhr;m'.l-•l-1 the obligation to submit for inspection the activities -t-"1•1c f"'lt1111>cooc: ..,,.,,,:r >.Mr"" " they perfouned during their tenn of office. 111· ji)'j /,.S.MA ~ ;>t,•l· ;>tL"I •l?-ri: i:,; :hJ"II" i •n Iitf'.Ui 1·9"· Federal NegaritGazeta-No. 27 29"' December, 1998-Page 950 fl"t,. }.on1,,c l">"'l:L· P'P.ITl1'i' -t"lllC 24. Powers and Duties of the Management Committee l'/"I,. h(ID/,,C t>"'l.•I: /"All!'}',' ·1•"11].;.. ll"'l"'!fl.;.. (/P•t·.11 The powers and duties of the management committee f.t,J! f."HI l"''l.m(O lf'i IH·t\,l', l'"'l.h•M··l-1 shall be dertimined in pursuance of the by-laws and in r,iLl.9"/.-A : particular shall include the following: ~- fMJ/\tl :t>t. 'l•llh,l'-'··f.'> !Ill·,""..: f..f..•IA•, l) maintain the minutes of a meeting in writing; ~- f"'l'W<r'} Ol>lf"Ml·l·'i" Y."111 11"'1:l'l J?.J.',llA , 2) maintain the documents and books of accounts of i:· f"'l'Hl4-1 f\on;l••J! fl"/.· ll."f>.S.:.·<;- 11)!;1. ,fll;>~A, the society; (t.<.<l'f:9" ·l·"ll\1.-'I'. .f'/.C;)A, 3) parepare the annual work programme and budge! of ii· 11'"/1(!<;. (1"•1·.P,f.1,J' f:}11 0011,1.1· tn:i,1\1\ lhe society; implements same upon approval; ·1•t\h.ro·1 f,mt-A , 4) call general assembly in accordance wiili the by- ?;· (l.f\ 1~ fm-rl\l\ ·1• 11h. tl/••>tt9,._.h .fM.?i'"'IA , 0 laws of the society; 1,- f /"/,, h1;,,i\ •.J>I). t,;rc-1- l\m:PI\I\ .,.11t.. .f<l'CIIA ,: 5) execute such other decisions given by the general f</!'l"l'C 1• 0 '1.·t assembly; 6) submit reports to the general assembly on the {i· h.l'">-'!'M. an11i: •/!•rt-'/!ro· IJoo-t•>lf.t,I' f.111· \'"'!,Ill(\"} hlll\•}') \',I'll l\m:i-1\1\ "l•l\h. ·I-mt l'tn activikties of the society. f</!'l''l'C: ti"'l.•t: f.';' l.'PA " 25. Control Committee ~- ft•"'l.·l:W• f,111\·l· fl"/,- lfOD'} Y'(l·l· '\(IP•l· I. Every society shall have a control committee which .1',tl''iA" l'</!'l"l'C: P"'l.•I: >.1\1\1• ho-fl·l· ·t-h:J•;J·,1', is accountable to the General A,sembly and the f I" ✓-• ,run'} 111\,l', fl.OVlm, '1f..:ltr'I" " 11·1-"''/. numbn of which shall be specified by the by-laws m-n·l· l'l"t.• 11""111"'1',"'f!ro•'I" 1.n 11m,},11111-111,. of the society; I\)'(.;. y,:l~I\I\• "

2. The term of ()ffice of members of the committee l'•l:•1"r1: t•"'/_-1; l"A"l'Vi ·l·"/IJC shall be three years. No members of the control f."h'l"l'C l•"'l.-t·W•-;----···------ committet shall be elected for more than two ?i f /"/,, l\ni>(..(; t• ?.·I: 0 ;~I\J,~·I:'} fl•HthA consecutive terms. They may, while in term oJ ,,.. (ll"l•h"> r,h,:J·•t·I\A , office, be dismissed by the general assembly. !{· f"'Vin-.. ·n11•n.,· ·Hid· n·"l-hht-. '""·",.,, oo'f'I\•'> 26. Powers and Duties olthe Control Committee .l',•f"lmt.-A : The Control Committee: i:· l'"?"rfl{. /.1.f. Af. h'}-r(l:1•~9':f. ll"'l"lll'r OD•t-}l l) follows up that the management committee is Y.l•.'t h'i ll!•l\•1• J.'."M\ onwt.:'f· <1°\l'i'ID'i''flD--"} carrying out its responsibilities properly; .l',h;J·•MA: 2) follows up that the funds and property of the society ii· llm-l•I\I\ ·1-11>.. f"'i.(lm-·1-1 1\.fl•T ·M 11C'1· .fh'i' is properly utilized; (l)•'iA ,: 3) controls that the various activities of the society are (11\ll,h":y. 'W•"/'} l">"'i.'1:9':y. carried out pursuant to the by-laws and internal 1\.1\":y. '}-0·''1'} t•"'l.•1;9'1· 11"'/"lll.;.. OD•f·>H'.t.t' J.'.'}11 regulations of lhe society; {fi't>•/.•l- fi...<}:!/:lJD• .f!,:y.l\fl•:: 4) peit'onns other duties given by the general assem- bly. h<,:A M ll·l- 0

27. Other Sub-Committees l''"l"'il1C A f. ,w-fl-f-1• Other sub-committees may be established pursuant to /1'"/"IIIC M h..:J' :,-f: 0 '1••1' {\/\on{lm·l· the by-la.ws of the society. 0°'11'i'm·9" m"I Ill\,/\ 1H;I· l'•t-f.'1'11 ll3'CI"' • "'l"f/;'(1)•'} "'l"IIIC h»'H': hlJA l\f.. 1' 0 'l.t./.\1W- fM 0 PART FIVE t,<;:;,r f<JD'}"IP'·l- M'} (J,(',t.U,'}°C hl\.l\"1" i,Jl?'1· ht;:.(' Special Privileges of Society '1- f:"'U ,!.',(Im'!' f.\ " 28. Priority of claims by Society Notwithstanding any provision to the contrary in any fMl\•l-1 IJITI 11/f,I"' 1•-r'I" Mfi'/;F;f.A law, debts owed to the society by member shall take f"'/1"",'w•I"' h'lA IJ"I Wf,'J" 'l'-r'I" "'/"Ill,;. fl°'i..<.A precedence over all other debts, except the debt owed to "111·1· l'M n<t:.f "'1:f.:f..l' l\.f.l"l r:-l'•I\A" the Government. if!· (ltlJ'} lllf,') 0 -r:P'I""} l\"'lllhllC rDf,9" l\onif1• Mflon!f.A 29. Set-ollin respect of Share or Benefit of Members The shares or benefits of any member may be set-off for n,w h'l'l· >.1+1.- tii h-l·Y.~nw• llll-t-+c "'11li'ro•?" debts due to the society from such a member. llilA tl"'/"lll.;.. ID•{l•J' l'"'l.'i I.W· i,ll) rDf,I"' 'l'<rll" h'lf\• I\M·l· M "'lllh.is (I.CIA l\.hHC 01,(','J" l\.il'f

30. Share or Benefit not Liable to Attachment or Sale M~-1-A'J 0 :: Except as provided in Article 29 hereof, the share or benefit of a member in a society shall not be liable to if!?i· fon'}ull"•l· .S.:.• ;,<~ attachment or sale. ?;· IIA.1iiM·onH· ;i,·1-1·'i' {11\.1\•T m'I-T f·l'"- 31. Government Assistance +>kl "'llll;J·:J:S"·.-,. f\"111l:t- P"t, "'l"lllt•T I) Without prejudice to incentives pennitted under """·"'>;. 1-.1f.·l·mll+ 1r'i, 1"'111l-r /"/,· "'1"11\1,,...,.. Investment laws and other laws, Societies which are l'"'l.l1•1'1\•1··t Y:;1<,:<; "'llll:t-:f. .l"lli'fl-i organized and registered under this Proclamation o) fllltl h'I')!- onwt.1· 1' 0 7.Y..Cf: h'>f: "'l"lllC shall be entitled to the following: f"'/.,f11m· 'Ill. t11n. "111C a ,(',lf'i/.1. " a) to be exempted from income tax; provided lf'il"' Ml\·l· h"'I.J''ff.-l- ft,n1 f:C'lf h"lll-fl however, members shall pay income tax on their tJl\(l)< m"I oow1,:,. 1'111. "HIC J'.h'i!l\1\- , dividends; 1fi DHli LJ.l,,A. t.,t.:i• -'IL"I 411'1: l'J'l ,,J•tJ"fP' 1t •n !ilr'.fli 'H"· Federal Negarit Gazeta-No. 27 29,. December, 1998-Page 951 t\) llhA,11. OJJ','I" ·f•,nl,',-1: M.f..t-t\• OD'}"IJ-".:'f- (b) to acquire land as determined by a Region or a 1111'} h1·"7 11"7,0J{\~a,, DDIPl.:'f- ou1.,:,, City accountable to the Federal Government; 1'"'1"11.:'f-' (c) to receive other assistance from the Federal m) h'-,f..1,.1\• OD'}"IP'T OJJ','I" hhA,11. Government or Regional Government or City OD'}"IJ-"..,• mvr ·l'mt,H 11.A...f..t,,I\. administration accountable to the Federal OD'}"1J-".:'f- htr} h-t"'I M 'f ~ ;,~'f'}0 Government. f"7"17•"f-:: 2) An institute responsible for promoting cooperative f"l-fll-l- P't• 1''>.-,.il.+~ 1'"7'1-M-l- 1 f(ta,, ,:>J',A movement, rendering man-power training and con- f"'/IP,l\.,n'} 'l''i·)•', 'l"C'l"C l'"'llt't~ -:,1\.C.}T ducting studies and research shall be established. f,f•(t,na,, -t!l;'I" J',!1/!J:"'IA " PART SIX h<r:A ilf.•il:i· Asset and Funds Societies l'"'l"rllt••l- 'Hll:,-,; 1'HMl

32. Indivisiblity of Asset and Funds of a Society '!)!!· '!! l'"'l"rllC.'Hll.:'f-<; 1'>1MI 1'"7J'.h4-.C.A ii/I.ODIi'',, lllltJ >,<i>~ ,...'}.,,,.. '@: (!!) 1,', ODIPlT I\Ml\:i• 1,'}~.h-i.t.A h"'l.lllt'l~lll· flil-t.,,C f}<,'}~ "'l"rllC Except as otherwise prescribed under Article 33 (2) and 44 of this Proclamation, the asset and fund of a society shall not be divided for the members or any other party. '}-fll•h' '111111 l\1',fJl\-1: IDJ','I" 1\11,1\ (1)1'} 1',J',h-i.

33. Allocation of Net Profit t.f:\'f":: 1) The society shall deduct 30% of the net profit '!!!:· l' ➔·"lt• -l•C:fi: J<.f..l\Y.A obtained and allocate for the following purposes in li· l'"'l"rll'r OO•f•P,.,!'.1,,1' f.'}-fl ll"tt.:i-.e.lll''i "7"1114- accordance with the tem1s and conditions set forth in IH'"LJLID• ll"'l••l'mnJm• i>:PY.· ou,vt.•1· h"'/"1114- the by-laws and plan issued from time to time by the f-l•"I/,, •h:ri: 1\.1', 0 noo-f M·l'.,,~(t t\"'l.h-tt\--:i• society:- -,..<;\"1· f,f.t\f.1\/:\: (a) for reserve; IJ) t\OD,nlJiJ<J!,I': (b) for the expansion of work; t\) hi" t,. "'lil-i.&,J'• (c) for social services . .h) t\'"l"rlJ/.•'C h1/A 0 /h0 •Y.'f:: 2) After the amount prescribed in Sub-Article (I) is !!· lllltJ ,..,,.,,,.. ')O·il 1',')4'1.' (ji) f-l•OOt\h-tlD- deducted the remaining net profit shall be divided h•f·.,,~(t 11:\1\ f"'l.•l'llD• •l-c;•i: t\1',IJl\-l• ,l',h'i-t.llA: among the members; the division shall be made on the h<i:<i:t\• f"'l.t.lt;UD(IJ• }<,IJl\•l· fl"7"rll4- lt'C:J·A lD•il'I' basis of the shares the members have in the society and 11,vfm• i>"I OOV•l·l- >·S t\"'1"1114- l\7iJ''l.1' IJ-l't.11--r on the amount of goods offered for the sale to the lDf,'}" 11"11f. ll(IJ(t.<',.•l· /J.4' oo,n'} J'.IY'iA:: society or goods purchased from the society by members of the society. '!)!i• ill\Uoflf.C ID(t') J<.1f: "'/"rile hi,IJl\.-1· mvr ht1,t\ 1· Y.·c:~-r-1· 0

34. Restrictions on Borrowings f"'l.11.1'.lW• •OY:C ""m'Vi tH:J• fl"'l"rll<r oo,·t-P, I) A society shall receive loans from its members or other f.1,,1' .<'.'HI 11'1.ml'l~ID· (IDtJ.>l•l· f,tf'',{:\,: organizations io such extern and on such conditions as >.1J':- "'Ville 1\11.<'.t.m• ·1111-11 l'"'l.,1'1,w• mt\Y: may be specified in the by-laws of the society. hlJ'}h f'"llif./.J' lllt\f: 1\.(l,l\.'1' J<.f,";f-,11.'}":: 2) Interest on loans received from its members shall not exceed the curre.nt interest rate of a bank. ilt\"'/(1.l'.C ID(\'}

35. Restrictions on Loans 1','),l'; '"/"IIIC (11,111\•} /llf,'I" lliltJ h'I'}': m>11•t.·)· A society shall not extend loans other than to its M·!l.'!11 00 11,1\ '"l'~IIC tiA1n llil•f·-,,c -fJY.·c ooflm-l· members or a society established under this J<.f,":f'•A.90,: Proclamation. h't:A M·l· PART SEVEN M'l"l-11 -l:1~~t\'J"Cor>t,. Audit and Inspection I!)?;· M'l"Ml 9°cau1,. 36. Audit Ii· h"1 1HI ,l'/ltD• IJ/lt"AflJ') o.nl'I ll'¼oo-l-1,'}f.• 'Lit 1) The appropriate authority shall audit or causes to be f"'/'}i;'CD-'}'J" "'l"rflC 'l''MI t,.(1- lllf,'I" >,(I- 11"'1.IIJ audited by a person assigned by it, the accounts of ht\m• (Im• f.ont.•rt.-f:\:: any society at least once in a year. ~- lllttJ }<,').,,,.. 10·fl J<.14-lt (ji) ODIP(.,:'f- f"tf..l"I 2) The audit conducted pursuant to Sub-Article (I) of this f't"MI 'l"C: 00 t.- ,l'A·l·h"-11 M ltt\11.:'f- .l',iJ')~ Article shall include the examination and verification b.<;m•'}<; f'I'/.. '111111 'i."Mh 'i''l'il-l•<;a,,'} (t~p.:r,,; of overdue debts, if any, and cash balance, securities ftMH,1 'l'.'.J: ;,1\.1,H:1'1" ooooconc f,t,Q,'J"t;.f:\:: and assets, and liabilities. i:· 0 f'l"MI ? c;oo1,. l.7'C:•l:9" t\tn~I\I\ 7-fl'¼. 3) The audit report shall be submitted to the general ,,.,,c;,1,11.:: assembly. '!)i• illl-1:'l''l'C: 37. Inspection ji, 1', /1111 .ft\OJ• f)t\FA"I') t,.(1- mJ','}" >,(I- f"tm 0 I) 'fmrnppropriate authority may, make or cause to be made by such · person to be assigned by it an ht\m• {lro· l'J<.1J.".;1 "'l"rllC h*'I" i f/-"t,, J<..C.KK'l"l inspection to the organization, work execution, ""'l"Ml-l•,; r1,1111 u-t:J• ououcouc J'.l-l\A11 documents and financial condition of a society. 'I~ iiDIJJ.t.-A ~?I.:,. ?IL"l <ll'l'C 'fi'f, :rll"IP' r; "'1 !iif'.lli ,.,-. Federal NegaritGa,zeta-No. 27 29"'December, 1998-J>age952 ID fll,U 1t1,J,K" 1 O·l'l l'i'><f'K" (?i) }.'H'.·hnll<f' ll''i' 2) Without prejudice to Sub-Article (1) oft~is Article n"/1111 ffla,- '1fll"A"I') : inspection may be made when: o) f P"t.- ,.,,,,1,.c 11"'/.•I; Mt\•:f MI•l~l":,; (a) a majority of the members of the executive committee request; • l\.m.t',4:• (b) not less than one-third of the total number of fl) .hmfl\l\a>- f"'l"lllC1-T1· 4:'l'C hi\ 1.l!- members of the society request. r'M·~ .M~o- Mfl•:f f\.mf,4:: ll"Cll" t,. ,ff..c;, A:: 38. Keeping Audit and Inspection Results Audit and Inspection result conducted pursuant to f'l"Ml <fl'l''l'C "tl'i f9°C,,,,/.- m-m.:,.'} {U\"'/{l,J,,,,,'J' Article 36 and 37 of this Proclamation shall be kept in 111w M'~ n1<1'7i• •!i1 'll'i <!i'.t ODIPl:,. r1-f..1.1 the office of the authority and the .society, open and easily accessible to everyone. ll"C,,,,/.-'i <ll'l''l'C m•m.."/· "'l'i:fm-ll" {la,- ll<f'l\t\- ll.,f1''im•'i ll.,ffCD• ll"'f-'f·A }'\l;>,:\1 O'll\P'A"l'l-'i' 39. Actions to be Taken for Losses of Property or Fund of ll"?Ull4- K"U,L."/· O.·l· m•il'I' ,,.,.,,,,,,'I' .t','i'Cll:N\11 the Society 1) The auditor or inspector shall make a report to the 11"1104: 111i::ts: nu11 1g, 1:t:ot t'Ltco OO"? management committee or the general assembly or m(lg-1,cri the appropriate authority, as the case may be, where the person who is or was entrusted with the {i· f'l"l-11 <ll'l''l'C; rof,9° 9"CODt,. 11"'1..f.l"lll:,. 1.11 management of the society or who is or has been an f"'/"1114-1 rt• h't-'l.fli'l.l!- ;)I\,(,~:,. f1-"lflllT officer or an employee of the society, and who in, mf,9° •t-'l'i\•11.-,. nnt.m- (lm-1 f"'l"I04- n:ll" mM" the course of an audit or inspection has been found l>'/.-1-i;:' to have committed the following acts: u) lllUJ M'~• llf..1(1:,; CJJ.t',l/" ll,,,,1--'lf.6f (a) had made any payment contrary to this ,('.'}{l:,; .rA·l·tl.'I•,('. h~.r tl.$'1" h1-17! Proclamation, the regulations or the by-laws; (b) had caused any damages to the assets of the I\) 'll9°H1 ll"'/1•.('.A IJJJ.',ll" lf1 -Ill\• ll"'/Ml society by breach of trust or willfully or m.t',ll" 11:fA·t-~H 11"?"1114- 1111.:,. l\.t', negligently; 'l•f.:t\:,. hf:Ct\ h·M"i• (c) has misappropriated the properties of the ,h) f"'l"ln.;. f1nm•1 rn,11 nM-,"11111 hm{lf..1 society. •t-.f,11)11)1,ID• IDf,ll" (JPC"'//,ID' Mtrll;rlD- 2) The appropriate authority who received the report pursuant to Sub-Article I of this Article shall give )'. '},('. 1--'lf. n"lll-11~•1· l\P't• h,,,,t,C 1'>"'1..1: the person concerned an opportunity to present his Wf,'} 0 l\m:i'"" 1-11>.. wvr ""11111 1\1\W• defense within fifteen days. 1)1\FA"I'> t;rc,)· ,ff..C.'.JA" 3) After fulfillment of the above mentioned con- l!· n,w h14'K" ')O•{l }',')of'K" (?i) (JPl>'lT tTCT ditions, the appropriate authority shall ask the f4'llll\T t."1'1-11 .rhw• lli\P'A"l1 '1--'lf. f"'l.."""- person who has been fopnd responsible for misap- h-/•cD• (tw• IHI'; 'i'',-r 10·{11• oo,:,,{l )'.'}Jl.f'i'C11 propriation of the fund or property of the society to return or pay same with interest including compen- hY:A f,(lm'f'A:: sation and damages. Where the person concerned !:· ,..till" h1-tl.~OD n:\" 1-J!·i\•r n.l!-C!l.A r1-11l\01- is not willing to do so, the authority shall take the (lm• 1•4-1-i:: ,r•: (1:1~ .f'l-•J'.l\(lr'} '111111 mvr appropriate legal measure. 1·fll'l• MmM- 1'1-'l.V-ll" f"'l..m{l~m-1 li"f'i' \\."I/.· 'h'))tOO&\f\ lllf,9° },')~\)~t\ h"lll-fl Yl\lD- PART EIGHT IJ/IFA"l1 f,mJ!.,,<PAi: tl.:J>f..'i; lf'i' '1A1'11 Dissolution ai1d winding up of Societies n"flMl fflm• llt\FA"l1 •l·'lfl.W- ih;J'f! 1'C9°~ 40. Dissolution of a Society },'})tCJJ(\.(- ,r1.C.'.J&\ll A Society shall be dissolved on the following grounds: tJC~A ill/"1..,. I) Where a special resolution for its dissolution is ilt\"'1"111/.-."/• ""~l.il'i' '£ "flFfm•'} M"'l"lt.•T given by the members; or ilt\"'l"lllC (JP<j:('.{l 2) Without prejudice to Article 6 (4) hereof, where 1',1.(- "'l"IIIC ll"'l.h•t-1\"r ll"tn.H'f ,l',tl.C<'IA! the number of members of a primary society falls below ten. ?i· 1'1-'l.J.C{l f).111\."/· Af. m·"lll f\.{\'l'i m.t',9° 3) Without prejudice to sub-Articles (1) and (2) of l!· n14'K' l (~) },')f.·hnll</' ll''i' ODIPl:t''l! "'l"lllC this Article, a society the dissolution of which is htr~ fMl\-t, -1i1·c hnl''C (19':f 11:r f\.A11 decided shall notify same to the appropri_ate f.· flltJ /\1-l'f, '}O•l'I 1t14'K" (ji) }.'i' (!0 }.1.1'.1-mll-l? Authority within seven days from the decision for rneo• }',') .l!- "'l"lllC 'll 1-'l.tl.C{l {I.CD(I') "?IJ(l4- its dissolution. n"lll11 l\l\m- '1t\P'A"l1 f"'/<j:(.{l m-{)llm-1 (l(lfl:,. 4 I. Liquidator 4-,;:,. W-{l'J' "?<\W:P .t','i'Cll:t'A•• I) Where the dissolution of a society has been M'l "111 h"lt decided upon, pursuant to Article 40 of this ?i· lllLIJ M•~ n14'K" -, ,,,,1Pl.-,. 1'1f: "?tJllC Proclamation, the appropriate authority may, 1'1-'l.J.C{l ,\_mr'l1 n"lll-11 ,fl\m- lll\l''t\"11 'l"/11 assign a liquidator. It may, if necessary, 1tn1t ll,oo~•-11 .(',1•1\A:: hl'ltl..1\1. ll''i' 1\.1~ f'l."1.fl determine that his remuneration be paid out of ?t11J/,ID•1 f}'\'IA"l/l•:,- 'I' ;J h"'l"lllS- 'l"/11 1'1.tl ·the accounts of the· society. hJ.A ll,m{l1 .t',1·1\A:: 2) The liquidator shall receive records, documents and properties of' the society as soon as he is l!· 'l"l-11 h"l6tD- },')f.•f•OOJ'.11 f"'ltJ(J,;.'} ODlf"/,fl..,.! assigned. He shall also take the necessary il~P·1·'i' 1-nt.."/· .et.MA:: ll"'/011"· 111t.,f:f'i measures to protect the properties and rights, (JP,(!."/- l\.f, ODll"Ml·l·'i' M p..';f- l\.t', 1--'I..,. 'h1-'l.t',.I'. records and documents of the society from CM0 Mtl.l\•Lm•1 "llCll"~ .t',mMA11 damages. 11i' lint~ )?&t .?IL"I 411'C m; ;1-IJ"tl" f; .,., !iif7li '¼·9"· · Federal Negaril Gazeta-No. 27 29'h December, 19_?8"--Page 953 ,.. f'.i"l:0 b"l4m- e'A"ll'i' :t'7'1C 42. Powers and Duties of the Liquidator· 6· . 'l"1-fi h"l/.lD- \"i."I-ft "7"1&--.:t, J"C~+ h~~-"'1 I) The liquidator shall have all die necessary rmwers fl""lf:l.il "'il'-1\1.m- P'IA"l't· IJoh.- f,'f l.'l'l<•" to complete the winding up proceedings. He shall l"t.m-1 0"7.1'1 flilOL'l,'I" (l,tl\j', t'"'thTh·+1 in particu.lar peiform the following in order to carry fh'i"m-ti' IA I out his duties properly: 11) tl"?",(l~ f"'t.mf+to-1 M ""C9"C l'.M1<1. (a) investigate all claims against the society and . /..ir'J: :,,1..,- ThTA f,mfl'jAI decide on priority of payment among them; I\) M..,O"-'> 11-o•r'i 1-ol;i. f.l'lfl!'IIJAi (h) collect the assel1; of the society; m) M")(l?- ,n:,.1\1\ {HIM 111\1..-,.m- f'l.'"Ml (c) distribute thr.> assets in accordance with the "'l"Jt.:,. >.."1-f: """'l·t IJ-01:'l'r 1-flt.1"1 plan of liquidation approved by the general .<'h'i-'i':I\A• meeting of the soci,:ty: -) f'l''Ml "'IIIJt.--f:1 I"<-· ll"'l.111 /t.U"/..'/.'I"' (d) carry on the work activities of the society in 1\{lt.1\1 oom1 f"'l",IJ?-1 l"t- !'1'1.-'IA\ so far as may he necessary for the proper ,,..) "'f",ll?-1 11"7.""l\h-f: hctir.-l· •t-111t1f, liquidation of the affairs of the society: f,Lrr,11,,1 (e) represent the society in legal proceedings; l) l\'l''Ml "'IIIJt,1: l"t• oo.4'<;:,. MLl\1. {I.fr'} (f) call meetings of the members as may be Ml\1:1 MlflM f.mt,,Ar. necessary for the proper conduct of the I· lllltl h14'lt 1o-it h')4'?,· (/i) (th) ""•Pl.•l· liquidation. 1'1-111.:,. h~'i':A hoP.f.l.'t· f!L·r "'l"rfl?- f"'l.Ll.O 2) The liquidator shall issue notice in a newspaper, lll\Olltr~ (l.,"JH,") "'f{):J•OJ,tf ,f'OJ"lt\11 "'f{l;J•OJ-1:J' hefore the distribution of rroperty of the society hlll"IIH .,,, "f.9"(: Mh 11-1\-l- roe f:l.{l ..,._.,,.,....,_ takes place in accordance with Sub-Article ( ! ) (c) t1A+1.n ,1-111.+ ti'i':'i':tt•1 11.r:.?t:1.11 h1tu 1.n of this Article, that the society is to be dissolved lt 1.l'.1111~1\ f"7.4'C111-.4''f'"'l. oo-fJT »f,'it.111•9"" shall proceed with the di:-;lribution where no claim !'.· f'l''t-0 h"lt.W- f'l."Ml "'l"lt-1:1 f"C'H· >.15'. i;; presented within two months from the ul '-""" 1.;rc1:·> hll.'.J~-r. >."J'l-fl 1\1\ro• •11\rAnn such notice. No claimant shall have a right 1l1e J'+'C'lAI f"'f",ll?-1 ""il''MlT'i MP,1·1 h"!IHl of ,,ud1 iin1ilalHm. .f/tro- lll\l"A"l1 11"'1.fllm- I"'~/,, ,fll.,.'l""lA" ]) Upo:i con:1plctio11 of the winding up pHKicdinp the liquidat.01 shall prcpan' ;md submit frport to ,e- 1111-11 m.<'t9'l·1 Moo•rt-·l- the: approprrnlc authority. he shall deposit the li· 1'1111-fl m,f<l!fl':f· >.h4-t.A 'l''t-fl "'"11,W- r't• records and documents of lhe society in such places n"7.i9"c1H· 1.1L •lll..'.l:t':ro• f'l.''tfl "7.111 ,,.,,,,1..-,. as lhe appropriate authnritv may direct. f-J-""'IA" 43. r:aJJirw on Creditors I· Milo- '11C l\111Ml lll,N:!":f. f"'l"'lll?-""<j:/.ll l) Creditors slrnH he ;laid nn the basis of a ha lance •Vi"lc.''PTO>-; M.1:;t-;fw-•> '-1-':.,fll.+m·1?<; t\"'l. sheet prepared by the liquidalor upon the rnmn1en- mf,-ll-l-9"' 1111-fl Y: :>'i: f"'l.tr"i· ll'r f'.:J!:f!m-11-1.'l.J' cement of his assignment 4'Cll- "'lllm14'<f:.f f,f./."11\:J!'f'Au 2) Creditors shall he informed of the dissolution of the i:· ll"'l"rfl?- ""'111fl°f ro•ll'I' M·M•T '111111 m,l'•tf'':f· society and required lo file their claims with mf,'I" IJ{l,I\ >.\>,:'n t\:J·w+.'I" 111111 m.r-t?':.f suppmting documents. lltl'>"'/1f.. f.11-':ll.9'1· 11.,.'l':I· J',l\ll't:i:q,A., 3) Creditors appearing in fh<" society's records or who l\t\,/1•=,; "11 11:JIL"I f"'1.ID111-•l- '"l{l;J-IIJ<f:.('?'1· arc otherwise known shall be notified direct Iv hv I\O•I\•)- 1.IL ll•t·h:J-;l·f,'r•l- time ,...,.,.. 1.11. registered letter. Notice lo olher creditors shal i h;: oPID•"IT >.ttf1:f11>•i: given hy notice. published in two successive ,!!- f1'.ll111 mN:S"?f'> '!."11-l: ill\011mn:,, monlhly is.,;;ics of,, newspaper, and also i11 Ilic form laid down in \he hy-law;- nl the socirty. Ii· h"'l1fl?- 111111 m.f-1:l"'f ftr~.-,. tiA+h,,A,'fa>- 44. Protection of" Creditors OJf,9" f>.}Ct\-1 '111MI l\oPh.C.A hll.C.1\1. ftr",ID• l) Until the creditors ol 1hc socitty have hecn p;iid rn 111Ml -,.-,.,,,,.,_.. tiArf.l'l 11-,.c h"lt?''f f"'l"r amounts required for payment be deposited, the 114-1 1111.T flht.A9" ll.tr1 l\"'l111Cr<f:,; liquidators may not distribute any part of assets ''Yh'i-.<.A hf.1·1\•'I"" among the members. I· l':J-ta,1::,. '111MI m.f<f:JJ>'f "'l{ll~TW-1 '1..f•l'Cll· 2) Where known creditors have failed to present lbcir N?- },'},!!.tr', f"'l.ht.Nr:ar '11ll11 Ah ll~GY: !VI· supporting documents, the amounts owing lo them llJ•"/). ,,.,.Oll"JA:: shall be deposited according to the decision of the !:· },'}-':.1>-9" '1111-11 m,f-1!9':f. l\"'l.LA'l·T 'l"'t11 court .,.,,.,"l"l"i ftr'.1- 'f'{l:,.'il"°f tiA·t-l'lmNfro• mf,'I" 3) Sums shall he set aside 10 meet the claims in f"'f"r(l.;. 1-fll."f· M14-LA MllO- "l,eo:l·9':.f Mh. respect of undertakings of the society which arc ht.fl· .t'.:lil .,,..,. tiA1·.l'.l.'ll\•r 11.,.£: I\A•rt..l\<1"(1)• not completed ()f whid1 are under liquid;ition "lf..:I· OJf,9" llhChC I\$', 1\1\•T f"'l"rll?- "l!.:!·9'1· unless the creditors are guaranteed or distribution ·l•flD"JflJ"i ftr'r 1'}1MJ Tf.l' ""4'""'1' ht\11-l·:: of assets is postponed rmtrl such undertakings are ii/ f"'/UII?- Ml ·J-tt<j:t\• t11H OJf,'J" Ma>-1 t\""ht.A completed. · 11-1! flf'r 'l'}fMI """'"""l- hrl:nm 11:.V1 4J After the payment of claims have been completed iV'lt.9'":f +t.m-') f"'/111<;.'} 'l'}IMJ l\"'IIJll'r /'illl\-'f· or verified that sufficient deposit for payment has ll"'l.11J;fro- 011m') .fh'i,,'j:1\1\•" heen made, the liquidator:; may di,tribule the assets of the society among the members based on the amount due to them. ,,. IIH~ U.t-A ):>t-r ?IL"I •ll'!'C f;'i, ;l"IJ"il" r; 4''> !ilf'.Ui ,.,... Federal Negarit Gazeta-No. 27 29'" December, 1998-Page 954 '!i(;· "'/"Ille'> ttou111•n (l/\OD(tl'II 45. Cancellation of a society from the Register f'l"'f-11 '"l"lt,:,. P'/.· >.'>f.·N.l'.OD "7"111~ f-t•ODll1 When the winding up proceedings are completed the nn•l- f?"'ilhc wl4'·1· 1'"1'111 f\l\m• 111\r&\"I'} certificate of registration shall be returned to the f,001\/)&\:• h"IIHJ .fl\CD• 111\P'&\"I'}?"' "'/"Ill~'} appropriate authority who shall cancel the registration ttou1111J f,WOI&\" "7111~9" ttou111-0 h-f·wlHll-r of the society, and the society sh:ill, upon the date of 4''} 'f.'/"C' ,n&\ID•'i"ID•'} ,f"J&\ll such cancellation, cease to exist. h~&\llm'°S PART NINE MhChC 1'w(](t'} Settlement of Disputes '!ii· 'l"-'11'-"f'} n>.c:t- i'll\out,Q,lil 46. Conciliation IIIW M'~ J,'}4'?.' '.'!~ f·f•ODl\h1:1' hChC'i- 1\119" The disputes provided under Article 49 of this "1&\'i -'11~-l· h""-l•llFl:w- 11&.1' 1->1,r;,:w- •f"h&•'1/. proclamation shall be heard by a third party appointed ID1'i1· 11"'1.oocm-'t 'l'(H·li' w1'} llbC:J> oo:J'f-r by the disputing parties before they are referred to the nl\lH·:: arbitrators. '.n· M7i9""1&\'." -'liH·

47. Arbitration li· n,urM•~ n1'4'?.· '.'.iii """""l\tt-1::,. Mill.-,. rt- 1) When the disputes provided under Article 49 "'l"lllt•.-,. tu:tir:1· n>.c-l> ,l'l\1\-t: >.'H-'.11'~ 1\1111" regarding cooperative societies are not settled by "l&\'i )I;,;~-} f..4'C'lfl•ll conciliation they shall be referred to arbitration. !l· /\nr..,M· >1iH •f""lllc f"'l..oul,n• aJP"f 2) The arbitration shall consist of three persons of 4:'l't-=i:m- 'f'il•l· lf'i f 0 'f.l'-'lft-'i OD&\tJ9" M" high reputation and impartiality . .fl\:f1V- f,lf'i/\••• 3) The arbitrators shall conduct their hearing and t· f1i9""1&\ .,. >1-;":1,: hChC'l•'} f"'I..M°"-r'i" "7'};;:w-9" fulfill any of their duties in accordance with the •/•"ltJt,:,.'} V•I\· f"'l•.<.?i",,....-,. nc;;:,.,11 ,IJ,h.C I"'~ Civil Procedure Code. P'C'1-r tn"I 001>•t.-l· ~a,-,: ,i- 1'1i9°"/A'i >1-;":f nODt,l·r

48. Appointment of the Arbitrators 1) Each party to the dispute shall appoint one ar- {i· h,l"}.ll'>.i:. ID'/'} }<.'}~ f1i9""1&\'i )Ii;: .(',ODC"IA11 bitrator. The third arbitrator, who shall be the l\7i9""1A'i -'l'°SM: MMll. >,'},4.lf'} f"7.oolmW- chairperson, shall be appointed by both parties. 'f'il1•li' )Ii;: II;>/.- lltY.l\•I:?"' ID1'il· f,ODl"J&\11 2) The appropriate authority shall appoint the chair- l!· (Hl/)11. -'lli'tv-'} i'\0°9"1.'I' IJ•l\1' ID'l'f°f ii?"'?"'',:,. person arbitrator when the parties fail to reach an 1\,1', ,1'&\f.l(I- 7,'}Y.tn (tfl/)_Q f"'l..lf~a,-'} >11.' agreement. n°11111 fflm- '11\l"A"n .(',ooc"IA" ,11- /\'i'i?""IIX'i -'l1H M 0 'l.-f'C(l• hChC'°f 49. Disputes to be referred to Arbitration ill\}'.'}~ "'l"IIIC n'.1?9" ilil.P't-W- nti'tt.- IDf,'I" The arbitrators shall have the power to hear disputes not ill\l"'t-O>- h.t?.?.?"' IJOO•f·l\t1-t IMC:t- .t'f\l\"11--'lf"°f'} settled by conciliation regarding the organization, f7i9""1A 'i" -'lif':il, management, or operations of a society which arises {i· llMf\:,. IDf,'/" (14'~'1" Mf\:,.'i IDf,9" 114't.''l" between: Ml\·} IDh.l\•l· 1Df,'1" 11'1"-r 11+1\~ Mf\-r oo,n:,. I) members or fonner members and members and ii?"' hchc 11"7••f-,,CII· l"IJP°f ootihA f"'I.. ~ti members or representatives of fonner members or hc:tic:, persons claiming in the name of deceased mem- l!· llMf\,f:: ll4'Y.·'f" Ml\-l• ID,l',9" llMf\-r IDf,?"' bers; or ll4'Y.·'l" Mf\•l· IDh.fl•':f IDf,9" 11'1"...,. 11+1\~ 2) members, fonner members or members or Ml\.-,. wt-1'\'l·'i ll"'l"ill~ P't• t,001,.c \\"'1..1: representatives of former members or heirs of ll"'l'iTID-9" if.9"• IIIDh.1\- IDf,9" 11"'1"111~ w&-+li' deceased members and any officer, representative ootJhA f"'l..~ti hc:tic, of the management committee or employee of the r.· 11"'/"lll~ wvr 11r1,. 1'0Dt-c \\"'1..1: ID.I','/" 11"7'> society; or !i'ID•9" f4't.''l" f P't• }'.ODt,C \\"'1..1; "'/'}li'W-9" 3) the society or the management committee and any jf.9", IDh.A ID,l',9" l>'t-+i;: IDf,9" f+J.':'l" if.9" former management committee, any officer, agent f4't.-'l" a>h.A ID.I','/" f4't.-'l" wt,+i;: +ml.ID-! or employee, or any fonner officer, agent or wt,.i\':il IDf,9" a>\1.ll•=tl IDf,9" fl'l"-r ll+I\\~ employee or the nominee heirs or representatives f"'/"111~ if.'l":Y. IDh.t\•l· W,l',9" wt,+7/'"f Ol't]hA or representatives of deceased fonner members or f"'IYI hC:hC; employees; or ~: llt.1f: "'l"illC'," 11"71li'W-9" l\.f\ "'l"IIIC ootihA 4) the society and any other society. f"'l..~<'I hc:hci l\"'IN· l"A"I'} f,'it•T'I'&\" 50. Civil Court Powers of Arbitrators !f· f'i!9""1A'i .11.;""f l'~:,.,h -11,h.C P'&\"11 The Arbitrators shall have ttie same power, with regard n,w M''.i>: t-14'?.' ':')ij ,,.,.,,t..-,. f"'I..:"'- 1--'lf-°f'> n+"" to the cases provided under Article 49 of this l\h+ 9"{lhC'°f'} I\OD'J't.,•l·, "'l{ll1fJP:Y.1 l\"'IM'lfll Proclamation, as a Civilc Court for the summoning of -rM119" I\Ol>illll-r'i 1\.1\9" "7'}l,'a,-'}9" th;J'I! >.C9"1f witnesses, production of evidence, the issuing of orders I\ODW-(tf.• f7i9""1A 'i >;;;"1· f~-l-,h 11,h.C: :Y.1\--r l"'&\"I'} or the taking of any legal measures. ,l','it•T'f'A" 5 I. Execution !li· "'""~"'9" Any decision, order or award made under this mw n'f~ ODwl:,. f"'f.ft•r "7'};;:m-.,.. w-"'t>.1 -l-M11 Proclamations shall be taken as though made by a civil IJJ,l',9" ,fJ.I','} IJ<j;-r,h -lldt.C ':f11-:,. ).'}J'.+l"lm +.f,'l'C' court, and, where appropriate, the courts shall have M'-f\'1. (Ltf'} c;;cY.· 11.·Y.:Y. W-"1>.w-1 -rMII" mf,9" jurisdiction to order the enforcement of any such -OM· 7'M.'-l'.9" f"'lil1f.Y: l"'/:\"11 f,'i&,:f'f'A" decision, order or award. 'llt j/f!l; /..J.l,.t:,. ),'.1/,T ,'.IIL"l <ll'l'C n ;1-U"IP' li' •n !llf'Hi 'H'"· Federal Negarit Gazeta-No. 27 29 December, 1998-Page 955 th ff· IU\(j:CX-11.-l- r,:vrn 52. PowerofCourts lllltJ h'l';e: h'l-,,ii. '!J'f, """'lT llil9'"'1M" >l~H Appeals on the decisions given by the Arbitrators under ll+l'lm tir"fl!.jP"f- l\f. 1-'lf.h"l'lll· M.1..&-A. h<j:1-;;' Article 4 7 of this Proclamation may, as the case may be, <j:CX' 11.-l- mM" ""1"'111~ llhA.A. f""l..1~ flf) 1-'lf.ll'l be instituted in Federal High Court, or the Regional State llhAA. h<t:1-li' 'i:CJ!.• 11.·l· mf,9" "'/"'Ill~ M.~MA High court or the Federal High Court of a city accoun- ""1"11"-t, 1-mt 111n M·"'I f""l..1"S r,n 1-·>.e.lf~ table to the Federal Government where the society is l\t,..,~1,./;\ h<j:1-i;' <j:C:X' n.-l· f."l'l~ ""1-l-l,fl f,;t!l\t,•v: situated. PART TEN h~A hl"C: Miscellaneous Provisions /;\ V. /;\ f. J!.•'} ,'.11.jP":f-

53. Address of a Society :lf.· Ol\ 0 7"'rllC hJ!.•&,?f Any society shall have an address registered pursuant to "'11li't»•9" "'l"IIIC: IIILU h'l'"f: llh'l-,,ll. V. oPo•t:·l- Article 9 of this Proclamation. All services of process, f'TODl!111 hX-&,?f f.',l'J'/;\11 f"'l.l\h•l\T Ol>'J'l,J'jJITJ notices and other communications shall be sent in such "'lll:J-m4!.1'9'°f-c,• i\,/1°1· "111-H"f- 11-tr nrw >,,x,1,.7i address. The society shall inform the appropriate f.l\'1fl•u "'/Ull~ h.(-1,.'7jm•'} {tl\m-'I' IJWl\"I .,,,, •.,. authority of any change in such address within thirty days. m-ll'I' h"l'l-111\l\m- tll\l''l\"I'} ""l{l;rm-l- hl\lH-11

54. Supplying Information :l!i· ""l~ {lfloPilm-l- Every society shall have the obligation to transmit .1','}X, "'l"lllC: h"JIHJ l\l\lD• 'llll"A"l'} M"'I.J'h','m· information to the appropriate authority about the ac- ',"rm- ·l•"lt)t, . ."f· ""l~l"1· f"'lll1-l\l\{j: "11..:t· Mfl-l-n tivities it performs. :ll;· ft,..,~t.-A. htiA. M"'l'J:'J:9" 55. Establishment of i! Federal Organ llt...1..U\ f.l~ f"'l.'J:* 00• f"l,flt.."f· I" 1,. "'l"IIJt..."f•'} A Federal Organ responsible for organizing and rcgis•• f"'l..ff./,"f:', f"'I.ODll''Nl: l"A.m'," f"'l.f'l'f'• 9"C9"C: tering Apex organisations and for rendering training, f"'l•.rf.C"I', i\,/1•1' f-f.-hH1 X'.-YC'.'f f"'l.l'l'l' ft,..,~t-A conducting research and other technical support to hl'JA. llih"I f.'.l:'J:"'IA:: societies may be es.tabli.shed hy law . .e.01 M'"f: , .e.1111•,,; foP-f•>l.e.t.r f.1flT'> Mf,:J· 56. Depositing of this Procl.il.lilation. Regulations and the By- h1t:."f• M"'IJ!.·t."J laws "'71li'm•9" "'l"lllC: ,l',1}"} h'l'"f:• f.'}(l:,i'}t, foP•f·>l.l'.t.J' Every society shall deposit at its address copies of this f.'}fl:,i") .-,,'.(jPT ll"'l"IIH· hX-&-?f h'>>l.11-,; m'! Proclamation, the Regulations and the by-laws, to be 1-'l>l.:t-V. OD(j:.,,J!.• hllll•l-:: accessible free of charge. H· f1-?fH -f-~K"'I. f""lf.lr'I· ih1T 57. Repealed and Inapplicable Laws I) The Cooperative Societies Proclamation No. 138/ Ii· f'Hll.-l- l"t.• "7"111/.••l· h'l'"f: -ll'l'C lif.i!)i/1.iif.t 1978 and the Agricultural Cooperatives Societies ht, f11M,l"'f "111l"°!· r1,. "'l"lflt.,•l- h'l',: <l!'l'C: Proclamation No. 85/1995 are hereby repealed. ·!f?;/Ii!r.iri lllllJ h'l'"f: ·t-ill.'l'l\" 2) No law, regulation or directive in so far as it is f· hll.U h'l'"f: ."JC: f""l..+l'} ""l'}li'm-9" ih"l; .1'.'Hi inconsistent with lhis Proclamation have force or mvr oPODtJ' IIIW M':f: tD-{l'J' IM•onflh-f:-l- effect in respect of matters provided for by this 1·>ll"T -,.~K"'l.~-l- hVi'l.aJ<9"" Proclamation. 2:t· i'""li:nu ~1-21. 58. Transitory Provisions ~- fl"l-111.·l- /"/,, '"l"lllt.•T J-,'l'"f: -ll'l'C Hwt/rnrt I) 'The cooperative societies which have been es- ,,.,,.,1.-l- -t*-ll""m• !IODl"l,-•r l\f, .rtt· f11ll-r tablished and operating in accordance with I"/.• "'l"lllt.,."f- lllLU >,'l']_); """'l·l- 1-"tf.'l'i" Proclamation No. 138/1978 shall be reorganized ,,.e.1,.~ {\•:: under this Proclamation. 2) The cooperative societies which have hecn es- I· ll'lllto!"'f f"l,fll-l· rt., '"l"lllt.-·1- M'"f: -1!-rc ·a·?;/ tablished and operating in accordance with Uif.il•i """'lr -t·'J:-1:""m- ll""l"/.,•l· l\f. J'ft- Proclamation No. 85/1995 shall be deemed to have 1"'1111.."f- l"I,. "'l"'ll]t,.•r llttu i't'l'~ 1,'}f.-t'J:*on- been established under this Proclamation and shall •N'•'l'ltD- llltu t.'l'"f: """'lT l''Mfm-'} .l'h'.' continue to carry out their functions in accordance U,.',"ft-11 with this Proclamation. r.· nrr.u h'>_,,,,.. 10-llh'>.,,,.. (Ii) """'lr f·l·m.,,(l.•l- 3) The societies indicated in Sub-Article (I) of this "'l"lllt.-·l· h'l.e.1,; ·l·f.t..~-tm- h"JIJ,fJ llflw• 'll\1" Article shall continue their operations ho.I.ding their A"!'} Mh""l.""ll11r J!.•lll fHJl,,:fa,.'} ih;J'/! previous juridical personalities until they are reor- (lw•H h",f.J'II· rt-rm-'} f.-,,'l'l\ft-:: ganized and registered by the appropriate authority. ~- >,"1 1111 ,fl\m- 'll\1"/;\"I'} llltu h'l-,,ll. 10-{I (ji) 4) The appropriate authority shall facilitate the con- """'lT "'l"lllt.,-t. 't-.1!.'lt, f""l..f.t..:(11-l-'} rrl-.,➔• ditions necessary for the reorganization of the .r""!Jl!JlA.11 societies in accordance with sub-Article (!) of this Article. 1'1" !IHI U./.·A t;,1.-l- ;,t1111 -ll'l'C fl :J'"l"IP' 1t +'J !HU,.,-. Federal NegaritGazeta-No. 27 29"December, 1998-Page956 !t· "'ICIL'lt"'I..I' ;,.·,-";f- ll/l"'IW-"1:,. 59. Issuance ofImplementing Legislations f&..1.Mt.• DD"}"IP':,0 f"'U,CITC!'°f 9"hC 11.TI fhAA The Council of Ministers of the Federal Government or (1)1,9" -tmt'rt: 1\4.,~t•I\• oo"}'?P'T frn h.,..,., 1--'IV- the appropriate organ of a Region or city accountable to f"'l.ooc\h,t(D- t..l'\A. f,U1 M':E ll"'l.11\ P't.• 'If. l\"'l'l'IA the Federal Government may issue legislations for die f"'I...:..;. ;,,:1-";f-1 "'/(11-fll:t- ,:f11.11-11 proper implementation of this Proclamation. ~- h'I':( f"'I.O'i"ll-r 1.11.

60. Effective Date This Proclamation shall come into force as of the 29'" day 1,u M':e: tt:r1..,.,.... n •nrnmi 'H" l9"r: ro'i" of December, 1998. f,lf'i"&\11 Done at Addis Ababa, this 29th day of December, 1998. NEGASO GIDADA (DR} f./C ~,;:>(11.Jl-'I PRESIDENT OF THE FEDERAL DEMOCRATIC ft..-l-f·k.f &..~t.l\'P. Jt'l"ht•ltf'e tT-111\.h REPUBLIC OF ETHIOPIA T/.,llJl"),r -ocn'i" Mil" "'t·t-"'1.1 ~c:E-.:t· :M•ov ERHANENA SELAM PRINTING ENTERPRIS