Law on Farmers Cooperative Societies (No. 43 of 1977)

2. In coordination with the General Union Article 2 (IfFarmers Cooperative Societies, t: e Ministry Every society shall hnvo n. name indicating of Agriculture and Agrarian Reform shall pre- to its fnrming cooperative character, head- pare 11 standard regulation 08 aguideline for the quarters, type, and limits of its responsibility. societies in drawing up their internal regulations. Article 3 Article 7 The society shall be comprised from ten It is not permissible for a society to start members and more. to perform its activities prior to advertising its registration by the Ministry of Agriculture and Article 4 Agrarian Reform. Procedures of registration and advertisement shall be determined by lnstrue- Societies shall be divided as follows. as far tions. 8S the financial responsibilities and commitments of their members are concernedt - Article 8

1. Societies with limited liability, where The structure of the farmers cooperative the member is responsible as much as the value : movement shall comprise the following organiza- of his subscribed shares, or as much as is tions: i provided for in the Internal Regulation. I 1. So'eie tires es tabl'IS he d by th IVI ua Is, . d"d e 111

2. Societitls with unlimited liability, wh~re I whic~ shall be either mUl~i-purposes, or s~iali. members, with all their assets and properdes, zed 10 one branch of agricultural production or are jointly responsible for all commitments and economy. debts outstanding against the society. 2. Joint societies, established by two or more societies on the Nahiya (Sub-District) or ArtIcle as Qadha (District) level where there is no Nahiya.

1. The working area of every ·society shall 3. Branch union, established on Qadha be determined by a proposal of the General Union level of joint farmers Coopcrative Societies and of Farmers Cooperative Societies and a decision the Societies in whose working areas no joint of the 'Ministry of Agriculture and Agrarian societies are established. Reform.

4. Local union of fanners cooperative

2. It is nc; permmlsstble to establish more societies in governorates established from branch than one society of the same category In one unions in Qadhas and joint societies in whose area, unless at the proposal of the General Union working areas no branch unions, and soeletiee of Farmers Cooperative Soclctics and the deci- in whose working areas, no joint societies or sions of the Ministry of Agriculture and Agrarian branch union are established. Reform.

5. Specialized societies, establlshed on country level. The Official Gazette No. (27) "... 6.7.1977 tAW~2..S ----

6. Genernl Union of Fnrmcrn Cooper»,- " ill_~ al,d use, in coordination with the relevant Soclotlee, ostnbllshed on country level of ,,1\ authorities of the State. guvernoratos unions and spoelnlized soctctlca G. To carry out agricultural cooperative ertnbllshed on country level. project!'! for its benefit and that of its memb~rs within the ~tnt~; general agricultural plnn and Chapter f policy. i. To provide agricultural production means IJPRT'O~l;S AND TASl{S or rtt« SOCIETl" and organize the collective and lndlvldual benefit. Artlc1e !l t hercfrom by the members. The nctivity of the soclcty covers all activi- 8. Organize the obtninment by the mem- tite's on farming syndicating, agricultural COil pel a- bers of In - kind and cash - credits for pro- tlve production, consumptive of svccessive stages, ductive, marketing, and consumptive purposes, economic and social services, as may be required processing of agricultural products, and estab- by the needs of the members r nd working area, i lishlng rural handicraft industries. in particular the folluwing: - 9. To market agricultural crops and animal products, and provide cooperative marketing

1. Action for protecting the Revolution and rcquisitis such as stores, transport means, bsgs, defending it, resolutely confront conspiracies and crats, etc. intrigues plotted against it, and sincerely and devotedly endeavour at maintaining and inculcat- : 10. To provide consumer products to their ing the Revolution's achievement!'! and gains. . members and open cooperative shops to them.

2. To disseminate and deepen revolutionary 11. To participate in supporting and dis- scmu-uting rural industries and processing of consciousness, :lffirm national and socialist struggle, emphasize the necessity and importance plant and animal products. of organizing the farmers for developing of 12. To participate in providing social and production, increasing natlonal income, improv- cultural services to its members and to its work- ing the farmers economic, social, cultural and ing area, training and rehabilitating its members health conditions, and keep awake performance raising their health standard, and eliminating of their duties. illiteracy among them.

3. To build and stabilize socialist relations, 13. To encourage savings operations and orient farmers towards their fundamental strug- invest the savings in its farming activities. gling role in the Revolution and in building the 14. To appropriate and rent agricultural unified socialist community. st ructures, machines, and implements, and trans- port means for expanding the use of agricultural

4. To educate and orient farmers towards mechanization, and facilitating plant and animal a strict execution of the Laws and Regulations pests and diseases in its working area, in collabo- relating to rural development and agricultural ration with the State; relevant authorities. advancement, deepen the practice of popular control over the relevant authorities, and stabilize Article 10 the basis and principles of democracy in work and production. The activity of a society may be restricted to one branch of agricultural production or

5. To participate in executing the State's agricultural economy, in which case the society plans in the collective and individual land farm- shall be considered as a specialized society. The Official Gazette No. (27) 3 6.7.1977 I~AWS ArtMc 11 l"OUR'rIILY .- The Higher Agricultural The soclcty shall draw up 1\11 annual Council may change the scope of membership ati- programme of Its activity within the framework pnlatcd under Paras. 1.2. and 3 of this Article, if t he development of the farming cooperative of the State: general development plan, and its I11"·..omont :'10 require. membern nrc committed to execute it. Procedures to be taken in ease of broaching thereof shall be Flli'THLY - The Minister of Agriculture dcfil1ed by instructions. rt I'd Agrarian Reform may, at the proposal of the General Union of Farmers Cooperative S, .cieticu, accept tcchnlclann and apecialists ES]'/WUSlflllFJNT OF SOCIETU.'.'~ "M;);Oyl'd in the working area of socletlcs as members therein, provided they terminate, from Article 12 the profcsslonal point of view, their relation with Societies are cstablishod in accordance with 1heir uions. the provisions of this Law under the follo""inri SIXTHLY - Instructions shall organize rules: procedures of establishing societies. conditions FIRSTL.Y - Societies within Agrarian IV~· of membership, and causes of forfeiture th,.. rcof. form Areas; comprises farmers to whom agrarlau reform land had been dlutributed, rented. or managed. III such -ireas, the society may accept 111 exemption of tile prov. riona of Labour to its membership anyone whose land area docs Code and the Instructions issued accordingly not exceed the distribution ceiling, :m:l Iarmers t here shrvll be applied upon :>gricu)lu"':>.l "lOrI;~n'I and agricultural workers dwelling within itsv.ho are members of societies as far as the working area, ~'::CClltiOI1 of duties according on them as mem- I SECONDLY - Societies outside Agrarian i bers of the societies. Reform Areas, comprizing: Chapter 4

1. Cultivators, persons wUh agricultural rela- ! tion, agricultural workers, ami. farmers i ADMINISTRATION OF TIlE SOCIPJTY dwelling in its working area, provided that Article 14 the area of land appropriated or passed to

1. The General Assembly - Is the supreme or under the disposal of an:,r of tho foregoing power in the society and possesses all administra- shall not exceed twice the distribution limits lion and direction authorities, drawing up of the stipulated under Ait'arian Reform Law No. society's general policy, putting plans that aim (117) of 1970. et realizing its objectives, and it may take any

2. Usufructuaries of Agrarinn Reform Law decisions and recommendations that it deems who have no societies in their areas. appropriate and conforming Wit'l the provisions of this Law and the society's internal regulation. THmOLY - Cooperative collective farms within 0: outside Agrarian Reform areas, comp- 2. The general assembly comprises all rising those who share with their work and members recorded in the membership register. agricultural productlon means in investing their Every member has one vote, irrespective of the resources on tile basis of collective ownership of amount of his shares. production means and collective work, and dlat-

3. Instructions shall regulate the manner rlbutlon of income in conformity with socialist of addressing the invitation to convene the cooperative principles and methods. general assembly, its time and procedures. eondl- The Official Gazette No. (~7) 4 6.7.1977 tAWS tlons of the validity of the convention. methods 3. Montes or Iundc and deduct ions sti::'UlatM of objecting to its decislon, nnd action to be for under the internal "l':~ulation. taken agnlnst members for f:dling' to attend ~ho mcotlngs. .\rO('le 17

1. (:1) The share fund shall consist of ArHrfe 13 unlimited member of shares. Provided

1. Every society shall have a Boarr' of I that the number of shares subscribed Directors to run its affairs. a shnll consist of i b:' My member shall not be less than 3 at least five members but not more than nevcn. shares and not more than 11 70 of the They shall be elected by the general assembly tot~11 shares isrucd by the scclety. out of its members by public voting. Af the (b) The internal regulation of the society proposal of the General Union of Farmers Co- shall determine the value of the share, operative Societies, the Minister of Agriculture which shall not be less than two and Agrarian Reform may add to membership Dinars. oC the Board of Directors not more than three porsonn from the assembly members, should (c) The shares nrc nominal, and it i!3 not l,,-,cc~,'lity so require. permissible to transfer or to cede them unless to another member or to a

2. At its first meeting, the Board of Direc- person accepted as a member to the tors sh0.11 elect, from its members, a chairman, society, with approval of the board of vlce-chalrman, secretary, and treasurer. administration.

3. The society's chairman his deputy, or (d) No interest is paid on the minimum whoever shall be selected by the Board of Direc- obligatory shares. It is permlsaible to tors shall undertake to represent the society distribute interest not exceeding 6'0 before the others and the Law in all matters of the value of additional shares paid relating to its affairs and those of the members, in e~~ capital. if they so wish. (e) Every member shall pay an annual

4. The instructions shall ascign the duties ; and powers of the Board of DIrectors, speclallza- I subscription to be determined by the General Union of Farmers Cooperative tion and responsibilities of its members, condi-l Societies. tions of membership and duration thereof (which shall not exceed two years), Causes of forfeiture \2. The instructions shall specify the method and loss thereof, and all that is related to the of paying and refunding the value of shares running of work therein. I as well as adding thereof to others. ! Article 18 Chapter 5 The reserve fund shall eonsist of: SOCIE'fr"S FINANCE AND ACCOUNTS

1. A percentage of net income. Article 16 2. Enrolment fee specified in the internal regulation and the amount thereof deter- The society's finance shall consist of the mined by the General Union of Farmers following: Cooperative Societies.

1. Share funds. Iutcresta nnd due! unelalmed during five' 3.

2. Reserve funds. years from the date of their ma.turity. The Official Gazette No. (27) 6.7.1977

4. Cash, in kind, and OUWI' r.1'!lnt~l. wills, Artlcle 28 asslstanccs, donatlons, The financial year of the society shall O. Any other allocation" which may be deci- begin with the beginning of the financial y~ar of ded upon by the society Ll uccordancc with the State and ends with its end with the exception the internal regulation. of the first financial year, which begins on the date of establishment of the society and ends Artlclo 1!> with the end of the State's financial year. It is not permissible lo dispose of the Article 24 reserve fund unless in extreme urgency, with The society must deposits cash funds in the approval of the members of the general its name with the Agricultural Cooperative assembly, the general union, and the Ministry Bank or its branches in the governorates, except og Agriculture and Agrarian Iteform. for the amounts which the instructions permit their retention in the society's safe. Article 20 Income shall be distributed in the society ! Article 23 according to principles and rates to be specified 1. The society shall keep its accounts in the instructions, provided that the necessity according to the method specified by the to develop the society's, capital should be taken competent authority at the Ministry of Agricul- into consideration and in such determination. ture and Agrarian Reform, and the society must keep such registera and use such cash and pay Article 21 ment vouchers as per the speciemen specified by t1~e said authority.

1. It is not permissible to sell the share oZ the member, mortgage or distrain shares or any 2. The society shall present its registers right he has in the society in settlement of a before starting to use them to the competent debt due against other than the society. authority at the Ministry or to any other authorlty authorized by it for numbering,

2. The society may place under mortgage stamping and approving of the same. a member's shares in the stocks, capital and yield 3. The society's accounts shall be audited and any amount due against it in settlement at least once a year by the authority referred of its debts. It may recover its debts outstand- to in this Article or by a chartered accountant I ing against him from any amount credited to with its approval. his account or due to him. Debts of the society against a member, including unpaid value of , Article 26 shares and subscriptions, are deemed privileged I I The society shall insure its properties debts, and it may collect them in accordance '\' which are subject to risks within the limits. with the Law for the collection of Debts Due to specified in the instructions. Government or the Execution Law. ' Article 27 Article 22 For the purposes of applying the Penal Amounts due to the society shall have Code, the society's properties shall be deemed preference above all movable and immovable as public properties, its personnel and members properties of its debtors other than members of board of Directors as Public Officials, and its and come in sequence after the amounts due papers, registers, and seals as official papers. to the Government. registers and seals. The Official Gazette No. (27) G 6.7.1977 LAWS Al'tlt'le 28 Cllaptcr 6 CONTROL Within the limits specified by the general aasembly, the society may borrow, from govern- Artirle :n ment or other authorities, cash or in kind Cundri ' 1. The relevant authority at the Ministry necessary for the realization of its objectlvcs of Agriculture and Agrarian Reform shall control and milking loans to its members. The instruc- I and inspect the works of the socicty and ascer tion shall spccify the conditions of borrowing tnin its enforcement of valid Laws, Regulations and lending. and Instructions. It may suspend the execution of any decision taken by the general assembly I I or the board of dircctors within fifteen Artie-Ie 29 days from the date of its scrving on it if such decision is contrary to the Law, Instructions, or The general assembly shall speclfy every the society's internal regulation, or contradicts year the limits of the society's needs of credits the general plan of the State. and the commitments to be borne by the society during the following year. Also, it shall 2. The board of directors of the society determine the maximum limits of loans to has the right of objection to the Minister members, their conditions, and intcrests and of Agriculture and Agrarian Reform against the commissions levied therefor or for other ser- suspension of execution within thirty days from vices. the date of being served with the decision of suspension. The decision issued by the Mihlster in this respect shall be considered as final and Article 30 bln.Img.

1. At the request of the General Union Article 32 and the confirmation of the Ministry of Agri- The Ministry of Agriculture and Agrarian culture and Agrarian Reform, the Higher Reform shallnssign CooperativQ supervisors and Agricultural Council may defer the Agricultural inspectors, accountants auditors and specialists Cooperative Bank. Loan and interests due on to cover the scciety's activities and to help it a society for two years in addition to the in performing its tasks. 1rtatutory period of deferment authorized by the Bank and for one time only for each case, and Article 33 to increase the amount of the loan and re- The General Union of Farmers Cooperative arrange its instalments with interests in 0. man- Societies shall set up a specialized body for ner suitable with the so:\~ty's financial condi- controlling and supervising the works of the tions, if there are necessary causes calling for societies, including the provisional unions and the same. In such a case the Council shall the instructions shall detennine the operation guarantee the loan towards the Bank. \ system of such a body.

2. The societies and their unions may Chapter 7 borrow, under guarantee of the Higher Agricul- UNION AND MERGER OF SOCIETIES tural Council, from the Agricultural Cooperative Bank cash or in-kind advances for productive, ArtIcle 34 eonsumer, or marketing purposes, in realization Societies shall associate among themselves .of their objectives provided for in this Law. to establish joint societies in the same manner as provided for the societies in this Law. for The Official Gazette No. (27) 6.7.1977 LAWS rcalizh«; c';'l'tain objccl ivc.: f. ';"'.h;ch it ,;a~; t ,':\111\:17;. . ;'1 ici!,;.tin;: ill th.- itnI'1l'r.1Cl1t.:'ltion establir.hcd. TIll' iusl rucl ionn rllall H!"'cify t.hr- I l>l' agl'icn1lIII :11 productive pln», and all what is method of l'lll1l1ing tho worf:» (J[ the joint m·:kty, !'l,LI:,!',1 1.) t hc development of the plant nnd 011 itR fin:1l1eial nnd admlnist 1':Itlve met len;. it:: n nima] wealth. control, dissolution, nnd liquirl-ition. Arlide 35 The govcrnorat c union shall be managed by

1. A society may merge with another :1:1 C:"'utivc o~nce comprising of nine members society of similar purposc.i b:: a d,'cj,:ion 0. the • a:d tvo a ll-ruatc members elected every three L;cnernl nsscmbly of each anti the approval of yr~:m: 1.1y n ;.:'''I1:'ral assembly consisting of the G:mcrnl Union of Agrlcultura! Coopcrntivo rc'jj,C ut r.tive or ::ocic.tk:;, collective farms, joint ~;ocietics and the Ministry of AgTknltur(' and societi.. , !;Jccinl:st:-:, and branch unions in the Agrarlnn Reform. goven 1u;'ate,

2. Merger doclslons taken by the I!cnc'ral ussomblics of the relevant societies shall be Article 38 deemed IlS e(';l~racts under which the rights Q:HlI1i1 !In:1 governorate unions shall have a obligations, and assets of both fChn 11 be' tl cnsf'cr- juristic persouallty and financial and administra- red to the new societies, tive independence, TIle Instructions will specify

3. The board of dlrectorn of each 01 tho rrocerlul'l"; of their establishment, member- the merged societies should not. dispose of any rhip, Iinancc, method of carrying out their of its affnirs from the date of being served worlc«. ~11'd all 1~:1.ttCl'S relating to th~ manage- with the decision. It should hand over to the 1':.2111 of their affn.irl'l. new board all the society's funds, rcS'i:~tr·l·S. and documents, and each one of the responsible Chapter 9 persons should hand over all documents, papers, (jENERAI" TJNION OF FARlI1ERS instrument, and data in their pcsscssion to the new board of directors, COOPERATIVE SOCIETIES Article 39 Chapter 8 A General Union of Farmers Cooperative FARMERS COOPERATIVE UNIONS societies shall be established on the country level I to represent the various branches and sectors Article 36 of the fanners cooperative movement. It shall A branch union shall be established in every undertake the following responsibilities and Qadhn nnd a local union in every governorate specializations: for the Farmers Cooperative Societies aiming

1. Mobilization and organization of fanner lit assisting the societies in maintaining the mnssea to protect and defend the Revolution. achievement of t.heir purposes, serving the maintain its gains, nnd develop its achieve- interests of their members, defending t.heir ments. professienal rights, providing their production needs, marketing and processing their plant and 2. Disseminate and deepen revolutionary aware- animal products, providing social and cultural ness, impress national and socialist struggle services, participating in disseminating coopera- among the members, and participate in tive culture and socialist awareness among rnem- bringing about the agricultural revolution in bers, drawing up programmes necessary for I the country. The Official Gazette No. (27) 6.7.1.917 Lt\WS ;l, Purtlciputc in pnt.ronizhur t h« intl'n''''', of Artic'le 10 fnrmers nnd d,.ff>nding- t heir rurht», nnd 1. TIll' Gr-nernl Union shall hnvv « C('Hlral PIlI!t'aVO\ll' til rf':dizp tilt' ~tI'1Ig-g-1ing unity Council consistuur of at lenst 121 1111'mlwl'!4, among- their ranks, 2. lis members shall be ('}Pcted in :l ~1'1H'ral

4. I'ar!.icip:lh' in I'xp('ul ill:~ \111' ~latp':.; plnn in runfr-rr-nec comprising' all nu-mbers of the hoards tilt' ng-ric\llturnl spf'\or, of directors of joint societies. spoci» 'Ized ~;llciPlil'::, ornnch unions, and executive oHices of r' d. ItI'pr'eSI'lit till' Inrmvrs coopl'rativl' movement local unions in govcrnoratl's, Duration of member- at horne and abroad. oxcluuu;« coopcrnt ivc sh ip on 1111' said Council shall be thrve ycn rs. l'xl)(>ric!lel'~' strengthen cnlltaet~ with fn r- mors coopr-rnt ivv movcmcut in Arab and 3, The Central Council shall elect from friendly countries, and part icipatc in :,:I'('ng-- among Its member an executivc bureau of 21 tlu-ning' relations among Arab nn t ion count- mrmbcr. The Council shall select from among rie~ and maSSCH cvr.'rywIH'!'e and on all lr-vr-ls. tho members of said bureau a chairman, two Disseminntc and support tho farmers CP- d-put.ies to the chairman, and a secretary ~(>neral. G, opcrut.ivc movement. link Iarr.u-rs m:lssr'S tn it, nnd prepare conscious Il'adl'l'shil' suit- Artirlt- 41 ::hlp for ma Illtg'in~~' till' movomc-nt till sound FIR~TLY. -- The General Union shall have democratic basis, n juristic lH'rsonality and n financial and adrni- nist rat ivo in.lcpondcncc. Its h('adqu~rt(>r!-1 snall

7. Assi;;t th: societ.ios -unl 1111 ions in n':l lizing' br- in the Ca pi tal IBa~htiad City). their P\lI'JI():'I'~;,. espccin lly credit. sup\,]~' and lll:lrkdil1g nt"'I'atiO!lR, SECO.-lDLY - The Union's f'inanee shall consist of; .

8. Art. to' end any disputr-s that. may arise :lI\long- tho structural unit s of t lu: f:l rmors 1. Annu.u gT:UlI:; a llocnted by the State. coopr-rat ive movement. 2. /\ pcrcentnge of tho societies' members .9, Hold seminars and conduct. studios rolatcd annual subscription. to various aspects of the Iarmors cooporn t ive ') oJ. Self revenues of tho Union from its activi- movement, tics.

10. Generalize and encourage socialist contests -1. Contributions and donations. in the Iirld of production increase and TII1Rf.lLY - Members of the cxccut ive optima I !'pl'formnnce of dut il'~ whr-thrr burr-aux. ar d number of members of societies among 1111'ml)('rH of t1w sarn« ~;O('il'LY or boards of directors, branch and local unions, among- socict.ies and unions on ~ov(,l'l1()rat('s and till' General Union, and their monthly allow- and country levels, nnc('; shall Ill' assign.,.l by tilt' Central Council 11, CCDrrlil1atp and link hl'lv:I'('n t h« f:lnn::l;~, of till' GI"",ra I Union. coopr-rnl.ivr-, agricultural f'f'ctor and all n1h,'1' FOURTHLY - The inst ruct ions shall HIll'dfy ~;f'rtor~. till' procedures For ('stahlishin~ the Union, the 1:~. To SU1H'I'vis(' soeidies. includinu gm'('1'noratp l11:lI1lH'I' of pl'1'formi.~g- its duties, exercising; its unions subjected to t lIP provisions of this specializnt ion and its ndministrnt ivr-, financial, Law. nnd render materia! n ml moral a~;sis­ nnd nccount ancy affairs, and all matters relating lance 10 thl'm. 10 th .. 1'1111Itin:~ of its husirwsH, The O!flrial (;:\i'l'\lr No. (~j \ ~I G.7,1n77 tAWS Chal)In 1/1 '1. If till' number of members has become il'!{s than tr-n and iH nnt ~:llJ1J1lpnwllte<l within 1'11' tvn.t«: ,,:s t hl'pl' mont hs. Artidt' ·t·~ Artil'lt· H Soejelit's and unions shall ('nj,)~· th, follow- TIIP Ikei:;jon of dissolution sh-i ll be intimated ing: - 10 the society immediately on its ;:-;!{ue. All pel-

1. Ex('mptions nnd privilegvs enjoyed bv i.idust- sons concerned have t he right to object to such rial projects in accordance with till' provi- a docision b(ofon~ the Minister of Agriculture a nd sions of Dovr-lopmcnt and Oq,:-anizat lOll of l\gral'ian Reform within thirty dnys f'ro.n the Industr-ial Investment Law No. (22) of 1ni :~. date of it s publication in the Official Gazette. rnd any other exempt ions »njoyc: I hy till' The decision issued by the Minister in this industrial projects at the recommonda tion respect sha 11 be finn I. of the competent. authority at. the Ministry of Agriculture and Agrarian Reform and A rtk-le 4:') the approval of the relevant Minister. Mr-mbcrs of a society in rcspr-ct of whom

2. Preference over individunls and 1':·;",11 ,. a tlpcisiou is issued to dissolve it. its managers companies in dealings with official and semi- and ~'mployees, arc not permitted to continue official departments in the event of equal with it(; nctivit ios or dispose of its properties. offr-rs. Aritd(" 46 r1117Jllcr 11 Th" instructions shall regul:1tc the rules and J11'O':~('dllr(,f1 of dissolut ion and liquidation. and DlRROU!TlON AND IJ1QlJlDATTON the method of distribution of the liquidation outcome. and shall publish the decision issued Articlf.' 4:l i.i tr.is respect, A society is dissolvedat the recom- mendation of the General Union and by a Cltapt cr 12 decision of the Minister of Agriculture and Agrarian Reform in the following cases: - PUNISJIMI·:NTR

1. If it is proved that it is unable to realize Artic'le 47 the objectives for which It was established, Without prejudice to any more severe or it was unable to fulfil its commitments. punishment provided for unrlcr the Penal Code

2. If the interest of the general structure of or any other Law in force, a punishment of the Iarmers cooperative sector nccr-ssitntcs imprisonment for not more than three years the dissolution of the society or its mercer and a fine of five Hundred Dinars, or either of with another society. these two punishment shall be passed on: -

3. If it becomes imposaiblr- for a socipty to 1. Members of the board of directors of the continue regularly with its work either f0r society whose membership had expired or the continuous disorder of its work, or that forfeited or who arc suspended from their it has departed from its object ivos and the work, and members of the board of directors principles stipulated by the Law, the instruc- and the staff of a society whom it is decided tions issued thr-roundor. and t hI' internal to merge ...· jth another or to dissolve, if any ro gula ti ()n. one of them rcfrn ins from handing over The Official Gazette No. (27 I 10 1I.7.HI7i LAWS Ilw society's Funds, assets, books, docununt :;, 1. E\'I'r~' society founder, member of its board or P:'(I('I'S in his charge In the l)(,l'snf1s <1 ..1.,· of c1irl'rlm·s,f'mployl'l'. liquirlnt ion or auditor. gatl'd therefor. who ref'rn inorl, wit hout duo (':I usC' nnd wit h t 11(' intr-nt ion to impair till' objectives of Evpr~' momlx-r of the society who, in surh :I t ho sock-tv. from performing a work, or capacity, or in Lh- capacity of Iwill;': <!e!eg:t!I'11 "~;\'cuting an oblijrnt ion, or carrying out an for anothor member, obtains unright lv cash net ion st ipulatcd for under this Law, the or in kino advnnccs, production inputs, or instr-uct iOIlH. or the !ioeil'l y' internal regula- :lI1Y such other proportics and commodit ies t ion. which the society deals with, if such lak.", plnco as a result of dl'lilwratply givini~ ill- ~~. A ny ow' of I hos!' who are ment jOIW(\ 1IIHkr correct data, Pn 1':1. (1) a bove or 01 her mern bors of the sock-tv who deliberately obstructs the works

3. Founders, members of boards of directors, of inspectors. auditors. liquidnt ors, repro- cooperative inspectors, supervisors, a nd sentativc of ~ he General Union and the supcrintendants, auditors, and liquidators. Ministry of Agricultur<' and Ag-rarian Re- who deliber-ately State false occurrences and form, or other public officials who are char- fighl'es about the society in their vork, gl'd with the oxocut ion of t hi« Law, accounts, or ri-ports communicated to t1w rclovnnl authorities or g-encral assemblies, ~:. An~' founder of a sock-tv who practises in if they rcliborntely cancel all or-part of the its name a cooperative activity before the occurrences and documents relnt ing to such publication of its registration in accordance cases. with the provisions of this Law.

4. Mombcrs of beards of directors and those 'I. I, ;':" persons who unrightly entitles the works who issued shares at a value less or higher he manages or enterprises he utilizes such than their nominal value. denomination that indicates this work or enterprise is all agricultural cooperative one,

5. Members 0f boards of directors who g-a\'e or used in denominating his work or enter- loans, presented monies, made cash deposits, pris another denomination from which it is insurance, or discount in a manner other understood that the work or project is a than what is provided for in this Law. til!' society. In such a case 0 sentence will also instructions, or the society: internal regula- pass removing the name and publishing the tion. judgement in one of the local newspapers

6. Liquidators who divided the society's m:~:ds nt the expense of the convicted. among the members contrary to the provi- G. Anyone who deliberately publishes incorrect sions of the Law, and also members of boards reports on the financial or administrative of directors and liquidators who did not situation of the society or 0'1 any of its fulfil the commitments stipulated on them activities. under this Law, the instructions. or the scoloty's internal rotrulatiou. Chapter 13 Artid~ 4R A punishment of imprisonment. for a period Article 49 not exceeding one year and a fine not exceeding 1. Farmers societies. agricultural coopera- two hundred Dinars, or either of those two tive societies, and cooperative collective farms punishments, shall be passed on: existing' currently should amend their internal The OfficiRI Gazette No. (27 I 11 6.7.1977 I,AWS :.-_---~---_._----------- l't'gulation~ in conformity with the provisions of ,\rticll' 51 this Law, and should nsk for t lu-ir rr-publlr-ntion TIH' (}PIH'ral Union of A~ricultllral Coop-rn- within six months from till' cominj; into force t.ivos and the Gcncrn l Un ion of Farmers Soclct.ics of the instructions issued thereunder, otherwise- shall continue with their works until the estab- they become liable to dissolution bv a decision lishmcnt of the Goncrn l Union of Farmer!'; Co- from t hr- relevant authority at the Minist rv of operative :-;ocielies in uccordnnc« with the pro- A~~ricult\ll'(' and f_gTnrinn Reform, '1'11(' inst rill" visions of this Law and the im'ltr"ctions issued tions slm ll sp"cify the procedures for t lu- ro- tl ioroundcr. pu hl i en I ion. ? A roprcsoutat ivc of the Minlstry rf Artlcle 52 Intr-rior shall take part in supervising' the election 1. ~Ypd:lls of appreciation of various gradeR of members of boards of directors of socir-t ios shnll ln- gl':tllh'll to prominont members who nrc and cxocut ivo offices of farmers cooperative dist iuguishcd ill performing their tasks, and to uions, snciot ios a lid unionr who realize considerable nchicvcmcnts in the field of service and develop- Arti('10 50 nv-nt of the Fanners Cooperative movement.

1. Farmers societies in areas whore there 2. The Higher Agl icultural Council shall are ::LI Inrmers cooperative societies shall be draw lip the required regulation for bringing converted into farmers cooperative socict ics in about the contents of Pam. (1) of this Article. accordance with the provisions of this Law.

2. Fanner" societies in areas whore there ,\ rficle 53 agricultural cooj.crative societies shall dissolve ~'he Higher Agricultural Council shall issue and their members shall join the latter, Further- the necessary instructions in respect of all more, all their assets, rights and commitments matters facilitating the execution of this Law. shall be trn nsf'crrcd to the latter, in accordance with instructions to be issued by the General Article s.t Union of Farmers Cooperative Societies. Farmers Societies Law No. (13[1) of 1!J59.

3. The Ministry of Interior may dissolve as amended, shal1 be repealed. Also any text any society which depart!'; from its gpncral contradicting the provisions of this Law shall objectives provided for in this Law. bo cancelled. ThC' Of11cial Gazette No, (27) I~ 6.i.HI77