Farmers' Association Act 1967 (No. 22 of 1967)

l\·1ALA YSIA Act of Parliament ~o. 22 OF 1967 FARMERS" ASSOCIATION ACT, 1967 139 An Act to provide for the registration of Area, State and Federal Farmers' Associations the control and supervision of such associations and for matters connected therewith. BE IT ENACTED by the Duli Yang Maha Mulia Seri Paduka Baginda Yang di-Pertuan Agong with the advice and · ·consent of the Dewan Negara and Dewan Ra'ayat in Parlia­ ment ·assembled, and by the authority of the same, as follows: PART I-PRELIMINARY 1. (1) This Act mav be cited as the Farmers' Association Short title. Act, 1967, and shall subject to sub-section (3) apply through- !~t~~i::~n out the Federation. menccment. (2) This Act shall come into force on such date as the Minister may by notification in the Gazette appoint not being a date earlier than that on which the notification is published. 1. 13) The-MTnister-·may- by order suspend the operation of this Act in any part or parts of the Federation. 2. In this Act unless the- context otherwise requires "Area Farmers' Association" means an association of farmers of not less than fifty in number formed in accordance with the provisions of this Act or any regulations made thereunder for any area in any State in the Federation with the object or objects of promoting the economic and social interests or well-being of such persons or such class of persons through direct participation; "farmer" means any person who is engaged in the production of agricultural or livestock produce and whose income is derived from such production and includes any person who is engaged in, and whose income is derived from, riverine or estuarine or marine fishing; Jnterpreta· tion. Prohibition. 0r-:ect~ of :\re:.. L,rmer~· .A<-t('C!~~i('n 1-ll) 22 OF 1967 ··fcdcrnl Farmers· Association"' means a confederation of anv two or more State Farmers· Associations in accordance with the pro,·isions of this Act; ·'Minister" means the Minister for the time being charged with the responsibility for Agriculture and Co-operatives; ··state Farmers· Association .. means a confederation of :-in,· two or more Area Farmers· Associations in accordance ,, ith the prm·isicms of this Act. PART II-FORMATION OF AREA, STATE AND FEDERAL FARMERS' ASSOCIATIONS 3. ( 1) An Arca Farmers· Association may be formed in acnm.lancc with the provisions of this Act or any regulations made thereunder. 12J Any two or more Area Farmers' Associations registered in accordance ,with. this Act may with the approval ·of the Re!!istrar· confederate into one State Farmers' · Association~ (3J Anv two or more State Farmers' Associations registered in accordance with this Act may with the approval of the Registrar confederate into a Federal Farmers' Association. 4. No Area, State or Federal Farmers' Association shall carry on business unless it is formed and registered in accordance with the provisions of this Act. 5. An Area Farmers' Association mav be formed for all or any of the following objects: · ta, operation and formulation of extension and training programme for the advancement of agriculture, horticulture, animal husbandry, fisheries, home economic and rural youth; · 1 b J promotion and establishment of demonstration farms and homes; (cl assistance in the condtictirrg·- of farm products exhibitions and agricultural shows; rd, procurement, allocation and processing of farm supplies and daily necessities for farmers; le) provision of marketing facilities for farm and live stock products; If i provision of warehousing and processing facilities; tg) provision of saving and credits facilities to farmers; (/t) improvement of efficiency of farm management; and (il performance of any other function or functions connected with or incidental to any or all of the objectives aforesaid. r.\R~tl:RS :\SSOCIATIOS 141 PART JII-REGISTRATCON 6. <I l For the purr(,scs of this Act there shall be a Registrar of Registrar of Farmers· Associations lin this Act referred to ~!:O~~ers· as .. the Registra(1 who shall he responsible for the regis- tions. tration and supcr\'ision of all Farmers' Associations. t 21 The Dir~ctor of Agriculture. States of Malaya, shall be the Registrar. <31 The Registrar may delegate in writing any of his powers under this Act except section 20 to any person for such period and on such conditions as he thinks fit. 7. The Registr<1r shall keep and maintain or cause to be The kept and maintained a re 0 ister or reoisters which shall Registrar . 0 0 contain particulars relating to the registration of all Farmers' Associations as he m:1y think expedient. 8 . Save as proviJt!d with respect to the registration of State Conditions ·a.11d f::e deral Farmers· Associations· no •'Area· Farmers" ~~~istration. Association shall be registered unless (a) there has been a meeting at which there have been present 50 or more farmers from such area; (b) at the meeting aforesaid there shall have been presented a written statement showing the objects of the Area Farmers' Association and copy of the constitution or rules for the management of such association; and le) provisions in the constitution or the rules of such association include those provisions prescribed in the rules made under this Act. PART IV STATE FARMERS' ASSOCIATIONS SUPERVISING OFFICER 9. (1) There shall -be appointed in respect of every State Supervising a Farmers' Associations Supervising Officer who shall be au th0rities. appointed by the· Minister. (2) An appointment made under sub-section (1) shall be for such period or on such conditions as the Minister may prescribe. (3) A person appointed under this section shall be under the general directions of the Registrar. 10. The Farmers' Associations Supervising Officer shall in Duties of respect of the State in which he is appointed- Supervising (a) advise Area Farmers• Associations and State Farmers• Associations in the State on the activities of such associations; Officers. \kmhcr, nt 142 22 OF 1967 ( b, co-ordinate any scheme or schemes carried out by Area Farmers' Associations in the State; and (cl inspect and supervise the activities of Area Farmers' Associations and State Farmers' Associations in the State. P-,RT V --·MEMBERS OF AREA FARMERS' ASSOCIATIONS / 11. ( I J Any farmer in an area shall be/ eligible to be a member of the Area Farmers' Association. <21 The members of an Area Farmers' Association which is formed and registered in accordance .with this Act shall be persons who have signed the applications for member­ ship on the formation of such association and any other persons who are admitted to membership in accordance with the constitution or rules of such, association. (3) No rights of membership shall be exercised by any member until he has made such payments to the Area Farmers' Association in respect of membership as provided in the constitution or rules of such association. (4) A person shall cease to be a member of an Area Farmers' Association in ·any of the following circumstances that is to say (a) when he resigns voluntarily in accordance with the constitution or rules of such association; (b) when he is deemed to have ceased to be a member by the provisions of the constitution or rules of such association; or (cJ on his death. PART VI-MANAGEMENT AND FUNDS OF AREA. STATE AND FEDERAL FARMERS' ASSOCIATIONS Directors. 12. (I) Each of the Area, State and Federal Farmers' Assocjations shall b.e controlled by a Board of Directors elected at the General Meeting of each such association once every one calendar year and for that purpose and subject to the provisions of this Act or the constitution or rules of such association the Board ·of Directors shall have and may exercise the powers of such association. Cl For the purpose of conducting the business operations of each of such associations, the Board of Directors afore­ said shall appoint a General Manager, and any other officers on the recommendation of the General Manager. (3) The responsibilities and duties of the General Manager, the officers and the Board of Directors aforesaid shall be in accordance with the constitution or rules of such association. FAR~ERS' ASSOCIATION (4) The Directors shall hold office, retire and may be removed from office in accordance with the constitution or rules of such association. (5) The office of a Director shall be deemed to be vacated in any of the following cases that is to say (a) if he becomes a bankrupt; (/J) if he is convicted of a criminal offence involving fraud, dishonesty or moral turpitude; (c) if he absents himself from three consecutive meet­ ings of the Board without leave; (d) if he ceases to be a member of an Area Farmers' Association; (el if he becomes insane; or (/) if he engages in any business which in the opinion of the Minister is prejudicial to the interests of such association. 13. The funds of each of the Area, State and Federal Funds of • f Farmers· Farmers' Associations shall consist o - Association. (a) subscriptions of members; and (b) moneys acquired, accrued or derived by virtue of the powers of such association conferred by this Act. 14. Every Area, State and Federal Farmers' Association Reserve shalLestablish a Reserve Fund which shall consist of moneys Fuod. from the general fund set aside for that purpose and which shall be used in accordance with the constitution or rules of such association. PART VII-CONFEDERATION OF AREA AND STATE FARMERS' ASSOCIATIONS 15. (1) Any Area Farmers' Association may give notice in Procedure of accordance with the rules of such association of intention to ~i~~r~1e~~~a hold a special general meeting of such association at which Farm~rs' a special resolution for the confederation with the other t-ssocia Area Farmers' Associations will be proposed. ions. (2) At the meeting of each Area Farmers' Association aforesaid a special resolution shall be proposed for the confederation and that an application shall be made to the Registrar for the purpose. 16. If any application under section 15 has been made in Registration respect of each Area Farmers' Association and the Registrar off Siate. · · fl d armers IS SatlS e - Association. (a) that the special resolution in favour of the proposed confederation- has been duly passed by each Area P· i 1 ,.1.:durc tc;- CPO• tcd,·r:iti0n .-1 S:at~ Fa:-m.:rs· .-l.~"'l'Ci:t• tions. Farmers· A,~ociation w be body \.'.L':-puratc. P,i~·cr to inspect. Power to •uspcnd and <.h,solve. 14➔ 22 OF 1967 Farmers· Association corresponding in all material particulars with the resolution or resolu­ tions passed by the other Area Farmers' Associa­ tions; 1hJ that the scheme of confederation contained in the resolution aforesaid in the case of each Area Farmers· Association corresponds in all material particulars to the resolution or resolutions of the other Area Farmers' Associations; and 1r1 that the provisions of the constitution or rules of the proposed State Farmers' Association are not contrary to this Act or rules made thereunder he shall rt.:gister or cause to be registered the State· Farmers' Association according to the rules made under this Act. 17. In respect of the procedure for confederation of any two or more State Farmers' Associations the provisions of sections 15 and 16 shall apply provided that for the expressions "Area Farmers' Association" and "State Farmers' Association" wherever they occur in the sections aforesaid substitute "State Farmers' Association" and .. Federal Farmers' Association" respectively. PART VIII-GENERAL 18. Upon registration under this Act an Area, State or Federal Farmers' Association tm shall be a body corporate witlr perpetual suc.c.ession and a common seal and shall have the-power~to enter into contracts · to institute and defend actions, suits and legal proceedings: and to do all '"Things· necess·ary' for the purpose of achieving the objects; and lh) may acquire by lease purchase donation gift devise bequest or otherwise any real or personal property for any of the objects of such association and for such purposes may sell or lease or other­ wise deal with any such property. 19. The Registrar, or any person authorised in writing in that behalf, shall have the power (a) to inspect the accounts and property of any Area, State or Federal Farmers' Association; and (b) to hold an inquiry into the workings of the business and financial conditions of such association. 20. ( 1) If the Registrar is of the opinion that it is in the interest of the farmers generally in any area or State so to do he may by order suspend the constitution or the rules of any Area or State Farmers' Association. I \R'.\lERS AS~CJCIAflO~ 145 (2) As soon as the order under sub-section ( 1) has been made the Registrar shall cause an inquiry to be made in respect of such association in respect of which the order was made or any aspect of the business of such association. (3> After the inquiry under sub-section (2) has been mad~ the Registrar may revoke the order of suspension or order that such association be dissolved as he thinks expedient . . , .. p Subject to any appeal made under the provisions of s~ction 21, the order for the dissolution of an Area or State Farmers' Associ:1tion shall take effect on the expiry of the period of three n~onths after the date of publication of the order. tS 1 .An Arca or State Farmers· Association· affected bv an .orJ1.:"r under th.,s · section shall be dissolved in accordance with the rules made under this Act. 21. Any person aggrieved by any order of the Registrar Appeal. niade under section 20 may within thirty days of the making of such order, appeal to the Minister, who shall confirm or set aside the order: and the decision of the Minister shall be final. 22. During the period of suspension of an Area or State No business Farmers' Association it shall be unlawful notwithstanding ~~:~~~sion. section 4 for such association to carry on any business: Provided that this section shall not prevent the manage­ ment or the -carrying ·or business of such association by any person or persons appointed under section 23. 23. It shall be competent for the Registrar after an order Ma!1agement to suspend an Area or State Farmers' Association has been ~is~~~sion made to appoint any person or persons to manage the affairs · of such association during such suspension until such time as the new Board of Directors or any officers of such asso ciation have been elected or employed. 24. The annual general meeting of every Area, State or Annual Federal Farmers' Association shall be held within 2 months meeting. after the close of each such association's financial year or within such further time as may be allowed by the Registrar or prescribed by the constitution or rules of such association. 25. The Registrar shall audit or cause to be audited by some Audit. person authorised by him by general or special order in writing the accounts of every Area, State and Federal Farmers' Association once at least in every year. 26. (I) The Minister may make rules for the purpose of Rules. carrying into effect any of the provisions of this Act. 22 OF 1967 121 Without prejudice to the generality of sub-section (1) rules made under this section may provide for any of the following matters ( a) provisions required for the constitution or rules of ~\·ery Area, State and Federal Farmers' Associa­ tion; ( h) matters relating to suspension of Area or State Farmers' Associations; (c1 matters relating to the dissolution of Area, State or Federal Farmers' Associations including the appointment of person or persons to liquidate any such association ordered to be dissolved; and tdl the establishment of a National Advisory Body for the purpose of co-ordinating any scheme or schemes made pursuant to any provisions of this Act. ~egularions. 27. (1) The Minister may make regulations for the purpose of carrying into effect any of the provisions of this Act. ~p.:cial pO\\'~r,; c:· :-tini~tcr 10 exempt ir0m requirement~ .15 to rcgi~­ tration. etc. (2) Without prejudice to the generality of sub-section (1) regulations made under this section may provide for any of the following matters (a) the formation, establishment and supervision of Area, State or Federal Farmers' Association and­ the election and dismissal of officers of such associations; ! b, the auditing and accounting system of Area, State or Federal Farmers' Associations; (c) the operation of supervised form of credit programme, and the organisation and function of members' credit standing committee of Area, State or Federal Farmers' Associations. 28. (1) Notwithstanding anything contained in this Act the Minister may, by special order in each case and subject to such conditions, if any, as he may impose, exempt any Area, State or Federal Farmers' Association from any of the requirements of this Act as to registration. (2) The Minister may, by general or special order, exempt any Area, State or Federal Farmers' Association from any other provisions of, this Act, or may direct that such provisions shall apply to such Association with effect from such date or with such modifications as may be specified in the order. I .\K\11:KS AS~OCI.-\Tltl:-,.; 147 29. The Minister of finance mav bv notification in the rowcrto Ga::crre, in the case of anv Area. State or Federal Farmers• exempt from . . l · f h . . d duty or t:ix. .\ssoc1at1011 l1r .iny cuss o sue associations re uce or remit ((II the dut" lH tax which under anv law for the time hcing· in force may be payable in respect of the prolits ()f such association or of the dividends or oth..:r r,,t: m-:nts rccei\·ed by the members of such ,issnciur itin on account of profits: (/)} the stamp duty with which. under any law for the time being in force, instruments executed by or on heh:ili of any such association or by an officer or member and relating ·to the business of such itSsociation or am· class of such instruments are respecti\ely chargeable. 30. t I J No person society or association other than a Prohibition Farmers' Association registered under this Act shall trade 0 ~:c used or carry on business under any name or title of which the ~Far:=n;~~ \\'Ord .. Farmers· Association" is part without the sanction ~ss?.cia f I M . · uon . o t 1e , 1mster: Provided that nothing in this section shall apply to the use by any person society or association or his or its successor in interest of anv name or title under which trade or business has been carried on at the commencement of this Act. t 2, Any person who contravenes the provisions of this s..!ction shall be guilt,· of an offence and shall be liable to J tine not cxcee~ding fifty dollars, and, in the case of a continuing offence. to a further fine of five dollars for each Jay durin-g which the offence continues. 31. The provisions of any written law in force relating to trade unions and the provisions of the Companies Act, 1965, shall not apply to any association of farmers registered under this Act. 32. t I I Any person who ' a, neglects or refuses to do any act or refuses or fails to furnish any information required for the purposes of this Act or any rules made thereunder; < h1 !.!i, cs false information or makes anv false state ~ ment on any matter required under the provisions of this Act or anv rules made thereunder to be ~i, en or made: · <c1 Liils to obey any requisition or lawful written order issued under the provisions of this Act or any rule made thereunder; and Trade Unions laws and Companies Act not to apply. er:enccs. 22 OF 1967 1d1 violates or fails to comply with any other require ments of this Act or any rules made thereunder, ~hall be !!Uiltv of an offence under this Act and shall be lii!hlc w ~, fin·e not exceeding one thousand dollars and, in the case nf a continuing offence to a fine of fifty dollars for t!ach clay Juring which the offence continues. (Received the Rom/ Assem rm the /9,iz day of April. 1967.1