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FEDERAL NEGARIT GAZETA
OF THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA

5th Year No. 27

h9"il"'~ ~oo-r ck1'C S'%
Oh.-rf-A-.r &..1..t.I\ce .at'fOh/rl'L.rce ~T-ot\.h ADDIS ABABA - 29thDecem., 1998
h.atil hOfl-.+"I"P' S' cf>")Ii1f1li
f ,'h1l-o .,.milf-:f' 9"hC 0.:" mfl<t~-r fmll)

0I/(J}c6liJ, CONTENTS

h'P~ ck'l'C lif~%IIi1f1li ~.9". Proclamation No. 147/1998

f"l-o~-r P'~,IP/"IO/,.:', h'P~ 1R' i1f.~~ Cooperative Societies Proclamation Page 942

h'P~ ck'l'C lit-:'ii/lfifjti PROCLAMATION NO 147/1998

.
A PROCLAMATION TO PROVIDE FOR THE
il" "'-O~-r P'I,. IP/IJO/,.-r fm,q h'P~ ESTABLISHMENT OF COOPERATIVE
.,. 00" "J.'. CJ:I\1-r fl1\:r:1D-{}S":r- 00 il h A 0 SOCIETIES
L"" 1.~ ~:,. 1\f.
f"'OO{}~'" "I'O~-r OooCJ:mC 1")"-{1") t'J1D-cf>-r");")'O~-r")lj WHEREAS, it has become necessary to establish
1-AO-r") OlP/il.,.flOC ~mfl")lj hCil OCil OOf.;J1CJ:")flP/.t.'I'? cooperative societies which are fonned by individuals on
voluntary basis and who have similar needs for creating
f"l-o~-r p'~. 1P/"I0t.-r") 1P/'J:'J:9"hilLI\... OoolfH savings and mutual assistance among themselves by
f"l'O~-r P'I,. IP/"Int.-r O~, 10.r fh.ttlfOlJ. P'C~:" pooling their resources, knowledge and property;
f1.1D-")IP/.lj h").at 6lij.m'l: IP/f.' ~ '1 OIP/ilL" 1-; WHEREAS, it has become necessary to enable
ID-lI'I' "'1
cooperative societies to actively participate in the free
J.'.11")")~I\IP/ "IP/"il-r f"l'O~-r P' t.1P/"I0t.-r fOlJ.f.t.~ market economic system;
O-r")lj fOlJ..,.J;f.-rO-r") f.,."" 1\ ,'h.., IP/ID-Il):" OlP/ilL"1-' WHEREAS; it has become imperative to issue a
Oh.-rf"A-.r &..1..i,.I\ce .at'fOht.{}..rce ~T-ot\.h ,'h1 comprehensive legislation by which cooperative
societies are organized and managed in order to achieve
oo")'1P'-r h")cf>R' !l'(;lliloolP~-r fOlJ.h"'''1D- ;J-ID-~A:: the above mentioned objectives;
NOW, THEREFORE, in accordance with Article
hCJ:A h")1.' 55(1) of the Constitution of the Federal Democratic
Republic of Ethiopia, it is hereby proclaimed as follows:
m:" 1\1\
PART ONE
li' h6f.bC Ct'Jil General
J.'.IJ h'P~ "f'Hl(.:" '"'t.. o'''IOI,.-r h'P~ wt.'I'Clir!!tM 1. Short Title
t\.m<NI~.~fl\A:: This Proclamation may be cited as the' 'Cooperative
nlf:ifi" ''''01\'> Societies Proclamation No. 147/1998."
~.
I
''''C~JJt 2. Dei1nitions
f ". t,1q.O "'1\ 'l'c'""" fOlJ.J'(}mlD- ilAIf~ Ol1+4>C In this Proclamation unless the context otherwise
reqUIres:
nU.1J h'P~ w-.il'P:

,')P,. .,.;J ~;J~T ;JtLlIJ 7"''''.<h. iti'f.?!

. . 4'85
U mt P nce Negarit G.P.O.Box 80,001
1X" !!f~r &..y../..&\ ~:M'}' ;J1L1lJ'I:'I'C '(;'f:.+UPtP' '(;.,.') !!!fj{! 'I.,... Federal Negarit Gazeta - No. 27 29thDecember, I998-Page 943

Ii' ""11nc:" "11\:" fUlU htp~ oPlPl.:" f"'1.t.~'i I) "Society" means a cooperative society established
f.f'oPtl1n f1111.'}' P't. f1111nc:~aJ-::n.,.I\y,9" h'LU and registered in accordance with this Proclamation
n:,' :-".f'Nll.tI~.}'} Y,l.1.1.9°
t.A: and it shall in particular include the following:
U) f1nt..9'1' f1.nl.'} Ft. "11nt..}.: (a) Agricultural Cooperative Societies;
1\) foPLJ/..f fl.}. f'HII.'}' Ft. "11nt.:": (b) Housing Cooperative Societies;
th) fh,'}~l'I'}/.'i ftJf. 'I'f111 f1111.:" Ft. (c) Industrial and Artisans Producers' Cooperative
f1111nt.:": Societies;
oP) flf"1¥1' f1111.'}' Ft. f1111fM.'}': (d) Consumers Cooperative Societies;
IP) f1'}tll1 <hmWi .ny.'c f1111.:" Ft. "11nt.:": (e) Savings and credit Cooperative societies;
I.) fQUf hil;J/'9':-'" f1111.'}' Ft. f1111fM.:"; (f) Fishery Cooperative Societies;
(t) ffllltJY.''} f1.nl.'}' Ft. f1111nt..}.:: (g) Mining Cooperative Societies;
!{. "f.1.nl.'}' Ft. f1111nC" fIIIl\:" (t9'1-- nL:J>f.~~:" 2) "Cooperative Society" means a society established
h.\1LJ"1..ff£'i "11nt.f£ '.y."l~:F:t:lD-') n;Jt. by individuals on voluntary basis to collectively
l\oPl'::":" fD'l..f*<hOD"}''i .ItIfDht."".ff£ fUr~ solve their economic and social problems and to
oP'}1Y.' fD'l,.fl'l"'P,Y.'''''}' f1111nc: ~(I}':: democratically manage same;
!~. "hIlA" fIIIl\'}' fhllA ~.}. oPoPtI~9'1--'} htIJ.A.y.. 3) "Member" means any physical person, or society
f"'oPtl1n fIII'}~(I}'9° °1l\(t11 (l}Y.9" lULU ;""l established under this proclamation which is regis-
oPlJ.'I.'} f.f'**oP f1111nC ~(I).: tered after fulfilling his membership obligations.
!!. "m:"""
.,.11h." OI/I\'} f h '} y" f1111nC h'I":" w y,9" 4) "General Assembly" means a meeting of members
foPIPI.:"f£ (l}f,9° hll.f n"f, .fl\' f1111IM.'} of the Primary Cooperative society or represen-
,,'milf'1' f"1,1')'.n.}' ".'1h. ~(I).: tatives of societies above primary level;
?;. "Af. (I}'Uf)." OI/I\'} nh'I"": "f, hl'l1P,~~'} ~'}Jt 5) "Special resolution" means a resolution passed hy a
'.1.(1}' hh'}Y.' 0I/1nC h'1"')' (I}'il..' no-I\'}' two third majority of the members to be hinding on
Y'il.,.7,:(I}. oP",'f.:" .fl\n.} (I}...n. ~(I)': all members;
'k "fFt. hoPt.C t1"1..';" fIIIl\'}' nm:""" 1.11h. 6) "Management Committee" means a hody elected
,"oPC{l1 f h '} y"'} OI/'~nc F 1..9'1' ~ '}JtoP t. ~,,~. ~:,. and empowered by the general assemhly with the
f.,.nll\ll'} hilA ~(I)': responsibility to manage the activities of the society;
1: "hOll111 .fl\(I}' '1I\FAtlJ,}" fIIIl\'}' f1111.'} Ft. 7) "Appropriate Authority" means an organ es-
OI/'~Ilt..}'} I\fIIIf.t.:~:.} : l\oPoP1'111: FAmCj tablished at federal level, or a bureau or an organ
l\oPilm'}: 9°C9°C I\fllly"I.°l'i I\lbl\"1' 'f;h~ilf£ established for the same purpose at Regional or City
".P'f'"')" .r...~r.: l\oPilm'} n&...e..t.A f.l.;f f.,,**oP Administration level, to organize and register
hilA mf,9° nhAA J'.I.;f f"'**oP n.~ mf,9" cooperative societies and to give training, conduct
nh.,.tII/ oPil"'P'J';C f.l.;f f"'**oP hilA wy,,}9" research and provide other technical assistances to
nh{H;t.f.C il(l}.'}l'IA f"'**oP ~(I}.:: cooperative societies;
~~. "(tm'" fIIIl\'} f"'~.'I'r: (t(l). mf,9° n;,."l f(tlD-~:" 8) "Person" means a natural or juridical person.
oP"l:" f.,.(tm(l}. )',ilA ~(I}.:: 3. Where the provisions of the Proclamation are set out in
t. lULU h 'P:~ (I}.l'I..' nm') .r.' ~:" f,"f. ~11(1}' f(L:"'}9" ~:" the masculine gender they apply equally to the feminine
.fil'}:"A:: gender.
!!. f"11nC '},,0I/9':)" 4. Objectives ofa Society
IHlU h'P:~' oPIJ'I.'} f07.**oP(I}' "11nC tUlU n:":-". The society to be established under this proclamation
)',,}f: (l)f,9° fnl\m' Q"fIII9'1' Y,LJ~:"A: shall have one or more of the following objectives:
h'''''l.tI''.:''
1}-f.limA noPFt..}. f\.(I)lp.:':(I}' f"1f,1''). I) to solve problems collectively which members can
Ii' h'l"'}
:,:ro.'} ")""l~'.1' n;J t. (lDl'::",}>: not individually achieve;
!{. h'1":" .f":':(I}.'} tJro..,..}.: u1H'Cj 1'An.}' nflll"''i~:'' 2) to achieve a better result by coordinating their
f.,.1il\ ro.(J1.'}' OI/off.}>: knowledge, wealth and labour;
t. nt.l'I (lD"'fllloP'}') 0I/1An.}: 3) to promote self-reliance among members;
!!. fhJ11.D'l. :)'.o'~")"'} f1-l"1I11. 'I'I.'}' oPh"hA: 4) to collectively protect, withstand and solve
oP**9° ~ci "1l'l(f)1Y.': economic problems;
?;. 1\0I/9°1.'} f"1..fil~.A1ro''} w'''l.'i fh1A"lI\":" 'P;J'} 5) to improve the living standards of members by
l\oP"'~il h'I"'} fOlU.A1"}''} "ll1h:" wf,9" h1A reducing production and service costs by providing
°If\'''} Ilh~il"'7,: '1':) ~'}Jt.f1')" : 9"C:"T(I}' wf,9" input or service at a minimum cost or by finding a
h1 A °11\":":':(1}' f.,.1il\ f1 n.f 'I' ;J ~ '}Jt!1~ "11:I."l; better price to their products or services;
'k f";h~tJ
tJ(I}..,..}.'} IlF t. "f, I\fIII'PA f"7..filLA l' 6) to expand the mechanism by which technical
tl109'':J'. ~ '}Jtl'l4.4. 01/.r.'I.°l: knowledge could be put in to practice;
 1K" itf~!! t..Y..~-A ~:M"" ;JJI.II}-h'l'C?;i ;1'u"tP'?;"',} IitIU 'J.9". Federal Negarit Gazeta - No. 27 29111
December, 1998-Page 944

%. f<kmllll l1~C i\1A"'/\oT h'}Jl.';l1ClI h'}Jlil~~ 7)

to develop and promote savings and credit services;
"?~I."'; 8)
to minimize and reduce the individual impact of risks
::;;. i\1l1\1: n",I\:fCD- l1.lt-r c:'e> t\.1.Cilll:fCD- f"7.':f and uncertainties;
l\CD-'} 7'.';TlI h. .,.,&- n;J&- n,,?I]t.A fhl'}.';'}~ '} 9) to develop the social and economic culture of the
It CD-7'.'; Tli h..,., &- oP'" '1il I members through education and training.
U. i\IlI\T'} n"?il1-"?ClI n"?ltAm'} "?1n&o«£lI i\.tIc:' 5. Guiding Principles of Co-operative Societies
"7..f«£ lltJA'} "?1AnTII 1) Co-operative societies are voluntary organisations
?;. ,,?tJ(]&-T f"7.oP-rQ:fCD- oPCtf':f open to all persons able to use their services and
ii. f111I.T F&- ,,?1(]&-T i\IlA'1T n"?1n&-1: i\1A willing to accept the responsibilities of membership
",/\oT /\oPm"'9" /\"7.t.A7'lI fi\IlA'1T ",1..;J-sP':f'} without gender, social, racial, political or religious
l\oP"'nA t.:f>1.~ l\tf'1- ltsP':f ll'lt- n~;J-l n"?1n&-«£ discrimination.
MI:9": ntlCl nTl\1;1] i\oPl\l]hT w~9" nY~"?c:'T 2) Co-operative societies are democratic organizations
A~'1T fI~1.I.'" hfi:T ~tfliAII controlled by their members who actively participate
!{. ,,?1(]&-T Tt\.lL n"?CD-tlJTlI CD-fl);sP':f'}n"?il1-I\/\fi: in setting their policies and making decisions. Every
f '1:f> 1-.,., T c:. n "7.11.C7' i\ 111\ T f"7.oP-r Jl 'l"h &- member has equal voting rights and accordingly one
lLl«£ ~C"f:-r-':f lI:fCD-1Ihl'}.';'}~ i\IlA hh-A ~9"'I\
member shall have one vote.
3) Members shall receive devideneds from profit accor-
1/\CD-lLtf,} i\,}~ i\IlA i\,}~ ~9"'I\ 11:F ~c:'I."AII
ding to their shares and contribution after deducting
f.' h TCfi: l\ oP 10 11n <t.fll l\ ib/\o ':f "?1 n&-«£ i\ 1 A ", f\o-r-':f
and setting aside an amount necessary for reserve
1-.,.'}" 1-.,.9" (11 i\ 111\T /\ "?1 n.;. 111.1.7'T oP" ",,"lI
and social services.
i\ il1-" '1\]. oP 10') ~h~.I\ A II
4) Co-operative societies are autonomous self help
~. ,,?1(]&-T hib/\°':f i\I]I\T ;JC (oP'}",FT'}9" 6J!"9"C)
organisations controlled by their members. If they
il9"9"'1T f"7.11.C7'T OJ~9" h"?1n&-:fCD- CD-6J!"
enter into agreement with other organizations; in-
h"7.1~ 9"'}6J!" 1'}fll1 oPn1.C f"7.':flt-T fi\I1I\T
cluding governments or raise capital from external
Jl'l"h&-lLl«£ <k'l''I'C'} n"7.11.;J"''I'li f"?1n&OTCD-'} sources, shall do so on terms that ensure democratic
f &-il (]&-il "?il1-.';1.C oPl1T h '}Jlll'9" f &oil i\111 control by their members and maintain their
I1tJ~CD-') n"?~'11] ll');;J- oPtf'} ~c:'Cn;J-AII autonomy.
?;. f,,?1(]&-T i\IlI\T: f"?1n.;. 1-oP&-",,"':fl f"?1n-r 5) Co-operative societies provide education and
F&- i\ilh.l"f:lI lP&-1-~':f /\"?1n&-:fCD- iJ~1T training for their members, elected representatives,
1-1l1.CD-'} i\il1-"'I\]. h'}Jllnl.h1: T9"tJCTli managers and employees so as to enable them to
FAmli h'}JlI17- IY.C;Jlt-1I ill\111I.T F&- contribute effectively to the development of their
671(]&-T 9",}'1TlI '1':"9" l\,'b1ll1- n1-l\~9" /\wtIJ1: societies.. They inform the general public, par-
1 il1-" CD-:f> A II ticularly the youth about the nature and benefit of
1;' ,,?1(]&-T ni\I]I1l1.: nU1C i\"'fi:l ni\tJ7'C i\"'fi:lI societies.
n~/\9" i\"'fi: 1.1."1;noP 1.&-~ T i\ 11/\°:F:fCD-'}n"7.111 6) Co-operative societies serve their members most
n"?1A1A f111I.T F&- ,,?tJn&-T'} h'}:"il:f>fI. Imll effectively and strengthen the societies movement
h&-lt-II by working together through local, national, regional
%. ,,?1(]&-T 1181.<k,,:fCD- Tt\.lLsP:F:fCD- i\,,?I]~'1T and.internationaJ. structures.
ni\I]I1l1.1:fCD-1\lt-111I.1-ltl1 "I\<t A"?T /\"?9"tlJT 7) Co-operative societies work for the sustainable
f"7.1 il ':fA 1-",11C J"hll CD-liIt-II development of their communities through policies
approved by their members.
hfi:A ll'/\T
il/\"?1(]&-T i\oPlP&-I.TlI 9"11111 PART TWO
Fonnation and Registration of Co-operative Societies
1;- il/\"?tJ(]&-T i\oPlP&-I.T
6. Fonnation of Co-operative Societies
ji. f111I.T F&- ,,?1(]&-T h,}1.fl1tJ~ITCD- hoPlPl.;J-«£
1) Co-operative societies may, according to their
hilh &..1..&-A 1.1."1;nf1.I."1;CD- oP1.&-~T ~':fl\lt- II
nature, be established at different levels from
!{. oPlPl.;J-«£ "?1nc n1-wlt'1 i\1]11l1. n"7. c:'-r w~9"
primary upto the federallevel.
n "7.lP-r OJ~9" n 1- OJIt '1 OD-1 n 1-lt"?';' ", /\It (1':f
2) A primary society shall be established by persons
WJ:tJ:"? All
who live or work within a given area.
f.' foPlPl..+«£ "?1nc i\I1I\T <k'l'C hi\FC t\.1,}il 3) The number of members in a primary society to be
i\~':fA9" II established shall not be less than ten.
~. fIt tJ i\ '}.,. '1\ ') 0- il i\ '}.,. '1\ (f.) h,} 1.1-10 n .,. tf c:' 4) Notwithstanding Sub-Article (2) of this Article, the
fi\,}~,} "?1nc i't.f1c:'''7.1«£ l1:f>T t\.lil1~ f"7.':f appropriate authority may specify in the directive,
l\CD-'} fi\I1I\T oP'17i <k'l'C i\",1l11 1l\CD- Il/\FAtIJ,} the minimum number of members that could make a
n"7..fOJtlJCD- oPoP~.f oPlPl.T t\.OJil,} ~':fI\AII society economically feasible.
1~ Uf~?; ~Y..t.A ~;JtT ;JfLlI)~1'C t;~ ;J-IJUfP't; +, lUln ,.9". Federal Negarit Gazeta- No. 27 29thDecember, 1998-Page 945

?;. ""}'(-""I...OC fi1"C:f"A "If'~"" O"7.1;1If'OD(& 1.11 5) A society may sell some of its shares to persons
(&~ ,,~ outside its area when the society faces shortage of
f-l-CD"" bllJ ",...n~ h-l-**ODn"" ""'11ft
,,~:y. OD1i1f'f,:y."A:: capital.
Types of Societies 7.
%. f",...nt..}. qf,""':y.
I) A society may engage in either production or service
ii' n"}Y: ",...nc f?"C')' CDf,1J"f"1A..,I\""" CDf,1J" rendering activities or in both.
fIJ"C""C;f n 1A ..,1\""" -t'..,I1C f"7.1hC;(&"} l\.(f"} 2) The field of activities to be engaged in by any society
f,:Y'''A:: shall be determined by the by-laws of the society.
~, "'"}~CD'IJ" ",...nc f"'.lPt.n"" f JPt. ODhh nOD-I-.&; 8. Name of a Society
1./,.f 1."}11' f,CD"C;A :: ...1) Any society shall have its own name.
2) Words "Cooperative Society and Limited
;i;' f",'" n C h IJ" Liability" shall appear in the name of every society.
""~(&IJ" ",...nc ODm/,.f hlJ" l\. 'i ~(& f,1flA::
ii' 3) A name or distinguishing mark registered by one
~, h"'"}~(&1J" ",...nc hlJ" OD"-l.~?f "~,,~.,-I: f-l-CD"" society shall not be used by any other society.
f"'11~.}' JPt. ",unc" f"7.~"" ,.,."..,. OD"~ f.'iCfl 4) The name of every society shall be written boldly
T1'A:: and be put at every place where the society's
f.' ""}Y: ",...nc n-l-ODU1'U}.}'hlJ"C;ODl\,r IJ"Ah..,. 1\." activities are performed. It should also be written or
",... n c l\.m"'lJ" n"" "f.:Y' A IJ":: sealed on every notices letters, other specifications
!!, f"'"}~:CD'1J"",...nc hlJ" 1-AU Ir'i -I-~(;: fD7...n~ and documents which are signed on behalf of the
JPI.. n"7."'~.(-n')' nD7"}~(&1J" JP~t. ODl\m~ society.
,,1\ n"" :: ,,"} "lV-1J" n",... n ~ ", h:f" CDct 1 ~"f : 1.11'&; 9. Registration of a Co-operative Society
o.~:y. : I\.I\":Y' OD"'I\6l>}.~"fc; nD7...n~ hlJ" I) Any society shall be registered by the appropriate
n",.cC.~tID' ".,,,:y. "f, OD"~ CDf.1J" ", I-IJ" OD1.~'" authority.
,,1\ n"" :: 2) Any society, when established, shall submit an
application for registration together with the
ii' hl\",...nc 1J"111'1
following particulars to the appropriate authority:
D7"}~CD'1J" ",...nc """H1 '11\(& I1I\JPAlIJ"} (a) minutes of the founders meeting;
ii'
OD0D11111 nl\'}.}' :: (b) the by-laws of the society in three copies;
~, "'"}~(&IJ" ",...nc ,,"}1.'''**OD flJ"111fl "'ODAh (c) names, address and signature of the members;
:FCD" h"7.h-l-I\")' ;JC n.ff." n..,fl11 ,,1\(& fll\JP
(d) name, address and signature of the members of
AlIJ"} .f"'CI1A: the management committee of the society;
U) fODJPt.:('":f. h11"11 .<J>I\
1-flh.: (e) a detailed description which proves that the
:,.:{~:y.:
1\) f",...n~"} OD"''&;1./',r 1."}11 'I'h.}' registered members of the society have met the
th) fD7...n~"} "11".}' hlJ" : "1:t.?fC; ~C",; requirements for membership in accordance
OD) fD7Un~ fJPI.. "ODt.C \1"',-1: "11""" hlJ" : with the provisions of this Proclamation and
- "':t.?fC; cC.Ctlll: the by-laws of the society;
IP) fll'/ "Jn C .). f "7. ODU111'''''
..,
1\"
(1"f (f) name, address and signature of members of the
" 11"nll'/"Jn~
I'" CD'

.UlU "1'~C; OD-I-.&;1./,11."}11 n.,.CD societies above primary level;

(g) plan of the society;
""CD' ODIPI.')' nl1A I\OD(f"} 11<k OD(fC;T(&"}
fll'/..fhI.P,. 11C11C OD"'I\6l>}.~"f: (h) documents showing that the amount of capital
I.) hODIJ.'I.:"if tIIl"Jnc n"f. h(f'l fnflA D7"Jn of the society and the capital has been collected
1...)-1 illJ" : n1:1..7ic; cC.CD7: and deposited in a bank account, if there is no
(1) fll'/...n~"} b:"Y: : bank in the area, that it has been deposited in a
0) fOD'17i ""r::"I\'"} ODm"}C;-I-"11h(1 nfl1h ,£",11 place where the appropriate authority has
designated;
1'1. OD1.~1.1 : 'nh nl\.l\n.}' n"'flo. htr"
OD11;JO.CD' nCD""CD' (1:" OD"'ODm-") fD7.1~
(i) the description of the land on which the society
operates;
;J"'1f' ".,.f.' :
(j) other particulars that may be specified in the
.,.) II'/"J n ~ f D7.1P I.. .}.}. (1:f" OD'" 1\ 6l>}.:
regulations or directives issued for the im-
n) ,f..U"} nl' ~ 1\11'/ h cC:A IJ" n "7. CDm- 1.1 (1"f CDf.1J"
plementation of this Proclamation.
ODOD/"r~:Y' fD7.CD"~ I\.I\":Y' OD"'I\6l>}.~"f::
[,
3) The appropriate authority shall register a society and
"",'1,n ,fl\CD' f11\JPAlIJ1 f.,.~nl\"'" flJ"111fl
OD(f~") (}.11.;1"'1' OI?; issue a certificate of registration within 15 days when
II'/ODAh:F ODC9°r: f"''''-''
it is satisfied that the application for registration
"'C;.). CD'h1' II'/"Jn~"} OD11"'(1 flJ"11111 flJ"hhC
submitted to it has fulfilled the requirements for
CD~"")- f."m1'A:: fUlUIJ" flJ"hhC CDI."''''' "f.
registration.
II'/...n... f-t'ODU1'U}.}' .,."} f,m"'''A::
 "IX-ilf~ t..~t-&\ ~;MT .71LII)<h'l'C f'l: :r1J'1"" 1;"" Iilf:fli 'J.SJ". Federal Negarit Gazeta-No. 27 29thDecember, I 998-Page 946
i

9."
h..,llll fla.m- 1lla."..AffJ'} hoPAI1~,} "7'"10C 4)
When the appropriate authority rejects the ap-
oPoP11111 hf,11lm-9'" fl.A flD(t~ h,}1.If~ 9'"h'}fi:,} plication for the registration of a society, it shall give
n;r,h.fj: n"7~~'" la."7'"1n~lDh.h--~ nI~ 4'e;-:"m-il-r a written explanation to the representatives of the
oP..,la.;r hla.n:" :: f,tJ9'" fl.1f'} fhoPAI1~ "7'"1nC society within 15 days. The representatives may
appeal to the high court which has jurisdiction on the
lD h.h-- ~ m-Pf~m-'} n oP :I" lD9'" f~:OS~:,. FA ffJ'} "la. lD-
decision of the appropriate authority.
fhfj:.,.;;: fj:C~ 0.:" f,..,Il:OS "7la.:" f,~"~::
5) The certificate of registration issued to a society
~" ntltJ h,}4';r '}o-il h,}4';r r) oPlP~:" f.,.(tm pursuant to Sub-Article (3) of this Article is an
f9"1I11l f9'"ilhC lD~4':" "7'"1n~ OtltJ htJ';E-n.,.1. ~ evidence to prove that a society is registered in
11m- oPlP~T f"'oPtl1n la.oPlf'" n4: Dl/il~~ accordance with this Proclamation.
f,lfe;-A:: 10. Juridical Personality and Responsibility
1) Any society registered in pursuance of Article 9 of
I " fib.., (tm-~:"e;- ~"k ~:,.
this Proclamation shall have juridical personality
li) "7'};;:m-9'" "7'"1nC ntltJ h'P;E- h,}4';r ii oPlP~:" from the date of its registration.
h"'oPtl1nnT 4',} "f.9'"r: nib.., f(tm-~:" oPlI:"
2) Any society shall not be liable beyond its total asset.
f,Cf~'PA:: It has limited liability.
I" "7'};;:m-9'" "7'"1nc 11la.m- m:""" ,}1I~:" n"f, nb~ 11. By-laws of Society
"'mfct hf,If'}9'"; ~"k~1: f"'lD(t~ ~m-:: 1) Every society shall have its own by-laws.
, 2) The contents of the by-laws shall include the
Ili" f"7'"1nC oP"'~1.&f 1.,}lI
lie hf'}~'}~ "7'"10C ft-"" oP"'~1.&f 1.,}lI f,Cf~'PA:: following particulars:
(a) name and address of the society;
~" foP"'~1.&f 1.'}o- f,tlT fOl/.h"'~:"'} f,QJ.9'"toA; (b) objectives and activities of the society;
v) f"7'"1n~ '} il9'"e;-h~t-7i ; (c) working place (area) ofthe society;
la.) f"7'"1n~ '} ~""7e;- .,...,IlC; (d) requirements necessary for membership of the
tit) f"71n",-'} fFt- (1:1' ht)lln.h society;
oP) f"7'"1n",- hilA la.oPlf'} fOl/.fnck oPoPtI;;: (e) the rights and duties of members of the society;
~~'}; (f) the powers, responsibilities, and duties of
IP) illa."7'"1n",- h 11,,:,. oPlI:,.e;- ..,1..:1'~~; management bodies;
(g) conditions for withdrawal and dismissal from
~) illa."7'"1n",-hoPt-C hl1":" FAffJ'}: ~"k~:,.e;-
.,..., 11C ; membership;
(h) conditions for relection, appointment, term of
(t) 1\11":" h"7'"1n",- illa.OI/.lDmn:,.e;- illa.OI/.lD1~n:" office and suspension or dismissal of the
v-~:1'; members of the management committee or
if) illa."7'"1n",-Ft- hoPt-C ttOl/.1: hll,,:"e;- ibh--~ other management bodies;
f F t. ~"k~~ 9'"C6l8l: n:oP:"e;- f F to 'Llf. (i) conditions for calling of meeting and voting of
h'} -'llJc9'" h~"k ~:,. illa.0I/.;t'1~n:" lDf,9'" illa. the society;
(j) allocation and distribution of profit;
OI/.lD1~nT v-~:1':
(k) auditing;
4') illa."7'"1n~ illl(t1l hmt-C : illa.~9'";r oPilm:" (1) employment of workers;
oPlI:,.e;- illa.~9'";r h(tffJ-r;
(m) other particulars not contrary to this
n) illa.:"Cfj: hoP~1.lIe;- hfj:fj:A; Proclamation.
.,.) illa.'l",l1 9'"CoPt.: 3) By-laws of a society may be amended by the special
T) illa.lPt..,.;;: h4'ffJmC; resolution of the general assembly. However, the
,.,) f,tJ'} h'P;E- f"7f,:I"~'" ibh--~ 1'~f"~:: amendment of the by-laws of the society shall be
,}1I effective on the date of its submission to . and
r" f"7'"1nC (ID"'~1.&f 1. nm:""" 1'1lt.. A ~ lD-Pf~
registration by the appropriate authority.
ta..7i7iA f,~"A:: IfCf9'" "7'};;:lD-9'" foP"'~1.&f
4) Where the Society decides on the amendment of its
1.') 11 "77i7if ta..~ fOl/.~ la.m- h.., 1111 "la.m- 11la."..
e;-
by-laws three copies of the amendment and the
AffJ'} 4'C(1 h"'oPtl1nn:" 4',} h,}il-f ~lfe;-A:: special resolution of the society made in accordance
(j" f"7'};;:m-9'" "7'"1nC foP"'~1.&f 1.,}lI h,}-'l7i7iA with this Proclamation shall be submitted to the
fl.lD(t') f"'1.~1m- "77i7ife;- ntltJ h'P;E- oPlP~:" appropriate authority within 30 days from the date of "
f.,."la.L f"7'"1n~ m:""" 1'1lt.. A~ lD-Pf~n"il:":":( the decision.
.,.1.C'''' m-"'~lD- n"'''la.L nIP"" (r!)) 4'e;-:,. m-il-r 5) The appropriate authority shall register the amend-
1\..,1111"la.m- 1lla."..AffJ'} oP:"~lI 1\la.n:" :: ment and give evidence or its registration to the
society where it is satisfied that the amendment of the
h..,llll fla.m- Illa.FAffJ,} f"'1.~1m- foP"'~1.&f
~" by-laws was made in accordance with this
1.,}lI "77i7if f,tJ'}'} 1\'P;E-e;-f,tJ'} h'P;E- la."7ilL~9'"
Proclamation and regulations issued for the im-
f lDffJ'} 1.,}1I f"7~:I" ~ '} oPlf.,. '} fl.f ~;J"'T "77i7i plementation of this Proclamation.
fm-'} f,oPtI..,IlA: "7il~~9'" la."7'"1n",-f,(tm'PA:: 12. Amalgamation and Division of Societies
m-tJ1.:,.e;-oPh~LA 1) Without prejudice to Article 6 (3) and (4) of this
I~" illa."7'"1nt-:"
lie ftltJ h'P;E- 1\,}4';r ~(r) he;- (!!) h'}1."'mn4' IfCf Proclamation, the general assembly of a society
1\,}~ "71nC nm:""" 1'11'\ A~ lD-"'~; through a special resolution may form a new society:
.,x. !!f~'!% &...('../..1:\ :J/.:/' :JlJ,f', '/:'I'C: 1,%;"U"IP-' r;' 4'1 mtUi ,.9". Federal Negarit Gazeta- No. 27 29thDecember, 1998-Page 947
"

0) /'.I""} 110.1\:,' my.'}" h/U' Ill\YJ Illn "710t-"" (a) by dividing itself into two or more societies; or
l\.h'r.(,:A : my.'}" (b) by amalgamating itself with one or more
1\) h}','}J!.' (l)YJ')" hl/.J' Ill\YJ tun. UI/..,Il/.."" ;JC societies.
II (lotp,/ Y: }',J;.ft ili/'We: l\.OOfJ,'e:'} 2) The special resolution on the amalgamation or
y:.rl\A:: division of the society shall be effective on the date
~. fill/'Hle: (IDtp,/ .r: my.')" (IDh'r.t.A A f. (D'''1). 'h~!I"7. of its registration by the appropriate authority upon
f iI?1I' 'I (I)' : verifying that;
0) f'II/,W';.}', '11\:,.Ii ~\P, m,r'~?J"}" f'l"tlt.l\:':CD- (a) the members and creditors of the society fully
m,f!.9" 1l(l°h'r.t.I\' f".ftUl/(/D'Il')' : aJ~'}o agree to the amalgamation or division; or
1\) .f!A".ftil?tlU. }',III\:"'i ~\P, m,r'~sP1' f,t-ht. (b) the members and creditors that do not agree
1\:':(1)' (l)Y.')" ft'(,:,f! tpft:"'i f".(}n.,:,:CD': have been paid off or their payment is guaran-
(/011",. "'I.:J"ll" teed.
A f. (f}""').CD' it°l'l," 'M CD'
I)l\rAflJ') (}.(lo".,..1 'ICD':: 3) The previous registration of societies shall be can-
t. Ilm.tJ.l'.:,' f".t.ml.(I)' ili/'We: (}.ooll'..) aJ~9° it1Y: celed from the register as soon as the newly formed
f.,IlI.(I)' UI/'~Ile: (}.h'r.t.A f.,.t.m';")' "7..,n&."" society by amalgamation or by division are regis-
tered.
(},tID".,n' f"'.r.'quCD' uy..,n&..)' CDf,'I" "7..,nc 'l"1"lI
4) The rights and duties of societies which have lost
YJ.J.Il.t/A::
their identities by amalgamation shall be transferred
!~. nCD-tJf.1: :hACD-'i:fCD-'} fm "710&."" ou'"""'i
to the newly formed society.
"'Y..:"sP"f "-'th I\-t-LmlCD-0I/10C f,-t-I\I\4.t\-::
5) The rights and duties of a society which has 16.stits
?;. nouh4.t.l\. ihAlD-'ilD-'} fntlD- "710C ou'"""'i
identity by division shall be transferred to the newly
"'Y..:"sP"f ntLtJ ",}"'1\ '}o-h "'}+1\ (ID oulPl""
formed societies as specified in Sub-Article (2) of
fl-t-ouII,fllD- f"71fl';' A f. lD-"'~ I\f, fl-t-oul\h-t-lD-
this Article.
1'C1'C ODlPl"" ",-'tft CDY. -t-**(/D<"" "71fl&."" PART THREE
f,-t-I\I\4.I\'::
The Rights and Duties of Members of a Society
h~A ~h""
13. Requirements Necessary for Membership of a Society
f0l/1 n C it II1\"" ou'"""'i .., Y..:r
Any individual may become a member of a society
If.' f"71flC it')A I\outr') fOl/.fflch o-~:rsP"f where:
fOl/.h-t-I\''''''} fOl/..ftIJ.I\ "7'}~lD-'I" (}lD- f"710C itllA 1) he has attained the age of 14 if it is a primary
I\outr') ~"fl\A; society;
oulPl:rre OI/~flC htr'l b1:"7.lD- 19. ~ou..,. fqol\CD-:
ii' 2) he is able to pay the share capital and registration
~. f"71n.;. '} bnt I\ou..,t,""'i fOUOU1"l1.f h~f fee required by the society;
l\ouhLA fOl/."fA: 3) he is willing to implement his obligation and
t. f"7..,fl';''} ~I\OI/'i ou-t-P,Y.(,.f Y.'}-n f-t-+Ol\'i ..,Y..:r observe the objectives and by-laws of the society;
sP:t:'} I\OUL1.'I" t.:J>Y.~ fl'': 4) he fulfills other requirements which may be
!~. ~'}-'to-'I" f,tJ'} ittp:E- l\"7hL1.'I" flOl/.CDm"" specified in the regulations and directives issued for
Y.'}P"f'i ouOU(,.fsP1' f"7.CD(}). o-~:rsP"f'} the implementation of this Proclamation;
fOl/..ftIJ. 1\= 5) it is registered with the appropriate authority if it is
?;. houlPl:rre UI/'~ne: Ill\YJ tun it"'II)," lIl\CD- lIl\r a society above the primary society.
Ant'} f."ouW,1l III/'~Ile::: 14. Rights and Duties of Members
I§' ",,')1\')' (ID'n.}li "U!..:,. 1) Any member of a society shall have the following
Ii' Uln~:(1)'')'' f'll/'We: }',IIA f"7J1'/'I\"}' ou,".y."f rights:
~'i';':"A: (a) to obtain services and benefits according to his
0) III/,W';. flli/.(}m")o'} "/A.'J(\"'}'l' 1':"'1" participation in the society;
f'II/"rf :,.: (b) to participate in the meetings of the society
1\) Il"l/'W';. .,.II'~.9"'}" I\YJ f(IDilt.A'i 1:'1"1\ and to vote;
f(lpftm:" : (c) to elect and be elected;
Ih) f(/u'}" l.'I"i f(/p(IPI.'I': (d) to withdraw from the society on his request
(lp) '1'~"lu:,: .I"tHII.(I)'I\'} n'l"r<I:CD' oulPl"" with payment of benefits.
h"?'~Il';. f(l"(}'ill:" :: 2) Any member of a society shall have the following
~. "?'}i;:(1).'}" f'll/'We: }',IIA fUl/.h"'(\"} "IY..:"?J1' duties:
Y.I;'';':''A: (a) to respect the by-laws, directives and decisions
0) f"l/'W';.'} (lIJ"..IL\'.("f! .\':}-I) : (ID(ID(,.rsP"f'i of the society;
(I)'''/),9'''}'' flll/tIlIC: (b) to perform those activities which ought to be
1\) WII/,W,;. (lP.,..IL\,./.,(1 Y.'}-I)li (IPl/p("r oulPl"" performed in accordance with the by-laws and
f"l/.W';. p'/..9'"'}"') f(/P/"/..,)' : directives of the society;
Ih) f/)tlJli f(,p(,w""Il..f! t'(,:,r9"'}"'} f(IDhLA:
(c) to pay for share of capital and registration fee;
(lp) ftJI/'W.;.'} f:J/.. '}-III.'} flID'HI')h,n:: (d) to protect the cornmon property ofthe society.
15. Dismissal from Membership
H;' hitI)A":" ftl\(/p(}'in:,'
I) Any member of a society may leave the society on
ii. illn~:(I)'9" }',IIA Il/..(}' t..<J>.r.' hUl/..,n.;. l\.CDnt
,f!J :}"I\ A ::
his own intitiative;
 1~ jH:~;~';t..J!D~.A ., ."Jk1- ."JIIJ" 'I:'rc ?;'~~;J"U",P'?;' +1 Iv.11?i 0,'9'" Federal Negarit Gazeta- No. 27 29th
December, 1998-Page 948

~. UI/'};;:w'9u hIlA IH'Y,;J;JD7, "'Yo:"9'':j"1 f)t\D7 2) Any member of a society may leave the society
tHI~ en~9u nUll'W~" I\~ 'J''I-')' nOD&,KOO- when it is decided by the general assembly to
9utn,f')' hUll'~n~, ~1JtaJlJ} nm:'>1\1\ 1,f)'t dismiss him from the society because of commit-
t\.en(rH)-)' f,:}"I\A:: ting repeated faults;
,~~ hUll~n~" f,,.,,eiIH' D71;;:w'~ hIlA fD7~n~ 3) The rights of any dismissed member shall be
(/D"'P'Y,~.f Y:HI nD7,&,:,>y,w' ODlPt.T OD1H: respected in accordance with the by-laws of the
society;
,e.{nn:'>t\:"A ::
4) Without prejudice to the provisions of Article 13
!~, nUi/'};;:w'9u 9uh1,r.),
f',."C;IH' hIlA fllU hereof, any dismissed person may reapply for
~,cp~~-:.
h14>7, :O~.r.:'};J'l.9'":t',~1y,""mn<l: rnw,
membership. However a member dismissed in
"'ODAf"I h'lA t\OD1f1 f,':j'I\A :: rr'i~ lULU accordance with Sub-Article (2) of this Article
X'}4>7, '}o,fl h14>K' (~) ODlP/.')' f.f-(.C;n.,. may become a member of the society only if he
~,IIA "'(IOAf"I h'lA t\OD1f1 fD7,':j,t\w, nm:'>1\1\ obtains the approval of the general assembly.
'I.f)~. w'''n fI,&,4>Y.:t\.} 1lr ~en':: 16. Payment of Shares
';1..
, flt\6CJ} he,; .r I) The capital which enables the society to expand its
{i. UI/,}~:w'19u fIIl~ne; t\ODODflt..),C; P't,w'1 work activities shall be obtained from paid up
t\D714'
shares of each member in accordance of the
"4>fl fD7,ffl':j,t\av} f'l'C:"A ODm1 m:'>1\1\1-f)'tw' decision of the general assembly;
nD7,fl)fl~w' ODIJ.'/':" h~.f1P'1P,. hIlA f6CJ} hlJ:,f 2) The society may sell additional shares if it is found
f,flHflIIA:: necessary to promote the financial capacity of the
~. fUll'W~,'} f11l1.n ~,:'>9u t\fIIlP,nc hfl&.I\'L rr'i fl.1:'; society subject to the decision of the general
~'.' nm:'>1\1\ 'I,f)~ fI,enfl'} "'{,"1.fIIl~ 6CJ}9'':j" ODif'J' assembly;
f,!f.I\A:: 3) No member shall hold more than 10% of the total
e. Ulrg:w'9u hIlA h'l'1imw' m:'>1\1\ f6CJ} ODm1 I% paid up share capital of such society.
17. Register of Members
nl\~ .r.'e;1it\. 'i /.w' ~,f,:}"A~ ::
Every society shall keep a register wherein shall be
Ir: flt\hlll\'} (10111.,1 entered:
fIIl1;;:en'9u fIIl~nc fD7,h."t\")'1 l'Cl'C f,f" fhf)I\T
I) the name, address, occupation, age and sex of each
ODl",.,1 UllY,t.~f.'}(i OD.rl' ht\n.)-: member;
{i. f}"r1P,1P,.1 h'lA fl9u: hy"t.'7J' : P't, : 6Y."D7S 2) the date on which he became a member or ceased to
~:h be a member;
~. hf)A frnn.)"} 4>1 ~(i hIlA H:1 ,f!l:/.mnT1 4'1 :
3) the amount of shares held and the registration fee
t. f},.f1P,1P,.1 hIlA f6CJ) ODm1 ~'.' fODOD1'10,f paid, by each member;
4) the name and address of the heir of the member;
hr';.f:
5) any other particulars that my be specified in the by-
ii. f~.f1P'1.';.1 hf)A lDt:1i fl9uC; hY.'t,'7J':
laws.
?;. nOD"'P,Y,~.f Y,10' f'I-lDfI~ /bt\,,':j, l'Cl,c:'f1 :: 18. Voting
It. flt\ y"~ft. hfln}'J' I)
Every member shall, regardless of the number of
{i. UI/'}~:W'~ hIlA ,ft\w' f6CJ} ODm1 h"'~,)' lD-fl'J'
shares he has, have only one vote at the meeting of
,

"f,1'1 nfl11f1f) I\f, "'1;~'f' ft7lJ.flmw' y"~?t' h1Y.: the society;

.n!]: ~lfC;A::
~. fIIl1~:w'9u fODlP/.:"lf Ull~nC hf)A nfll1f1f) I\f,
"'1;~'f' t.fI' y"9ulJ ODflm:" f,'icn:"A::
t. hODIJ'/.:"lf fIIl~ne; nl\~ I)t\-.), Y,t.;f ft7lJ.!I:!I:~
fIIl~nc y"9uft' fO:',flmw' IH,en'lf'':j, ~rrC;A::
:w. "CJ}'} enf,9u 'J':'>~1 flt\fIIlfl','I\t\lJ:
(i. UI/'}~:W'~ h f)A 6CJ}w'1 'en~~ 'J':,>00-1 t\D7fl.,.I\t\lJ:
fD7, :}',t\w,:
u) 6CJ}w'1 en~9u '1':,>00'1 hh1Y.' ~ODT I\I\~fI 'LlL
~ll'} f<f.f fI,lf1: ~(i
t\) fflllfl','1\t\4, ."ol'le; nP't, hODt,C 1'1177,1:
f"'&,4'Y, flJr1 ~w'::
~. h1.f: fODlPt.:"lf Ull~nC h'lA fI.qu.), 6CJ}lD-en~~
'1':,>110' nflll~n~ ODl'1.n w'fl'J' nent:1i~')' t\flfODlD-
en,e.9u o:L~ flJt:1i ,fAflfOD hrr~ nih.., t\ODlD-t.fl
t\D7,:}"A ent,a: f,','I\t\'l-A:: ~U~ ft7lJ.rr~lD- mt.a:
fflll~n~ hIlA tun m~~ t\ODrr1 &.:f>y':';~1:1
h.,t\K ~w'::
2) Every member in a primary society shall personally
be present at the meeting of the society to cast a
vote;
2) Every member in a primary society shall personally
be present at the meeting of the society to cast a
vote;
3) Members of a society above primary level shall cast
a vote through their representatives.
19. Transfer of Share or Benefit
I) No transfer by a member of his share or benefit in a
society shall be valid unless:
(a) the member has held such share or benefit for
at least one year before he transfers;
(b) the transfer is approved by the management
committee.
2) On the death of a member of a primary society, his
share or benefit shall be transferred to one of his
heirs des.ignated as such in the register of society or
failing such designation to his legal heir at law, and
where such heir is a member or is willing to be a
member.
.,~. v.r.~v. ~Yot.&\ .,;MT ;lIL"' <h'l'C ?;?; ;rUUfP'?; +, !v.r.jfif}.9'" Federal Negarit Gazeta- No. 27 29thDecember, I998-Page 949

IDt.if. ftllJ"In~ hflA ttAIf~ 1Df,9" hflA l\(1IJ1f1 3) Where such heir is not a member and does not wish
r'
ftllJf,LA<1 1Df,9" ftllJf,&..,>1:l\:" hlf~ f".t:t: f~1IJ1D- to become or is not admitted as a member, he shall
tp;J 'h'i 1':"9" f,h&.l\tpA:: be paid the value of the share or benefit of the
deceased member.
~. fUU' h1+1\ 1{H\ h1+1\ (I) (1IJ1P1.:"~IIJ CDf,9" 4) If the shares or benefit to be transferred to a member
1':"9" ftllJ...""l\tt:l\'r hf1A ~IIJID-.UltJ htp:E- h1+1\ under Sub-Article (2) of this Article are found to be
Ii!r! f"'ID(1~1D-1 11..n ftllJ..fAtt: Iftj f1.1~ Af.H: beyond the limitation prescribed in Sub-Article (3)
n11t1-f1 f,hLl\CPA:: of Article 16 hereof, the member shall be paid the
?;. fHLtJ h1+1\ 1o-i\ h1+1\ (I) (1IJ1P1.:" f.,.1.1.1 difference in cash.
tIIJi\ .,." l\ tt: IDf,9" tr tt:.f Y' i\.,. ~ CD1tj"f ntllJ"I n ~ "f, 5) The transfer or payment concluded in pursuance of
Sub-Article (2) of this Article shall not be reversed
ntllJ..f+C(1-:" 'I'.f4: 9"tr1.f:" hf,ifC9"::
due to the claims paused by third parties on the
trtt:A ht.:"
society.
i\l\h(1lJt.C htt":" PART FOUR
~. i\l\tIIJ"InC fn"f, httA Management Bodies
ftllJ1~1D'9" tIIJ"Inc fn"f, h t}A ftllJ"In~ m:""" ,..f1h. 20. Supreme Organ of a Society
f,lf'i A :: The supreme organ of any society shall be the general
assembly.
~ii' fm:""" .,.flh. r'AIIJ1'i "'<1fIC 21. Powers and Duties of the General Assembly
fh11: tIIJ"Inc m:""" 1.flh.:
The general assembly of a society shall:
ji. ftllJ"In~ 1 hm.."f, f r' t. 'h1:"i\.+fI.?J"f 'hf1(11J1(11J I) pass decisions after evaluating the general activities
lD""~?J"f1 .fi\"-"A4$.A : of the societies;
I' ftllJ"In~1 (1IJ"'~f-/..f f.1.,1'i ID-i\m 1.1-f1.f01:.+A; 2) approve and amend the by-laws and internal
h(1lJt.C \"1"7.i: : f-l:1''I'C \"1"7.i:'i
i:' ftllJ"In~1 fr't. regulations of the society;
ff\.f\"-:'" 1o-Pf1 \"1"7..f;?J";f. hfl":" f,(1IJCIIJA : 3) elect and dismiss the members of the management
f, ?it.A : committee, control committee and when necessary
the members of other sub-committees;
9.' ftllJ"In~1 f'hllJ (1IJm1 f,CDi\'iA : 4) determine the amount of shares of the society;
?;. ftllJ"In~1 f.,.lIJt. '1-ctt: 1:A1:A f,CDi\'iA : 5) decide on how the annual net profit of the society is
n,£Pf.,1 9"C(1IJt. /.7'c'1- "f, ID-Pf~ f,(1I1JA : distributed;
i'
~. fr't. tr11D-1 /.7'C.,.";f'1 .f'&;9"IIJA: "'1ft1D-1 6) give decision on the audit report;
CD'Pf~ f,(1I1JA : 7) hear work reports and give proper decision;
~. fHLtJ htp:E- (1IJ1P1..1' tIIJ"In~ hf\." tIIJ"Inc ;JC 8) decide that a society either be amalgamated with
'h1.1ltp~1: CDf,9" tIIJ"In~ 'h1.1lhLA f,CDi\'iA : another society or be divided in pursuance of this
proclamation;
Ii. ~(1IJ:,.ce f r' t. ~:,.f.-1'i n~:"1 .f1a1:'+A : 9) approve the annual work plan and budget;
,. nr't. h(1lJt.C \"1t11J.'f;'i f\.f\.."f \"1"7. i:?J"f f"7. +C(1-
10) decide any issue submitted by the management
l\'}'1 tIIJ'iTID-19" 1.~f"";f. f,CDi\'iA :: committee and other committees.
~I' 111:""" .,-flh. i\l\(1IJ1'I,.:', 22. Calling of General Assembly
ftllJ"InC .,.IIh. ft.f1i\ n~(1IJ:" h11: 1..11. I) The general assembly shall meet at least once in a
ii' m:"""
f,1.I.;JA :: year; .

ftllJ"In~ f r' 1,. h(1lJI,.C \"1"7.i: mf,9" hm:""" 2) If the management committee or one-third of the
I'
members of the general assembly require a meeting
h 11" 1: (1IJt}hA h 1 i" Y' i\"'~ ID- i\ -f1(1f1 'h 1.1lm 1,.
to be called, an emergency meeting may be held by
f1.m f,-I: f I?; .,.1 :,. 1:"7..f tIIJi\:f' CD<t.f ntIIJ ID-IIJ:" giving 15 days prior notice.
hi\TI-J.f, fm:""" ,..11h. l\.ml,. f,"f"A :: 3) Where the management committee fails to call an
r' nlLtJ h1+1\ 1o-i\h1+1\ (I) (1IJ1P1.:" hi\Tt),f, emergency general assembly in accordance with
'h1~.(1.<1 fr't. h(1lJI,.C \"1"7.-f:1'1. Sub-Article (2) of this Article such meeting shall be
m:""" ""Ih.
.f"1.1.1 'h1.l'.1f~ h<1fHI .fl\1D- fll\r'AIIJ1 1'I.1D-1 called by the appropriate authority and shall in such
.f.l'.C;JA :: f,.tjCD'9" m:""" ,..f1h.1D-nr'l,. h(1lJI,.C case be deemed to have been called by the
I1t11J.i:'h11."'ml,. f,~mt.A :: management committee.
23. Management Committee
~r' fr'l,. h(1lJt.C \"1"7.-f:
I) Every society shall have a management committee
ii' 'h.f1~1J;. tIIJ"Inc <h'l'I,.TID-'i hdDl,.I.IIJTID- n(1lJ'" which is accountable to the general assembly and
~1./..f 1.1(1- f"7.m(11 hf1":"1 f.ftll\m:""" ,..f1h.
whose members and manner of election to be
"'ml. flf~ fr'l,. h(1lJt.C \"1"7.i:f,tjl.tpA :: determined in the by-laws of the society.
fr'l,. h(1lJt-C \"1"7.-f:hfl":" fr'l,. 1f(1lJ1 Y'i\:" 2) The term of office of the management committee
I'
~(1IJ:" f,1f'iA :: shall be three years.
fr'l,. h(1lJI,.C \"1"7.-f: hf1":" hu-l\:" .,.h:f':f'f, 3) Members of the management committee shall not
r' be elected for more than two consecutive terms.
f r' t. tI(1IJ1 n"f, l\.(1IJI.m- hf,"fl\-9" :: n"'(1IJ1.
They may be dismissed at any time by the general
m-n'r f r' t- 1f(1lJ11D-i\'I'nOW/'iTID-9"1..1"nm:""" assembly.
,..11h. l\.if~ f,"f"l\-:: 4) When members of the management committee
§. fr'l,. h(1lJt.C \"1"7.-f:hfl":" ntllJ'iTID-9" u-~:f' leave their office for whatever reasons, they have
r't.TID-1 f1.l\-I: nr'l,. tI(1IJ'iTID- .fh'iCD~:"1 the obligation to submit for inspection the activities
.,.<111C ftllJi\(1IJC(1IJC <1Y..:f' hl\flTID- :: they performed during their term of office.
1K' v.tj ~1-..t./:\ ~;Jt,.,. ;JtLIfJ~'ft: 'G%;t-UPf,... ?) +, !uf1ji 'l.9'". Federal Negarit Gazeta-No. 27 29thDecember, 1998-Page 950

?!9.' f",t. noot.C \101/.:1:",AflJ'}'i .,...,I1C 24. Powers and Duties of the Management Committee
f",t. noot.C \101/.1:",AflJ'}'i "''''I1~ (}I'''10~ 00"''«; The powers and duties of the management committee
f.t,f Y.'}.o fOl/.CD{\') Irtj O.,.I\,e. fOl/.h"'~:"'} shall be dertimined in pursuance of the by-laws and in
,e.'L1.9"t.A : particular shall include the following:
I) maintain the minutes of a meeting in writing;
fi' fi111{\'1 :1>1\1.11h.51'"f'} nR'cft.~ ,e.,e."Ai
g. f"'11n~'} 00"0111')''1' '1."".0 n0l/.111,e.,e."A: 2) maintain the documents and books of accounts of
the society;
r.' f"'11n~'} qoo:J.'P. f",t. {):"f:'i n~:" J'fI;JifA i
fl.tA'Y,:9" "'''''1t.'P. ,ff.C;JA : 3) parepare the annual work programme and budget of
9.' n"'11n~ 00"''«;Y.t,f f. '}.o 001Pl.:" m:""" the society; implements same upon approval;
1''1h.CD''} ,e.mt.A : 4) call general assembly in accordance with the by-
?;. 1\.1\..":j.
fm:""" ".IIh. CD''''~51'"f'},fi1LR''''1A ; laws of the society;
:: 5) execute such other decisions given by the general
'k t;rc,)' I\m:""" 1''1h. ,f"'C'1A
f", t. h '}:"i1,<J>(l,
assembly;
f}?;' f <h'l''I' C \101/..1:
6) submit reports to the general assembly on the
h,f'}'«;,}~ "'11nC <h,,'t,:':lD- noo.,..«;f.tJ' f.'}O'
fi' activikties of the society.
fOl/.CD{\'} nIl"')',} f,ffl I\m:""" 1-11h. "'mt flf"
f<h'l'1'C \101/.1: ,e.tjl.tpA:: 25. Control Committee
~. f\101/.1:lD- n'l"')' f", t. flOO'} Y'i1:" qoo:" I. Every society shall have a control committee which
f,lr'iA:: f<h1''I'C \101/..1:1111".)'hV-I\')' "'h,+,+,e. is accountable to the General Assembly and the
f", t. floo'} n",e. I\.ool.m- n,e."f~9" :: n.,.ool. number of which shall be specified by the by-laws
m.n.)' f", t. floo'} n"'1'iTlD-9" l-fL nm:""" 1-11h.
of the society;
I\. 7J'~ f,":j." 1\' ::
2. The term of office of members of the committee
f}J;. f<h'l''I'C \101/.-f: ", A flJ'}c,~ ".oII1C shall be three years. No members of the control
f<h'l''I'C \101/.-f:CD' : committee shall be elected for more than two
ji. f",t. noot.C 1'1"'1..1: ~"t.",,:'} n:"tJtJA consecutive terms. They may, while in term of
oo(f)flJi:'} f,h:J''''''A : office, be dismissed by the general assembly.
~. f"'11n~ 1'}fl11'i '}11l.')' n:"tJtJA ",t. "f, ootp~'} 26. Powers and Duties of the Control Committee
f,4'>flJmt.A : The Control Committee:
f.' f"'11n~ Af- Af- h'}:"i1,<J>(l,51'"f O"'11n~ 00"''«; I) follows up that the management committee is
Y.t,f ~'i lD-i11' Y.'}11 001Pl..)' ooh'iCD'iTlD-'} carrying out its responsibilities properly;
,e.h:J"""A : 2) follows up that the funds and property of the society
9.' nm:""" 1-11h. fOl/.{\m-:"'} 1\.1\.."f ',...,I1C'"f J'h'i is properly utilized;
CD''iA :: 3) controls that the various activities of the socjety are
i1 1\ 1\.1\"':'" '} 0,'" '} \1 "'1..1: 51'":j.
carried out pursuant to the by-laws and internal
f}%'
regulations of the society;
1\.1\.."f '}o..,,'} \101/..t:51'"f n"'11n~ oo.,..«;f.tJ' f. '}.o
4) performs other duties given by the general assem-
001Pl..)' 1\.:1::1:00-,e."}""I\- ::
bly.
tJc~A n9"i1:" 27. Other Sub-Committees
f"'11nC A f- oo.o.y.":j. Other sub-committees may be established pursuant to
1\"'11nC {).«;h~,f :,. Y-:OI/.,fi1l\ooi1m:" the by-laws of the society.
f}~'
n"'1,}~CD'9" ih.., nl\." v.~:t' f.,.f."11 n.tjC9" !
PART FIVE
"'1'}~CD-9" "'11nC hn,}f: nl1A ",e. fOl/.LA1lD- f{)'«;
Special Privileges of Society
h~.f foo'}..,r:" h'«;,} l8,e.'L1.9"C hl\.l\.."f {)'«;51'"fh~.f
:,. Y:OI/,.r f,{\mtpA :: 28. Priority of claims by Society
Notwithstanding any provision to the contrary in any
f}u' fnll"')',} {)flJ CDf,9" 1':"9" i11\"'1:F:FA law, debts owed to the society by member shall take
f"'1,}~CD'9" nil A {)flJ CDf,9" '1':"9" "'110~ 1\"'1_LA precedence over all other debts, except the debt owed to
..,(H' fh.«; h~.r "'1:F:F.r I\.Y.l..., ,e."f"A :: the Government.
c!}. {)flJ'} CD,e.9u'I':"9",} I\tJI/i1hnc CD,e.9"I\ooif'l' i1"l\oo:FA 29. Set-off in respect of Share or Benefit of Members
The shares or benefits of any member may be set-off for
(}flU ntp~ n ,}"'R' f}u h."y. "11lD- ni1.,..,.c "'1'}~lD-9" .
debts due to the society from such a member.
n'1A n"'11n~ CD-i11'fOl/.tj l.CD-()flJ CDf,9" '1':"9" nl1~ 30. Share or Benefit not Liable to Attachment or Sale
"I\n.)' ().«; "'1i1hL.r fl.IIA I\.hOC CDf,9" I\.if'l'
nf,"fA9u:: Except as provided in Article 29 hereof, the share or
benefit of a member in a society shall not be liable to
c!}l!. foo'}..,r.)' Y:;Jc~ attachment or sale.
ji' n"\. '}ii i1:"00'},), ih',.."f'i nl\.l\.."f ih',.."f f.,.L 31. Government Assistance
.,.,P,.,). "'1nl.:J':F51'"f 1\1.ol.:" rt. "'110t.:" I) Without prejudice to incentives permitted under
oot."'~ h,}Y."'mn.,. Irtji f1.ol.:" rt. "'110t.:" Investment laws and other laws, Societies which are
fOl/.h'''I\-.)''} y";Jc~'i "'1nl.:t':F .f1~~; organized and registered under this Proclamation
u) (UlU ntp~ 001Pl.:" fOl/.f.t.~ n,}f: "'110C shall be entitled to the following:
fOl/.,r1}CD- 10. Inn. ..,.oc "'1 f,1f'iA :: a) to be exempted from income tax; provided
Irtj9" nIl"')' hOl/.J'1'f.:" f{)flJ f:c?f n..,I1.o however, members shall pay income tax on their
'1I\CD-ih.., 001Pl.:" f1n. ..,.oc f,h~"~ ; dividends;
 ,,,. p'fj~ t...f..t-'I:\ ";J~'~' ;ltL") ch'l'C ?)%:J-UUfP'?) +, IP.I1?! q.9". Federal Negarit Gazeta- No. 27 29thDecember, I998-Page 951

t\) nhAAIDf,9" 'f-fnl,.,1: t\4..lot.t\- oP"}'?P':" (b) to acquire land as determined by a Region or a
h.,.tIIJ nOtID(a.,m- oPlP(.:" oPt'..:" City accountable to the Federal Government;
nl'"
ftllJ'?''j:'' : (c) to receive other assistance from the Federal
dl) h4..lot.t\- oP"}'?P':,. 1D~9" hhAA Government or Regional Government or City
oP"},? P':" IDf,9D '''ml,.,1: t\4..lot.A administration accountable to the Federal
oP"},? P':" h.,.tIIJ t\.t\°'f ~ ;Jc.:'f1 Government.
tu'"
ftllJ'?l:" :: 2) An institute responsible for promoting cooperative
~. f'"l1)(.:" P't. h"}:"it:J'(&. ftllJ',..An:" : f(aID' ;)~A movement, rendering man-power training and con-
ftllJlPAm"} 're;:,.e; 9DC9"C ftllJl1~~ ;)1\4C.":" ducting studies and research shall be established.
f,,'(amm- .,.!l:9" ~!I:!l:tllJA ::
PART SIX
hr~A itY.,-it.}- Asset and Funds Societies
ftllJ1nt..}- '}1)(.:,.e; 1"}fllI
32. Indivisiblity of Asset and Funds of a Society
«!)~. ftllJ'"InC.1.1)(.,}'e; 1"}II1) ftllJf,h~LA itt\oPrr).
Except as otherwise prescribed under Article 33 (2) and
fUlIJ ntp~ n"}"''''' @r (~) he; ?ip. oPlP(.:" Anl)l\:" 44 of this Proclamation, the asset and fund of a society
h"}Jthti-t.A hDll.ID(a.,ID' nit.,..,.c fn1~ tllJ1nC shall not be divided for the members or any other party.
11)(.'}(; 1"}II1) t\n I)1\.,: 1Df,9" t\t\A 1D1"} n~h~
33. Allocation of Net Profit
t.A9"::
I) The society shall deduct 30% of the net profit
enr' f"'I1)/,. 'h;(~ n1.I\Y.A obtained and allocate for the following purposes in
fir ftllJ1n-r oP"'P,Y.I,J' Y."}lI nOtt.:"1.m-e; tllJ1n-r accordance with the terms and conditions set forth in
nf"J.II.ID' nDll..PIDIIJID' tJ:"Y.,' oPlP(.:" htllJ1n-r the by-laws and plan issued from time to time by the
f"'lI)t. .}.cr~ I\f, en noP." hf.,..,..,(a t\Oth"'~:" society:-
1-P'f.:r. f,Y.t\,Y..I\A: (a) for reserve;
0) t\oPml)n<~.p: (b) for the expansion of work;
A) t\P' t. tllJit~t..P: (c) for social services.
(II) t\tllJ1fM.'P.n 1 A °It\o.y.'f:: 2) After the amount prescribed in Sub-Article (I) is
~. n'lU n1.,.?, "}O.it n1.,.".. (fi) f"'oPt\h"'ID' deducted the remaining net profit shall be divided
tH..,..,(a n:\1\ fDll."'(.ID' 'h;r~ t\nl)I\'}- ~ht$.t.l\A: among the members; the division shall be made on the
h(~(~t\, fDll.t.?oPm' n')I\'}- ntllJ1n-r 111::1-A lD'it'1' basis of the shares the members have in the society and
1)1\:,:m' tJlI) oPlP(.'}- he; t\tIIJ'"In-r t\7i.P~ 1)"'('0':" on the amount of goods offered for the sale to the
cnf,9D nOI1C nlD(a.~.}- tJ,4>oPm1 ~rre;A:: society or goods purchased from the society by
members of the society.
@!. itt\oPfU'.C 1D(a"}
n"}Y: tllJ1nC hn')I\'} 1D~9" ht\.t\°:r, Y.,'C~.,.:r-
34. Restrictions on Borrowings
fi'
fDll,nY.(.ID' 1)y"'C oPm"}e; v-kJ' ntllJ1n-r oP.,.P, I) A society shall receive loans from its members or other
Y.I,.p Y."}1) nDll.m(a.,m, UDIP(.:" ~rre;A:: organizations to such extent and on such conditions as
~. n"}Y.,' tIIJ'"Inc I\nY.(.m' 111111 fDll,.P1""m- cnt\Y.,- may be specified in the by-laws of the society.
h'nh ftllJny.l,.p mt\Y.,. t\.f)A'1' n~:r-A9":: 2) Interest on loans received from its members shall not
exceed the current interest rate of a bank.
«!)?;. it t\ tIIJ fU'. C m (a") 35. Restrictions on Loans
n"}Y: 0'I/1nC t\nf)I\'}- m~9" fUlU ntp~ oPlP(.'} A society shall not extend loans other than to its
t\.,.**oP t\.1\ O'I/'"Inc I1AI'" nit.,..,.c lIy"'C oPitm:'- members or a society established under this
n~:r'A9D:: Proclamation.
h(~A (al).)'
PART SEVEN
itt\ 'I."11) <I:'1''1'Che; itt\9"CoP t.
Audit and Inspection
en?; . itA 'I."1.n 9DCoPt. 36. Audit
fir nOI').n .Pt\CD''Mp'A")"} n,.p1it nqoP:" n1y'" 'ut I) The appropriate authority shall audit or causes to be
fO'lJ"}:;:ID'"}9" tllJ1nC '1."11) I.."" cn~9" h OOtfD audited by a person assigned by it, the accounts of
ht\m. (aID' f,oP('9Dt.A:: any society at least once in a year.
~. fUlU n1"'~ "}O.it n1.,.".. (fi) oPlP(.:" fOt1.(.,? 2) The audit conducted pursuant to Sub-Article (1) of this
f'l."11) 9"CoPt. .PA.l"tlt..t\ hP, l1t\n:" f,U"}). Article shall include the examination and verification
tJP,m."}e; f'rt'.. 1"}II1) '1.",1); ftpit:,.e;m-"} (a.,,,'fe; of overdue debts, if any, and cash balance, securities
fIN).,:") tp;J: ;"l\t.",,:"}9" oPoPCoPC f,~9"t.A:: and assets, and liabilities.
[. f'l.'~1) 9"CoPI,. 1,;I"C":9" t\m:"1\1\ 1-1)q. 3) The audit report shall be submitted to the general
f,"'Cf) A:: assembly.

en?:,
37. Inspection
itt\<I:'r'rC
1) 'fhea-ppropriate authority may, make or cause to be
fir 1-,OIIH) .Pt\ID' 1)t\p'AII)"} I.."" mf,9" h fOtfD made by such person to be assigned by it an
hAm' (am' fn"}y"'1 tIIJ'"Inc MI:9": fp'I,. nL??9"= inspection to the organization, work execution,
oPt,ONH'e; f1"}'''') v-).:J' oPoPCoPC f,'fI\A:: documents and financial condition of a society.
1~ P'!:j~ ~~t-A '1;Jt..,. ;Ju'lIJ <I:'I'Cri'f: ;rUPtP' ?) 4>1 Ip.f1?i 'l.9". Federal Negarit Gazeta- No. 27 29thDecember, 1998-Page 952

~) flltJ 1\1.,.", 10-ll 1\1.,.'" (Ii) h1f.i'mn.,. Iftj 2) Without prejudice to Sub-Article (1) of this Article
1\Dl'H1 .f/\~ 1l/\P'AtTJ1 : inspection may be made when:
(a) a majority of the members of the executive
0) fP't- 1\oot-C \'1"t-t' 1\1lt\""f 1\11tl;;:sP:t:
committee request;
l1.m f.eI:: (b) not less than one-third of the total number of
/\) hm:t>/t/t~ fuy..,nCi'??"f eI:'I'C h1\ 1,(- members of the society request.
Y'lli';;: .f/t~... 1\11/\.."f l1.mf.eI::
38. Keeping Audit and Inspection Results
9"C9"I.- .ff.C;JA::
Audit and Inspection result conducted pursuant to
c!j~- f'L Ut11 eI:'I''I'C he; f9"COO I.- ~m. "'-1 ll/\UYll.,.oo'I' Article 36 and 37 of this Proclamation shall be kept in
the office of the authority and the society, open and
HlltJ 1\1f'~ 1\1.,.'" cflJ. he; c!j% OOlPt."" fi'f.t.1
easily accessible to everyone.
9"COOI.-e; eI:'I''I'C 01-111."'- uye;T~9" ()~ n.,./t",
/\..f1''im.e; /\..frm' n"t:r-A 1\\\:\1 nll/\P'AtTJ.,.e; 39. Actions to be Taken for Losses of Property or Fund of
the Society
nUYtJn-t. "'tJ&."', fl..} m'll'l' 00"'00'1' f,tjCn;t-A::
1) The auditor or inspector shall make a report to the
c!ju- nuy.., n -t. 111I. ..,.~ 111111 /t f, 1- .(- /\ ..,. () f.C fI fI /\ D'/. management committee or the general assembly or
w()~- hC9"~ the appropriate authority, as the case may be,
where the person who is or was entrusted with the
Ii- f'L Ut1) eI:'I''I'C mf,9" 9"COOI.- n"tf.t."w..,. 1.11.
management of the society or who is or has been an
fuy..,n-t.1 P'I.- h 1 Jt.f11'L.(- ;}/tk'1"" fi'tTJ/\n"" officer or an employee of the society, and who in,
mfJ9u .f''I'/\..n'''' f~nt.~ ()~; fUY..,U-t. 7f.9" mf,9" the course of an audit or inspection has been found
.
IP I.-.f';;:: to have committed the following acts:
0) nlltJ 1\1f'~: nf.1(1:t: mf.9" nOOi'.&;f.1.1
(a) had made any payment contrary to this
f.1(1:t: _fA-,'t."'f. tI~.f t.?\tJO hi'11:
Proclamation, the regulations or the by-laws;
(b) had caused any damages to the assets of the
/\) h9"~""1 nUY1-f.A mf,9" 1f1 1M" nUY()11 society by breach of trust or willfully or
mf.9" nTA i'~.~"" nuy..,n-t. 1111."" /tf, negligently;
-,-.(-/\..,. 1\~'C(I h-"11: (c) has misappropriated the properties of the
dt) fuy..,n-t. flf'1~1111111 1\/\1\..,1111 hw()f.: society.
2) The appropriate authority who received the report
-f'4'>tTJtTJ~m' mf.9" OOCuy~~ fI/\lJ-);:t'~
pursuant to Sub-Article 1 of this Article shall give
h1f, 1-.';¥- 1\DIIl11~:f' /\P'I.. 1\oot-C \'1"t-t'
the person concerned an opportunity to present his
mf.9" /\m:"/t/t 1-11h. mf.9" 1\..,1111 /t/\~ defense within fifteen days.
'1/\P'AtTJ1 ~7'C"" .ff.C;JA:: 3) After fulfillment of the above mentioned con-
~- nlltJ 1\1.,.", 10-ll 1\1.,.'" (Ii)
OOlPt."" ~TC"" ditions, the appropriate authority shall ask the
person who has been found responsible for misap-
f"'t.n/\"" 1\",'H1 _f/\m' '1/\P'AtTJ11-.&;¥- f"tOO/\
propriation of the fund or property of the society to
h-,-m' ()~ nI?; .,.e;..,. ~ll'l' ooAll h1JtI"'C11 return or pay same with interest including compen-
hf:A f.()mIf'A:: sation and damages. Where the person concerned
t- f.'fi9" hi't.ROO n:\/t 1-~'/\"" 1\~'C!J.A fi"1/\~ is not willing to do so, the authority shall take the
()m. 'I'ai-i';;: trtj l1.1~ _f-"'f./\~1 111111 wf,9" appropriate legal measure.
1-nt."" h'1m/\?,. h1JtlJ-9" f"tw()~~1 11...,e;
PART EIGHT
h."fl.- h1JtOOAfi mf.9" h1Jth~A 1\..,1111 1/\~
'It\P'AtTJ1 f.mf.:J'A:: t.:J'f.;;: Iftj I1Ai'11 Dissolution and winding up of Societies
1\Dl'H1 .f/\~ 11/\P'AtTJ1 i'1n.~ ih;Jlf hC9"~ 40. Dissolution of a Society
h1Jtm().(- _ff.C;JA::
A Society shall be dissolved on the following grounds:
h~A ll9"1"" 1) Where a special resolution for its dissolution is
ll/\uy..,nl.-"" oo~t.lle; 'LUt'1Tm'1 ll/\UYtTJl.-"" given by the members; or
c:i- II /\
uy..,
n C 00 r,:t. II 2) Without prejudice to Article 6 (4) hereof, where
1\1 ~- uy..,nc nUY.hi'/\''''' 9"h1_f-f"f f.t.CtaA; the number of members of a primary society falls
below ten.
Ii- h1Jtt.Cll f1\11/t.} A¥- m.Ut); l1.()'I': mf,9" 3) Without prejudice to sub-Articles (1) and (2) of
~- 1\1.,.", J. (~) h 1 f,-"mn.,. rftj OOlPt.:J-lf uy..,nc this Article, a society the dissolution of which is
hrn f1\I1/t.,: eI:'I'C h1\P'C ()sP"f 1':" l1.A:: decided shall notify same to the appropriate
t- flltJ 1\1.,.'" 10-ll 1\1.,.'" (Ii) he; (~) h1f.i'mnel: Authority within seven days from the decision for
rnm. 1\1,(- uy..,nc
h 1Jtt.Cll l1.m()1 UYtJn-t. its dissolution.
1\Dl'H1 /t/\~ 11/\P'AtTJ1 fUY~t.ll ~ta);~1 U()I1"" 41. Liquidator
.,.e;-.,. ~fI'I' uytam:" f,tjCn:t'A::
1) Where the dissolution of a society has been
c:iIi - ll/\'LUt11 1\tTJ~ decided upon, pursuant to Article 40 of this
Ii- nlltJ 1\1f'~ 1\1.,.'" ':i OOlPt."" 1\1,(- UYtJnc Proclamation, the appropriate authority may,
h1Jtt.Cll l1.m()1 1\..,1111 .f/\~ 1l/\P'AtTJ1 'LUt11 assign a liquidator. It may, if necessary,
1\tTJ~ /\.00,(-11 f,:r-/tA:: 1\llt./t1. rftj l1.1~ f'L...,11 determine that his remuneration be paid out of
the accounts of the society.
1\tTJ~m'1 f1\1ADl/\""" 1f';J huy..,n-t. 'L...,11 h1Jt
2) The liquidator shall receive records, documents
ht.A /\.mll1 f.:r-/tA::
and properties of the society as soon as he is
~- 'L...,11 1\tTJ~~ h1f.-'-OOf,n fUYtJn-t.1 oot'..,11"";
assigned. He shall also take the necessary
()~f,:r.e; 1111."'- f.t.hl1A:: nUYtJn-t. 111t.-f"fe; measures to protect the properties and rights,
0011"" /tf. oot'..,11..,.e; () ~~"f /tf. 1-'&;"" h 1.&;f,f. records and documents of the society from
Cll9" 1\llt./t-l..m'1 hC9"~ f,mll'&;A:: damages.
11\ un;: 4..1..t.f;\ ~;Jt+ ;JILtlJ -Il'l'C?;:L ;rUPfP'?;"" !Uf1j! '1.9'".
~I' f"lPf-fl tttfJ~lD- FAtfJ'c; .,...,ClC
hij:RfIIl
6' ~Pf-o ~1IJ~lD- f~ Pf-o "'1l1Jt.""" P'C~""
i\"'11:t.it ttitLI\1.lD- FAIIJ' v-h- ~lft.lf'A===
F t.lD-' n "'1..1CI i\ uP L'''''' n "'i\~ f"'1. h.,. h-"",
J'htjlD-tjA;
U) h"'1..,n~ f"'1.mf"'lD-' ~~ oPC9"r: ftth4.
Lh-' :"1.9" .,.h.,.A ~CDittjA;
it) f"'1..,n~' U-o""'tj ,-01.."" ~(Ulitt1A;
tit) f"'1..,n~ m:"1\1\ it-or'1t1 t1R1."'lD- f~Pf-o
"'1l1Jt."'" ~:"1: oPlPt."'" U-oi:,tj ,-ot.i:,
J'h~tt:I\A=
uP) f'lPf..1 "'1tfJt.i:, Ft. n"'1.1t1 i\oPLR9"
'litLi\1 oPm' f"'1..,n~' P't. fl1~~A;
IP) "'1..,n~' n"'1.oPi\hi: hCtJr::f ",wl1~
~(rtjA;
1..) i\ ~Pf-o "'1l1Jt.i: P't. uP:J>tj"" ttitLI\1. r'1.rr,
ttClI\i:' i\it-or'1t1 ~mt.AII
I' ntLtJ ~ ,.,.'" ,o-it tt ,.,.'" (6) (tit) oPlPt.""
f'-ot."'" htt:ij:A hoP 1.1..1- nk"" "'1..,n~ f"'1.Lt.it
iti\uP(r~ n;J".1IJ "'1it;J-CDetf .fCDIIJAII"'1it;J-CDetf
hCDlIJn""'''''l9''e~ithV-i\'''''CDC1:t.it''':J>lf''''1.
I1A"'t.n f'-ot."'" hij:ij:h-' f1.C;JA== h'LtJ 1.,1.
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C' f~Pf-o ttllJ~lD- f'lPf-o "'1l1Jt.i:, P'C~"" ~'1.
LRoP ~;rCi:' tt";J~'" ~..,t1-o 1\i\lD-t1i\P'AIIJ'
.f"'Ct1A; f"'1..,n~' oPt,..,-o""'tj r'1~p..:f, tt..,t1-o
.fi\lD- t1i\P'AIIJ' n"'1..f"lD-P'ij:t. fit"'9"IIJA==
~r' 1'''-0 m.fet9':f' iti\oP#f't ,.
6' f1'''-o m.fet9':f tth4.LA ~Pf-o ttll)~lD- P't.
n"'1.l9"cn"'" 1.lL 'llI;JllD- f~ Pf-o "'1.tl'} oPlPt.""
~L'I."'1A==
I' iti\'LV- ~1C i\1'''-o m.fet9'~ f"'1..,n~oPij:t.it
.,. ~..,elf'¥lD-; Mt i: ;J-¥lD-' ~ '}.flf it;J-lD-cktj i\ "'1..
m~ck""'9" 1,,,-o1:;Jij: f"'1.rr~ r'1~p..:FTlD-'~'Jtf
.,.CO- "'1itm,.,.et.f ~1.t."'I\Tlf'A==
C' n"'1",n~ oP1'1fl:f lD-it'l' i\.,.R4 ,. 1'''-0 m.fet9':f
CD~9" nt\.1\ ttl).:\' i\;J-CDck9" .",,-0 mfet9':f
1M\1"'1' 1.. 1.-0'-;(1.9':f n.,.'I' ;J- ~I\ h 1\Tlf' A II
i\ t\.i\o~ .." n;J 11.11)f"'1.CD m-"" "'1it;J- CDetf 9':f
i\v-i\"'" 1.11. n"'h:r;J-~~"'" nCDC tt,1:
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uPlD-II)"'" ~i\t1TlD-==
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6' h"'1..,n~ 1'''-0 m.fet9':f frr~"'" I1A"'hLI\TlD-
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f"'~ ~, 1.rr~ f"'1.hLI\TlD- .",,-0 Ah nij:C1: (1.""
lD.Pf~ ~"'uPII)A==
C' ~,Jtv-9" 1'''''1 m.fet9'~ i\"'1.LA1-"" 'lPf-o
"'oPlI)lI):tj frr~ If'it'''''tj9''f I1A"'r'1m-~TlD- CD~9"
f"'1..,n~ ,-01.."'" ~h~LA ~~IlV- ..,1..;J-9':f ~ith.
hLi\. 1:t.it .,., I1A.,.1.t.1i\"'" n.,.c I\A.,.L'l.oPlD-
..,1..:r CD~9"nhchc I\~ I\h-"'" f"'1..,n~ ..,1..;J-9':f
"'oPlI)lI):tj frr~ 1'''-0 "'~JI oP"'oP#f' ~i\n""'l1
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~11)~9''f "'~lD-' f"'1..,n~' 1'''-0 i\"'1tJn~ ~t1I\""
n"'1.1t1TlD-uPm'.fh~ij:I\h-==
Federal Negarit Gazeta- No. 27 29thDecember, I998-Page 953
42. Powers and Duties of the Liquidator
1) The liquidator shall have all (he necessary powers
to complete the winding up proceedings. He shall
in particular perform the following in order to carry
out his duties properly:
(a) investigate all claims against the society and
decide on priority of payment among them;
(b) collect the assets of the society;
(c) distribute the assets in accordance with the
plan of liquidation approved by the general
meeting of the society;
(d) carry on the work activities of the society in
so far as may be necessary for the proper
liquidation of the affairs of the society;
(e) represent the society in legal proceedings;
(f) call meetings of the members as may be
necessary for the proper conduct of the
liquidation.
2) The liquidator shall issue notice in a newspaper,
before the distribution of property of the society
takes place in accordance with Sub-Article (l) (c)
of this Article, that the society is to be dissolved. It
shall proceed with the distribution where no claim
is presented within two months from the date of
such notice. No claimant shall have a right after the
expiration of such limitation.
3) Upon completion of the winding up proceedings
the liquidator ~hall prepare and submit a report to
the appropriate authority, he shall deposit the
records and documents of the society in such places
as the appropriate authority may direct.
43. Calling on Creditors
I) Creditors shall be paid on the basis of a balance
sheet prepared by the liquidator upon the commen-
cement of his assignment.
2) Creditors shall be informed ofthe dissolution of the
society and required to file their claims with
supporting documents.
3) Creditors appearing in the society's records or who
are otherwise known shall be notified directly by
1.11. registered letter. Notice to other creditors shall be
given by notice, published in two successive
monthly issues of a newspaper, and also in the form
laid down in the by-laws of the society.
44. Protection of Creditors
1) Until the creditors of the society have been paid or
amounts required for payment be deposited, the
liquidators may not distribute any part of assets
among the members.
2) Where known creditors have failed to present their
supporting documents, the amounts owing to them
shall be deposited according to the decision of the
court.
3) Sums shall be set aside to meet the claims in
respect of undertakings of the society which are
not completed or which are under liquidation
unless the creditors are guaranteed or distribution
of assets is postponed until such undertakings are
completed.
4) After the payment of claims have been completed
or verified that sufficient deposit for payment has
been made, the liquidators may distribute the
assets of the society among the members based on
the amount due to them.
i
1K" v.f:m t..Y-ot.f:\ ~;M')' ;m,flJ 'I:'I'C '(;1.;1'U"tP' '(; .,.') Iv.f1ji q.9". Federal Negarit Gazeta- No. 27 29thDecember, 1998-Page 954

~?;. lI1/'"Inc') hoP1'111 itt\oP(}l1' 45. Cancellation of a society from the Register
When the winding up proceedings are completed the
f'L Ut11 II1/lI]t-:'- P' t- ~ ') f.'''t.~oP lI1/'"In?- f"'oP1I1
nnT f9"ithc tDl""'" h °1'111 1\t\ CD- 11t\,... A lI]') certificate of registration shall be returned to the
~oPt\"A:: h"l1111 .ft\tD, 11t\P'AlI]')9" lI1/'"In?-')
appropriate authority who shall cancel the registration
hoP1'111 ~lPCt'A:: lI1/'"In?-9" hoP1'111 h"'lPllUlT of the society, and the society shall, upon the date of
.,.') "f.9"C: ihACD-'i"tD'').fll]A:: such cancellation, cease to exist.
htt:A "1Il~ PARTNINE
itt\hchc htD"(}') Settlement of Disputes
~i' .,.J.;r-:{'') n~c:" itt\oPt.L1.lit 46. Conciliation
lULU h'P:E- h')"'''' ~j! fof-oPt\hi:T hChc::f t\7i9" The disputes provided under Article 49 of this
"lA'i" J.;~"T hoP:"l'FfCD- nkT 1-J.;.fTCD-.,.ht-t]t proclamation shall be heard by a third party appointed
tD1e:':f nOl/.oPclll-:'- Y'it.,.~ tD1') n~c:" oP.TfT by the disputing parties before they are referred to the
ht\nT:: arbitrators.
~;k itt\ 7i9""lA 'I J.;~"T 47. Arbitration
ii' IUlU-h'P~ "h')"'''' ~j! f'''oPt\hi:T f'"l11lT P't- I) When the disputes provided under Article 49
lI1/'"Int-T hChC::{' n~c:" .fl\t\~ ~,)f.tr., t\7i9" regarding cooperative societies are not settled by
"lAC.' J.;~"T ~"'CIIt\,:: conciliation they shall be referred to arbitration.
~. t\7i9""lA'i" J.;~"T '''''lI1C fOl/.oPlm- (},,:f 2) The arbitration shall consist of three persons of
~'Pt-:t:CD- Y'itT Ire:' fll1/fJ.;tr'i" oPAt]9" it9" high reputation and impartiality.
.fl\:t:CD-}?Ir'i"t\,::
3) The arbitrators shall conduct their hearing and
f7i9""lA 'I J.;~~ hchc::f') fOl/.(}OD-T'i"1I1/,)~CD-9"
r.'
.,.°IIM-T') u-t\. fOl/.t.",OD-T ntt:Tth 11thoC
P'Cq..,. ih"l oPlPl')- "CD-::
,, fulfill any of their duties in accordance with the
Civil Procedure Code.
48. Appointment of the Arbitrators
~~. f7i9""lA'i" J.;~:f hoPt-l'l'
1) Each party to the dispute shall appoint one ar-
ii' ~.f')J.;,)~ tD1') h11.' f7i9""lA'i" J.;~ ~oPCll]A:: bitrator. The third arbitrator, who shall be the
t\'li9""lA'i" J.;~"of: (}1)"n. ~,)Jltr,) fOl/.oPllllCD- chairperson, shall be appointed by both parties.
Y'it.,-~ J.;~ n;Jt- nu-t\1:9" tD1e:':f ~oPlll]A:: 2) The appropriate authority shall appoint the chair-
~. (}11"n. J.;~CD-')t\oP9Ul'l' u-t\i: tD1e:':f it9"9""T person arbitrator when the parties fail to reach an
I\~ .f AY.ll'l- ~ ') f.1r'1 (}11"n. fOl/.tr.,CD-') J.;~ agreement.
hOI'111.ft\CD-'1t\P'AlI]') ~oPCll]A::
49. Disputes to be referred to Arbitration
~!1' t\ 7i9""lA 'I J.;~"T itt\ 111/, .,.cn, hchc::{'
n c h *9" itt\,... I.-CD- h t] t1.' tD~9"
it t\h ') Y.; 111/'"1
The arbitrators shall have the power to hear disputes not
itt\P' t-w' ht.~~9" noP.,.t\h.,. n~c:" .fl\t\~ .,.J.;r-:f')
settled by conciliation regarding the organization,
management, or operations of a society which arises
f7i9""lA'i" J.;~~:
ji. nhl)l\T tD~9" n.,.1.'qu hl1I\T'i" tD~9" n.,.1.'qu between:
I) members or former members and members and
h')I\:" tDh.t\":f tD~9" nquT n.,.t\~ hl11\T oP11T
members or representatives of former members or
it9" hchc nll1/,.f.,.cn' (},,:f oPt]hA fOl/.""
hchc: persons claiming in the name of deceased mem-
~. nh'II\1:: n.,.1.'1" hll1\T tD~9" nhl1l\T lD~9"
bers; or
n.,.~'qu hl)l\:'- tDh.t\":f tD~9" nquT n.,.t\~ 2) members, former members or members or
hl11\T tDt-"(i:{.'i" nll1/'"In?- ""1.- hoPt-C \"101/.-1: representatives of former members or heirs of
nll1/'i"TCD-9"if.9": ntDh.t\. tD~9" nll1/'"In?-lPt-"'~ deceased members and any officer, representative
oPt]hA fOl/."" hchc: of the management committee or employee of the
nll1/'"In?-tD~9" nP't- hoPt-C \"101/. -I: tD~9" nll1/')
society; or
r.' 3) the society or the management committee and any
~tD,9" f.,.1.'1" fP't- hoPt-C \"101/.-1: 1I1/')?'/CD-9"
if.9u: tDh.A tD~9" lPt-"'~ tD~9" f+1:qu if.9" former management committee, any officer, agent
f.,.1:qu tDh.A OJ~9" f.,.1.'qu lPt-"'~ "'lIltCD-; or employee, or any former officer, agent or
tDt-"(i~ tD~9" tDh.t\,,~ tD~9" nquT n.,.t\~ employee or the nominee heirs or representatives
fll1/'"In?- if.qu:f tDh.t\":f tD~9" lPt-.,.~:f (/Pt]hA or representatives of deceased former members or
employees; or
fOl/."" hchc;
o. n C'i" nll1/')~ CD-9" t\.I\ 111/'"1
n h') 1.' 111/'"1 nc oPt] hA 4) the society and any other society.
fOl/."" hchc~ t\lI1/f:" P'AlI]') ~e:' t-T'PA:: 50. Civil Court Powers of Arbitrators
2' f7i9""lA'i" J.;~:f ftt:Tth .nthoc P'AlI]') The Arbitrators shall have the same power, with regard
lULU h'P:E- h')"'''' ~j! oPlPlT fOl/.;r~ .,.J.;r-:f') n.,.oP to the cases provided under Article 49 of this
t\h.,. 9"ithc::f') t\oP'Pt-T: lI1/itl~":f') t\lI1/it"'l11; Proclamation, as a Civile Court for the summoning of
T~t'1'9" t\oPitIllT'i" t\.I\9" 1I1/,)~CD-')9"ih;J1f ~C9"~ witnesses, production of evidence, the issuing of orders
t\oPCD-(}~'f7i9""lA'i" J.;~:{' ftt:Tth 11thoC:ft\"T P'AlI]') or the taking of any legal measures.
~e:' t-T'PA:: 51. Execution
2ji. ht.~~9" Any decision, order or award made under this
lULU h'P:E- oPlPlT fll1/,(}'P 1I1/,)~CD-9"CD-Pf);;T~tf1' Proclamations shall be taken as though made by a civil
tD~9" 11~,) ntt:Tth 11thoC :ft\"T ~,)f."'(}1Il "'''''PC' court, and, where appropriate, the courts shall have
hitt.I\'L (}.Ir') tt:c~' o."':{- CD-Ut);CD-;T~t,"' lD~9" jurisdiction to order the enforcement of any such
11~'" ~')Jlt.~9" fll1/it1Y-1: P'AlI]') ~e:' t-T'PA:: decision, order or award.
 1K" UU?; ~1..t.&). ~:M"" ;JtLtIJ 4!'I'C ?J1.:rUUfP'?J"" Iilfjji q.r. Federal Negarit Gazeta- No. 27 29thDecember, 1998-Page 955

~I' h" 'f;C~ 0."" rIA tIJ"} 52. Power of Courts

ntLtJ h'P~ h"}+:t '!i~ oPlPl."" n7i9"..,1A1J' .-;~~..,. Appeals on the decisions given by the Arbitrators under
n.,.{tm- lD-"")'SJ'"f I\f, ~"}~h..,q~ ,,&..Y-..t.1Ah'f;"'~ Article 47 ofthis Proclamation may, as the case may be,
'f;C~ 0."" lDf,9" OY'"ln-t-nhlAlA fOlJ."~ ftf~ ~"}~tf~ be instituted in Federal High Court, or the Regional State
"hlAlA hc;.:.,.~ 'f;C~ 0."" lDf,9" ""'"In-t- "&..Y-..t.1A High court or the Federal High Court of a city accoun-
". oP"}..,1'"'1: "'m~ (U,~ h.,.OY fOlJ."~ ftf~ ~"}~tf~ table to the Federal Government where the society is
,,&..Y-..t.1Ah'f;"'~ 'f;C~ 0."" f,..,q~ ".,:tol.1I f,;FI\IA== situated.
PART TEN
h'f;lA hl'"'C Miscellaneous Provisions
IA ~ IA ~ ~"} ;J1.SJ'"f
53. Address of a Society
~f.' h"""'"Inc h~t.7f Any society shall have an address registered pursuant to
OY"}~lD-9" OY'"lnc nlLtJ h'P~ nh"}+:t ii oPlPl."" Article 9 of this Proclamation. All services of process,
f"'oPtI.,n h~t.7f f,tj l.'PIA== fOlJ.I\h,"""(lP1'~1SJ'"f; notices and other communications shall be sent in such
""h;rlD<t.fSJ'"f1J' It,,,.."f "'Tf.~"'"f 0-1\- (}fLtJ h~t.7f
address. The society shall inform the appropriate
authority of any change in such address within thirty
f,I\I1".== OYtJn-t- h~t.7flD-"} """lD-1' nlPI\..., +IJ'''''
q
lD-h1' h °, 11 1\" lD- q" I'"' IAtIJ"} oy h;r lD:to h" n"" ==
days.
54. Supplying Infonnation
~9.' oPl.jf h"oPhm""
Every society shall have the obligation to transmit
h "}~ OY'"ln c h.., q..1 1\" lD- '1"I'"' IAtIJ"} h" 0IJ.1hlJ'lD-
information to the appropriate authority about the ac-
IJ'TlD- "'''''11,.'''' oPl.jfSJ':Y' fOYh.,.I\,,'f; ..,y-";r h"n-r==
tivities it performs.
~f;- f &..Frt.1A h ilIA h"OY**9" 55. Establishment of a Federal Organ
n&"1..t.1A ~l.jf fOlJ.**OO- f'"l1ll.-r 1'"'1,. ""'"Int.-r"} A Federal Organ responsible for organizing and regis-
fOlJ..f~t.~1J' fOlJ.oPtI..,..H I'"'lAmlJ' fOlJ.{t1'; 9"C9"C tering Apex organisations and for rendering training,
fOlJ..f~C"'1J' It,t\<>"ffi:h~h -~ ;JC'."f fOlJ.{t1' f &..Y-..t.1A conducting research and other technical support to
hl1lA n,o.., f,**OYIA== societies may be eS,tablishedby law.
~I' f,tJ"} h'P~ : ~"}(1:Y."}1J'foP"''-;~~.f ~"}(1"f"} ""f,;r 56. Depositing of this Proclamation, Regulations and the By-
h 'f; -r h" oy ~ l..., laws
"""}~lD'9" OY'"lnc f,tJ"} h'P~; ~"}(1:':"}1J' foP"''-;~~1 Every society shall deposit at its address copies of this
~"}(1:':"} :to:(SJ'"f nOY'"ln-t- h~t.7f ~"}.ct1"f.1J' n~., Proclamation, the Regulations and the by-laws, to be
~"}.ct:l'~ oP'f;+~ h"n-r== accessible free of charge.
57. Repealed and Inapplicable Laws
~~. f.,.7f-t-1J'"'.t~0IJ. f".,f,I'-" ,o1"f
1) The Cooperative Societies Proclamation No. 138/
;;. f'"l1ll.-r 1'"'1,.""'"Int."" h'P~ <h1'C ;;fr!}t!Iiif<:' 1978 and the Agricultural Cooperatives Societies
~IJ' f.,n~SJ'"f '"I1Il.-r 1'"'1,.""'"Int."" h'P~ <k1'C Proclamation No. 85/1995 are hereby repealed.
it?;!Iiifitl nlLtJ ~tp~ .,.7il.'PIA== 2) No law, regulation or directive in so far as it is
I' hlLtJ h'P~ ;JC fOlJ..4>l."}OY"}~lD-9" ,0..,; ~"}11 inconsistent with this Proclamation have force or
lDf,9" oPoP~.f nlLtJ h'P~ lD-h1' n"'oP"h1:-r effect in respect of matters provided for by this
.,..-; r-"f .,. 4.~ OIJ.~ -r hf,tj l.lD-9"== Proclamation.

~t. foPif:J"~ f ~"} :J1. 58. Transitory Provisions

;;. 1) The cooperative societies which have been es-
n'"l1ll.-r 1'"'1,. OY'"lnt.-r h'P~ <h1'C ;;fr!}t!Iiif<:'
QDII' l."" .,.*<hoPlD- noP tablished and operating in accordance with
I'"' t.-r I\f, 1 I\- f'"l1ll.-r
Proclamation No. 138/1978 shall be reorganized
1'"'1,. OY'"lnt."" ntLtJ htp~ oPlPl.-r ~"}~"IJ'
under this Proclamation.
f,~t.jf 1\-==
2) The cooperative societies which have been es-
I' n.,n~SJ'"f f'"l1ll.-r 1'"'1,.""'"Int.-r h'P~ <h1'Cit?;!
tablished and operating in accordance with
Iiifitl oPlPl.-r .,.*<hoPlD- noPI'"'t.-r I\f, 11\- Proclamation No. 85/1995 shall be deemed to have
f'"l1ll."" 1'"'1,.OY'"lnt."" ntLtJ h'P~ ~"}~.,.**OO- been established under this Proclamation and shall
, r
continue to carry out their functions in accordance
"''''1'l.lD- ntLtJ h'P~ oPlPl.-r I'"'t.TlD-"} 1hlJ'
lD-1J'".== with this Proclamation.
f.' nlLtJ h"}+:t "}O-hh"}+:t (;;) oPlPl.-r f"'m+""-r 3) The societies indicated in Sub-Article (1) of this
OY'"lnt.-r ~"}~"IJ' "'~t,~"'lD- h..,q1l q"lD- q"I'"' Article shall continue their operations holding their
IAtIJ"} ~hhOlJ.oPtI.,~ ~l.h f~nt'TlD-"} ,o;J'E previous juridical personalities until they are reor-
{tlD-""" ~"}~1"' I'"'t'TlD-"} f,+1'I\I\-== ganized and registered by the appropriate authority.
(;;) 4) The appropriate authority shall facilitate the con-
9.' h"'Q1I '''lD- q"I'"'lAtIJ"} ntLtJ h"}+:t "}o-h
oP II' l.:"~OY'" nt.1: ~"} ~ ., IJ' fOlJ.~t.:(n -r"} o-).;J- ditions necessary for the reorganization of the
societies in accordance with sub-Article (1) of this
loP;F;FIA==
Article.
1~ v.r2i ~1.t.1A .,;MT ;JtLIIJ~'1'C?;~
;t-..,,,,,,. t; +,!Dnji 'J.,... Federal NegaritGazeta-No. 27 29thDecember, I998-Page 956

211' lI?itL"AO'/..r ih''''~ itl\lI?lD-II)T 59. Issuance of Implementing Legislations

f&..1o&.I\- OD,}"lFT fO'/.).itTr.'~ 9"hC f1.T; fhAA The Council of Ministers of the Federal Government or
(J)f,9" .t-tn&~1: 1\&..10&.1\- OD,}"lFT ftf~ hi-II? .,...c;~ the appropriate organ of a Region or city accountable to
fO'/.ODl\hi-lD- hilA f,U') hCP~ 00'/.111 F&. "f, I\II?CPA
the Federal Government may issue legislations for the
1I?lD-II)T f,~"I\-::
proper implementation of this Proclamation.
fO'/.l~ ih''''~,}
60. Effective Date
~. hCP~ fll?O'i"OT 1.11.
This Proclamation shall come into force as of the 291hday
f,U hCP~ h;J-..,..,F 0 cf>'}IIIf.1li ~'9" 'f.9"r.' fO'i" of December, 1998.
f,tf'i"A::
Done at Addis Ababa, this 29thday of December, 1998.
hJtit hOll ;""''''F 0 cf>'}IIIf.1li ~'9"
NEGASO GIDADA (DR)
f.jc ~;J(t 1...c;..c;
PRESIDENT OF THE FEDERAL DEMOCRATIC
fh.'}'f"k.r &"1o&."ce JtlJPh&.lLfce &Tl1l\.h
REPUBLIC OF ETHIOPIA
Tt.ll..c;'}T

oflC?1'i 1'11\9"ay.t-fI7.! ~c~,), ;,..t-oo

aERHANENA SELAM PRINTING ENTERPRISE