Cooperative Legislation
Article 34:
The General Assembly of the Union consists of representatives of all cooperative associations as follows:
(a) Each local cooperative association shall have one representative. If its membership exceeds the average total number of members of cooperative associations in the Union according to the latest final account, it shall have two representatives. If its membership exceeds twice the average, it shall have a third representative. In no case shall a local cooperative association have more than three representatives.
(b) Each joint association shall have one representative.
(c) Each general cooperative association shall have one representative for every ten joint associations in its membership, or fractions thereof, not exceeding five representatives in total.
Representatives are chosen by a decision of the Board of Directors of each cooperative association and must notify the Union before the meeting. Representatives must attend the Ordinary General Assembly in person, with one vote each, and may participate in the Extraordinary General Assembly.
Article 35:
The Union is managed by a Board of Directors consisting of no more than 15 members elected by the General Assembly from among the representatives of the associations, by secret ballot. Each fishing region is represented by one member, in addition to one representative for fish farming associations, joint associations, and general associations.
Chapter Five – General Provisions
Article 36:
The dues of the Cooperative Support Fund for Fishermen may be collected administratively through the cooperative associations and their members upon request of the Fund’s Board of Directors in the following cases:
(a) If the association or member delays repayment of loans from the fund.
(b) If the association or member breaches the terms of the loan contract, making the loan immediately due.
(c) If it becomes evident that the association does not need the full or part of the loan, or delays using it without valid reasons.
(d) If the Fund or the General Authority for Fish Resources Development believes that the association’s situation requires early repayment of the loan.
In all cases, the Fund must notify the association by registered letter one month before proceeding with administrative collection measures.
Article 37:
Amounts due to cooperative associations from their members may be collected administratively, within the limits of the association’s purposes as set out in Law No. 123 of 1983 and its internal regulations, upon request of the association’s Board of Directors or the General Authority for Fish Resources Development.
Article 38:
Administrative collection of dues shall be carried out by employees assigned by the General Authority for Fish Resources Development, in accordance with the Administrative Seizure Law. These employees have judicial police authority.
Article 39:
Cooperative associations must maintain the following records:
- Commercial books as provided in Article 11 and following of the Commercial Law.
- Other accounting books required by the nature of their work.
- Membership register.
- Share register.
- Minutes book for Board and General Assembly meetings, signed by all attending Board members; the General Assembly minutes are signed by the president, secretary, and vote monitors, with all attendees signing the attendance list.
All books must be numbered, stamped by the General Authority for Fish Resources Development before use, and endorsed at the end of each fiscal year by the relevant regional office.
Article 40:
Each member is provided a transaction card recording all dealings with the association, including loans, repayments, and obligations. Lost or damaged cards must be replaced within one week. The card serves as proof for both the member and the association. Separate books must be kept for transactions with members and with others.
Article 41:
Cooperative associations may provide services to non-members within the following limits:
- Accepting deposits with lower interest than for members.
- Selling surplus goods at market prices.
- Renting equipment, machinery, and boats after fulfilling members’ needs.
- Providing any other services after members’ needs are met.
Non-member transactions must never exceed those of members.
Article 42:
General associations may establish economic and social funds to develop fisheries and support members in unemployment, disability, old age, and other social solidarity purposes. Each fund must have an independent account and bylaws approved by the General Assembly and authorized by the General Authority for Fish Resources Development.
Joint and local associations may also establish such funds with support from the General Association. Existing funds are transferred and evaluated by the General Authority to similar funds established under this regulation
Chapter Six: Dissolution of the Association
Article 43:
The dissolution of the association is issued by a decision of the Extraordinary General Assembly or by a decision of the Minister of Agriculture upon the request of the General Authority for Fish Resources Development. The decision appoints liquidators, determines their fees and the duration of liquidation, and the Authority publishes a summary in the Official Gazette.
Article 44:
The final liquidation account shall be published in the Official Gazette. Members may file objections in the competent court within thirty days of publication. The right to sue board members for their actions expires three years from the date of publishing the final accounts. The right to file a lawsuit against the liquidators expires three years from the publication of the liquidation account or the date of the final court judgment regarding these accounts.
Article 45:
No more than the actual value of their shares may be distributed to members from the liquidation proceeds. No amount exceeding the loans, deposits, or returns due to them from the association may be paid.
Article 46:
Any remaining funds after the distribution mentioned in the previous article shall be deposited in a branch of a bank within the jurisdiction of the association’s headquarters. The Minister, based on proposals from the General Authority for Fish Resources Development, shall decide how to use these funds, either to establish a new cooperative association or for any public-benefit project in the association’s area.
Article 47:
An association may be merged into another association by a decision of the Extraordinary General Assembly or by a decision of the Minister upon request of the General Authority for Fish Resources Development. The associations being merged shall be evaluated, and the rights of their members determined before the merger. The Authority shall be notified of the decision or of the minutes of the General Assembly confirming it, and a summary shall be published in the Official Gazette.
Source: Al-Sayyad Newspaper, Issue 19, March–April 2003
