Promulgating the Aquatic Resources Cooperatives Law
In the Name of the People
President of the Republic
The People's Assembly has enacted the following law, which we hereby promulgate:
Article (1)
The provisions of the attached law shall apply to aquatic resources cooperative societies.
The provisions of the general regulations, organizational decisions, and internal bylaws in force concerning these cooperative societies on the date of entry into force of this law shall continue to apply insofar as they do not conflict with its provisions, until the implementing regulations, decisions, and internal bylaws are issued in accordance with the provisions of this law.
Available aquatic resources cooperative societies at the time of entry into force of this law must amend their status and bylaws and re-register in accordance with its provisions within one year from the date of issuance of the implementing regulations for this law. Otherwise, they shall be dissolved by a decision of the competent administrative authority.
The implementing regulations shall specify the procedures for re-registration.
Article (2)
The existing boards of directors of aquatic resource cooperative societies at the time this law comes into effect shall continue to perform their duties until new boards are formed in accordance with its provisions, within a maximum period of three months from the date of re-registration of these societies.
Article (3)
The Fishermen's Cooperative Support Fund, established by Presidential Decree No. 444 of 1961, shall be used to exercise its powers in accordance with the provisions of the attached law.
Article (4)
The General Authority for Fish Resources Development shall be the administrative body responsible for implementing the provisions of this law, and this Authority shall be affiliated with the Minister of Agriculture.
Article (5)
The Minister of Agriculture shall issue the executive regulations for this law, based on a proposal from the General Authority for Fish Resources Development, within a maximum period of six months from the date this law comes into effect.
Article (6)
Any provision that contradicts the provisions of this law is hereby repealed.
Article (7)
This law shall be published in the Official Gazette and shall come into force on the day following its publication.
This law shall be stamped with the State Seal and implemented as one of its laws.
Issued at the Presidency of the Republic on 9 Dhu al-Qi'dah 1403(18 August 1983).
Aquatic Resources Cooperatives Law
Chapter One
General Provisions
Article (1)
Aquatic resources cooperatives are socio-economic units that aim to develop and enhance aquatic resources in their various fields, provide various services to their members, and contribute to social development in their areas of operation.
This is done with the goal of raising the economic and social standards of their members and others within the framework of the State's general plan and in accordance with internationally recognized principles.
Article (2)
Legal entities, with the exception of local units and wholly state-owned public sector units, may not contribute to cooperative societies established under this law.
Societies formed under the provisions of this law may contribute to higher-level cooperative societies as stipulated herein.
The executive regulations shall specify the maximum contribution each may make to the society's capital.
Article (3)
The founders are those who participate in establishing a cooperative society, sign its founding contract, and prepare its bylaws.
They are jointly liable for all obligations arising from the establishment of the society and for all subscribed funds until they are handed over to the first board of directors.
They are also entitled to reimburse any expenses decided upon by the general assembly.
Article (4)
The society acquires legal personality upon registration of its founding contract with the General Authority for Fish Resources Development and publication of a summary of its bylaws in the Official Gazette.
The executive regulations specify the method for establishing the association, the procedures for its registration, and the common data in its bylaws.
Article (5)
Appeals against decisions issued by the competent minister and the General Authority for Fish Resources Development, in accordance with the provisions of this law, shall be filed before the Administrative Court.
Chapter Two
The Cooperative Structure for Aquatic Resources
Article (6)
The cooperative structure consists of aquatic resource cooperatives and the cooperative union for aquatic resources.
Aquatic resource cooperatives may be local, joint, or general.
Article (7)
A local cooperative shall consist of at least twenty members and shall operate within one or more fishing areas of suitable economic size.
The General Authority for Fish Resources Development shall issue a decision specifying the area.
The association's bylaws shall specify its headquarters and area of operation.
The General Authority for Fish Resources Development may, by decision, establish more than one aquatic resource cooperative of the same type within a single fishing area.
Article (8)
Any two or more local cooperative societies may establish a joint cooperative society specializing in providing economic, financial, or social services required by its member societies, or determining the means to ensure that these societies provide such services and supply the materials consumed by these societies.
Individuals may not be admitted as members.
Local cooperative societies and joint cooperative societies may form general cooperative societies among themselves.
Article (9)
The Cooperative Union for Aquatic Resources consists of local, joint, and general cooperative societies.
The Union's mission is to promote cooperation, defend the interests of cooperative societies, guide them in promoting cooperation and defending their interests, advise them in managing their affairs, audit their accounts, inspect their operations, instill a cooperative spirit, and assist citizens in establishing cooperative societies.
To this end, it may appoint supervisors, organizers, and auditors for these activities.
Chapter Three
Tasks of Cooperative Water Resources Units
Article (10)
Local associations shall carry out their activities in the areas of production, development, and marketing of water resources, and shall provide the services required by the needs of their members within their respective areas
Chapter Four
Funds of the Cooperative Society
Section One
Sources of the Society’s Funds
Article (15)
The funds of the society shall consist of the following:
First: Contributed Capital The capital shall consist of an unlimited number of shares. The internal bylaws of the society shall determine the value of each share, provided that it shall not be less than one Egyptian pound in local societies. Subscription in such societies shall be as follows:
(a) Owners of motorized fishing vessels: Subscription shall be at a minimum of one share for each horsepower of the vessels in their possession, whether owned or leased.
(b) Owners of sailing vessels: Subscription shall be at a minimum of one share for each crew member of the vessel in their possession, whether owned or leased.
(c) Shore fishermen and those in a similar status: Subscription shall be at a minimum of one share.
(d) Fish farming cooperatives and similar entities: The value of the share shall not be less than one hundred Egyptian pounds.
For joint and general cooperatives, the minimum value of a share shall be five Egyptian pounds, and the subscription of each cooperative shall not be less than one hundred shares.
In all cases, the full value of the shares shall be paid upon subscription. The boards of directors of existing societies, after re-registration in accordance with this law, shall determine the method and period of subscription in accordance with its provisions, provided that such period shall not exceed three years.
Second: In-kind contributions, the valuation and method of payment of which shall be determined by the executive regulations.
Third: The legal reserve and any other provisions or reserves established by the society.
Fourth: Any surplus achieved during the fiscal year.
Fifth: Donations and bequests received from non-foreign entities, accepted by the society, provided they do not include conditions that conflict with its objectives. The executive regulations shall specify the procedures for their acceptance and the manner of implementing any conditions imposed by the donor or testator that do not conflict with the objectives of the society. Donations and bequests not allocated for a specific purpose shall accrue to the legal reserve.
Sixth: Amounts allocated by the State, local administrative units, and public legal entities to support the societies. The executive regulations shall specify the rules and systems governing the allocation and use of such support.
Seventh: Loans required for carrying out the society’s activities. The executive regulations shall determine the rules governing lending and borrowing in accordance with the nature of the society’s activities.
Article (16)
Shares shall be nominal and indivisible, and may not be subject to attachment except in settlement of debts due to the society. The executive regulations shall specify the procedures for payment, redemption, and disposal of shares.
Section Two
Distribution of Surplus
Article (17)
For the purposes of applying the provisions of this law, “surplus” shall mean the remaining surplus realized from current operations during the fiscal year, after allocating the project reserve referred to in Article (19) of this law, paying all expenses, and fulfilling all obligations required for the proper functioning of the society.
The surplus shall be distributed as follows:
First: Not less than 20% shall be allocated to the legal reserve.
Second: 5% for charitable and social services.
Third: Not more than 5% shall be allocated as incentives to some or all employees of the society. Disbursement shall be made by a decision of the general assembly after approval of the society’s accounts.
Fourth: 5% for public services and for promoting cooperative and cultural awareness among the members of the society, to be spent within its area of operation.
Fifth: 5% shall be deposited in a special account through the Cooperative Union, allocated for cooperative training. The rules governing expenditure from this amount shall be issued by a decision of the Minister of Agriculture based on a proposal from the General Authority for Fish Resources Development and after consulting the Cooperative Union.
Sixth: 5% shall be deposited in a special account through the Cooperative Union for investment and allocation to support financially weak cooperatives and to settle debts owed by cooperatives undergoing liquidation. The rules governing expenditure shall be issued by a decision of the Minister of Agriculture based on a proposal from the General Authority for Fish Resources Development and after consulting the Cooperative Union.
Seventh: Not more than 10% as production incentives for some or all members of the board of directors for special efforts that have a tangible impact on the society’s capital and projects. The internal bylaws of the society shall specify the rules for distributing this percentage and the maximum amount payable to each member. Payment shall be made after approval of the accounts by the general assembly.
Eighth: Distribution of dividends on shares at a rate not exceeding 6% of the nominal value of the share, provided that the total distributed dividends do not exceed 20% of the surplus.
Ninth: The remaining surplus shall be distributed among the members as a return in proportion to their dealings with the society. Such return shall be distributed to beneficiaries within a maximum period of one month from the date of approval of the balance sheet by the general assembly. Any return not collected by its beneficiary and not offset against their transactions shall be added to the legal reserve after the lapse of three years from the date the member is notified of the amount due to them.
Article (18)
Returns resulting from the society’s transactions with non-members shall be added to the legal reserve.
Article (19)
Profits resulting from productive projects owned or managed by the society shall be allocated to a “Project Reserve,” for which a special account shall be established to support these projects. This shall take place after deducting 10% for the society’s legal reserve and allocating 25% for the cash and in-kind shares invested in the projects, all after payment of all expenses, settlement of all obligations, and payment of production incentives to project workers in a manner that links workers’ interests to the success of the work.
Article (20)
No return from the net surplus of subsequent years may be distributed if the society has incurred losses resulting in a deficit in the legal reserve or capital, except after such deficit has been covered.
Section Three
General Provisions
Article (21)
The financial year of the society shall commence on the first of July and end on the thirtieth of June of the following year, with the exception of the first financial year, which shall commence from the date of registration of the society and end on the thirtieth of June of the following year.
Article (22)
Amounts due to the Fund shall have a lien over all movable and immovable property of the debtor, ranking at the same level of priority prescribed under the Civil Code for amounts spent on seeds, fertilizers, and agricultural machinery. Amounts due to the Cooperative Support Fund for Fishermen from cooperative societies and their members may be collected through administrative seizure. The executive regulations shall specify the methods and procedures for collection in accordance with the Administrative Seizure Law.
Article (23)
Amounts due to cooperative societies from their members as a result of their dealings with the society, within the purposes stipulated in this law or its bylaws, shall be secured by a general lien on their assets, ranking at the same level of priority prescribed under the Civil Code for amounts spent on seeds, fertilizers, and agricultural machinery. The society shall have the right to collect such amounts through administrative seizure upon its request or upon the request of the General Authority for Fish Resources Development.
Article (24)
The Cooperative Support Fund for Fishermen shall grant loans to societies and their members against guarantees and in accordance with the conditions, terms, and procedures determined by a decision of its board of directors.
Article (25)
A Cooperative Insurance Fund shall be established by a decision of the President of the Republic to insure the vessels of societies and their members, as well as other types of insurance consistent with the society’s activities. The executive regulations or the internal bylaws of the Fund shall specify the method of financing the Fund, its objectives, and the conditions for payment and settlement of insurance amounts.
Article (26)
Each society shall maintain a separate account for the transactions of each of its members and non-members. Each member shall be issued a special transaction card, and the entries therein shall constitute binding evidence against both the society and the member to the extent supported by documents. The executive regulations shall specify the procedures necessary to organize such accounts and transaction cards.
Article (27)
Each society shall insure its treasury, warehouses, facilities, and assets, as well as custodians among its employees, against occupational risks, including shortages, damage, theft, fire, and breach of trust, in accordance with the system established by the General Authority for Fish Resources Development.
Article (28)
For the purposes of applying the Penal Code, the funds of the society shall be deemed public funds, and its employees and members of the board of directors shall be deemed public officials. The society’s documents, records, and seals shall be deemed official documents, records, and seals, and may not be removed from the society’s premises except in accordance with the law.
Chapter Five
Membership and Members’ Liability
Article (29)
Membership in a local cooperative society shall require the following:
The applicant must be a natural person or one of the legal entities referred to in Article (2) of this law.
The applicant must own a sailing or motorized fishing vessel, or a share thereof, or be a licensed professional fisherman. This condition shall not apply to members of fish farming cooperatives and similar entities.
The applicant must have interests related to the society’s activities within its area of operation.
The applicant must accept the society’s internal bylaws in writing and pay the value of the subscribed shares.
Article (30)
Membership shall be approved by a decision of the board of directors after verifying that the prescribed conditions have been met.
Article (31)
The liability of members for the society’s obligations shall be limited to the value of the shares owned by each member, unless the society’s internal bylaws provide for increased liability. Members of the board of directors shall be jointly liable for damages suffered by the society as a result of gross negligence committed by them during their term of membership, following an investigation resulting in a finding of liability.
Article (32)
Membership shall terminate in the following cases:
(a) Withdrawal of the member from the society, or approval by the board of directors of the transfer of all their shares to another member who meets the membership requirements. A withdrawing member shall be entitled to recover the value of their contributions after settlement of their obligations, in accordance with the latest approved balance sheet, provided that such withdrawal does not result in a reduction of the society’s capital in any single year by more than 10% of the contributed capital according to the latest approved final accounts.
(b) Expulsion by a decision of the general assembly and approval of the General Authority for Fish Resources Development. (c) Loss of any of the membership conditions stipulated in Article (29) of this law. (d) Death.
A member whose membership has ceased for any of the reasons stated in items (a), (b), or (c) shall bear a proportionate share of any deficit in the society’s capital or losses, within the limits of the value of their subscription, unless the internal bylaws provide for increased liability. In all cases, a former member or their heirs shall remain liable, within the limits of the assets devolved to them, to third parties for obligations incurred during the period of membership, for a period of two years from the date of termination of membership. If the society is dissolved during this period, such liability shall continue until the publication of the liquidation accounts.
Source: General Authority for Fish Resources Development
