Legislation Details
- Full Title: Cabinet Resolution Concerning the Executive Regulations of Federal Decree-Law Concerning Cooperative Associations
- Law Type: Federal Decree-Law
- Law Number: No. (55) of 2024
- Issued Date: 10 Jun 2024
- Effective Date: 01 Aug 2024
- Official Gazette: No. 780
- Sector: Economy and Business
- Status: Active
- Number of Articles: 227
- Chapters/Parts: 0
- Amendments: 0
Summary
This Cabinet Resolution provides the executive regulations for Federal Decree-Law No. (6) of 2022 Concerning Cooperative Associations. It establishes the legal framework for the incorporation, governance, and operations of cooperative associations in the UAE. The resolution covers key aspects such as membership, general assembly, board of directors, capital, profits, types of cooperative associations, auditing, and dissolution. This legislation is important for businesses and individuals seeking to establish or participate in cooperative associations in the UAE, as it outlines the detailed rules and requirements they must follow. (Cabinet Resolution Concerning the Executive Regulations of Federal Decree-Law Concerning Cooperative Associations, 2024)
What is the scope and purpose of this law?
The scope of this Cabinet Resolution is to provide the executive regulations for Federal Decree-Law No. (6) of 2022 Concerning Cooperative Associations. It applies to all cooperative associations established in the UAE. The purpose is to establish a comprehensive legal framework to regulate the incorporation, governance, and operations of cooperative associations in the country. (Cabinet Resolution Concerning the Executive Regulations of Federal Decree-Law Concerning Cooperative Associations, 2024, Art. 1)
What are the key definitions under this law?
The key definitions provided in this legislation include:
- SCA: Securities and Commodities Authority
- Cooperative Movement: The basics, concepts and guarantees derived from the globally recognized cooperative values and principles that enable cooperative associations to achieve their objectives
- Senior Members: A capacity granted by basic cooperative associations to members who fulfil a group of requirements that relate to the volume of their transactions, contributions and investments in the cooperative association authorizing them to enjoy multiple voting rights and preferential rights
- Cooperative Association Unions: Cooperative associations of the same type establishing a union
- Joint Cooperative Associations: Licensed cooperative associations that include two or more cooperative associations established to produce or import the requirements of activity of such cooperative associations or for the service of its various objectives
- Financial Shares and Financial Instruments: Financing shares and financial instruments, such as sukuk, bonds, future contracts, financial certificates, derivatives held by the strategic partner
- Treasury Shares: Shares purchased by the cooperative association itself
- A Working Day: The official working day in Ministries, government authorities and local departments
- Law: Federal Decree-Law No. (6) of 2022 Concerning Cooperative Associations
(Cabinet Resolution Concerning the Executive Regulations of Federal Decree-Law Concerning Cooperative Associations, 2024, Art. 1)
What are the main obligations and requirements?
The main obligations and requirements under this law include: 1. Each cooperative association must have a name containing the words "cooperative association" to indicate its capacity and work type. The name must be approved by the competent authority and cannot violate public order or be similar to an existing name. (Cabinet Resolution Concerning the Executive Regulations of Federal Decree-Law Concerning Cooperative Associations, 2024, Art. 2) 2. The cooperative association must be incorporated by at least 10 founders, though the competent authority can reduce or increase this number due to the type or local privacy of the cooperative association. (Cabinet Resolution Concerning the Executive Regulations of Federal Decree-Law Concerning Cooperative Associations, 2024, Art. 4) 3. The Constituent General Assembly must be convened within 30 days of the last founder joining, with a quorum of over 50% of founders. Resolutions require a 3/4 majority vote. (Cabinet Resolution Concerning the Executive Regulations of Federal Decree-Law Concerning Cooperative Associations, 2024, Art. 5) 4. The Memorandum of Association and Articles of Association must be submitted to the competent authority, be in Arabic, and be binding on all members. (Cabinet Resolution Concerning the Executive Regulations of Federal Decree-Law Concerning Cooperative Associations, 2024, Art. 6-7)
What licensing, registration, or approval requirements exist?
The legislation does not specify any licensing, registration, or approval requirements beyond the incorporation process outlined in the law. The competent authority is responsible for considering and approving the incorporation application for new cooperative associations. (Cabinet Resolution Concerning the Executive Regulations of Federal Decree-Law Concerning Cooperative Associations, 2024, Art. 8-10)
What rights and protections does this law provide?
The law provides the following key rights and protections: 1. Members have the right to withdraw from the cooperative association. (Cabinet Resolution Concerning the Executive Regulations of Federal Decree-Law Concerning Cooperative Associations, 2024, Art. 18) 2. Senior members are granted multiple voting rights and preferential benefits within the cooperative association. (Cabinet Resolution Concerning the Executive Regulations of Federal Decree-Law Concerning Cooperative Associations, 2024, Art. 59-61) 3. Members have the right to object to decisions to transform the cooperative association into a commercial company. (Cabinet Resolution Concerning the Executive Regulations of Federal Decree-Law Concerning Cooperative Associations, 2024, Art. 85) 4. Members who object to a merger have the right to have their shares redeemed. (Cabinet Resolution Concerning the Executive Regulations of Federal Decree-Law Concerning Cooperative Associations, 2024, Art. 91)
Which authorities or bodies are responsible for enforcement?
The key authorities and bodies responsible for enforcement under this law include: 1. The competent authority, which is responsible for approving the incorporation of new cooperative associations, as well as any amendments to their Memorandum or Articles of Association. (Cabinet Resolution Concerning the Executive Regulations of Federal Decree-Law Concerning Cooperative Associations, 2024, Art. 8-10, 14) 2. The Ministry, which coordinates with the competent authority on matters related to the cooperative movement. (Cabinet Resolution Concerning the Executive Regulations of Federal Decree-Law Concerning Cooperative Associations, 2024, Art. 1) 3. The Securities and Commodities Authority (SCA), which is referenced in the legislation. (Cabinet Resolution Concerning the Executive Regulations of Federal Decree-Law Concerning Cooperative Associations, 2024, Art. 1) 4. The General Assembly and Board of Directors of each cooperative association, which are responsible for the association's internal governance and decision-making. (Cabinet Resolution Concerning the Executive Regulations of Federal Decree-Law Concerning Cooperative Associations, 2024, Art. 22-43)
What are the penalties for non-compliance?
The legislation does not specify any penalties for non-compliance.
What fees, charges, or financial provisions are specified?
The legislation does not specify any fees, charges, or financial provisions.
What exemptions or exceptions apply?
The legislation does not provide any exemptions or exceptions.
How are disputes resolved under this law?
The legislation does not specify any dispute resolution mechanisms.
What are the key deadlines and time limits?
The key deadlines and time limits specified in the legislation include: 1. The Constituent General Assembly must be convened within 30 days of the last founder joining. (Cabinet Resolution Concerning the Executive Regulations of Federal Decree-Law Concerning Cooperative Associations, 2024, Art. 5) 2. If the quorum is not met for the Constituent General Assembly, the meeting must be adjourned and reconvened within 5-15 days. (Cabinet Resolution Concerning the Executive Regulations of Federal Decree-Law Concerning Cooperative Associations, 2024, Art. 5)
How does this law interact with other UAE legislation?
This Cabinet Resolution is issued pursuant to Federal Decree-Law No. (6) of 2022 Concerning Cooperative Associations, which it provides the executive regulations for. It also references Federal Law No. (4) of 2000 concerning the UAE Securities and Commodities Authority (SCA). (Cabinet Resolution Concerning the Executive Regulations of Federal Decree-Law Concerning Cooperative Associations, 2024, Preamble)
When did this law come into effect?
This Cabinet Resolution came into effect on 01 Aug 2024, as specified in the "Effective Date" field. (Cabinet Resolution Concerning the Executive Regulations of Federal Decree-Law Concerning Cooperative Associations, 2024)
Source Documents
This article analyses Cabinet Resolution Concerning the Executive Regulations of Federal Decree-Law Concerning Cooperative Associations for legal research and educational purposes. For the purpose of interpretation and application, reference must be made to the original Arabic text. In case of conflict, the Arabic text prevails. This does not constitute legal advice.