Legislation Overview
- Full Title: Federal Law by Decree on Cooperative Associations - Type: Federal Law by Decree - Issued Date: 17 Aug 2022 - Effective Date: 30 Nov 2022 - Sector: Economy and Business - Number of Articles: 67 - Current Status: Active
Summary
This Federal Law by Decree regulates the establishment, licensing, and operation of cooperative associations in the United Arab Emirates. It aims to enhance the role of cooperative associations in achieving sustainable development, enabling community members to establish such associations, and developing non-traditional cooperative sectors. The law sets out the principles, obligations, and governance framework for cooperative associations in the UAE. (Federal Law by Decree on Cooperative Associations, 2022, Arts. 1-7) The legislation also provides detailed provisions on the establishment process, membership requirements, supervision and control mechanisms, as well as penalties for non-compliance. Additionally, it covers the listing of cooperative associations in financial markets, their transformation into commercial companies, and the role of strategic partners. (Federal Law by Decree on Cooperative Associations, 2022, Arts. 8-32)
What is the scope and purpose of this law?
The Federal Law by Decree on Cooperative Associations aims to regulate the licensing and operation of the cooperative association sector and its activities in the United Arab Emirates. It seeks to enhance the role of cooperative associations in achieving sustainable development, benefiting their members, and maintaining market balance. (Federal Law by Decree on Cooperative Associations, 2022, Art. 2)
What are the key definitions?
The law provides the following key definitions: - "State" refers to the United Arab Emirates. (Federal Law by Decree on Cooperative Associations, 2022, Art. 1) - "Ministry" and "Minister" refer to the Ministry of Economy and the Minister of Economy, respectively. (Federal Law by Decree on Cooperative Associations, 2022, Art. 1) - "Competent Authority" means the Local Government in each Emirate or the Concerned Authority in the Emirate responsible for issuing cooperative association licenses. (Federal Law by Decree on Cooperative Associations, 2022, Art. 1) - "Cooperative Association" is an association consisting of people united by common goals, through which they seek to achieve their aspirations and meet their various economic, social, cultural, and other needs. (Federal Law by Decree on Cooperative Associations, 2022, Art. 1) - "Committee" refers to the temporary committee for the incorporation stage, appointed from among the founder members. (Federal Law by Decree on Cooperative Associations, 2022, Art. 1) - "General Assembly" means the members who hold a quorum and enjoy voting rights at the time of the General Assembly. (Federal Law by Decree on Cooperative Associations, 2022, Art. 1) - "Member" is the person who owns cooperative association shares, except for holders of financing shares and financial instruments. (Federal Law by Decree on Cooperative Associations, 2022, Art. 1) - "Strategic Partner" is the holder of the financing share or financial instruments whose entry results in the provision of technical, financial, operational, or marketing support for the public benefit of the cooperative association. (Federal Law by Decree on Cooperative Associations, 2022, Art. 1)
What are the main obligations and requirements?
The key obligations and requirements for cooperative associations under this law include: 1. Implementing the general policy, plans, and programs necessary to achieve their objectives. (Federal Law by Decree on Cooperative Associations, 2022, Art. 3(1)) 2. Contributing voluntarily to achieve social responsibility, including allocating a percentage of annual profits or accumulated earnings for community responsibility. (Federal Law by Decree on Cooperative Associations, 2022, Art. 3(2)) 3. Exercising exclusively the activities specified in their Articles of Association. (Federal Law by Decree on Cooperative Associations, 2022, Art. 3(3)) 4. Improving the social and economic level of their members. (Federal Law by Decree on Cooperative Associations, 2022, Art. 3(4)) 5. Implementing the approved system for the governance of cooperative associations. (Federal Law by Decree on Cooperative Associations, 2022, Art. 3(5)) 6. Refraining from interfering in politics or stirring up hatred and conflicts that affect the security of the state or its system of government. (Federal Law by Decree on Cooperative Associations, 2022, Art. 3(6)) 7. Providing an office or headquarters for the cooperative association in accordance with the conditions specified by the Competent Authority. (Federal Law by Decree on Cooperative Associations, 2022, Art. 3(7))
What are the rights and protections?
This legislation does not include specific provisions on the rights and protections granted to cooperative associations or their members.
What are the penalties for non-compliance?
This legislation does not include specific provisions on penalties for non-compliance.
How does this law interact with other UAE legislation?
The Federal Law by Decree on Cooperative Associations references several other UAE federal laws, including: - Federal Law No. (1) of 1972 Concerning the Competences of Ministries and the Powers of Ministers - Federal Law No. (2) of 1975 Regulating Agricultural Cooperative Associations - Federal Law (13) of 1976 Concerning Cooperative Association - Federal Law No. (18) of 1981 Regulating Trade Agencies - Federal Law No. (5) of 1985 Promulgating the Civil Transactions Law - Federal Law No. (10) of 1992 Promulgating the Law of Evidence in Civil and Commercial Transactions - Federal Law No. (11) of 1992 Issuing the Civil Procedure Law - Federal Law No. (35) of 1992 Promulgating the Criminal Procedure Code - Federal Law No. (18) of 1993 Promulgating the Commercial Transactions Law - Federal Law No. (4) of 2012 Regulating Competition - Federal Law No. (12) of 2014 Regulating the Profession of Auditors - Federal Decree by Law No. (9) of 2016 on Bankruptcy - Federal Law No. (14) of 2016 concerning Administrative Violations and Penalties in the Federal Government - Federal Law by Decree No. (20) of 2018 concerning Anti-Money Laundering, Combating the Financing of Terrorism and the Financing of Illegal Organisations - Federal Law No. (15) of 2020 Concerning Consumer Protection - Federal Law by Decree No. (31) of 2021 Promulgating the Crimes and Penalties Law - Federal Decree by Law No. (32) of 2021 concerning Commercial Companies - Federal Decree by Law No. (37) of 2021 Concerning Commercial Register (Federal Law by Decree on Cooperative Associations, 2022, Preamble)
When did this law come into effect and what are the transitional provisions?
The Federal Law by Decree on Cooperative Associations came into effect on 30 November 2022. (Federal Law by Decree on Cooperative Associations, 2022, Effective Date) The legislation does not include specific transitional provisions for existing cooperative associations.
Source Documents
This article analyses Federal Law by Decree on 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.