Monday, August 22, 2016

CONCERNING THE FOUNDATION OF THE ALMSGIVING FUND
We, Zayed Bin Sultan Al Nahyan, President of the United Arab Emirates,
Pursuant to the perusal of the Constitution; and
Federal Law no. 1 of 1972 concerning the Jurisdiction of Ministries and the Powers of Ministers and the amending laws thereof; and
Federal Law no. 7 of 1976 concerning the Establishment of the State Audit Institution; and
Federal Law no. 7 of 1999 issuing the Pension and Social Security Law; and
Federal Law no. 21 of 2001 concerning the Civil Service within the Federal Government; and
Acting upon the proposal of the Minister of Justice, Islamic Affairs and Endowments, the approval of the Cabinet and the Federal National Council and the ratification of the Federal Supreme Council,
Have promulgated the following Law:

Article 1 - Definitions
In the implementation of the provisions hereof, the following terms and phrases shall have the meanings assigned for each of them unless the context requires otherwise:
State: The United Arab Emirates State.
Ministry: The Ministry of Justice, Islamic Affairs and Endowments (Islamic Affairs and Endowments Sector).
Minister: The Minister of the Justice, Islamic Affairs and Endowments.
Fund: the Almsgiving Fund.
The Board of Directors: The Board of Directors of the Fund.
Secretariat General: The Secretariat General of the Fund.

Article 2 -
A fund called (the Almsgiving Fund) shall be established in the State. It shall enjoy a judicial personality, a financial and administrative independency and an independent budget and shall report to the Minister.

Article 3 - Objectives of the Fund
The Fund shall have the following objectives:
1 - To accept and develop the almsgivings money, dispose thereof as duly prescribed and in accordance with the priorities thereof.
2 - To provide awareness with regards to the almsgiving ordinance and the role thereof in life.
3 - To diffuse the spirit of mercy and solidarity in the society.

Article 4 -
The headquarters of the Fund shall be located in Abu Dhabi City, and branches thereof may be established in all regions of the State by virtue of a decision by the Board of Directors of the Fund.

Article 5 -
The resources of the Fund shall be constituted of:
1 - Almsgivings that Muslims desire to donate directly to the Fund, or that are transferred to the Fund through philanthropist organizations and bodies or others in view of the due payment thereof to the beneficiaries.
2 - The donations, aids and subsidies presented by others, not contradicting the objectives of the Fund and accepted by the Board of Directors.
3 - The credits allocated to the Fund in the General Budget of the State to be spent as administrative expenditures incumbent thereto.
4 - The moneys resulting from the exercise by the Fund of activities not contradicting the objectives thereof.

Article 6 -
The transfer among the titles of the Budget, from one title to another may occur by virtue of a decision issued by the Board of Directors upon the proposal of the chairman thereof. In addition, the transfer from one clause to another within the same title of the Budget may occur by virtue of a decision made by the Chairman of the Board of Directors upon the proposal of the Secretary General.

Article 7 -
The moneys of the Fund shall be considered public. The Fund shall be exempted from the prior control of the Accounting Department.

Article 8 -
The fiscal year of the Fund shall commence on the first of January and end on the thirty first of December of every year. The first fiscal year of the Fund shall commence on the date of the entry into force hereof, and end at the end of December of the following year.

Article 9 -
The Fund shall have a Board of Directors constituted under the chairmanship of the Minister and a certain number of members whose nomination and remunerations are determined by virtue of a decision issued by the Cabinet.

The membership in the Board shall be three renewable years. The Board shall choose during the first meeting thereof a Vice - Chairman who shall replace the Chairman should the latter be absent or hindered.

Article 10 -
The Board of directors shall be the supreme authority supervising the activities of the Fund and managing the affairs thereof. It shall exercise all the necessary competences for the achievement of the objectives thereof, namely:
1 - To determine the general policy of the Fund, approve the expenditure of almsgiving money in legally prescribed manners and open bank accounts.
2 - To take the necessary calling measures to remind Muslims of the wisdom of the almsgiving ordinance and to encourage them to fulfill same.
3 - To coordinate and cooperate with philanthropist organizations and bodies receiving legal almsgivings money in order to distribute them as duly prescribed.
4 - To appoint auditors and set the remunerations and ratify the reports thereof.
5 - To confirm the draft annual budget and closing account of the Fund and present them to the Cabinet for ratification. The resources of the Fund resulting from almsgiving moneys shall be exempt therefrom and the ratification of the budget and closing account shall be of the jurisdiction of the Board of directors.
6 - To draw the organizational structure, the personnel affairs regulation, and the financial sheet of the Fund. A decision shall be issued by the Cabinet in this regard.
7 - To propose draft laws regarding the activity of the Fund.
8 - To form committees pertaining to the Secretariat General.
9 - To issue necessary decisions for the implementation of the provisions hereof.

Article 11 -
The Board of Directors shall meet once every three months at least upon the invitation of the Chairman. The Chairman may address such invitation whenever need be, and the Board may convene as per the request of one third of the members thereof.

The meeting shall only be deemed valid should the two thirds of the members of the Board be present. The decisions shall be passed by the majority of the votes of the present members. In the event of equality of votes, the side with whom the chairmanship voted shall prevail.

Article 12 -
The Board of Directors may form, from among the members thereof, one or more committees entrusted with some of the jurisdictions thereof. Furthermore, the Board may entrust the Chairman or one of the members thereof with a specific mission, provided that the results of such mission are presented to the Board by the said member in order to take the appropriate measures in this regard.

Article 13 -
The Board of Directors shall have a Secretariat General entitled to prepare the meetings of the Board, follow up the decision thereof and cooperate between the pertinent parties with regards to the decisions issued by the Board and the activities entrusted thereto. It shall carry out in particular:
1 - The proposal of plans for the management and distribution of the moneys of the Fund.
2 - The proposal of regulations and executive regulations pertaining to the moneys of the Fund.
3 - The drawing of the organizational structure of the Fund and the bodies working therein.
4 - The proposal of regulations and executive regulations pertaining to the moneys of the Fund.
5 - The drawing of the annual budget and the closing account of the Fund.
6 - The submission of the reports of the auditors to the Board of Directors.
7 - The submission of periodic reports to the board regarding the workflow of the Fund.

Article 14 -
The Secretariat General shall be subordinated to the following committees:

1 - The Religious Committee: having jurisdiction to give religious opinion concerning the provisions of almsgiving and the call to remind of the provisions of said ordinance and the payment thereof.

2 - The Expenditure Committee: having jurisdiction to prepare the policies of distribution of the moneys of the Fund in accordance with religious prescriptions, or in application of the opinions determined by the almsgivers.

Article 15 -
The Fund shall have a Secretary General with the rank of an Undersecretary appointed by virtue of a Federal Decree issued upon the proposal of the Minister. He shall undertake the execution of the decisions of the Board, be responsible of the workflow in the Secretariat General and represent the Fund before third parties and before the Court.

Article 16 -
All formalities and lawsuits of the Fund shall be exempted from taxes and charges whatsoever.

Article 17 -
The nationals employed in the Fund shall be subject to the laws and the regulations of the Civil Service in the Federal Government until the promulgation of a regulation organizing the affairs of the personnel of the Fund. In addition, they shall be subject to the provisions of the Law on Pensions and Social Securities.

Article 18 -
The non - nationals employed in the Fund shall be subject to the contracts concluded therewith, and to the personnel affairs regulation therein, should a text in this regard not be set forth in said contracts.

Article 19 -
This Law shall be published in the Official Gazette and shall come into force six month subsequent to its publication.

Promulgated by Us at the Presidential

Palace in Abu Dhabi
On 14 Dhu al - Hijjah 1423 H.
Corresponding to 15 February 2003
Zayed Bin Sultan Al Nahyan
President of the United Arab Emirates State

This Federal Law has been published in the Official Gazette, issue no. 394, p. 12.

Source: Ministry of Justice

UAE Federal Law No. 13 "Concerning Cooperative Associations"

Federal Law No. 13 "Concerning Cooperative Associations"

Federal Law No. 13
Issued on 30/11/1976
Corresponding to 9 Dhu al - Hijjah 1396 H.

CONCERNING COOPERATIVE ASSOCIATIONS

We, Zayed Bin Sultan Al Nahyan, President of the United Arab Emirates State,
Pursuant to the perusal of the provisional 2 Constitution; and
Law no. 1 of 1972 concerning the Jurisdiction of Ministries and the Powers of Ministers and the amending laws thereof; and
Acting upon the proposal of the Minister of Social Affairs and the approval of the Council of Ministers and the Federal National Council and ratification of the Federal Supreme Council,
Have promulgated the following Law:

TITLE ONE
GENERAL PROVISIONS

Article 1
In implementing the provisions of this Law, shall be deemed a Cooperative Association every association set up by physical or juristic persons for specified or unspecified period for the purpose of raising the economic and social standard of its members through adoption of cooperative principles and in specific, what follows hereinafter:
a - Membership must be optional and restricted to citizens.
b - The capital of the Association must be composed of undefined number of shares of which every person is entitled to subscribe and assign to any other person in conformity with the provisions of this Law and the Association bylaw.
c - Members must have equal rights and obligations regardless of the shares owned by them.
d - Shares of capital must not obtain revenue in excess of 10 % of its nominal amount.
e - Distribution of the net profit must be based on the volume of transactions of each member with the Association.

Article 2
The name of the Association must include what indicates its cooperative capacity, its primary objective and headquarters. No association other than those set up in conformity with the provisions of this Law is entitled to use the term “ cooperative ” or its derivatives as part of its name.

Article 3
The juristic personality of the Cooperative Association shall not be confirmed, and its organizers are not allowed to conclude contracts or perform transactions on its behalf unless it is registered and its bylaw is registered in conformity with the provisions of this Law.

Article 4
The shares of the Cooperative Association shall be nominal and indivisible; they shall not be subject to seizure except for the payment of the debts of the Association. The liability of the members of the Association is limited to the amount of the subscribed shares in the Association.

Article 5
Acceptance of membership in the Cooperative Association must not be conditioned upon subscribing in more than five shares. Each member is not allowed to own more than tenth of the subscribed capital of the Association.

Article 6
Every member may withdraw from the Association pursuant to the procedures prescribed by its bylaw. He shall be entitled to recover the amount of his contribution in the Association provided that this shall not contribute to decrease the capital of the Association to less than half of the maximum amount which the capital has reached since the establishment of the Association. The amount recovered by the withdrawn member must be decreased in proportion to the loss sustained by the Association pursuant to the budget issued at the end of the year in which the member has withdrawn.

Article 7
The member may assign his shares to another beneficiary pursuant to the bylaw of the Association.

Article 8
Membership in the Association shall be forfeited if any member fails to observe any of the membership conditions required by this Law or by the Association bylaw.

Article 9
Should any member withdraw or assign his shares or be excluded from membership in the Association, or should his membership is forfeited, he shall be liable before third parties for the obligations resultant from its activities until the date of exiting the Association.
This liability shall be subsisting until the end of the six months following the accreditation of the balance account of the fiscal year in which the withdrawal, assignment, exclusion or forfeiture of membership is carried out as necessary.

Article 10
All or some of the heirs of the deceased member may continue in the Association and acquire its membership should they satisfy all its conditions.

Article 11
Cooperative Associations published pursuant to the provisions of this Law may perform all legal dispositions necessary to initiate their activity.

Article 12
Cooperative Associations are not allowed to set up branches unless within their place of business and on condition they administer these branches and supervise them. Every branch must bear the name of the Association.
The Minister of Social Affairs may authorize the Association to set up branches in other than its place of business should the nature of its objectives so requires.

TITLE TWO
ON ESTABLISHMENT OF COOPERATIVE ASSOCIATIONS

Article 13
Establishment of any Cooperative Association is conditioned upon fulfillment of the following conditions:
a - The number of organizers must not be less than fifteen persons.
b - The age of organizer is not below the age of eighteen years.
c - Membership in the Association shall be denied to any person convicted of a felony or crime against honor or trust unless he is rehabilitated or an amnesty is granted from the competent authorities.
d - Organizers must convene in constituent assembly to sign the articles of incorporation of the Association and its bylaw pursuant to the provisions mentioned in this Law.

Article 14
Articles of incorporation must include date and place of its drawing up, the name of the Association, place of business, its kind, object, the amount of its paid capital, the share value, the names of the organizers, their places of domicile, professions and nationalities.

Article 15
Organizers shall be jointly liable for all obligations resultant from the establishment of the Association. If it becomes impossible to set up the Association, they shall not have the right of demanding the subscribers. If the Association is established, they shall recover the expenses as decided by the Association. They shall also be jointly liable for all the subscribed assets until their delivery to the board of directors of the Association.

Article 16
Without prejudice to the exemplary regulation issued by a decision from the Minister of Social Affairs, the Association bylaw must consist of the following information:
1 - The name of the Association, place of business, the object or objects for which the Association is established.
2 - Its head office provided that it is within its place of business.
3 - The amount of capital of the Association at time of establishment, the value of one share, manner of its payment, recovery and assignment.
4 - The maximum amount of shares allowed to be owned by the member.
5 - Requirements of admission of members, their obligations and conditions of their withdrawal or exclusion.
6 - Manner of election of the members of board of directors, powers of the board, its bylaw, dates and methods of meetings, the majority necessary for legality of meetings and decisions, manners, conditions and procedures for exclusion of members.
7 - The powers of the board of directors of the Association, its president, vice - president, treasurer, secretary, manner of their election, instances, conditions and procedures of their exclusion.
8 - The powers of the general assembly, its convocation rules, date of meetings, voting method.
9 - The fiscal year of the Association.
10 - Accountancy and administrative books kept by the Association.
11 - Composition of the reserve funds.
12 - Distribution of profits and settlement of losses.
13 - Basis of the amendment of the Association bylaw.
14 - Rules of dissolution of the Association, merger or settlement of its funds.

Article 17
The Ministry of Social Affairs shall examine registration of the Cooperative Association upon an application submitted by the organizers and attached with the following documents:
a - Two copies of the articles of incorporation of the Association.
b - Three copies of the bylaw after its endorsement and signing by the organizers.
c - Two copies of the minutes of the constituent meeting of the Association in which one or several members are elected to carry out the registration procedures.
d - Statement of the number and amount of shares subscribed by the organizers and signed by the temporary treasurer and deposit statement from the bank.
The Ministry of Social Affairs shall proclaim the Association which is registered by publishing the articles of incorporation and an abstract of its bylaw in the Official Gazette.

Article 18
The Ministry of Social Affairs may refuse the registration application of the Association within thirty days from the date of its submission with statement of reasons of refusal. It is entitled to perform any amendments to the bylaw which he deems necessary for the public interest.
The organizers within two weeks from the date of their notification may submit a grievance 2 against the refusal or amendment decision before a Committee which is composed and regulated by a decision issued by the Minister of Social Affairs.

Article 19
Any amendment to the bylaw of the Association shall not be considered unless registered at the Ministry of Social Affairs upon an application submitted by the board of directors of the Association and attached with the following documents:
a - Two copies of the amendment.
b - Two copies of the minutes of the general assembly in which the amendment is decided.
The Ministry of Social Affairs shall proclaim the amendment which is registered by its publishing in the Official Gazette.
The Ministry may refuse the amendment application within one month from the date of its submission with statement of the reasons of refusal.
The board of directors of the Association may submit a grievance before the Committee mentioned in the preceding Article within two weeks from the date of notification of the refusal decision.

Article 20
The Committee mentioned in Article 18 must adjudicate the grievance within thirty days from date of its submission. Its decision shall not be considered irrevocable unless ratified by the Minister of Social Affairs.
The concerned persons may appeal to the final decision before the Federal Supreme Court within fifteen days from date of notification of this decision. The Court shall adjudicate the appeal promptly and without fees.

TITLE THREE
ADMINISTRATION OF COOPERATIVE ASSOCIATIONS

Article 21
Every Cooperative Association shall have a board of directors to administer its affairs, and shall be composed of at least five members elected by the general assembly by secret ballot from among the members in conformity with the Association bylaw. Term of office shall be three years. The general assembly may re - elect the member after the termination of his term of office or forfeiture of his membership unless it is prohibited by bylaw of the Association.

Article 22
Nomination for the membership in the board of directors shall be opened before two months at most and one month minimum from the appointed time of the general assembly meeting, it shall be closed before fifteen days from the appointed time of the general assembly meeting.
The board of directors must notify to the Ministry of Social Affairs of the opening and closure date of nomination, time of election, and the Ministry must send one or several comptrollers to supervise on the election operation.
Any concerned person may appeal against the election validity of any of the members of the board of directors before the Committee mentioned in Article 18 of this Law within fifteen days from the date of announcement of the election result.
The Committee’s decision issued in this matter shall be deemed irrevocable after being accredited by the Minister of Social Affairs.

Article 23
The board of directors in its first meeting after the announcement of its election result shall elect a president, vice - president, treasurer, and secretary of the Association for one - year term.
The president shall represent the Association before courts and third parties, and he is required to execute the decisions issued by the board.
The vice - president shall substitute for the president in case of his absence or excuse.

Article 24
The members of the board of directors are liable before the Association, shareholders and third parties for all acts of fraud and misuse of power and all faults committed in the administration of the Association whether faults in financing or co - operative policy or in organization and administration.
The proposal of the general assembly regarding the acquittance of the board of the directors shall not preclude from submitting liability lawsuit.

Article 25
The member of the board of directors is prohibited from concluding contracts on behalf of the Cooperative Association unless by delegation from the board of directors, this delegation is required to be written.

Article 26
Every Cooperative Association must have a non - member auditor who shall be appointed annually by the general assembly which shall determine his rewards. He is required to be legal accountant. This auditor shall examine the Association accounts, draw up an inventory of its safes and ware houses, and examine the balance accounts. For this purpose he is allowed to examine the Association books, accounts and deeds, and he must respond to any request for all information or explanations requested by the Ministry of Social Affairs.

Article 27
The board of directors shall submit the general budget of the terminated fiscal year and the balance accounts to the auditor to examine before at least two months from the time of the meeting of the general assembly, and he must report to the Ministry of Social Affairs of the examination result before at least one month from the date of the meeting of the general assembly.

Article 28
Members shall be convened to attend the general assembly before fifteen days at least from the date of the meeting. A copy of the general budget, the balance accounts, reports of the board of directors and auditors and remarks expressed by the Ministry of Social Affairs shall be attached to the convocation.

Article 29
The board of directors is entitled to appoint a director from among the members of the Association or others. The board of directors shall determine the powers and duties of the director, his remuneration and reward. He shall be prohibited from carrying out any work performed by the Association or contradictory with its interests whether for his account or to the account of others. Board of directors shall be liable before the general assembly for the director’s acts.
The director is entitled to attend the meetings of the board of directors without having a counted vote in the discussions.

Article 30
Board of directors of the Cooperative Association must submit a report to the ordinary general assembly regarding the current and future projects of the Association and in which he specifies its financial situation. He is required to inform the Ministry of Social Affairs of a copy of this report before at least one month from the date of the meeting of the general assembly.

Article 31
Every Cooperative Association is required to retain the following books and registers:
1 - Membership book which shall consist of the members’ names, nationalities and ages, their places of domicile, professions and the shares owned by them and date of beginning and termination of membership.
2 - Commercial books specified in the present Law.
3 - Two books for the meetings of the board of directors and the general assembly.

Article 32
The members of the board of directors shall perform their works without pay; however, the Association may decide to grant the members of the board of directors rewards for good management.

Article 33
Every member shall have only one vote in the general assembly regardless of the number of shares owned by him. The members of the general assembly may delegate other members of the Association.
Minors and persons declared incompetent shall be represented by their legal representatives.

Article 34
The ordinary general assembly shall be held upon convocation from the board of directors within four months following the end of the fiscal year for ratification of the annual accounts, the reports of the board of directors and auditor and to elect the members of the board of directors or to examine other issues mentioned in the agenda.
The board of directors must summon the extra - ordinary general assembly to convene at any time upon the request of:
a - The Cooperative Union to which the Association affiliates.
b - The auditor.
c - Fifth of the number of the members of the general assembly who are eligible to attend the assembly in conformity with its bylaw.
d - The majority of the members of board of directors.
e - The Ministry of Social Affairs.
The issues for which the assembly is convened must be indicated in the convocation.

Article 35
The meeting of the general assembly shall not be legally held unless with the attendance of the majority of its members. If the number of the attending members is less than the mentioned number, the meeting should be postponed to another session to be held at any time determined by the convocation letter, provided that it shall not be beyond fifteen days from the date of the first meeting. The next meeting shall be legally held with the attendance of tenth of the members or at least fifteen members.
The meetings of the general assembly shall be presided over by the president of the board of directors. Decisions shall be issued by the majority of the attending votes. In the event of a tie, the side which the president votes with shall prevail.

Article 36
Any of the following decisions shall be issued only by an extra - ordinary general assembly attended by more than half of its members and with the consent of two third of the attending members:
1 - Amendment of the Association bylaw.
2 - Merger of the Association in another association.
3 - Dissolution of the Association before the appointed time or extension of the mentioned term.

Article 37
Resignation of the auditor or collective resignation of the members of the board of directors shall not be considered before summoning the general assembly to ordinary meeting to appoint an auditor or election of new board of directors.

Article 38
It is not allowed to present to the ordinary or extra - ordinary general assembly subjects not included in its agenda or subjects that were previously submitted but at least six months have not elapsed from date of non obtainment of the required majority.

TITLE FOUR
DISTRIBUTION OF PROFITS AND CONSTITUTION OF THE RESERVE

Article 39
Without prejudice to the provisions mentioned in the bylaw of each association, the net profit resultant from the current activities during the fiscal year shall be distributed in the following order:
a - 20 % minimum of the net profit to constitute legal reserve until the reserve reaches twice the amount of the capital.
b - Amount of revenue of the shares which are decided by the Association bylaw not contrary to the provisions of Article 1 of this Law.
c - Rewards of the members of the board of directors as decided by the general assembly pursuant to Article 32 of this Law.
d - Whatever decided by the general assembly to be deducted from the net profits to improve the region’s affairs to which the Association affiliates from both financial and social aspects or for charities provided that the deducted amounts shall not be in excess of 10 % of the net profits.
e - The surplus profit shall be distributed among the members each within his proportion of dealing with the Association.

Article 40
Shall be added to the legal reserve of the Association and in addition to the proportion mentioned in the preceding Article what follows:
a - Donations and wills decided to the interest of the Association.
b - Revenue of shares, amount of shares and profits due to the members which the right to claim them is forfeited.

TITLE FIVE
CONTROLLING COOPERATIVE ASSOCIATIONS

Article 41
The Ministry of Social Affairs shall control and inquire on the activity of the Cooperative Associations including their prices, activities and accounts to ascertain from its functioning pursuant to the provisions of the law and its conformity to the bylaw and the decisions of the general assembly. Inquirers assigned by the Minister of Social Affairs shall check violations and crimes specified in the present Law and shall have the capacity of judicial officers.

Article 42
The Minister of Social Affairs may decide stay of execution of any decision issued by the organizations administering the Association and which is violating the provisions of law, the Association bylaw or cooperative principles. The concerned Association may appeal the decisions of the suspensor before the Federal Supreme Court within fifteen days from notification of this decision. The appeal shall not result in a stay of execution.
The Court; after hearing the remarks of both parties, may adjudicate of a summary nature without fees.

Article 43
The reports of the inquirers mentioned in Article 41 of this Law shall be submitted to the Ministry of Social Affairs and to the board of directors of the Association to be presented to the general assembly.

TITLE SIX
MUTUAL ASSOCIATIONS AND COOPERATIVE UNIONS

Article 44
It is allowed for any number of Cooperative Associations published pursuant to the provisions of this Law to constitute among each other mutual Cooperative Associations to produce or import whatever demanded by the Associations activity to which they affiliate or to serve their objects.

Article 45
It is allowed for at least five associations published pursuant to the provisions of this Law to constitute among each other Cooperative Union provided that not more than one union of each kind of these Cooperative Associations be established. The task of these Unions is to publicize the convocation for cooperation, defend the interests of the Cooperative Associations and aid the citizens to set up Cooperative Associations.

Article 46
Mutual Cooperative Associations and Cooperative Unions shall acquire their juristic personality by publishing the bylaws and their registration at the Ministry of Social Affairs in conformity with the provisions of Articles 17,18 of the present Law.

Article 47
The bylaw of mutual Cooperative Associations and Cooperative Unions shall determine the method for composition of the board of directors of the Mutual Association or Union, number of its members, method of their election or appointment and all issues concerning their affairs in addition to the method of composition of the general assembly and rules concerning its meetings and voting method.

Article 48
Cooperative Unions and Mutual Cooperative Associations shall appoint in their bylaws the amount of membership fees and payment method. Provisions concerning Cooperative Associations shall apply to Mutual Associations and Cooperative Unions in all that is not contradictory to the provisions of this Title.

TITLE SEVEN
TERMINATION OF ASSOCIATIONS, ITS WINDING UP AND DISSOLUTION

Article 49
Extra - ordinary general assembly as specified by Article 36 of the present Law may decide voluntarily dissolution of the Association. The dissolution decision must include appointment of liquidators and determination of conditions and specification of their powers and the period required for dissolution.

Article 50
The Minister of Social Affairs may decide the voluntarily dissolution of the Association in the following instances:
a - Should the number of its members decreases below fifteen members.
b - Should it lose more than half its capital or should its continuance contribute to loss.
c - Should it fail to fulfill its financial obligations or cooperative objectives or violate the rules decided by the law.
d - Should its interference in religious or political matters is established.
The Minister of Social Affairs shall issue the dissolution decision including the appointment of liquidators and determination of their fees.
The concerned persons may appeal the decision before the Federal Supreme Court within thirty days from date of notification of the appealed decision.

Article 51
Dissolution accounts shall be published in the Official Gazette. The members of the Association within thirty days following the publication of these accounts may appeal them before the Federal Supreme Court. All appeals shall be combined and one judgment shall be rendered and be conclusive against all the members of the Association, the judgment shall be published in the Official Gazette.

Article 52
The right to litigate the members of the board of directors of the Association for negligence shall be forfeited by the elapse of three years from the date of publishing the dissolution accounts.

Article 53
Money resultant from dissolution shall be distributed among the members in proportion to their shares in the Association.

Article 54
The Minister of Social Affairs whenever he deems necessary for the interest of the cooperative movement or the interest of its members may dissolve the board of directors of the Association by a justified decision and appoint for a period not exceeding six months a president or temporary board of directors from among the members of the Association who shall have the powers of the board of directors. The decision may be limited to cessation of the president of board of directors, his vice - president, treasurer or secretary with appointment of a substitute from among the members of the Association for three months at most.
The decision mentioned in the preceding two paragraphs shall be published in the Official Gazette, and the concerned persons are allowed to appeal this decision before the Federal Supreme Court within fifteen days from the date of notifying the Association of the mentioned decision. The Court must adjudicate of a summary nature and without fees. The Appeal shall not result in a stay of execution.

Article 55
In the instance of dissolution of the board of directors, the members of the dissolved board and managers of the Association must deliver to the temporary board of directors all the Association funds, registers, books and documents. The temporary board of directors must convene the general assembly within the period specified by the dissolution decision issued by the Minister to present to it a detailed report of the Association situation and to elect a new board of directors.
In the instance of cessation of any of the Association managers, he shall be required to deliver to the person appointed by the Minister all the Association funds, documents, books and registers in his possession. The general assembly shall elect within the period decided by the cessation decision of the Minister a substitute for the ceased member of the board of directors, or a substitute for the Association treasurer or secretary as necessary.

TITLE EIGHT
PENALTIES

Article 56
Without prejudice to any greater penalty specified by the Penal Code or any other law, shall be sentenced to imprisonment for six months at most and to a minimum fine of one thousand Dirham and not exceeding three thousand Dirham or any of these two penalties:
a - Organizers and members of the board of directors, managers, inquirers and auditors who willfully furnish false facts or incorrect numbers regarding the Association situation in their works, accounts or reports notified to the competent authorities or to the general assembly, or who willfully conceal all or some facts or documents relevant to this situation.
b - Members of the board of directors and managers who willfully distribute among the members profits or revenues not taken from the real profits of the Association.
c - Members of the board of directors who decide to issue shares of value less than their nominal amount or exceeding it.
d - Liquidators who distribute among the members, the Association assets contrary to the provisions of law, also the members of the board of directors, managers and liquidators who fail to enforce the obligations burdened upon them by this Law or ( Its implementing regulation or association bylaw ).
e - Members of the board of directors, managers and employees who violate the provisions of Article 55 of the present Law.

Article 57
Shall be sentenced to a minimum fine of one thousand Dirham and three thousand Dirham at most, the members of the board of directors and managers 2 of any cooperative association which exercised cooperative activities before its registration and publication in conformity with the provisions of this Law or after the issuance of its dissolution decision by the Minister of Social Affairs in compliance with Article 50 of this Law. Shall also be penalized by the same penalty whoever unlawfully uses; in his letters, or panels or through announcement of any project or work, a name which conceives the public that this act or project is cooperative, in addition; he shall also be sentenced to remove the name and publish the judgment at the expense of the aggrieved person in one of the daily newspapers.

Article 58
Except for the provisions of the preceding two Articles, he shall be sentenced to a fine not less than two hundred Dirham and not in excess of one thousand Dirham whoever contravenes any of the provisions of this Law.

TITLE NINE
FINAL PROVISIONS

Article 59
Cooperative associations, mutual cooperative associations and cooperative unions shall benefit from the following privileges:
a - Exemption of all taxes and fees due on contracts and deeds relevant to their establishment, amendment of their bylaws and registration in addition to the registration fees which are burdened upon them by contracts in which they are party.
b - Exemption of customs fees concerning tools and equipments and whatever is imported for their account to serve their objects.
If the Association disposes of these tools and other to third parties within one year of their importation, it shall be subject to the fixed fee in full in conformity with the customs tariff in force at time of their importation.

Article 60
Cooperative associations existing at the time of enforcement of this Law must amend its bylaw and submit registration application in conformity with the provisions of this Law within six months from the date of its enforcement, otherwise they shall be considered dissolved, and the Ministry of Social Affairs shall liquidate their funds and appoint the party to which these funds shall devolve.

Article 61
The Minister of Social Affairs shall issue decisions necessary for the implementation of the provisions of this Law.

Article 62
This Law shall be published in the Official Gazette and be put into effect as of the publication date.

Promulgated by Us at the Presidential
Palace in Abu Dhabi
On 9 Dhu al - Hijjah 1396 H.
Corresponding to 30 November 1976
President of the United Arab Emirates State

This Federal Law has been published in the Official Gazette, issue no. 43, p. 50.

Source: Ministry of Justice

UAE Federal Law No. 2 "Concerning Associations and Domestic Institutions of Public Interest"

Federal Law No. 2 "Concerning Associations and Domestic Institutions of Public Interest"

Federal Law No. 2
Issued on 21/1/2008
Corresponding to 13 Muharram 1429 H.

CONCERNING ASSOCIATIONS AND DOMESTIC INSTITUTIONS OF PUBLIC INTEREST

Abrogating:
Federal Law no. 6/1974 dated 10/6/1974

We, Khalifah Bin Zayed Al Nahyan, President of the United Arab Emirates State,
Pursuant to the perusal of the Constitution; and
Federal Law no. 1 of 1972 regarding the Jurisdiction of Ministries and the Powers of the Ministers, and the amending laws thereof; and
Federal Law no. 12 of 1972 regarding the Organization of Clubs and Associations Working in the Field of Youth Care; and
Federal Law no. 6 of 1974 regarding the Associations of Public Interest, and the amending laws thereof; and
Federal Law no. 25 of 1999 on the General Authority of Youth and Sports Welfare; and
Acting upon the proposal of the Minister of Social Affairs, the consent of the Council of Ministers and the Federal National Council and the approval of the Federal Supreme Council,
Have promulgated the following Law:

PRELIMINARY TITLE
DEFINITIONS

Article 1
In the implementation of the provisions hereof, the following terms and phrases shall have the meanings assigned for each of them unless the context requires otherwise:
State: The United Arab Emirates State.
Ministry: The Ministry of Social Affairs.
Minister: The Minister of Social Affairs.
Association: The Association of Public Interest.
Union: A gathering comprising more than one association of public interest.
Board: The board of directors of the association or the union.
Member: Member of the association.
National Institution: Every institution formed of one or more founders established for a specified or unspecified period, and such through the allocation of money for the achievement of the purposes mentioned in Article 2 hereof without seeking material profit.

Article 2
In the implementation of the provisions of the present Law, the association of public interest shall be defined as every group permanently organized for specified or unspecified period. It shall be composed of natural or juridical persons to achieve social, religious, cultural, educational, technical, feminine, creative or artistic activity or to render humane services or achieve any of the charity objects or other caring purposes whether through financial or moral aid or technical expertise. It shall seek in all of its activities to participate in these acts for the public interest only without obtainment of material profit. The crucial factor for the determination of the association goal is the primary object of the establishment thereof.

TITLE ONE
THE ESTABLISHMENT OF THE ASSOCIATION

Article 3
The establishment of the association shall be subject to the fulfillment of the following conditions:
1 - The number of the founders must not be less than 20 members. The Minister may exempt from such condition provided that the number of founders reaches five members at least.
2 - The member must not be below eighteen years of age.
3 - The member must be well reputed and of good conduct, and not previously sentenced to imprisonment in a felony or misdemeanor against honor or trust unless he is rehabilitated.
4 - All members, whether founders or employees, must be citizens of the United Arab Emirates State.
The said conditions shall apply, to the extent possible, to associations composed of juridical personalities.

Article 4
Founders shall convene to set down the articles of association that include the following data:
1 - The name of the association, derived from the objective thereof, the seat and scope of activity thereof in the State, provided that they do not choose a name that may confuse it with another association within the scope of activity thereof.
2 - The objectives of the association.
3 - Membership requirements and types, acceptance procedures and forfeiture thereof, and the rights and duties of the members.
4 - Method of constitution of the board of directors, the powers and work regulation thereof.
5 - Organization rules, bases and competences of ordinary and extraordinary general assemblies, the summoning procedures and requirements for valid meetings thereof.
6 - Rules of amendment of the articles of association, the establishment of branches or centers associated thereto, or the merger thereof with other associations, in addition to the rules of enrollment and subscription in associations, organizations and conferences outside the State.
7 - Association resources, manner of exploitation and disposition thereof, the method of controlling the expenditure thereof, the beginning and end of the fiscal year of the association, the system of credit preservation and value thereof to face the expedite expenditures, and the rules of fundraising.
8 - Conditions of voluntary dissolution of the association, dissolution rules and the destiny of the funds thereof.

The Ministry shall prepare a form of the articles of association to be used as guidance.

Article 5
The membership in the association shall be of three kinds:
Active membership - Affiliated membership - Honorary membership.
Active members: The founding members and every State national joining the association in conformity with the articles of association thereof.
Affiliated members: Every non - national residing in the State and affiliating with the association in accordance with the articles of association thereof.
Honorary members: Persons eligible to be granted this membership from among persons of high rank and opinion who have rendered honorable services to the country or the association or who carry out outstanding activities in the field of public services and voluntary work.

Article 6
Founders shall elect from among them a temporary committee, which shall select from among its members a delegate who shall represent it in carrying out the declaration procedures set forth herein.
The delegate shall submit to the competent authority in the Ministry a declaration application of the association in three copies to which are enclosed the following papers:
1 - The articles of association signed by the founding members and an abstract thereof.
2 - The Minutes of the meeting of the constituent members signed by the attendees.
3 - The Minutes of the meeting of the temporary committee.
4 - List of the full names of founders, age, profession, residence thereof, and copies of the extract of registration or identity cards thereof.
5 - The decision of the temporary committee to commission one of the members thereof to submit the declaration papers.

The Ministry shall set a register wherein such applications shall be registered by successive numbers; the Ministry shall give a receipt to the delegate of the date of submission of said application.

Article 7
The Ministry shall examine the application and issue, within sixty days from the date of submission thereof, a decision of approval or refusal of the association declaration with statement of the refusal grounds, of recommendation to carry out amendments it deems necessary to the articles of association thereof, or of the referral of the application to other competent authorities.

Article 8
The temporary committee is entitled to grieve to the Minister against the decision of declaration refusal within one hundred and eighty days from the date of receipt of the notification thereof.
Grievance must be settled by means of a grounded decision within one hundred and eighty days from the date of the submission thereof.
The decision issued by the Minister in this regard shall be deemed final, and the grieving shall be notified thereof.
The grieving party may have recourse to the courts within one hundred and eighty days from the date of his notification of the refusal of the grievance or the lapse of the set duration for the settlement of the grievance without receiving a reply, whichever is nearer.

Article 9
The association shall be published through the registration thereof in a special register in the Ministry, whose particulars are determined in the implementing regulation of the present Law.

Article 10
The association shall acquire its juridical personality by completion of the declaration procedures in accordance with the provision of Article 9 hereof. The decision of declaration shall be published in the Official Gazette.

Article 11
The temporary committee shall call the general assembly to convene within a period of three months at most from the date of the declaration of the association. All active members shall be called to the meeting, and such for the purpose of the election of the Board of Directors of the association.

Article 12
The association may set up branches and centers pertaining thereto inside the State. The articles of association shall determine the method of constitution of such branches or centers, the competences thereof and other provisions.

Article 13
The declared associations, in accordance with the provisions hereof may, request the formation of unions among themselves in accordance with the requirements determined by the implementing regulation of the present Law. No association may call itself " union " unless it is formed of a number of associations united in accordance with the provisions hereof. The existing unions must settle their situations in accordance with the provisions hereof during the period determined by the Minister.

Article 14
The union shall be deemed an association of public interest, on which the provisions of the law set for the establishment and declaration of the association as well as other provisions shall apply thereto to the extent appropriate to the nature thereof.

Article 15
The task of the union with regards to the associations affiliated therein shall be determined as follows:
1 - The supervision of the common interests thereof, the guidance and orientation thereof in a manner achieving their common objectives.
2 - The coordination of the efforts thereof and the endeavor to ameliorate the level of services thereof.
3 - The granting of technical, financial and cultural aids thereto.
4 - The endeavor to settle any dispute arising between them.

Article 16
The association may not exceed the objectives determined in the articles of association thereof. It, and the members thereof, shall be prohibited from interfering in politics or matters harming the security of the State and the governing regime therein, or from stirring the confessional, racist or religious conflicts therein.

Article 17
1 - The association may be represented in participations outside the State such as conferences, symposiums, meetings or gatherings subsequent to the approval of the Ministry. The Ministry shall respond to the approval request within two weeks from the submission of the request.
The travel days of the representative of the association to such participations shall be deemed official working days with regards to the government officials, and relevant institutions and authorities, provided that the pertinent administrative party approves thereof.
2 - The association may affiliate, participate, join or deal with any other association or entity, whose head office is located outside the State, or practice any activities or execute any projects outside the State, and such subject to a prior authorization from the Ministry.

The Ministry shall respond to the authorization request within two weeks from the date of the submission of the request.

Article 18
The association may hold conferences, symposiums, gatherings or activities in which persons from outside the State shall participate subsequent to the approval of the Ministry.
The Ministry shall respond to the approval request within two weeks from the date of the submission of the request.

Article 19
The Ministry shall be entitled to supervise the program and projects of the association within the scope of the objectives set forth in the articles of association thereof. It may setup training courses and render technical advice and different aspects of caring in order to raise the services standard and achieve adequate performance.

Article 20
The association shall be subject to the control of the Ministry from the financial aspects to ascertain from expenditure manners and good management of its financial and real resources to meet the objectives and projects of the association in compliance with the articles of association thereof.
For such purpose, the Ministry is entitled to peruse at any time the association books, registers and documents.

Article 21
The Ministry shall cooperate with other Ministries, departments, entities and public institutions as it deems necessary for the achievement of the objectives of the association.
The Ministry may transfer to any thereof some of its competences of technical supervision and pay aids.

Article 22
The association must retain at its headquarters the registers, books, instruments and prints thereof, in specific:
1 - Registers of the names of the members, and the subscription fees thereof.
2 - The minutes of the meetings of the board of directors and the general assembly.
3 - Account books of revenues and expenses corroborated with the accredited documents.
The books, records and prints of the association shall include the name, the declaration number and the scope of activity of the association.

TITLE TWO
THE MANAGEMENT OF THE ASSOCIATION
CHAPTER ONE
THE BOARD OF DIRECTORS

Article 23
Every association shall have its board of directors, elected in a secret ballot, to function and provide the means necessary for carrying out its activity and achieving its objectives.
The articles of association shall indicate the competences of the board of directors, the requirements to be satisfied by the members thereof, their number, termination of their membership, procedures of summoning the board and validity of its meetings and decisions as well as the election of the chairman of the board.
The number of the members of the board of directors must not be less than five. The term of the board must not exceed four years; the member may be reelected in accordance with the articles of association.
In all cases, the age of the member of the board of directors must not be less than twenty one years.

Article 24
The board of directors may appoint a director from among its members or otherwise to carry out internal executive tasks within the association, namely the appointment of employees, the signature of disciplinary sanctions inflicted thereupon, the approval of discharge permits, and the supervision of the execution of the decisions taken by the general assembly and the board of directors, unless the articles of association stipulates otherwise.

Article 25
It is not allowed to combine between memberships in the boards of directors of several associations aiming at achieving the same kind of activity, save the membership of the union. Nevertheless, the Minister may issue an exemption from the said prohibition whenever he deems it justifiable.

Article 26
The board of directors may offer material incentives to any member of the association carrying out exceptional services to the association as an indemnification for the sums incurred thereby, an enticement for more work and an encouragement for other members in accordance with the provisions stipulated by the articles of association.
Upon the proposal of the board of directors and the consent of the general assembly, a member of the board of directors may receive a remuneration in counterpart of the performance thereby of any task related to the competences thereof within the board of directors.

CHAPTER THREE
GENERAL ASSEMBLY

Article 27
The general assembly consists of all active members having satisfied the membership conditions and obligations until the convention of the general assembly, and at least three months have elapsed since their membership. The meeting referred to in Article 11 hereof shall be exempt from the three - month requirement. The affiliated members may attend the meetings of the general assembly without being counted for the quorum, and they may have neither the right of vote nor of candidacy.
The attendance of more than half the members is required before the beginning of the meeting for the meeting of the general assembly to be legally held. If the required number is not satisfied, the meeting shall be postponed to the next day and in this instance, it shall be deemed legal with the attendance of quarter its members.
The Ministry shall delegate a representative thereof to the meetings of the general assembly.

Article 28
The members shall be summoned, and the Ministry shall be notified to attend the general assembly at least fifteen days prior to the date of convention thereof. The implementing regulation hereof shall determine the methods and enclosures of the summoning.

Article 29
The general assembly shall convene in an ordinary meeting once every year within the four months that follow the end of the fiscal year to examine issues that are deemed important to the association and that are included within the scope of the objectives thereof, namely:
1 - Ratification of the minutes of the previous meeting of the general assembly.
2 - Approval of the report of the board of directors regarding its work in the elapsed year, the activity programs and work plan of the upcoming year.
3 - Approval of the draft budget for the upcoming year and the closing account for the elapsed fiscal year.
4 - Proposals submitted by the members on the time determined by the articles of association.
5 - Election of the board of directors or filling the vacant positions.
6 - Election of the auditor and determination of his remuneration.
7 - Other matters added to the agenda.

Article 30
The meeting of the ordinary general assembly shall be deemed valid should more than half the active members at least be present. If the required number is not satisfied, the meeting shall be postponed to another date after fifteen days at least and thirty days at most from the first date of the meeting. The second meeting shall be deemed valid with the attendance of any number of the members thereof.
The general assembly shall render its decisions by the absolute majority of the attending members.

Article 31
The general assembly may be summoned to extraordinary meetings upon a grounded request from the Ministry, the board of directors or the quarter of the active members. If the board of directors does not summon the general assembly upon the request of the Ministry or the members, the Ministry may carry out such summoning at the expense of the association.

Article 32
The extraordinary general assembly shall have jurisdiction to examine the following matters:
1 - Settle the resignations submitted by all or some of the members of the board of directors, should such resignation breach the legal quorum of the board.
2 - Forfeit the membership of one or more members of the board of directors.
3 - Fill the vacant positions should such be necessary for the preservation of the legal quorum of the board.
4 - Propose the merger of the association with another association with similar objectives. The proposal of merger shall be deemed as a proposal of joinder approved by the extraordinary general assembly of the association with which the Association wishes to merge and such with similar procedures. The decision of approval of the merger shall include the procedures and outcomes of execution.
5 - Revoke any of the decisions of the board of directors.
6 - Amend the articles of association subsequent to the approval of the Ministry which must reply to the amendment request within thirty days from the submission thereof.
7 - Dissolve the association voluntarily.
8 - Any other expedite matters affecting the course of work in the association and requiring the summoning of the general assembly.

Article 33
The meeting of the extraordinary general assembly shall be deemed valid should more than three quarters of the active members be present. If the quorum is not met, the meeting shall be postponed to another date after fifteen days at least and thirty days at most from the first date of the meeting. The second meeting shall be deemed valid with the attendance of half the members thereof. If the quorum is not met, the members shall be summoned for a third period within a period similar to that of the second meeting. The third meeting shall be deemed valid with the attendance of any number of the members thereof.
The decisions of the general assembly shall be issued by the majority of two third the attending active members.

Article 34
The extraordinary general assembly may not examine issues that are not listed in the agenda.

Article 35
The member of the association may delegate another member to represent him in the general assembly by means of a written procuration in pursuance of the provisions of the articles of association in this regard. The member may not represent more than one member, and the procuration must be adopted by the board of directors of the association.

TITLE THREE
THE ASSOCIATION RESOURCES

Article 36
The association resources shall consist of:
1 - Members Subscriptions.
2 - Returns of activities, services and investments.
3 - Contributions, donations, wills and aids received by the association in accordance with the provisions hereof.
4 - All other revenues.

Article 37
With due consideration to the provision related to the solidarity funds and private individual institutions, the funds of the association shall be deemed a property thereof; the members thereof shall not be entitled thereto, and the withdrawing or dismissed member shall not have any right to such funds.

Article 38
The association shall deposit its cash funds in its name in one or more national banks of the State, and shall notify the Ministry of the matter.
The association shall notify the Ministry upon the change of the bank where the funds thereof are deposited within ten days from the date of the occurrence of the change.

Article 39
The association shall spend its funds in a manner that achieve the objectives for which it is established. It may not trade in any manner or enter into financial speculations.
The association may, upon the approval of the Ministry, invest its funds that exceed the requirements thereof, in order to get a financial return that helps it achieve the objectives thereof.

Article 40
The Board of Directors of the association shall submit to the Ministry a copy of the closing account of the previous year and the draft budget of the upcoming year within a period not exceeding fifteen days from the date of approval thereof by the general assembly.

Article 41
The approbation for the association aid shall be provided in the Ministry’s budget. A decision given by the Minister shall regulate the types of aids and methods of their expenditure.

Article 42
The Ministry, when examining the granting, increase, decrease or cessation of aids of the associations shall be guided by all or some of the following standards:
1 - Credits allocated to the aids in the annual budget of the Ministry.
2 - The extent of the association need of aid.
3 - The extent of the success of the association in achieving the objectives thereof.
4 - Periodical reports regarding the association activity and the extent of its observance of the provisions of the articles of association thereof.

Article 43
Aids may not be collected unless through declared associations in accordance with the provisions hereof and a prior authorization from the Ministry.
The associations may not accept grants, wills or contributions or gather contributions from any person or party from outside the State, prior to the authorization of the Ministry.
The Minister shall issue a decision regarding the regulating rules and procedures thereof.

TITLE FOUR
DOMESTIC INSTITUTION

Article 44
The founders shall set the articles of association of the domestic institution comprising in particular the following data:
1 - The name of the institution, the geographic scope of activity and the seat of administration thereof in the State.
2 - The objective for which the institution is established.
3 - A detailed statement of the funds allocated for the achievement of the objectives of the institution.
4 - The organization of the administration of the institution, including the method of appointment of the chairman and members of the board of trustees, and the method of appointment of the director.
The domestic institution may be established by means of an official deed or an authenticated will, both of which are deemed the articles of association of the institution. The implementing regulation hereof shall enclose sample articles of association of the domestic institutions for guidance.

Article 45
A board of trustees shall be charged of the administration of the domestic institutions in accordance with the articles of association thereof. Such institutions shall be represented by the chairman of the board of trustees before the courts and third parties.

Article 46
With regards to the matters not provided for in the provisions of the present title, the domestic institutions shall be subject to the provisions of the present Law and the implementing regulation thereof, and such to the extent appropriate to the nature thereof.

TITLE FIVE
LIQUIDATION AND MERGER

Article 47
1 - The association may be liquidated and winded up by a decision from the Minister, upon the proposal of a committee constituted by a decision thereof, and presided by the undersecretary with the membership of senior employee thereof, a representative of the Ministry of Justice chosen by the Minister of Justice, and two members of associations of public interest other than the members of the association whose liquidation and winding up is being examined, chosen by the Minister, and such in one of the following instances:
a - Should it breach the provision of Article 11 hereof.
b - Should the number of its members decrease below the limit specified in clause 1 of Article 3 hereof.
c - Should it be established that its acts are not significantly achieving the objectives of its establishment or it become incapable of achieving such objectives.
d - Should it dispose of its funds in other than the determined aspects.
e - Should it become incapable of fulfilling the financial obligations thereof.
f - Should it refuse inquiry or submit incorrect information for deception purpose.
g - Should it commit gross violation against the articles of association thereof or the provisions hereof.
h - Should it fail to convene the general assembly thereof within two consecutive years.

2 - The decision of liquidation and winding up shall be published in the Official Gazette. Five of the members of the association may jointly grieve against the decision of liquidation and winding up within thirty days from the date of publication thereof. The grievance must be settled by a justified decision within thirty days from the date of presentation and the grieving party shall be notified thereof in accordance with the provision of the implementing regulation.
3 - The Minister may, instead of winding up and liquidating the association, and for the achievement of the public interest:
a - He may appoint, by a justified decision, a temporary board of directors from among the active members of the association in charge of the competences of the elected board of directors, and such for a six - month term, renewable for a similar term. The members of the board of directors of the association and the employees in charge of the work therein shall deliver to the temporary board upon the establishment thereof all the funds, registers, books and documents of the association.
b - He may merge the association with another association whose objectives are similar thereto, provided that the decision of merger is issued by both associations in accordance with Article 32 hereof.

Article 48
Subject to Article 51 hereof, the association may be voluntarily liquidated by a decision from an extraordinary general assembly, provided that the Ministry is notified of the place of meeting of this assembly at least fifteen days prior to the date of the meeting.

Article 49
The persons in charge of any association which is liquidated by force or voluntarily may not dispose of its funds and documents unless by virtue of a decision from the Ministry determining the liquidation method in accordance with the restrictions set by the implementing regulation hereof. The Minister shall issue a decision determining the liquidation method and the way to dispose of the said funds and documents, as well as the party to which the funds are transferred whenever such is not stipulated in the articles of association, or whenever it is impossible to execute the provisions thereof.

Article 50
In all cases, should the association be winded up or liquidated, it may keep its juridical personality to the extent necessary for the accomplishment of the liquidation works. The Minister shall issue a decision to eradicate the association from the register subsequent to the appropriate accomplishment of the liquidation operation.
The decision of eradication shall be published in the Official Gazette.

TITLE SIX
FINAL PROVISIONS

Article 51
The Ministry shall undertake the registration and declaration of the social solidarity funds in accordance with the rules and procedures issued by virtue of a Cabinet decision upon a recommendation from the Minister.

Article 52
The provisions of this Law shall not apply to the different types of activities mentioned in Article 2 hereof, carried out by schools, institutes, unions, association, clubs and youth and sports centers in charge of the social, cultural and sports youth affairs in the State, regulated by the Law no. 25 of 1999 regarding the General Authority of Youth and Sports.

Article 53
The association shall enjoy exemption from the following financial obligations:
1 - Customs taxes and fees with regards to imported tools and fittings for its own account and necessary for the practice of the activity thereof. The disposal of such tools and fittings to another party not enjoying the exemption from customs taxes and fees shall be prohibited before the elapse of one year from the date of the import thereof, unless the due taxes and fees are paid.
2 - Taxes and fees on the different activities held thereby.
3 - The sums due in counterpart of the consumption of water, electricity and natural gas produced by the governmental authorities.

Article 54
It is not allowed for any group or party to exercise any of the associations’ activities except after the completion of registration procedures. In case of violation, the Ministry may decide to cease this activity and close the contravening centers. The competent authorities in the State must execute this decision by force; if necessary. This shall not affect criminal or civil liability.

Article 55
The Ministry is the only party charged with the declaration of associations of public interest or the licensing thereof to practice its activities. All declared or licensed associations by means of special regulations or local orders shall amend their articles of association and submit their declaration request in accordance with the provisions hereof within six months from the date of entry into force thereof, otherwise they shall be deemed liquidated. The Ministry shall liquidate the funds thereof and appoint the party to whom the funds shall be transferred.

Article 56
The Ministry's objection or rejection of the applications submitted thereto shall be made in accordance with the provisions hereof by means of a registered mail with acknowledgment receipt to be submitted to the applicant within the period specified by the Law.

Article 57
Every perpetrator breaching the provision hereof and the implementing decision thereof shall be sentenced to a fine amounting to ten thousand Dirhams at most, and such without prejudice to any severer sanction stipulated by any other law.
Upon the breach of any of the provisions of Article 43, the court shall rule to seize the funds obtained by association without license.

Article 58
The Ministry’s officials appointed by a decision from the Minister of Justice, in agreement with the Minister, shall have the capacity of judicial investigation officials to comprehend and prove any violation to the provisions hereof, the implementing regulations and decisions thereof.

Article 59
Every provision contradicting or contravening the provisions hereof shall be cancelled, and the said Federal Law no. 6 of 1974 shall be cancelled. On the other hand, the implementing regulation and the decisions issued hereby shall remain enforceable until the issuance of the implementing regulations and decisions hereof in a way that does not contradict with the provisions thereof.

Article 60
The Minister shall issue the necessary regulations and decisions for the implementation of the provisions hereof.

Article 61
The present Law shall be published in the Official Gazette and shall enter into effect one month subsequent to the publication date thereof.

Palace in Abu Dhabi
On 13 Muharram 1429 H.
Corresponding to 21 January 2008
Khalifah Bin Zayed Al Nahyan
President of the United Arab Emirates State

This Federal Law has been published in the Official Gazette, issue no. 476, p. 30.