A company that is formed for being active in affairs related to production and distribution in line with the stated objectives of the law, cooperative section, and to improve the economic and social status of the members through cooperation and collaboration by observing the law.
Cooperative Production & Consumption Company, Credit Cooperative Company, Public Stock Cooperative Company, Dwelling Cooperative Company, Multipurpose Cooperative Company
In addition to Ministry Of Cooperatives, Labour, and Social Welfare, Ministry of Cooperatives,
At least 7 members, capital of 1000000 Rial and obtaining related licenses are required.
Production cooperatives include cooperatives operating in the fields of agriculture, farming, livestock, fishing and fish breeding, fisheries, industry, mine, urban and rural and tribal development and the like.
Distribution cooperatives include those cooperatives which supply the needs and requirements for production jobs and/or their member consumers within the framework of public interest and for the purpose of decreasing the costs and prices.
It is split equally
The minimum and maximum number of members in cooperatives shall be determined in proportion to capital, employment opportunity, nature of activity, and observing the principle of avoiding wealth accumulation and multiplicity through a By-law, to be approved by Ministry of Cooperatives; however, the number of members shall not be less than 7 people.
According to the guidelines for the establishment of cooperatives, the minimum capital for the establishment of specific and common cooperatives are one hundred million Rial and 10 million Rial, respectively.
Board of Founders
Cooperative societies and unions shall have to submit the following documentation for duly corporation and registration by observing the present Act upon preparation of the plan and its approval in a manner that will be determined in executive By-law:
Leaving the membership at a cooperative company may be due to abdication, the death of one of the members or being dismissed. Therefore it must be said that leaving the cooperative company may be optional, involuntarily or obligatory and for the optional leaving membership at a cooperative company e.g., abdication of membership, law states that: leaving the membership of cooperative companies is optional and no one can prohibit such option. This is due to the rational freedom for membership at the cooperative companies: being a member of the company is free and staying must not have obligatory aspect. The law sees the two following conditions as necessary to follow:
Being dismissed of the membership is another type of obligatory leaving from the cooperative company that can happen under certain cases and specific conditions: a member is dismissed from cooperative in the following cases:
Optional transferring of stock of a cooperative company is not allowed. This is due to the contraposition at the article 3 clause 37 of the law, cooperative division, saying that “only, transferring stock of a member to another member is prescribed”. Unless, in the obligatory transfer case, it is transferred to an heir member of the cooperative.
Authorization for any type of at the articles of association, making decisions on discharge or the approval of board of directors’ abdication, dissolution or merged companies shall fall under the jurisdiction of general assymbly
In the first time invitation, extraordinary general assymbly shall be recognized with the attendance of two-thirds of all the members, advocates or fully authorized representatives. Each the members shall posses 1 vote without considering the value of the share.
In case that the assembly couldn’t be convened due to the fact that the number of individuals wasn’t reached, members shall be invited for the second time for holding the assymbly and the announcement for the second invitation shall be issued with the same minute maximum within 15 days after the date of first time assymbly. In this case, the extraordinary general assembly shall be official if a minimum of half plus one of the members, advocates and fully authorized representatives attend this assymbly.
In case the third assembly couldn’t be convened due to not being recognized, members shall be invited for the third time by issuing an announcement similar to the description and arrangement of the second time. The extraordinary general assembly shall be convened, regardless of the number of official participants.
Half of the members plus one vote of the participant must be obtained.
To make decisions on all affairs related to the company except for those on the extraordinary general assembly authorization.
In the first time invitation, the general assembly shall be convened with the attendance of the majority of members.
In case that the first time assembly couldn’t be convened due to the fact that the number of individuals wasn’t reached, members shall be invited for the second time for convening the assembly. The second time assembly shall be recognized, regardless of the number of current participants. For the second invitation, having a lesser quorum than the first one is acceptable due to the fact that the convening of an assembly shall be easier.
At a general meeting, all resolutions will be passed by the affirmative vote of fifty per centum plus on vote of those present at the meeting,
For the election of directors and inspectors, plurality shall be sufficient
Borad of Directors and Ministry of Cooperatives, Labour, and Social Welfare
Board of directors meetings is established by the invitation of the chairman or vice president and presence of more than fifty percent of its members.
Members of the board of directors are elected for the time of 3 years by secret voting, writing (using document) and a plurality shall be sufficient for their selection.
Due to this fact that they are for the improvement of economic status and helping society.