We obtained the final features of the federal draft law on cooperatives, which is being discussed by the Federal National Council, during its closing session of the current session held this morning, in which a large number of articles appeared, most notably “that the founders and shareholders of the typical consumer cooperative should be citizens of the state.” And “granting cooperatives the full authority to use financial instruments or financial shares in accordance with their articles of association and after the approval of the general assembly by a special decision.”
The draft law also included a number of financial penalties against violators of its provisions, the most prominent of which is a fine of no less than 100,000 dirhams and not more than one million dirhams, for anyone who unlawfully uses a name or logo that shows the public that this work or project is cooperative, as well as whoever uses a cooperative logo on other than the truth, and any person or entity that has practiced any of the acts suggesting that it is cooperative without registration, contrary to the provisions of this law, and the court shall order the removal of the name and the publication of the judgment at the expense of the convict in a local newspaper.”
In detail, the Federal National Council concludes the third ordinary session of the seventeenth legislative term, with its sixteenth session this morning, chaired by the Speaker of the Council, Saqr Ghobash, which is devoted to discussing three projects with federal laws, the first on "cooperatives", and the second "on organizing Commercial agencies", while the third "is to amend some provisions of Federal Law No. (8) of 2019 regarding medical products, the pharmacy profession and pharmaceutical establishments."
According to the report adopted by the Council’s Financial, Economic and Industrial Affairs Committee, on a draft federal law regarding cooperatives, the draft law worked to achieve these goals in a preamble and (32) articles, the most important of which dealt with “the definitions and general provisions of the project, as well as provisions related to the establishment of a cooperative, in addition to to the provisions related to supervision, control, judicial seizure, administrative penalties and fines, listing in the financial markets and switching to commercial companies.
The report stated that the draft law is of great importance as it coincides with the great development that has occurred in the cooperative sector in the world, in particular the emergence of new types of cooperatives, such as platform cooperatives and digital cooperatives, in addition to the fact that the draft law witnessed a set of new development provisions that were not contained in the law Currently in force.
The report stated that during the parliamentary committee’s study of the draft law, it noted that it was free from the restriction that the founders and shareholders of the consumer cooperative are citizens of the state, so the committee decided to add a new provision to the draft law that included “that the founders and shareholders of the typical consumer cooperative are citizens of the state,” and notes the regulation The draft law provides for a new provision that includes dividing the cooperative shares into preferential and ordinary shares, and the draft law grants preference shares a privilege over ordinary shares in terms of priority in obtaining profits and collecting their value in the event of liquidation or dissolution of the cooperative, an approach that may lead to cooperatives not developing and playing the role expected of them In supporting and developing the national economy, as a result of the inequality between the cooperative shareholders who own common shares and have invested in them for a long time, during which they bore the risks of beginnings, and granting preference shares owners advantages over them. The nature and types of these tools are to the executive regulations, in addition to granting cooperatives the full authority to use financial tools Or the financing shares in accordance with its basic statute and after the approval of the general assembly by a special decision.