Title: Ethiopia Cooperative Societies Proclamation No. 985/2016

Scope of Application: This proclamation shall apply to cooperative societies established in the country

Type of law: Proclamation

Key words: Cooperative Society; Primary Cooperative Society; Cooperative Societies Union; Cooperative Societies Federation; Cooperative Societies League; Member; General Assembly; Special Resolution; Formation and Registration of Cooperative Societies; Obligations of Cooperative Societies; Initial Capital; Rights and Duties of Members of a Cooperative Society; Management Bodies and Employees of the Cooperative Society; Asset and Funds of Cooperative Societies; Dissolution and Winding Up of Cooperative Societies

Objectives of Cooperative Society:

1). To collectively overcome, withstand and solve economic and social problems which members cannot individually achieve;

2). To achieve a better result by coordinating members’ knowledge, resource and labor;

3). To promote self-reliance among members;

4). To reduce production and service costs and to offer inputs and services to members with

lower costs and finding better market prices to their products or services;

5).  To expand situations by which technical knowledge could be put into practice and promote entrepreneurship;

6). To develop and promote saving culture between members;

7). To provide loan to members and promote investment;

8). To provide loan-life- insurance coverage to members;

9). To minimize and reduce damage and lose of each individual member, if it had been

undertaken individually, by sharing it to members;

10).  To develop the social and economic capacity and culture of the members through education and training.

By-Laws of a cooperative society:

1). Any cooperative society shall have its own by-laws; and the contents of the by-laws shall include the following particulars:

a) name and address of the cooperative society;

b) objectives and activities of the cooperative society;

c) working place and area of the cooperative society;

d) requirements necessary for membership of the cooperative society;

e) the rights and duties of members of the cooperative society;

f) the powers, responsibilities and duties of management bodies;

g) conditions for withdrawal and dismissal from membership;

h) conditions for election, appointment, term of office and suspension or dismissal of

the members of the management committee or other management bodies;

i) conditions for calling of meeting and voting procedures of the cooperative society;

j) allocation and distribution of profit;

k) auditing;

l) employment of workers;

m) other particulars not contrary to this proclamation, and regulation and directive

for the implementation of this proclamation.

Entry into Force: December 23, 2016

Repeals: The Cooperative Societies Proclamation No. 147/1998 (as amended by Proclamation No. 402/2004)

Amended by: —

Implemented by: —

Repealed? No

Language: Amharic and English

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