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&oYo&-A '1;JlT ;JltfIJFEDERAL NEGARIT GAZETA

OF THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA

h9"il"'~ ~oo-r ck1'C S'%h.atil hOfl-.+"I"P' S' cf>")Ii1f1li

5th Year No. 27ADDIS ABABA - 29thDecem., 1998Oh.-rf-A-.r &..1..t.I\ce .at'fOh/rl'L.rce ~T-ot\.h

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0I/(J}c6liJ, CONTENTS

h'P~ ck'l'C lif~%IIi1f1li ~.9". Proclamation No. 147/1998f"l-o~-r P'~,IP/"IO/,.:', h'P~ 1R' i1f.~~ Cooperative Societies Proclamation Page 942

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PROCLAMATION NO 147/1998A PROCLAMATION TO PROVIDE FOR THE

ESTABLISHMENT OF COOPERATIVESOCIETIES

WHEREAS, it has become necessary to establishcooperative societies which are fonned by individuals onvoluntary basis and who have similar needs for creatingsavings and mutual assistance among themselves bypooling their resources, knowledge and property;

WHEREAS, it has become necessary to enablecooperative societies to actively participate in the freemarket economic system;

WHEREAS; it has become imperative to issue acomprehensive legislation by which cooperativesocieties are organized and managed in order to achievethe above mentioned objectives;

NOW, THEREFORE, in accordance with Article55(1) of the Constitution of the Federal DemocraticRepublic of Ethiopia, it is hereby proclaimed as follows:

PART ONEGeneral

1. Short TitleThis Proclamation may be cited as the' 'Cooperative

I Societies Proclamation No. 147/1998."2. Dei1nitions

In this Proclamation unless the context otherwisereqUIres:

~;J~T ;JtLlIJ 7"''''.<h. iti'f.?!Negarit G.P.O.Box 80,001

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I) "Society" means a cooperative society established

and registered in accordance with this Proclamation

and it shall in particular include the following:(a) Agricultural Cooperative Societies;

(b) Housing Cooperative Societies;

(c) Industrial and Artisans Producers' Cooperative

Societies;(d) Consumers Cooperative Societies;

(e) Savings and credit Cooperative societies;

(f) Fishery Cooperative Societies;

(g) Mining Cooperative Societies;

2) "Cooperative Society" means a society established

by individuals on voluntary basis to collectively

solve their economic and social problems and to

democratically manage same;3) "Member" means any physical person, or society

established under this proclamation which is regis-

tered after fulfilling his membership obligations.4) "General Assembly" means a meeting of members

of the Primary Cooperative society or represen-

tatives of societies above primary level;5) "Special resolution" means a resolution passed hy a

two third majority of the members to be hinding on

all members;6) "Management Committee" means a hody elected

and empowered by the general assemhly with theresponsibility to manage the activities of the society;

7) "Appropriate Authority" means an organ es-

tablished at federal level, or a bureau or an organ

established for the same purpose at Regional or City

Administration level, to organize and register

cooperative societies and to give training, conduct

research and provide other technical assistances to

cooperative societies;

8) "Person" means a natural or juridical person.

3. Where the provisions of the Proclamation are set out in

the masculine gender they apply equally to the feminine

gender.

4. Objectives ofa Society

The society to be established under this proclamation

shall have one or more of the following objectives:I) to solve problems collectively which members can

not individually achieve;2) to achieve a better result by coordinating their

knowledge, wealth and labour;

3) to promote self-reliance among members;

4) to collectively protect, withstand and solve

economic problems;5) to improve the living standards of members by

reducing production and service costs by providing

input or service at a minimum cost or by finding a

better price to their products or services;6) to expand the mechanism by which technical

knowledge could be put in to practice;

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7) to develop and promote savings and credit services;8) to minimize and reduce the individual impact of risks

and uncertainties;9) to develop the social and economic culture of the

members through education and training.Guiding Principles of Co-operative Societies1) Co-operative societies are voluntary organisations

open to all persons able to use their services andwilling to accept the responsibilities of membershipwithout gender, social, racial, political or religiousdiscrimination.

2) Co-operative societies are democratic organizations

controlled by their members who actively participatein setting their policies and making decisions. Everymember has equal voting rights and accordingly onemember shall have one vote.

3) Members shall receive devideneds from profit accor-

ding to their shares and contribution after deductingand setting aside an amount necessary for reserveand social services.

4) Co-operative societies are autonomous self help

organisations controlled by their members. If theyenter into agreement with other organizations; in-cluding governments or raise capital from externalsources, shall do so on terms that ensure democraticcontrol by their members and maintain theirautonomy.

5) Co-operative societies provide education and

training for their members, elected representatives,managers and employees so as to enable them tocontribute effectively to the development of theirsocieties.. They inform the general public, par-ticularly the youth about the nature and benefit ofsocieties.

6) Co-operative societies serve their members most

effectively and strengthen the societies movementby working together through local, national, regional

and.internationaJ. structures.7) Co-operative societies work for the sustainable

development of their communities through policiesapproved by their members.

PART TWOFonnation and Registration of Co-operative Societies

6. Fonnation of Co-operative Societies1) Co-operative societies may, according to their

nature, be established at different levels fromprimary upto the federallevel.

2) A primary society shall be established by persons

who live or work within a given area.3) The number of members in a primary society to be

established shall not be less than ten.4) Notwithstanding Sub-Article (2) of this Article, the

appropriate authority may specify in the directive,the minimum number of members that could make asociety economically feasible.

1~ Uf~?; ~Y..t.A ~;JtT ;JfLlI)~1'C t;~ ;J-IJUfP't; +, lUln ,.9". Federal Negarit Gazeta- No. 27 29thDecember, 1998-Page 945

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(1)

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n)

5) A society may sell some of its shares to persons

outside its area when the society faces shortage of

capital.

7. Types of SocietiesI) A society may engage in either production or service

rendering activities or in both.

2) The field of activities to be engaged in by any society

shall be determined by the by-laws of the society.

8. Name of a Society...1) Any society shall have its own name.

2) Words "Cooperative Society and Limited

Liability" shall appear in the name of every society.

3) A name or distinguishing mark registered by one

society shall not be used by any other society.

4) The name of every society shall be written boldly

and be put at every place where the society's

activities are performed. It should also be written or

sealed on every notices letters, other specifications

and documents which are signed on behalf of thesociety.

9. Registration of a Co-operative SocietyI) Any society shall be registered by the appropriate

authority.

2) Any society, when established, shall submit an

application for registration together with the

following particulars to the appropriate authority:(a) minutes of the founders meeting;

(b) the by-laws of the society in three copies;

(c) names, address and signature of the members;

(d) name, address and signature of the members of

the management committee of the society;(e) a detailed description which proves that the

registered members of the society have met the

requirements for membership in accordance

with the provisions of this Proclamation and

the by-laws of the society;

(f) name, address and signature of members of the

societies above primary level;(g) plan of the society;

(h) documents showing that the amount of capital

of the society and the capital has been collected

and deposited in a bank account, if there is no

bank in the area, that it has been deposited in aplace where the appropriate authority has

designated;

(i) the description of the land on which the society

operates;

(j) other particulars that may be specified in the

regulations or directives issued for the im-

plementation of this Proclamation.

3) The appropriate authority shall register a society and

issue a certificate of registration within 15 days when

it is satisfied that the application for registrationsubmitted to it has fulfilled the requirements for

registration.

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4) When the appropriate authority rejects the ap-plication for the registration of a society, it shall givea written explanation to the representatives of thesociety within 15 days. The representatives mayappeal to the high court which has jurisdiction on thedecision of the appropriate authority.

5) The certificate of registration issued to a societypursuant to Sub-Article (3) of this Article is anevidence to prove that a society is registered inaccordance with this Proclamation.

10. Juridical Personality and Responsibility1) Any society registered in pursuance of Article 9 of

this Proclamation shall have juridical personalityfrom the date of its registration.

2) Any society shall not be liable beyond its total asset.It has limited liability.

11. By-laws of Society1) Every society shall have its own by-laws.2) The contents of the by-laws shall include the

following particulars:(a) name and address of the society;(b) objectives and activities of the society;(c) working place (area) ofthe society;(d) requirements necessary for membership of the

society;(e) the rights and duties of members of the society;(f) the powers, responsibilities, and duties of

management bodies;(g) conditions for withdrawal and dismissal from

membership;(h) conditions for relection, appointment, term of

office and suspension or dismissal of themembers of the management committee orother management bodies;

(i) conditions for calling of meeting and voting ofthe society;

(j) allocation and distribution of profit;(k) auditing;(1) employment of workers;(m) other particulars not contrary to this

Proclamation.3) By-laws of a society may be amended by the special

resolution of the general assembly. However, theamendment of the by-laws of the society shall beeffective on the date of its submission to andregistration by the appropriate authority.

.

4) Where the Society decides on the amendment of itsby-laws three copies of the amendment and thespecial resolution of the society made in accordancewith this Proclamation shall be submitted to theappropriate authority within 30 days from the date of "

the decision.5) The appropriate authority shall register the amend-

ment and give evidence or its registration to thesociety where it is satisfied that the amendment of theby-laws was made in accordance with thisProclamation and regulations issued for the im-plementation of this Proclamation.

12. Amalgamation and Division of Societies1) Without prejudice to Article 6 (3) and (4) of this

Proclamation, the general assembly of a societythrough a special resolution may form a new society:

.,x. !!f~'!% &...('../..1:\ " :J/.:/' :JlJ,f', '/:'I'C: 1,%;"U"IP-' r;' 4'1 mtUi ,.9". Federal Negarit Gazeta- No. 27 29thDecember, 1998-Page 947

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(a) by dividing itself into two or more societies; or(b) by amalgamating itself with one or more

societies.2) The special resolution on the amalgamation or

division of the society shall be effective on the dateof its registration by the appropriate authority uponverifying that;(a) the members and creditors of the society fully

agree to the amalgamation or division; or(b) the members and creditors that do not agree

have been paid off or their payment is guaran-teed.

3) The previous registration of societies shall be can-celed from the register as soon as the newly formedsociety by amalgamation or by division are regis-tered.

4) The rights and duties of societies which have losttheir identities by amalgamation shall be transferredto the newly formed society.

5) The rights and duties of a society which has 16.stitsidentity by division shall be transferred to the newlyformed societies as specified in Sub-Article (2) ofthis Article.

PART THREEThe Rights and Duties of Members of a Society

13. Requirements Necessary for Membership of a SocietyAny individual may become a member of a societywhere:1) he has attained the age of 14 if it is a primary

society;2) he is able to pay the share capital and registration

fee required by the society;3) he is willing to implement his obligation and

observe the objectives and by-laws of the society;4) he fulfills other requirements which may be

specified in the regulations and directives issued forthe implementation of this Proclamation;

5) it is registered with the appropriate authority if it isa society above the primary society.

14. Rights and Duties of Members1) Any member of a society shall have the following

rights:(a) to obtain services and benefits according to his

participation in the society;(b) to participate in the meetings of the society

and to vote;(c) to elect and be elected;(d) to withdraw from the society on his request

with payment of benefits.2) Any member of a society shall have the following

duties:(a) to respect the by-laws, directives and decisions

of the society;(b) to perform those activities which ought to be

performed in accordance with the by-laws anddirectives of the society;

(c) to pay for share of capital and registration fee;(d) to protect the cornmon property ofthe society.

15. Dismissal from MembershipI) Any member of a society may leave the society on

his own intitiative;

1~ jH:~;~';t..J!D~.A ., ."Jk1- ."JIIJ" 'I:'rc ?;'~~;J"U",P'?;' +1 Iv.11?i 0,'9'" Federal Negarit Gazeta- No. 27 29thDecember, 1998-Page 948

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2) Any member of a society may leave the society

when it is decided by the general assembly todismiss him from the society because of commit-ting repeated faults;

3) The rights of any dismissed member shall be

respected in accordance with the by-laws of thesociety;

4) Without prejudice to the provisions of Article 13hereof, any dismissed person may reapply formembership. However a member dismissed inaccordance with Sub-Article (2) of this Articlemay become a member of the society only if heobtains the approval of the general assembly.

16. Payment of SharesI) The capital which enables the society to expand its

work activities shall be obtained from paid upshares of each member in accordance of thedecision of the general assembly;

2) The society may sell additional shares if it is foundnecessary to promote the financial capacity of thesociety subject to the decision of the generalassembly;

3) No member shall hold more than 10% of the totalpaid up share capital of such society.

17. Register of MembersEvery society shall keep a register wherein shall beentered:I) the name, address, occupation, age and sex of each

member;2) the date on which he became a member or ceased to

be a member;3) the amount of shares held and the registration fee

paid, by each member;4) the name and address of the heir of the member;5) any other particulars that my be specified in the by-

laws.18. Voting

I) Every member shall, regardless of the number of

shares he has, have only one vote at the meeting ofthe society;

,

2) Every member in a primary society shall personallybe present at the meeting of the society to cast avote;

2) Every member in a primary society shall personally

be present at the meeting of the society to cast avote;

3) Members of a society above primary level shall cast

a vote through their representatives.19. Transfer of Share or Benefit

I) No transfer by a member of his share or benefit in asociety shall be valid unless:(a) the member has held such share or benefit for

at least one year before he transfers;(b) the transfer is approved by the management

committee.2) On the death of a member of a primary society, his

share or benefit shall be transferred to one of hisheirs des.ignated as such in the register of society orfailing such designation to his legal heir at law, andwhere such heir is a member or is willing to be amember.

.,~. v.r.~v. ~Yot.&\ .,;MT ;lIL"' <h'l'C ?;?; ;rUUfP'?; +, !v.r.jfif}.9'" Federal Negarit Gazeta- No. 27 29thDecember, I998-Page 949

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3) Where such heir is not a member and does not wishto become or is not admitted as a member, he shallbe paid the value of the share or benefit of thedeceased member.

4) If the shares or benefit to be transferred to a memberunder Sub-Article (2) of this Article are found to bebeyond the limitation prescribed in Sub-Article (3)of Article 16 hereof, the member shall be paid thedifference in cash.

5) The transfer or payment concluded in pursuance ofSub-Article (2) of this Article shall not be reverseddue to the claims paused by third parties on thesociety.

PART FOURManagement Bodies

20. Supreme Organ of a SocietyThe supreme organ of any society shall be the generalassembly.

21. Powers and Duties of the General AssemblyThe general assembly of a society shall:I) pass decisions after evaluating the general activities

of the societies;2) approve and amend the by-laws and internal

regulations of the society;3) elect and dismiss the members of the management

committee, control committee and when necessarythe members of other sub-committees;

4) determine the amount of shares of the society;5) decide on how the annual net profit of the society is

distributed;6) give decision on the audit report;7) hear work reports and give proper decision;8) decide that a society either be amalgamated with

another society or be divided in pursuance of thisproclamation;

9) approve the annual work plan and budget;10) decide any issue submitted by the management

committee and other committees.22. Calling of General Assembly

I) The general assembly shall meet at least once in ayear; .

2) If the management committee or one-third of themembers of the general assembly require a meetingto be called, an emergency meeting may be held bygiving 15 days prior notice.

3) Where the management committee fails to call anemergency general assembly in accordance withSub-Article (2) of this Article such meeting shall becalled by the appropriate authority and shall in suchcase be deemed to have been called by themanagement committee.

23. Management CommitteeI) Every society shall have a management committee

which is accountable to the general assembly andwhose members and manner of election to bedetermined in the by-laws of the society.

2) The term of office of the management committeeshall be three years.

3) Members of the management committee shall notbe elected for more than two consecutive terms.They may be dismissed at any time by the generalassembly.

4) When members of the management committeeleave their office for whatever reasons, they havethe obligation to submit for inspection the activitiesthey performed during their term of office.

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24. Powers and Duties of the Management CommitteeThe powers and duties of the management committeeshall be dertimined in pursuance of the by-laws and inparticular shall include the following:I) maintain the minutes of a meeting in writing;2) maintain the documents and books of accounts of

the society;3) parepare the annual work programme and budget of

the society; implements same upon approval;4) call general assembly in accordance with the by-

laws of the society;5) execute such other decisions given by the general

assembly;6) submit reports to the general assembly on the

activikties of the society.

25. Control Committee

I. Every society shall have a control committee whichis accountable to the General Assembly and thenumber of which shall be specified by the by-lawsof the society;

2. The term of office of members of the committeeshall be three years. No members of the controlcommittee shall be elected for more than twoconsecutive terms. They may, while in term ofoffice, be dismissed by the general assembly.

26. Powers and Duties of the Control CommitteeThe Control Committee:I) follows up that the management committee is

carrying out its responsibilities properly;2) follows up that the funds and property of the society

is properly utilized;3) controls that the various activities of the socjety are

carried out pursuant to the by-laws and internalregulations of the society;

4) performs other duties given by the general assem-bly.

27. Other Sub-CommitteesOther sub-committees may be established pursuant tothe by-laws of the society.

PART FIVESpecial Privileges of Society

28. Priority of claims by SocietyNotwithstanding any provision to the contrary in anylaw, debts owed to the society by member shall takeprecedence over all other debts, except the debt owed tothe Government.

29. Set-off in respect of Share or Benefit of MembersThe shares or benefits of any member may be set-off fordebts due to the society from such a member.

.

30. Share or Benefit not Liable to Attachment or SaleExcept as provided in Article 29 hereof, the share orbenefit of a member in a society shall not be liable toattachment or sale.Government Assistance

I) Without prejudice to incentives permitted underInvestment laws and other laws, Societies which areorganized and registered under this Proclamationshall be entitled to the following:a) to be exempted from income tax; provided

however, members shall pay income tax on theirdividends;

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(b) to acquire land as determined by a Region or aCity accountable to the Federal Government;

(c) to receive other assistance from the FederalGovernment or Regional Government or Cityadministration accountable to the FederalGovernment.

2) An institute responsible for promoting cooperativemovement, rendering man-power training and con-ducting studies and research shall be established.

PART SIXAsset and Funds Societies

32. Indivisiblity of Asset and Funds of a Society

Except as otherwise prescribed under Article 33 (2) and44 of this Proclamation, the asset and fund of a societyshall not be divided for the members or any other party.

33. Allocation of Net Profit

I) The society shall deduct 30% of the net profitobtained and allocate for the following purposes inaccordance with the terms and conditions set forth inthe by-laws and plan issued from time to time by thesociety:-(a) for reserve;(b) for the expansion of work;(c) for social services.

2) After the amount prescribed in Sub-Article (I) isdeducted the remaining net profit shall be dividedamong the members; the division shall be made on thebasis of the shares the members have in the society andon the amount of goods offered for the sale to thesociety or goods purchased from the society bymembers of the society.

34. Restrictions on Borrowings

I) A society shall receive loans from its members or otherorganizations to such extent and on such conditions asmay be specified in the by-laws of the society.

2) Interest on loans received from its members shall notexceed the current interest rate of a bank.

35. Restrictions on LoansA society shall not extend loans other than to itsmembers or a society established under thisProclamation.

PART SEVENAudit and Inspection

36. Audit

I) The appropriate authority shall audit or causes to beaudited by a person assigned by it, the accounts ofany society at least once in a year.

2) The audit conducted pursuant to Sub-Article (1) of thisArticle shall include the examination and verificationof overdue debts, if any, and cash balance, securitiesand assets, and liabilities.

3) The audit report shall be submitted to the generalassembly.

37. Inspection

1) 'fhea-ppropriate authority may, make or cause to bemade by such person to be assigned by it aninspection to the organization, work execution,documents and financial condition of a society.

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2) Without prejudice to Sub-Article (1) of this Articleinspection may be made when:(a) a majority of the members of the executive

committee request;(b) not less than one-third of the total number of

members of the society request.

38. Keeping Audit and Inspection ResultsAudit and Inspection result conducted pursuant toArticle 36 and 37 of this Proclamation shall be kept inthe office of the authority and the society, open andeasily accessible to everyone.

39. Actions to be Taken for Losses of Property or Fund ofthe Society1) The auditor or inspector shall make a report to the

management committee or the general assembly orthe appropriate authority, as the case may be,where the person who is or was entrusted with themanagement of the society or who is or has been anofficer or an employee of the society, and who in,the course of an audit or inspection has been foundto have committed the following acts:(a) had made any payment contrary to this

Proclamation, the regulations or the by-laws;(b) had caused any damages to the assets of the

society by breach of trust or willfully ornegligently;

(c) has misappropriated the properties of thesociety.

2) The appropriate authority who received the reportpursuant to Sub-Article 1 of this Article shall givethe person concerned an opportunity to present hisdefense within fifteen days.

3) After fulfillment of the above mentioned con-ditions, the appropriate authority shall ask theperson who has been found responsible for misap-propriation of the fund or property of the society toreturn or pay same with interest including compen-sation and damages. Where the person concernedis not willing to do so, the authority shall take theappropriate legal measure.

PART EIGHT

Dissolution and winding up of Societies

Dissolution of a Society

A Society shall be dissolved on the following grounds:1) Where a special resolution for its dissolution is

given by the members; or2) Without prejudice to Article 6 (4) hereof, where

the number of members of a primary society fallsbelow ten.

3) Without prejudice to sub-Articles (1) and (2) ofthis Article, a society the dissolution of which isdecided shall notify same to the appropriateAuthority within seven days from the decision forits dissolution.

41. Liquidator

1) Where the dissolution of a society has beendecided upon, pursuant to Article 40 of thisProclamation, the appropriate authority may,assign a liquidator. It may, if necessary,determine that his remuneration be paid out ofthe accounts of the society.

2) The liquidator shall receive records, documentsand properties of the society as soon as he isassigned. He shall also take the necessarymeasures to protect the properties and rights,records and documents of the society fromdamages.

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42. Powers and Duties of the Liquidator1) The liquidator shall have all (he necessary powers

to complete the winding up proceedings. He shallin particular perform the following in order to carryout his duties properly:(a) investigate all claims against the society and

decide on priority of payment among them;(b) collect the assets of the society;(c) distribute the assets in accordance with the

plan of liquidation approved by the generalmeeting of the society;

(d) carry on the work activities of the society inso far as may be necessary for the properliquidation of the affairs of the society;

(e) represent the society in legal proceedings;(f) call meetings of the members as may be

necessary for the proper conduct of theliquidation.

2) The liquidator shall issue notice in a newspaper,before the distribution of property of the societytakes place in accordance with Sub-Article (l) (c)of this Article, that the society is to be dissolved. Itshall proceed with the distribution where no claimis presented within two months from the date ofsuch notice. No claimant shall have a right after theexpiration of such limitation.

3) Upon completion of the winding up proceedingsthe liquidator ~hall prepare and submit a report tothe appropriate authority, he shall deposit therecords and documents of the society in such placesas the appropriate authority may direct.

43. Calling on CreditorsI) Creditors shall be paid on the basis of a balance

sheet prepared by the liquidator upon the commen-cement of his assignment.

2) Creditors shall be informed ofthe dissolution of thesociety and required to file their claims withsupporting documents.

3) Creditors appearing in the society's records or whoare otherwise known shall be notified directly byregistered letter. Notice to other creditors shall begiven by notice, published in two successivemonthly issues of a newspaper, and also in the formlaid down in the by-laws of the society.

44. Protection of Creditors1) Until the creditors of the society have been paid or

amounts required for payment be deposited, theliquidators may not distribute any part of assetsamong the members.

2) Where known creditors have failed to present theirsupporting documents, the amounts owing to themshall be deposited according to the decision of thecourt.

3) Sums shall be set aside to meet the claims inrespect of undertakings of the society which arenot completed or which are under liquidationunless the creditors are guaranteed or distributionof assets is postponed until such undertakings arecompleted.

4) After the payment of claims have been completedor verified that sufficient deposit for payment hasbeen made, the liquidators may distribute theassets of the society among the members based onthe amount due to them.

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45. Cancellation of a society from the RegisterWhen the winding up proceedings are completed thecertificate of registration shall be returned to theappropriate authority who shall cancel the registrationof the society, and the society shall, upon the date ofsuch cancellation, cease to exist.

PARTNINESettlement of Disputes

46. Conciliation

The disputes provided under Article 49 of thisproclamation shall be heard by a third party appointedby the disputing parties before they are referred to thearbitrators.

47. Arbitration

I) When the disputes provided under Article 49regarding cooperative societies are not settled byconciliation they shall be referred to arbitration.

2) The arbitration shall consist of three persons ofhigh reputation and impartiality.

3) The arbitrators shall conduct their hearing andfulfill any of their duties in accordance with theCivil Procedure Code.

48. Appointment of the Arbitrators1) Each party to the dispute shall appoint one ar-

bitrator. The third arbitrator, who shall be thechairperson, shall be appointed by both parties.

2) The appropriate authority shall appoint the chair-person arbitrator when the parties fail to reach anagreement.

49. Disputes to be referred to ArbitrationThe arbitrators shall have the power to hear disputes notsettled by conciliation regarding the organization,management, or operations of a society which arisesbetween:I) members or former members and members and

members or representatives of former members orpersons claiming in the name of deceased mem-bers; or

2) members, former members or members orrepresentatives of former members or heirs ofdeceased members and any officer, representativeof the management committee or employee of thesociety; or

3) the society or the management committee and anyformer management committee, any officer, agentor employee, or any former officer, agent oremployee or the nominee heirs or representativesor representatives of deceased former members oremployees; or

4) the society and any other society.

50. Civil Court Powers of ArbitratorsThe Arbitrators shall have the same power, with regardto the cases provided under Article 49 of thisProclamation, as a Civile Court for the summoning ofwitnesses, production of evidence, the issuing of ordersor the taking of any legal measures.

51. ExecutionAny decision, order or award made under thisProclamations shall be taken as though made by a civilcourt, and, where appropriate, the courts shall havejurisdiction to order the enforcement of any suchdecision, order or award.

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52. Power of Courts

Appeals on the decisions given by the Arbitrators underArticle 47 ofthis Proclamation may, as the case may be,be instituted in Federal High Court, or the Regional StateHigh court or the Federal High Court of a city accoun-table to the Federal Government where the society issituated.

PART TENMiscellaneous Provisions

53. Address of a Society

Any society shall have an address registered pursuant toArticle 9 of this Proclamation. All services of process,notices and other communications shall be sent in suchaddress. The society shall inform the appropriateauthority of any change in such address within thirtydays.

54. Supplying Infonnation

Every society shall have the obligation to transmitinformation to the appropriate authority about the ac-tivities it performs.

55. Establishment of a Federal Organ

A Federal Organ responsible for organizing and regis-tering Apex organisations and for rendering training,conducting research and other technical support tosocieties may be eS,tablishedby law.

56. Depositing of this Proclamation, Regulations and the By-laws

Every society shall deposit at its address copies of thisProclamation, the Regulations and the by-laws, to beaccessible free of charge.

57. Repealed and Inapplicable Laws

1) The Cooperative Societies Proclamation No. 138/1978 and the Agricultural Cooperatives SocietiesProclamation No. 85/1995 are hereby repealed.

2) No law, regulation or directive in so far as it isinconsistent with this Proclamation have force oreffect in respect of matters provided for by thisProclamation.

58. Transitory Provisions

1) The cooperative societies which have been es-tablished and operating in accordance withProclamation No. 138/1978 shall be reorganizedunder this Proclamation.

2) The cooperative societies which have been es-tablished and operating in accordance withProclamation No. 85/1995 shall be deemed to havebeen established under this Proclamation and shallcontinue to carry out their functions in accordancewith this Proclamation.

3) The societies indicated in Sub-Article (1) of thisArticle shall continue their operations holding theirprevious juridical personalities until they are reor-ganized and registered by the appropriate authority.

4) The appropriate authority shall facilitate the con-ditions necessary for the reorganization of thesocieties in accordance with sub-Article (1) of thisArticle.

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59. Issuance of Implementing Legislations

The Council of Ministers of the Federal Government orthe appropriate organ of a Region or city accountable tothe Federal Government may issue legislations for theproper implementation of this Proclamation.

hCP~ fll?O'i"OT 1.11.60. Effective Date

f,U hCP~ h;J-..,..,F 0 cf>'}IIIf.1li ~'9" 'f.9"r.' fO'i"This Proclamation shall come into force as of the 291hday

f,tf'i"A::of December, 1998.

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Done at Addis Ababa, this 29thday of December, 1998.

NEGASO GIDADA (DR)

PRESIDENT OF THE FEDERAL DEMOCRATICREPUBLIC OF ETHIOPIA

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aERHANENA SELAM PRINTING ENTERPRISE