44 EGYPT - CO-OPERA.TION AND ASSOCIATION 



(A) Bill for Agricultural Co-operative Societies in Egypt. 



1. General Provisions. ■ — -The agricultural co-operative societies shall be 

 associations of an unlimited number of farmers of a single district or a single 

 region (or part thereof) for the defence of the interests and the increase 

 of the profits of members only, by means of business carried on in 

 common. 



2. Legislation and Civil Personality. — The societies shall be regulated 

 in accordance with their rules, the present law and the Civil Code. 



In every case the Commercial Code shall be applicable to them and its 

 procedure shall be followed. They shall have civil personality and may 

 therefore receive without impediment free grants from living persons or 

 testamentary bequests under the form of waqf (i) property or any 

 other form. 



Members' Liability. They may be formed as unlimited liability societies 

 or as societies in which the liability is limited by shares or to a fixed amount. 



Members, Rules, Management. The provisions made in relation 

 to these three subjects do not substantially differ from those in force in 

 similar societies in other countries. 



Members' Shares. If the capital is divided into shares no share must 

 be less than 20 P. T. (5.12 frs) or more than 500 P. T. (128 frs) No one may 

 have an interest of more than 400 Egyptian pounds (10,248 frs.) in a single 

 co-operative society, nor possess shares the nominal value of which exceeds 

 this amount. The shares shall always be personal. They may only be trans- 

 ferred with the consent of the Board of -Management or of the General 

 Meeting. 



The capital may vary with the number of members. It may, how- 

 ever, never be less than the amount subscribed at the foundation of the 

 society. 



Reserve Fund. The reserve fund shall be unlimited and be derived 

 from the following sources : 

 1st. Entrance fees ; 



2nd. Difference between the nominal value and the rate of issue of new 

 shares, in case of their being new shares issued after the formation of the 

 society ; 



3rd. Three fourths at least of the net annual profits until the reserve 

 fund amounts to two thirds of the share capital ; 



4th. Profits not claimed by members' or that they have lost by pre- 

 scription. 



In unhmited liability credit co-operative societies without capital,, 

 all the profits shall be paid into the reserve fund to form a guarantee fund ; 

 the rules, however, may provide that 10 % of the profits be set aside for 

 works of public utility. 



(i) The waqf, as we know, are the real estate belonging to Mohammedan religious 

 communities. 



