Law No. 2 of 1974 on Cooperative Farms.

This Law consisting of 22 articles aims at organizing distribution, work and rules governing the Cooperative Farms. They are common property agricultural areas divided in a number of shares equal as far as the number of beneficiaries (at least 10). The Law establishes: categories that are eligible to receive the farms; prices esteems and procedures for distribution. Farms are sold to the beneficiaries by the equivalent of 25% of the appraised value, to be paid in 15 years beginning one year after the date of delivery of the farm. Every farm has to keep a written regulation signed by all partners, containing the name of the Farm, the names of the partners in the farm, its capital, the value of the shares and payment procedure. Is not permissible for a partner to own a stake exceeding 3 stakes. The General Assembly of the Cooperative is composed of all members of participants and it elects from among its members the Board of Directors, at least three. The Board of Directors develops the investment and management plan on behalf of all the partners and their interests. The Ministry of Agriculture and Agrarian Reform provides a government support to the cooperatives for a period of not less than 3 years. They also receive advantages, exemptions and subsidies enjoyed by the other agricultural cooperatives.