Cooperative Societies Act No. 12 of 2012.

This Act lays down rules for the fair, transparent and legal cooperatives that contribute to the social and economic development of its community. To this end, this Act sets forth provisions on the registration and certification of cooperative societies; duties and authorities of the Registrar; terms and conditions of membership to the cooperative societies and meeting procedures; structure, duties and authorities of the Board of Directors for the management of the cooperative societies; duties of the Credit Committee and the Supervisory and Compliance Committee; finance management of cooperative societies; business of cooperative societies; property and funds of cooperative societies; financial disclosure and audit; reconstruction of cooperative societies; dissolution of cooperative societies by members or court; examinations and investigation of the records and practices of cooperative societies; dispute settlement; administration, registration and duties of the specialized cooperative societies; and offences and penalties. In this Act, specialized cooperative societies are indicated as credit unions, consumers’ cooperative societies, housing cooperative societies, and industrial cooperative societies. The Minister may exempt cooperative societies from liability to customs duties, value added tax, excise taxes, environmental levy and customs service charge, by Order published in the Official Gazette. Furthermore, cooperative societies may establish development fund, pension fund, and may contribute to charitable activities, community and cultural improvement.