Law to govern cooperative societies

A discussion is underway regarding a law to govern the activities of cooperative societies across the Emirate by The Dubai Chamber of Commerce and Industry.  In a round table meeting that was held last month with representatives from cooperative societies, Dubai Chamber stressed the need for a new law that reflects their requirements and tackles the obstacles faced by them.

Cooperative societies in Dubai were of the opinion that the current law treats them as charities or non-profit organisations though they are commercial entities with social responsibilities. According to Dubai Chamber , the number of cooperatives operating in the Emirate stood at 17 with 102 showrooms and 51,181 shareholders with 109,119,897 shares.

The attendees also raised a range of topics that need to be addressed in the proposed law for the proper functioning of cooperative societies with regards to membership, voting mechanism and profit distribution to members to be decided by the general assembly of each society and in accordance with their charters. The law will help different economic sectors in facing challenges as part of its commitment to support the growth of the national economy and to provide better services to its members and stakeholders, as said in a release issued by Dubai Chamber.