Iranian cooperative sector law


ICC's position in the law of the cooperative sector of the Islamic Republic of Iran is mentioned as follows:

Chapter X- Chamber of Cooperatives

Article 57- Cooperative unions and societies may, if required, establish Central Chamber of Cooperatives under supervision of Ministry of Cooperatives in Tehran having branches in provinces and cities for the following purposes:

  1. 1. To perform functions and authorities of Chamber of Commerce, Industries and Mines in relation with Cooperative Sector.

  1. 2. To perform all affairs entrusted to them by Ministry of Cooperatives according to the By-law.

  1. 3. To settle disputes and arbitration within the scope of cooperative affairs on mediation and peaceful basis between members and unions and between cooperative societies and unions.

Note- Each chamber of cooperative enjoys a legal and independent entity and is not dependent upon government in terms of finance and administration and expenses.

Article 58- The constituents of each chamber of cooperatives are as follows:

1. Assembly of Representatives

2. Board of Directors

3. Inspection Board.

Article 59- The cooperative chamber assembly of representative at city level is composed of representatives of unions and representatives of cooperatives with similar nature of activity lacking union with type of activity of the same city, and cooperative chamber assembly of representative at provincial level, composed of chairmen of board of directors of cooperative chambers from cities of the same province and representatives of unions at the cities lacking cooperative chamber and representatives of unions with the same type of activity in the province and assembly of representatives from central chamber of cooperative, composed of chairmen of provinces chamber of cooperatives and representative of unions from provinces with no chamber of cooperative and representatives of national unions which is appointed for a period of three years.  

Note 1- Duties of assembly of representatives are as follows:

a- To review proposals on the articles of association and By-law of cooperative chamber and its authentication for final approval of Cooperative Minister.

b- To appoint board of directors of cooperative chamber.

c- To appoint two inspectors for membership in the inspection board.

d- To approve annual program and budget as proposed by the board of directors.

e- To review and make decision on balance sheet and other reports presented by board of directors upon receiving opinion of inspection board.

f- To review reports of inspection board.

Note 2- Number of votes by representatives who are members in assembly of representatives of city cooperative chamber, province cooperative chamber and central chamber of cooperatives shall be determined by Ministry of Cooperatives in proportion to the number of cooperative members and member cooperatives of cooperative unions and chambers.

Article 60- The cooperative chambers board of directors compose of 3 to 7 principal members and two alternate members from among cooperative members who are appointed by assembly of representatives for a period of three years from agricultural, rural and tribal, industrial, mine, urban and rural development, and distributive cooperatives as far as possible.

Article 61- The duties of board of directors are as follows:

1. To perform required activities in line with the objectives of cooperative chamber in accordance with the articles of associations and relevant Bylaws.

2. To run all affairs relating to cooperative chamber and performing all correspondences, communications and financial operations required by the chamber according to its internal By-laws.

3. To execute resolutions by assembly of representatives.

4. To present reports and necessary proposals to assembly of representatives.

5. To elect chairman of the board of directors from among themselves.

6. To elect secretary for cooperative chambers at city and province levels and a secretary general for central chamber of cooperatives in order to carry out the executive affairs.

Note- The board of directors may delegate a part of its authorities to the secretary or secretary general.

Article 62- Board of directors of chamber of cooperatives in every province is obliged to imitate communication and coordination and cooperation between the chambers of the cities in their own provincial jurisdiction and they are bound to cooperate, also board of directors of Islamic Republic of Iran Central Chamber of Cooperatives is obliged to create communication, coordination and cooperation between the chambers in provinces and they are bound to cooperate.

Article 63- Inspection Board composed of three members out of which two persons will be appointed by assembly of representatives and other person by Ministry of Cooperatives and their functions include:

a. To supervise and inspect continuously as to observing provisions of articles of association and by-laws of chamber of cooperatives and the related rules and regulations.

b. To audit the accounts, registers, documents, financial statements such as balance sheet, fiscal transaction and to report to the assembly of representatives and Ministry of Cooperatives.

c. To consider complaints and violations relating to chamber of cooperatives and to report to the concerned authorities.

d. To present annual and periodical reports to assembly of representatives and Ministry of Cooperatives as to status of cooperative chamber activities and observing rules and regulations and to express comments on board of directors’ reports.

Note- Board of directors is obliged to communicate with the inspection board and provide them with the required documents and papers.

Article 64- Financial resources of cooperative chambers are as follows:

1. Receiving membership fee 

2. Receiving public, people and council grants, contributions and gifts.

3. Receiving remuneration for consultation, expertise and arbitration within the scope of cooperative affairs through mediation amicably and other services rendered to cooperative societies and unions.