Cooperative groups have a year to adapt
The Council of Ministers has approved the new Cooperative System in the Kingdom, replacing the previous Cooperative Societies System, with the aim of comprehensively regulating the operations of cooperatives. The system stipulates the establishment of independent cooperative associations formed voluntarily by members, managed according to specific cooperative principles, and registered and licensed with the Ministry of Human Resources and Social Development. It requires cooperatives to amend their regulations within 12 months, defines the responsibilities of the Board of Directors and the General Assembly, establishes mechanisms for governance and oversight, and emphasizes profit distribution and potential government support. The system also provides for the creation of central cooperatives and the possibility of mergers or dissolution under specific conditions. Additionally, it outlines a framework for supervision and oversight of cooperative performance, specifies circumstances for liquidation, and is expected to come into effect following the issuance of the executive regulations within 90 days.
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