Part IV: The Assistance Fund for Associations and NonGovernmental Organizations

Article 70:

There shall be established under this law, within the Ministry of Social Affairs, the Assistance Fund for Associations and NonGovernmental Organizations.

Article 71:

The fund shall have a board of directors; chaired by the Minister of Social Affairs with the following as members :
  1. Two members to be nominated by the General Federation of Associations and NGO’s.
  2. Five members shall be chosen from among chairmen of boards of associations and NGO’s, that satisfy the conditions of nomination; subject to the approval of the General Federation of Associations and NGO’s. It shall be taken into consideration that each member shall represent a different specificactivity and one of them shall represent public welfare associations.
  3. The two public figures interested in social issues.
  4. One of the undersecretaries of the Ministry of Social Affairs.
  5. The term of the fund’s board of directors shall be three years. A member may be reappointed for more than one term.
A decree shall be issued by the Minister of Social Affairs regarding the formation of the board of directors of the fund, statute and procedures of nomination for membership and operations; in the manner provided for in the executive regulations.

Article 72:

An association or an NGO may run for the membership of the board of directors of the fund provided that it satisfies the following conditions
  1. Name of association, which should be derived from its purpose in such a way as to avoid any confusion with any other association operating in the same geographical jurisdiction.
  2. Auditor’s reports, balance sheet and final accounts for the preceding three years prior to nomination shall confirm its sound financial status.
  3. The association or NGO should not have committed any contravention provided for in this law within the preceding five years prior to nomination.

Article 73:

The board of directors of the fund shall be the overriding authority in control of its affairs. The board shall have the right specifically to
  1. Act as necessary to develop the resources of the fund.
  2. Carry out required studies concerning the financial conditions of associations and the priorities for providing aid to them.
  3. Collect financial data on associations and limits for extending their activity. Issue bulletins to enable donors, at home and abroad, to estimate their conditions. Prepare and publish an annual directory listing associations and the NGO’s as well as activity specific and regional federations affiliated thereto so as to enable citizens to contribute to these organizations and to voluntary social work.
  4. Draw up an overall policy for providing aid to associations and NGO’s.
  5. Set controls for allocating aids and grants.
  6. Distribute aids to all associations and NGO’s.

Article 74:

The resources of the fund shall be made up mainly of :
  1. Funds earmarked in the state general budget as aid to associations and NGO’s established under the provisions of this law.
  2. Proceeds of donations, grants and constructions received by the funds.
  3. Proceeds of funds accruing thereto from dissolved associations and NGO’s.
  4. Additional taxes levied in favour of charity works.

Article 6:

The administrative body shall be under obligation to enter a summary statement of the association’s statute into the relevant reigster within sixty days from the date of submission by the founder’s assembly representative of a registration application. Should sixty days elapse without being made, registration shall be deemed effective under the law.
The association shall be judged to be a judicial person by conducting such registration or by the lapse of sixty days from the day the association representative has applied for registration, whichever earlier.
Should the administrative body realize, within the sixty days referred to’ that the association’s purposes comprise an activity prohibited under Article 11 hereof, the body shall reject the registration application by a decision to be notified to the representative of the founders’ assembly by a registered letter with acknowledgement of receipt within the aforementioned sixty days.
The representative of the founders’ assembly may challenge the decision before the competent court within sixty days effective the date of notification in accordance with prescribed procedures.
The administrative body shall carry such procedure as to have a summary statement of the association’s statute published in the Official Gazette (Al-Waqie Al-Misria) with sixty days from the date the association is judged a judicial person.

Article 7:

There shall be set up within the jurisdiction of each court of first instance one or more committee to be formed annually under a decision by the Minister of Justice. Such committee shall be headed by at least a counselor of the court of appeal to be nominated by the court’s general assembly with the following as members :
  1. A representative of the administrative body nominated by the Minister of Social Affairs.
  2. A representative of the regional Federation nominated by the board of directors of the general federation. Such committee shall comprise, as a member, a representative of the association to the dispute to be nominated by its general assembly or board of directors.
The committee shall be concerned with the considering disputes that may arise between the association and the administrative body.
The committee meeting shall be valid, only with the presence of all its members. Its resolution shall be issued within sixty days from the date of submitting dispute thereto, by majority of votes. In case of equal votes, the chairman’s shall be the casting vote. The executive regualtions of the pres-ent law shaw other rules and procedures for running business of the committee.
No action in respect of dispute shall be acceppted by the competent court unless resolution thereon has been taken by the committee or the period stipulated in the preceding paragraph has elapsed. Action shall be filed within sixty days of the date of issuing the resolution according to relevent procedures of filey cases.

Article 8:

Without prejudice to paragraph 3, Article 6 of the present law, the administrative body may object to whatever it deems as contradictory to the law in the statute of the association or as regards the founders. However, this shall not preclude it from being obliged to enter the association into the relevent register within the period set forth in Article 6 hereof.
Should it find any justification for objection, the administrative body shall notify the association by registered mail with acknowledgement of receipt, with reasons of such objection. Should the association fail to eliminate causes of such objection within the period specified by the administrative body. The dispute shall be submitted to the committee set forth in the preceding article.
When an action on objection is filed before the competent court, following the issuance of the commitee resolution, the administrative body may request the competent court to urgently pass a judgment to eliminate cause of contravention, while maintaining the association in operation or to impose a temporary suspension on the activity of the association pending settlement of subject of suit.
The administrative body shall annotate the text of verdict opposite the relevant entry of the association in the special register.

Article 9:

Any interested party shall have the right to have access to the summary statement of the association’s statute and obtain a copy endorsed as true against payment of such duty as may be defined by the executive regulations up to a maximum of LE20; the proceeds to which shall be paid to the NGO Assistance Fund.

Article 10:

In amending an institution’s statute, the same procedures set forth in this chapter as regards foundation.

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