Part I: Associations

Chapter II: Purposes, Rights and Obligations of Associations

Article 11:

Associations seek to implement their purposes in various community development domains according to the rules and procedures set forth by the executive regulations.
Subject to the opinion of the competent federation and opproval of the administrative body, an association may operate in more than one field.
Secret associations shall be banned. Associations shall not be allowed to conduct any of the following purposes or activities :
  1. Form military or para-military formations or detachments.
  2. Threaten national unity, violate public order or morality or advocate discrimination against citizens, an account of sex, origin, colour, language, religion or creed.
  3. Practise any political or tradeunion activity exclusively restricted to political parties and trade unions.
  4. Seak profit or practise any profit-oriented ac-tivity. However, adopting commercial controls to generate such income that contributes to the realization of the association’s purposes shall not be considered a contravening activity.

Article 12:

State civil servants may be seconded to work with associations, at their request, to provide support necessary for performing associations’ missions.
Secondment shall be made for one year renewable under a decission by the competent minister subject to approval by the prime minister or whoever authorized thereby.

Article 13:

Without prejudice to any previleges set forth under any other law, associations subject to the present law shall be eligible to the following previliges :
  1. Exemption from registration and entry duties, payable by the association in all types of contracts to which it may be party to, such as contracts of ownerships, mortgage or other rights in kind.
  2. Exemption from taxes and stamp duties currently or to be in future levied on all contracts, powers of attorney, printed material and records, etc.
  3. Exemption from customs, taxes and other duties on the imported equipment, tools and production requirements as well as giveaways, donations and aids from abroad, under a resolution by the prime minister based on a proposal by the Minister of Social Affairs and presentation by the Minister of Finance, on condition that these objects are necessary for its main activity. Of these objects, it is prohibited to dispose of such durable goods as are identified under a resolution by the Minister of Social Affairs in agreement with the Ministy of Finance before the elapse of five years, as long as the taxes and customs duties due thereon remain unpaid.
  4. Exemption of real property owned by the association from the real-estate tax.
  5. A 25% reduction on railway transport duties for equipment and machinery.
  6. Household telephone subscription and call tariffs shall apply for associations, which shall be defined under a decision by the administrative body.
  7. A 50% reduction shall be given on consumption value of water, electricity and natural gas produced by the public authorities, public sector companies and any other government bodies.
  8. Contributions given to associations shall be considered an income liability up to a maximum of 100%.

Article 14:

Each member shall have the right to withdraw from the association at any time of his choice, provided he will notify the association by a registered letter with acknowledgement of receipt. This shall not prejudice the association’s right to demand him to settle any dues outstanding or moneys owed thereby.

Article 15:

The association shall have the right to own real property in such a manner that enables it to fulfil its purposes.

Article 16:

The association may join, participate or belong to a club, association, authority or an organization domiciled outside the Arab Republic of Egypt that practises such activity that does not conflict with its purposes, provided that the administrative body have been notified and sixty days have elapsed from date of notification without any written objection on its part.

Article 17:

The association has the right to accept contributions. It may collect contributions from natural or juridical persons and in such a manner as may be set forth by the executive regulations. In all cases, no association shall have the right to obtain money from abroad either from an Egyptian or foreign presons or a foreign body or its local representatives. Nor shall the association send any of the abovementioned, save for books, publications, technical and scientific magazines to persons or organizations abroad unless so authorized by the Minister of Social Affairs.

Article 18:

In order to realize its purposes and reinforce its financial resources, the association may set up service and productive projects, celebrations, charity bazars, fairs and sport games.

Article 19:

The association shall keep at its management centre the relevant documents, registers and correspondance. The executive regulations define such records and how to use them and the data contained. These records shall be stamped before being used by the administrative body.

Article 20:

Each member of the association shall have the right to have access to the association’s records. Employees to be specified under a decision by the Minister of Social Affairs and representative of the competent federation may have access to the association’s headquarters or branches with the purpose of reviewing its records according to such procedures as may be set forth by the executive regulations hereof.

Article 21:

Each member of the association shall have the right to have access to the association’s records. Employees to be specified under a decision by the Minister of Social Affairs and representative of the competent federation may have access to the association’s headquarters or branches with the purpose of reviewing its records according to such procedures as may be set forth by the executive regulations hereof.
The balance sheet, board of directors’ report and auditor’s report shall remain in display at the association’s headquarters at least eight days prior to the meeting of the general assembly until ratified. The executive regulations shall define the manner of displaying such documents.

Article 22:

The association undertakes to deposit with a bank or a saving fund, its cash funds in its same registered name.
The association shall expend its own funds in such manner as may fulfil its purposes. It may invest its surplus income in areas of guaranteed gain that ensure a fixed source of income or reinvest same in its porductive or service projects.
In all cases, associations shall refrain from en-gaging into financial speculations. The executive regulations shall define cases and conditions for investing the association’s funds.

Article 23:

In cases where an association issues such a resolution that the administrative body deems to be in conflict with the law or its statute, the administrative body may demand the association, by a registered letter with a knowledgement of receipt, within ten days from being so notified under Article 38 hereof, to withdraw the resolution.
Should the association fail to withdraw such resolution within fifteen days from being so notified, the administrative body shall have the right to submit the matter to the committee set forth under Article 7 hereof. Each party concerned shall have the right to challenge any resolution to be issued by the committee before the competent court.

    


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