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Federal Law Number (6) of the Year 1974
Concerning Public Utility Associations

We Zayed Bin Sultan Al Nahyan, president of the United Arab Emirates,

Pursuant to the provisions of the interim constitution,

And the federal law number (1) of the year 1972 concerning the function of ministries
and the powers of the ministers and the laws issued in amendment thereof,

The federal law number (6) of the year 1974 concerning public utility associations,

And the submission of the Minister of Labour and Social Affairs, and the approval of
the cabinet, the national federa l council, and the attestation of the supreme council of
federation,

We have issued the following law:

Chapter One

The Establishment of an Association

Article (1)

In applying the provisions of this law, the public utility association, referred to in the
provisions of this law as “association”, sh all mean every organized group for a limited
or unlimited period of time, formed of na tural or legal personality, to accomplish a
social, religious, cultural, educational, arti stic action or to achieve humanitarian or
charitable purposes or any other purpos e through material or moral support or
technical expertise and it seeks in all of its activities to participate in such acts for the
purpose of public interest without seeking any material profit.

Specifying the aim of the society shall lie in the main purpose of the association.

Article (2)

The following conditions shall apply in order to establish an association:

1. The number of founding members shall not be less that 20. If necessary, the
Minister of Labour and Social Affairs, re ferred to as Minister, may, according to
the provisions of this law, authorize a lesser number on the condition that this
number is not less than five;
2. The member must be above 18 years old;
3. The member shall enjoy full civil rights;
4. He/she must have good conduct and reputation. He/she should not be convicted in
a crime of honor or decency, unless char ges were dropped and rights were
restored. These conditions shall not appl y to associations formed of legal
personality.

Article (3)

The founding members shall meet in a founding assembly to set-up the basic law of
the association which shall include the following information:

1. The name of the association and the addr ess of its main premises inside UAE;
2. The purpose of the society was established to achieve;
3. The names of the founding members, thei r titles, their date of birth, their
profession, their nationalit y, and their addresses;
4. Conditions of membership, type of memb ership, approval and refusal procedures
of membership, the rights of members and their duties;
5. The formation of the board of director s, its competencies and its rules;
6. Rules and regulations of the ordinary and extraordinary general assembly, its
procedures, its competencies and conditi ons for its meetings to be legal;
7. Rules for amending the basic law of the association, establishing branches and
merging the association w ith other associations;
8. The resources of the association and pr ocedures of spending these resources,
monitoring expenditures and the beginni ng and end of the financial year;
9. Conditions of voluntarily dissolving of th e society, rules of liquidation, and the
disposal of its assets.

The Ministry of Social Affairs referred to as Ministry in the provisions of this law
shall prepare a model basic law to guide associations.

Article (4)

Membership of the associati on shall be of two types:

1. Active membership
2. Honorary membership

Active members are founding members and ev ery person who joins the association
according to its basic law. Honorary memb ers are those persons on who the board of
directors confer this title from among people of high stat us and opinion leaders who
performed tremendous services to the country or the association, or those who have
distinguished activities in the public domain.

It is permissible to have temporary and supporting memb ers. The basic law shall
specify conditions of such membership.

Article (5)

The founders shall elect from among them a temporary board of director and a
representative to undertake the registration procedures stated in this law.

The representative shall provi de the concerned department at the Ministry with three
copies of the registration application together with the following documents:

1. The basic law of the association signed by the founding members and a summary
of it;

2. Minutes of meetings of the general assembly;
3. Minutes of meetings of the temporary board of directors;
4. A list with the names of founding members and the names of the temporary board
of directors;
5. The authorization of the board of direct ors to one of its members to submit the
registration documents.

The Ministry shall organize a re gistry to register applications by serial numbers. The
Ministry shall give the repr esentative a statement with the date of application.

Article (6)

The concerned body at the Ministry shall di scuss the application and issue a decision
within (30) days as of the date of the application approving or disapproving
registration and stating reasons for disapproval. It may introduce the amendments it
deems necessary to the basic law of the asso ciation or to transfer the application to
other specialized department. The applicant shall be notified by a registered mail with
an acknowledgement of receipt with the decision taken in this regard.

Article (7)

The temporary board of director shall have the right to complain to the Minister in
case the application is refused within 30 days as of the day of receiving the
notification referred to in article (6). A d ecision with regard the complaint shall be
taken with justification within 30 days as of the date of submitting the complaint.

The Minister may assign a committee to exam ine the justifications of the complaint
and to give its opinion with its regard.

The decisions of the Minister with this regard shall be final and the complainant shall
be notified by a registered mail with an acknowledgment of receipt.

Article (8)

The association shall be registered in a sp ecial register at the Ministry where the
name, purpose, premises, starting date of its financial year, number of board
members, name of chairman, name of tr easurer and name of person who legally
represent the association shall be recorded. Any amendments to this information shall
also be registered in this register.

A summary of the basic law shall be published, free of charge, in the official gazette
or in any other official publica tion decided upon by the Ministry.

Article (9)

The society shall acquire its legal personal ity upon the completion of the registration
procedures according to th e previous provisions.

Article (10)

The association shall enjoy the following financial exemptions:

1. Taxes and customs fees related to impor ted equipment for the association to
practice its activities. It is not permissibl e to give away any of these equipment to
any other body that does not enjoy tax a nd customs fees exemption unless 1 year
has elapsed as of the date of importation, if due taxes, and customs are not settled.
2. Consumption of water and electricity;
3. Taxes on different celebrations implemented by the association.

Article (11)

The association may establish branches inside UAE. The basic law of the association
shall specify the procedures for the establishment of these branches, their
competencies, and other related provisions.

Article (12)

The Minister shall have the right to merge an association with another association of
similar aims if the association is incapable of achieving its aims and fulfilling its
commitments; if it violates th e aims it was established to achieve; if it allocates its
funds for other purposes than those it was established to achieve and if it commits a
huge violation to the provisions of this law or to its basic law or when it looses any of
basis if its creation. The association may sugge st to merge in another association with
similar aims by a decision to be taken by an extraordinary general assembly meeting
with the majority of two third of attending members.

In this case, the Minister sh all approve the suggestion within thirty days as of the day
of notifying him with the decision of merging.

The merging decision or suggestion of me rging shall include the implementation
procedures and their impact.

Article (13)

The association may not violate the pur poses specified in its basic law.

Its members shall not interfere in politics. Th ey shall not infuriate sectarian, ethnic or
religious conflicts.

Article (14)

The association shall not participate in any conference or meeting outside UAE
without a prior approval from the Ministry.

It shall not join any associat ion outside UAE prior to an approval from the Ministry of
Labour and Social Affairs and the Ministry of Interior.

Article (15)

The Ministry shall have the right to technically supervise and direct the programmes
of the association and its projects in order to fall within the specifi ed aim stated in the
basic law. It may organize tr aining events and provide the association with technical
opinions and all other kinds of guidance that may enhance the level of its performance
and services.

Article (16)

The association shall be financially supervised by the Ministry to ensur
e that its
financial and in kind assets are put to se rve the purposes and projects for which the
association was created to achieve according to its basic law.

To achieve this, the Ministry may, at any time, examine the books of the association,
its records, and its documents if it deems it necessary to do so.

Article (17)

The Ministry shall cooperate with other ministries and bodies in issues it deems
necessary to achieve the aims of the asso ciation. It may, in agreement with other
ministries and with bodies concerned with the activities of the association, authorize
them to guide and technically supervise related issues.

Article (18)

The association shall keep at its prem ises records, books, correspondences, and
publications. It shall specifically keep:

1. A record with the names of members and amount paid as membership fees;
2. Records of the minutes of meetings of the board of directors and the general
assembly;
3. Financial records of income and expenditure supported by authorized
documentation.

Article (19)

The books of the association and its record s, correspondences and publications shall
carry the name of the association, its purpose, its registration number, and its area of
activity.

The association may not use a name that might lead to confusion between it and
another association worki ng in the same field.

Chapter Two

The board of directors

Article (20)

ƒ Each association shall have a board of di rectors to provide the means needed to
implement its activities and achieve its aims . The basic law of the association shall
specify the competencies of the board of directors, conditions applicable to its
members, the number of the board, electi ons rules, termination of membership,
procedures and rules of the board m eeting sessions and rules governing the
legitimacy of its meetings and its decisions.

ƒ The number of board members shall not be less than five. The term of membership
shall not exceed 4 years. Membership ma ybe renewed according to the basic law of
the association.

Article (21)

ƒ It is not permissible for a member to be a board member of more than one society
aiming to achieve a similar purpose. Despite that, the Minister may give justified
exception to this rule.

ƒ It is not permissible for a member to be a board member and to work for the
association in return for a wage or remuneration.

Chapter Three

The General Assembly

Article (22)

ƒ The general assembly shall be formed from all active members who paid their
annual due fees at the date when the a ssembly convenes and at least six months
have elapsed as of the date of joining the association.

ƒ The meeting of the assembly shall be attended by at least more than half of its
members in order for the meeting to be lega l. If this number is not attained the
meeting shall be postponed to the following day. In this case, the meeting shall be
legal if attended by one fourth of the members. If this number is not attained, the
board of directors shall ask th e Minister to authorize it to perform the competencies
of the general assembly for a period not le ss than six months renewable to another
six months.

ƒ In all cases, the Ministry may assign a repr esentative to attend the meetings of the
general assembly.

Article (23)

The general assembly shall hold an ordinary meeting once every year within three
months as of the end of the financial y ear to look into the following matters:

1. Approve the minutes of the previous meeting. Approve th e report of the board of
directors on the activities of the previous year, the progr amme of activities and the
plan of action of the coming year.
2. Approve the budget and final ac counts of the previous financial year and the draft
budget of the coming year.
3. Suggestions submitted by member according to the officially authorized schedule
as specified in the basic law of the association;
4. Elect a board member or filling vacant seats;
5. Select an auditor and sp ecify his remuneration;
6. Other issues on the agenda of the meeting.

The general assembly shall issue its decisions by the absolute majority of attending
members.

Article (24)

The general assembly may convene in an extraordinary meeting upon a justified
request by the Ministry, the boar d of directors, or one quarter of the members eligible
to attend the general assembl y. If the board of directors does not call the general
assembly to convene upon a request by the Mini ster or the members, the Minister may
call the assembly to convene at the expense of the society.

Article (25)

The extraordinary general assembly sh all look into the following matters:

1. The resignations submitted by one or mo re members of the board, expulsion of
membership and vacant seats.
2. The suggestion to merge the association w ith another according to paragraph 2 of
article (12).
3. Annulling the decisions of the board of directors
4. Voluntarily dissolving of the association
5. Other important and urgent issues.

The decisions of the general assembly in thes e issues shall be taken by the majority of
two third of attending members.

Article (26)

The ordinary or extraordinary general assembly shall not look into matters not on the
agenda of the meeting.

The extraordinary general assembly shall not look into a topic where a decision has
been taken with its regard before the elapse of one year as of the date of issuing the
decision.

Chapter Four

The Resources of the Association

Article (27)

The recourses of the associ ation shall consist of:

1. membership fees;
2. contributions, grants, in ki nd and material donations;
3. assistance paid by the ministry;
4. income accrued from celebrations held by the society.

Any other source of income.

Article (28)

The funds of the association belong to the association and its members shall not have
any right to these funds. Resi gning or expelled members sh all have no rights in these
funds.

Article (29)

The association shall deposit it s cash money in its name at one of the banks inside the
state. It shall notify the Mini stry accordingly (the basic law of the association shall
state amounts to be kept in cash to cover urgent expenses).

Article (30)

The association shall spend its funds in activities that achieve its aims. It shall not use
them in any kind of trade or financial speculations.

Article (31)

The board of directors shall submit to the Mi nistry a copy of the final account of the
year which ended and the draft budget of the coming year within fifteen days as of
their endorsement by the general assembly.

Article (32)

The Ministry shall allocate a financial assistance for the association. This type of
assistance and means of spending it shall be organized by a decision to be taken by
the Minister.

Article (33)

The Ministry, in looking into amounts to be specified for associations, shall take into
consideration some or all of the following standards:

1. The extent of which the association n eeds assistance for its establishment;
2. The extent the society needs assistance to achieve its aims and to implement its
activities.
3. The extent to which the association contributes to humanitarian services related to
its activities.
4. The periodic reports prepared by the Ministry on the activities of the association
and the extent of its abidance to its basic law.

Article (34)

The Ministry may increase, decrease, or halt its assistance according to the conditions
of the association and the allocated annual budge t of the Ministry.

Article (35)

The association shall not collect donations by any means unless it obtains a prior
approval from the Ministry.

It shall not accept donations, benefits, or assistance from any person or body from
outside UAE or donate any unl ess it obtains a prior approval from the Ministry.

Chapter Five

Dissolving the association

Article (36)

The association may be dissolved by a deci sion to be taken by the Minister in the
following cases:

1. if the number of its members becomes le ss than that specified in paragraph
number 1 of article number (2);
2. If it is revealed that its ac tivities do not achieve its aims or if it becomes incapable
of achieving these aims;
3. if it spends its funds on activities other than those it has specified;
4. if it becomes incapable of fulfilling its commitments;
5. if it refuses inspection or if it submits incorrect and deceiving information;
6. if it commits a huge violation of its basi c law or the provisions of this law.

Despite this, the Minister, instead of dissolving the association, may appoint by a
justified decision a temporary board of direct ors to take over the competencies of the
elected board if such a procedure is in the welfare of the public for a period of 6
renewable months.

The decision to dissolve the association shall be based on the suggestion of a
committee to be formed upon a decision by the Minister and headed by the general
secretary of the Ministry and the membersh ip of high official from the Ministry, a
representative from the Ministry of Ju stice to be selected by the Minister.

Article (37)

Taking into consideration article (25), the association may voluntarily be dissolved by
a decision to be taken by its extraordinary general assembly. The Ministry shall be
informed of the date and place of the asse mbly meeting at least 15 days prior to the
meeting.

Article (38)

Those responsible for an association, of wh ich a dissolving decision has been taken,
whether voluntarily or compulsory, may not di spose of its funds or its documentation
prior to a decision taken by the Ministr y. The decision shall specify means of
dissolving the association, how to deal with its funds and documentation, and the
associations entitled to receive the funds, if not spec ified in the basic law of the
association, or in case of difficulty in im plementing what has been specified in the
law.

Concluding Provisions

Article (39)

The provisions of this law shall not be app lied on the various activities referred to in
article (1) implemented by schools, colleges and unions worki ng in the field of youth.

Article (40)

The existing association, when this law enters into force, shall amend their basic law.
They shall submit registration applications according to the provisions of this law
within six months as of the date the law en ters into force, otherwise they shall be
considered as dissolved, and the Ministry will liquidate their funds and name the body
that will receive these funds.

Article (41)

Any person violating the prov isions of this law and its executive decision shall be
punished by imprisonment for a period not exceeding three months and a fine not
exceeding 500 D.H or one of these two penalties without prejudice to any other
severer punishment stated in any other law.

Article (42)

The employees of the Ministry appointed by the Minister to implement the provisions
of this law shall have inspection authorit y in examining and establishing the act of
violation of these ru les and their implementing decisions.

Article (43)

The Minister shall issue the necessary decision to implement the provisions of this
law. The ministers, each according to his competency, shall implement this law.

Article (44)

Any text inconsistent or contradicting the pr ovisions of this law shall be superseded.

Article (45)

This law shall be published in the official gazette. It shall enter into force as of the
date of publishing it.

Zayed Bin Sultan Al Nahyan
President of the United Arab Emirates

Issued by us at the presidential palace in Abu Dhabi
On 30 /Jamadi al Awal/1394 H.
Corresponding to 10/July/1974