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Draft Law on Civil Society Organizations

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In the Name of God, the Beneficent, the Merciful

Republic of Yemen
Ministry of Legal and Parliamentary Affairs

Law No. 1 for the Year 2001
Concerning Associations and Foundations

In the name of the People:

The president of the Republic,
After referring to the Constitution of the Republic,
And with the approval of the House of Representatives,
Has issued this law with the following stipulations:

Chapter I: Nomenclature, Definitions and Objectives

Section i: Nomenclature and Definitions

Article (1): This law shall be called the on Law Associations and Foundations

Article (2): For the purpose of the implementa tion of this Law, the terms and expressions
shown adjacent to each word or expressi on, unless otherwise indicated from the context:

Republic: The Republic of Yemen.

Law: the Law on Associations and Foundations.

Ministry: The Ministry of Pensions and So cial Affairs, or the Branch Offices at
the Governorates.

Minister: Minister of Pens ions and Social Affairs.

Association: Any popular association esta blished in accordance with this law by
natural persons the least number of which is 21 persons at the time of application
for the establishment thereof and 41 pe rsons at the constituent meeting, the
primary purpose of which is the realiza tion of a common benefit for a specific
social group, or to undertake activities/func tions that are of a public benefit, and
which does not seek from its activities to generate a financial profit for its
members, and the membership of whic h shall be open in accordance with the
conditions spelled out in the organizational procedures.

Foundation: Any popular institution establis hed in accordance with the provisions
of this Law, for a limited or unlimited time, by one or more natural or legal
person, in order to undertake a public bene fit function, without aiming to generate
a financial profit, and its membership shall be confined to its founders only.

The Articles of Association: The Articles of Association of an association or
foundation.

Organizational Regulations: The organizati onal regulations of the association or
foundation.

General Assembly: The total number of the founders and members of the
association.

The Board of Directors: The Board that is elected by the Genera1 Assembly.

The Board of Trustees: The Board of Directors of the Foundation.

The Control Committee: The Committee elected by the General Assembly.

Governorate Federation: This is a legal entity, which is composed of a number of
associations and foundations, notwithstanding what their type is, within the same
governorate.

Federation of a Specific Type: This is a general federation of associations and
foundations of the same type, which seek to achieve common specific objectives,
in a specific area in th e range of their geographi cal areas or throughout the
Republic.

General Federation: This is a general fe deration of associations and foundations
which consist of the Governorate Federations and Federations of Associations and
Foundations of the same type.

General Board: The General Board of the Governorate Federation or the
Federation of a Specific Type of Associations and Foundations.

General Congress: The General Congr ess for the Governorate Federation,
Federation of Specific Type or Genera l Federation of Associations and
Foundations.

Executive Office: The Executive office of the Governorate Federation, Federation
of Specific Type or General Federati on of Associations and Foundations.

Section ii: The Objectives

Article (3): This law seeks to achieve the following objectives:
1. To guide and encourage the associati ons and foundations to participate in
comprehensive development.
2. To instill the leading role that associations and foundations play a role in the area
and the development of democratic pract ice and the establishment of a Muslim
civil society.
3. Provision of the guarantees that will ensu re that the associations and foundations
will exercise their activities in full free dom and independence and in keeping with
their social responsibility.
4. Expansion of the scope of charitable a nd goodwill work and the enhancement of
social solidarity within the society.
5. Simplification of the procedures and pro cessing related to the right of forming
associations and foundations and to enable them to carry out their missions in the
best manner.

Chapter II: Provisions for the Establishmen t, Registration and Proclamation of
Associations and Foundations

Section i: The Provisions for the Estab lishment of Associations and Foundations

Article (4): Associations and foundations are estab lished in accordance with the
provisions of this law and its Executive Procedures and in or der to establish associations
and foundations the following conditions should be met:
1st. The purposes / objectives thereof should not be in violation of the

Constitution and the legislation and laws that are in effect.

2nd. That it should have an articles of association and organizational regulations
that should entail all its organizational, financial and administrative affairs, and in
particular it should en tail the following:
1. The name of the associations and foundations, which should not be similar
to the name of any other associ ation and foundation existing in the
geographical scope of the activities of the association and foundation, and
which is specified in its articles of association thereof.
2. The head office address of the association or federation and the
geographical area in which it will operate.
3. The major objectives, for which the association or federation was
established, which should be spelled out clearly and in details, and any
other objectives that it intends to achieve in accordance with this Law.
4. The financial resources of the association or federation and how they will
be used and expended.
5. The conditions for the acceptance of members, their rights and
responsibilities and the conditions fo r their dismissal and withdrawal.
6. The list of the names, addresses, sign atures, ages and professions of the
founding members.

7. The organizational structure of the association or foundation.
8. The method for the selection of the Bo ard of Directors of the association
or foundation and the Control Committee and its purposes and
responsibilities and how it conducts its meetings.
9. The financial control system.
10. How to amend the articles of associa tion of the association or foundation.
11. The measures for the liquidation or dissolution of the association or
foundation, or for its merger with another association or foundation
similar to it, or its break-up to more than one association or foundation and
to whom the funds and property thereof should go to accordingly.

Article (5):
1st. Anyone who signs the articles of asso ciation of an association or foundation is
regarded as a founding member.

2nd. Anyone who has been convicted and finally sentenced to a criminal penalty or to
one that restricts his freedom, for a crime of dishonorable conduct or in breach of trust,
unless his legal status has been restored, [is prohibited from being a founding member].

Article (6): The Ministry is responsible for the legal and control supervision of the
positions and activities of the associations and foundations and their federations and
provides support and guidance thereto to ensu re their success and the achievement of
their objectives.

Article (7): In coordina tion with the Ministry:
1st.The Ministry of Culture and Tourism is responsible for the technical supervision of
the conditions and activities of the associations and foundations that are of a technical
and cultural nature and their federations a nd shall support and guide to ensure their
success and the achievement of their objectives.

2nd. The Ministry of Youth and Culture is res ponsible for the technical supervision of the
conditions and activities of the sports and youth associations and foundations that are of a
technica1 and cultural nature and their federations and shall support and guide to ensure
their success and the achievement of their objectives.

Section ii: Registration and Proclamation

Article (8): The process of re gistration of an association or foundation should be based on
the presentation of a written application to wh ich should be attached a copy of its articles
of association and its organizational regulations which the founders or anyone acting on
their behalf should deposit with the Ministry or its branches or its relevant offices in
return for a written receipt thereof.

Article (9): The Ministry or its relevant concerned office should process within one
month from the date it recei ves the application, if this period terminates and the
processing has not been completed, then the application shall be deemed to have been

accepted by force of law and the Ministry or its relevant office, based on the application
of those concerned should undert ake that registration in the register set up for this and to
publicize this in any official newspaper.

Article (10): The Ministry or its relevant office, in the event that the application is refused
pursuant to this Law should notify the founders of the decision to reject the application in
writing, giving the reason thereof, and should post this in its bu lletin board of the
Ministry or the relevant office within ten days of the date of the decision.

Article (11): The concerned people are entitl ed to appeal the decision to reject the
registration of associations a nd foundations in the court of competent jurisdiction within
60 days from the date they were notified of the rejection.

Article (12): After the registration of the association or foundation under the provisions
of thus Law, then it will have gained legal status recognized by law, which allows it to
advocate and sue in its name and to carry out any activity permitted by the Law and its
articles of association.

Article (13); The registration of an association or foundation is completed once the
articles of association thereof is recorded in the register specifically set up for this at the
Ministry or its relevant office after the co mpletion of the procedures for the election
procedures and the summary of the registration should be publicized at the expense of the
relevant association or foundation.

Article (14): All amendments to the articl es of association of any association or
foundation shall be considered as not having b een done unless the Ministry or its relevant
office is notified thereof within 30 days from the date of approving the amendment
thereof.

Article (15): Any association or foundati on may set up a branch or more in any
Governorate of the Republic if it is in the interest thereof and the Executive Procedures
shall set the conditions and procedures of the establishment of such branches.

Article (16):
1st. The ministry and its relevant concerned office should maintain a copy of the
documents related to the establishment of a ssociations and foundations which have been
registered and proclaimed and should open an account and keep the records and the
procedures for the recording of such regist ration. The Executive Procedures shall set out
the types of records, data and the reco rding procedures and the deletion thereof
accordingly.

2nd. Every member of an association or foundation and anyone concerned is entitled to
look at the contents of the documents and r ecords stipulated in the previous paragraph,
and to obtain output or copies th ereof after payment of the fees set for this which will be
set in the Executive Procedures.

Article (17): The name of the association or foundation, its head office address, the
registration number thereof and the geographical scope of its operations [must be present] in all of its books and records and all its publications, st ationery and correspondence.

Article (18): The Government shall provide the financial and material support for the
associations when the following are met:
1st.That one year has passed since its es tablishment and since it, in fact, began
undertaking its function noticeably.

2nd. That its activity serves a public benefit.

3rd. That it presents a copy of its an nual final accounts approved by the General
Assembly thereof to the Ministry or the relevant office thereof.

Article (19): Associations and foundations may not engage in any partisan activity or take
part in any election campaign or to allocate any of its funds for such purposes directly or
indirectly.

Article (20): The Ministry, represented by the relevant concerned General Directorate or
its branches in the governorat es is responsible for oversight of the associations and
foundations and their respectiv e federations as follows:
1st. Supervision of their elections and regulate their proceedings in the proper
democratic manner.

2nd. Provide advice and technical assistan ce to the associations and foundations
and their federations, when they are pr eparing their plans and undertaking their
activities, based on a request by them for this.

Article (21): The Ministry may assign the ope ration of social centers and institutes that
arc related to it (such as the Productive Famil y, Social Care houses, etc.) to the active and
successful associations to lighten the burde n of the Government and to ensure the
participation of the society in the contributi on to sustainable social development, and the
ministry shall provide monetary and material aid to thereto and the Executive Procedures
shall set out the necessary and appropriate conditions and controls for this and the
association or foundation may not dispose of the assets and property of these institutes
and centers.

Article (22): The Ministry may subject the association or foundation which was allowed
to manage any of its institutes or centers to its control and inspection of its work
including the work related to the institute or center that it has assigned to it and check that
it has complied with the laws and by-laws and the article of association of the association
or foundation.

Article (23):
1st. Any association or foundation may, with the knowledge of the Ministry, obtain
assistance from overseas from a foreign person or entity or the representatives thereof,

and they may also send anything so mentioned above to persons or entities overseas for
humanitarian purposes.

2nd. Any association or foundati on may, with the approval of the Ministry, undertake any
activity based on a request or assignment from an external entity.

3rd. Any association or foundation may receive technical or scientific books, publications
and magazines that are not in conflict with Islamic values and this Law and the other
effective applicable laws.

Chapter III: The Management of Associatio ns and Foundations and their Financial
Resources

Section i: The General Assembly

Article (24): The General Assembly is com posed of all the members, who have been
members for at least three months and who have fulfilled their obligations for
membership in accordance with the articles of association of the association or
foundation.

Article (25): The General Assembly is empowered with the following authorities:
1. The approval of general po licies and the organizational procedures and the
amendrnents thereof.
2. To approve the reports of the Board of Directors and the Control Committee and
the approval of the Annual Plan.
3. Review of the financial statements and the approval of the annual budget and the
final annual accounts.
4. The election of the Chairman and the memb ers of the Board of Directors and the
Control Committee and the withdrawal of confidence of them or some of them.
5. Approval of the voluntary di ssolution, merger or break-up of the association or
foundation.
6. Any other tasks or responsibilities stipulat ed in the articles of association of the
association or foundation.

Article (26): The quorum of the General Assemb ly is by the attendance of the majority of
the members. If the quorum is not achieved the meeting shall be postponed for another
meeting for a period not to exceed one week, a nd if a quorum is still not reached then, the
meeting shall be postponed another twenty-f our (24) hours, in which case the meeting
then held will be correct by th e attending members accordingly.

Article (27): A member of the General Asse mbly may not attend the meetings of the
General Assembly on behalf of another member thereof, and may not take part in any of
the voting if he has any personal interest in the decision which is being presented for
voting, except the election of the management of the association or foundation.

Article (28): The resolutions of the General Assembly are passed by a majority of the
members voting, and the decisions of the extraordinary meetings of the General
Assembly are passed with the vote of the absolute majority of three members of the
association, subject to th e stipulations of Article (24) of this Law.

Article (29): The General Assembly shall hold one ordinary meeting annually by the
invitation of the Chairman of the Board of Directors. It may also hold an extraordinary
meeting by an invitation of the Chairman of the Board of Directors or by the call to such
meeting by two-thirds of the members of th e Board of Directors or by a third of the
members of the General Assemb ly for the following matters:
1st. The amendment of the organizational procedures.

2nd. The dissolution, break-up, or merger of the association or foundation.

3rd. The withdrawal of confidence from a ll or some of the members of the Board
of Directors or the Control Committee.

4th. Any other tasks that are set out in th e organizational procedures that must be
reviewed in an extraordinary meeting thereof.

Section ii: The Board of Directors

Article (30): The association or foundation should have a Board of Directors that is
elected by the General Assembly and compos ed of five members at least and which
exercises the followi ng responsibilities:
1. Sets the general policies and regulations , runs the activities and undertakes the
day-to-day affairs of th e association or foundation.
2. Reviews the financial statements, approves the forecasted budget and presents to
the General Assembly for the endorsement thereof.
3. Prepares the action plans and the annu al activities of the association or
foundation.
4. Implementation of the resolutio ns of the General Assembly.
5. Proposes the amendment of the orga nizational procedures, the voluntary
dissolution, merger or break-up, and the presentation of the proposal to the
General Assembly its approval and endorsement thereof.
6. Preparation of an annual report, which includes the activit ies and the final
accounts and the presentation thereof to the General Assembly for its approval
thereof.
7. Preparation of the draft internal proce dures and financial procedures and the
presentation thereof to the Genera l Assembly for approval thereof.
8. Entering into agreements with any entitie s when carrying out any projects, and in
a way that does not conflict with provis ions of this Law and the organizational
procedures.
9. Representation of the association or founda tion in the celebrations, seminars and
carnivals with a view towards realizing the objectives of the association or
foundation.

10. Carry out any other tasks or responsib ilities set out in the organizational
procedures of the association or foundation.

Article (31): If the number of the members in the Board of Directors is insufficient to
have a quorum for a meeting, then the chairman of the Board of Directors, or the rest of
the members can call the General Assembly to hold an extraordinary meeting where the
vacant memberships should be filled or for the election of a new Board of Directors to
complete the rest of the election term. If this is not done within 30 days the
Ministry may call the General Assembly to m eet to elect a Board of Directors within
another thirty days after th e expiry of the fist period.

Article (32): The Board of Directors shall m eet on a monthly basis at least, and an
absolute majority passes its decisions.

Article (33): The Board of Directors may appoint a Manager of the association from
amongst its members or others and the appointment decree should set out the duties to be
assigned to him accordingly.

Article (34): The elections of the associations and foundations are re
gulated as
follows:
1st.The term of the Board of Directors is far three years.

2nd. The Board of Directors, before the e nd of its term by six months at least
should prepare of the following elections a nd should present a report of this to the
General Assembly in its meeting held for carrying out the el ections for the new
term and should notify the Ministry accordingly.

3rd. If the association or foundation does not hold its regular elections as set out
in Paragraph (A) of this Article, the Mi nistry has the right to call the General
Assembly for the election of the new Bo ard of Directors within three months.

Article (35): A member of the Board of Dir ectors of an association or foundation may not
also be employed with the Ministry or other public entities that are responsible for
overseeing, guiding or control ling the association or foundation, or otherwise providing it
with funds, unless approval thereof is issued for reasons that are necessitated by public
interest. This prohibition is applicable to the senior management of the mentioned entities
from the level of Department Manager or above, who are actually exercising a
management function in such entities.

Section iii: The Control and Inspection Committee

Article (36): Every association or foundati on should have a Control Committee elected
by the General Assembly from its membership, either by calling out the votes or by secret
ballots, for a period of three years. The organizational procedures shall sat the minimum
and maximum numbers of the Control Committee, provided that they are not members of
the Board of Directors also.

Article (37): The organizational procedures shall set out the duties and responsibilities of
the Control and Inspection Committee and the du ties and responsibilities of its Chairman
and its members.

Article (38): The Control and Inspection Comm ittee of the association or foundation shall
meet at least on a quarterly basis.

Section iv: The Financial Resources of the Associations and Foundations

Article (39):
1. The revenues of the association or foundation consist of the following:
1st. The fees, subscriptions and contributions of the members.

2nd. The assistance, aid, contributions , endowments, testate grants and
unconditional grants, whether from a govern ment entity or from authorities or
organizations, and in a manner that does not conflict with the effective applicable
laws.

3rd.Proceeds realized from the assets of th e association or foundation or from the
economic activities in which it is engaged.

2. The associations and foundations may engage in economic and trading activities that
are permitted by law in the following cases:
1st. If the purpose is to generate a prof it that is consistent with the purposes and
objectives of the asso ciation or foundation.

2nd. If there is no direct or indirect distribution of the profits from these economic
activities, whether to the founders or to the Members of the association or
foundation, or for its senior officials, th e members of the Board of Directors,
employees, or the providers of assistance and subsidies thereto.

3rd. That such activities do constitute any speculation or financial risk that is not
secured for the association or foundation.

Article (40): The associations and foundations th at are subject to the provisions hereunder
enjoy the following advantages:
1. Exemption from all forms of taxes for all the proceeds that they realize and the
sources of their income.
2. Exemption from customs taxes and fees for the import of goods, supplies,
equipment, instruments, spare parts, pr imary raw materials, whether manufactured
or not manufactured, which are nece ssary to achieve its objectives.
3. Exemptions from customs duty on the gifts, grants and assistance it receives from
overseas, which are needed for, undertak ing its mission, based on the proposal of
the Minister and the approval of the Minister of Finance.

4. The tariffs for electricity and water utilities that are applicable to domestic users
are applicable to the Head Offices of the associations and foundations, and are
also provided with a reduction of 50 % of the value of their consumption
accordingly.

Article (41): Durable goods, which are set out by the Minister, in agreement with the
Ministry of Finance may not be disposed before five years have passed, unless the
applicable customs taxes and duties, which are due thereon, are paid.

Article (42): The association or founda tion may carry out service and productive
enterprises, festivals, flea ma rkets, exhibitions, sports tournaments for the achievement of
its objectives and for supporti ng its financial resources.

Article (43): Every association or foundation should maintain complete and accurate
books and records for its financial trans actions, in accordance with the accounting
standards and should adopt a policy of keepi ng its administrative and financial records
and books as follows:
1. Keep permanently the following:
1st. The original organizational proce dures and any subsequent amendments
thereto.

2nd. The application file for the establishment of the association or foundation
and any other applications for subsequent amendments or subsequent renewal [of
the registration thereof].

3rd. The minutes of meetings of the Gene ral Assembly or the Board of Directors
and any other Committee branching out of them including the resolutions passed
in such meetings and the relevant attachments thereto.

4th.The rules, regulations, procedures a nd by-laws that are adopted by the General
Assembly or the Board of Directors or any Committee branching out of them.

2. Financial records should be kept for nine (9) years.

3. All other documents and records s hould be kept for five (5) years.

Chapter IV: Dissolution, Liquidation, Merg er and Break-up of Associations and
Foundations

Section i: Dissolution and Liquidation

Article (44):
1st. The Ministry may sue for the dissoluti on of an association of foundation with the
court of competent jurisdiction in the event that the association or foundation carried a
serious breach of the provisions of this Law and the other applicable effective laws.

2nd. A suit may not be undertaken for the dissolution thereof unless the Ministry has
given the association or foundation three notices within six months to remedy the
violation and the association or foundation did not do so accordingly.

3rd The dissolution judgment shall not be effective until the competent court of
jurisdiction has issued a final ruling accordingly.

4th. An association may be di ssolved by a resolution passed by a two-thirds majority of
the Genera1 Assembly in an extraordinary m eeting thereof, in accordance with the rules
set out thereto in its or ganizational procedures

5th. If the organizational procedure did not in clude stipulations for the appointment of a
receiver, receivers or the method by which they are selected, or if the General Assembly
could not agree on their selection, the court of competent ju risdiction shall select them
and determine their fees and the length of the period for the liquidation thereof.

6th. For the purposes of the liquidation thereof, the legal person status of the association
or foundation shall remain in effect pending completion of the period required
accordingly.

7th. The Ministry should, within thirty (30) days of the approval for the voluntary
dissolution of the association or foundation, or the issuance of a court ruling for the
dissolution thereof by the compet ent court of jurisdiction, announce the dissolution of the
association and delete it from the general r ecords which it was registered in and should
publicize as such in an official newspaper.

8th. If any association obtained any tax incen tives or public contributions from the public
or grants from any government entity or orga nization and it became subject to dissolution
and liquidation proceedings, then its remaining properties and assets should be distributed
as follows:
1. Meeting the outstanding debts and liabilitie s in accordance with the method set
out in the organizational pr ocedures or as dictated by the liquidation process.
2. The rest of the properties and assets shoul d be turned over to any other association
that has the same purposes or similar pur poses based on a resolution passed by the
General Assembly prior to the resolution for the dissolution, or by a ruling of the
court.

Article (46):
1st.The association that is subjected to di ssolution may initiate by submitting all its funds,
documents, records and papers to the receiver by just requesting so, and it is forbidden
from disposing of any of its affairs, funds or rights, as is the case with the entity that the
funds were deposited with and the creditors, who arc also forbidden accordingly, unless
this is with the writte n order of the receiver.

2nd. The members of the association that was subjected to dissolution or any other person
involved in the management thereof are forb idden from carrying on with the activities
thereof and the disposal of its funds and properties.

Section ii: Merger and Break-up

Article (47):
1st. An association or foundation may be me rged with another association or foundation
that has the same or similar purposes, provided that the decision to merge shall be issued
with the approval of two-thirds of the General Assembly or the founders of the
foundation. The decisions as such shall not be effective until the Ministry has confirmed
the propriety of the procedures of the merger and the new association or foundation shall
be considered as a legal person in accor dance with the provisions of this Law.

2nd. The decisions for mergers shall be consid ered as being merely contracts by which
the rights, obligations and assets of the asso ciation or foundation prior to the merger are
transferred to the newly merged a ssociation or foundation accordingly.

Article (48):
1st. The activities of any association may be broken up into two or more associations in
exceptional situations with due cause, and for a clear interest that is determined by the
General Assembly by a two-thirds vote thereto.

2nd. The decisions for a break-up shall be cons idered as being merely contracts by which
the rights, obligations and assets of the asso ciation or foundation prior to the break-up are
transferred to the newly merged associati on or foundation accordingly. The newly formed
associations and foundations duly formed as such shall gain legal status as a legal person
in accordance with his Law.

3rd. When deciding on a break-up or split, the General Assembly shall designate an legal
accountant to undertake the dist ribution of the rights, liabilities and assets of the
association prior to the break-up between the two or more new associations formed as
such.

Chapter VI: Foundations

Article (49): The provisions of this Law that are applicable to associations shall be
applicable to foundations, unless particular s tipulations are otherwise provided herein.

Article (50): Foundations are established by th e allocation of a certain amount of funds
for a specified or unspecified period fo r a purpose other than the generation of
commercial profits.

Article (51): A foundation may be established by one or more natural or legal persons or
any combination of the two, and a foundation may be established by a registered testate
for undertaking charitable work.

Article (52): The founders of the foundation shall prepare it articles of establishment or
organizational procedures, which should specifically include the following:
1st. The name of the foundation, its geogra phical scope of operations and the head
office address.

2nd. The purpose for which the foundation was established.

3rd. A statement of the funds to be allo cated for the achievement of the purposes
of the foundation.

4th. The organization of the manage ment of the foundation including the
designation of the Chairman and members of the Board of Trustees and the
method of designating the Executiv e Director of the foundation.

Article (53): Substantiation of the legal pers on status of the foundation immediately after
its registration and recording at the Ministry, and the recording and registration process
shall be completed upon the submission of an application by the founder of the
foundation or anyone legally acting on his beha lf or the trustee designated to execute a
testate will.

Article (54): Every foundation should have a Board of Trustees composed of three
persons at least, designated by the founder or founders. The Chairman and members may
be members thereof or others.

Article (55): The foundation should give notice to the Ministry of the designation of the
Board of Trustees or any amendments thereof.

Article (56): The Board of Trustees of the foundation is responsible for the management
of the foundation in accordan ce with the organizational procedures thereof and the
Chairman shall represent the foundation in court and with other parties.

Article (57): The foundation shall have an annual budget, which should include its
revenues, expenditures, and the ways in which its funds shall be split.

Article (58): By a decision of the founder ther eof or by anyone designated to issue such a
decision in the organizational procedures, a foundation may be dissolved and liquidated,
and the organizational procedures thereof sha ll determine the method for the disposal of
the funds and property, and if it was a testate foundation then the disposal thereof should
not violate the will.

Chapter VI: Federations

Section i: The Governorate Foundation and the Federations of Specific Ty
pe

Article (59): Associations and foundations are entitled to set up from among them
federations at the governorate le vel and federations of a specific type of associations and
foundations within the scope of their geographical operations or at the level of the
Republic as a whole, and the federation shall be a legal person, and it shall be set up in a
manner that will ensure their voluntary joining or withdrawal. The Governorate
Federation shall consist of the associations and foundations within a single governorate or
at the national level, which seeks to achieve a specific function in a specific field. The
federation may not refuse an application to jo in it, as long as the conditions for joining
have been met. The Executive Procedures of this Law shall set out the procedures and
conditions for the establishment and formation of the federations.

Article (60): No more than one Federation s hould be set up at the Governorate level or
the formation of Federation of a specific type with less than ten member associations or
foundations that are in the governorate.

Article (61): The Governorate Federation a nd the Federation of a Specific Type are
responsible for:
1st. Preparation of the database and the provision of enough information on the
associations and foundations which operate within its geographical scope,
including the studies and research that are related to it, as well as the local and
foreign conferences that are c onnected with its activities,

2nd. To work towards publishing a directory of the list of associations and
foundations that are registered within its geographical scope, in order to inform
the public about them and to persuade them to contribute to and participate in its
activities.

3rd. Undertake the required social resear ch in the geographical scope of the
federation and to participate in the genera l social research that is undertaken by
the General Federation of A ssociations and Federations.

4th. Coordination of effort between the associations and foundations that are
members in the federation to ensure their integration.

5th. Provision of services that are provid ed by the associations or foundations, in
light of the needs of the society and th e resources of these associations and
foundations and their available resources.

6th. Organization of the progr ams for the technical and administrative preparation
and training of the employees of the associations and foundations and their
members.

7th. Study of the problems of funding the associations or foundations and to work
towards finding solutions for them.

Section ii: The Central Federation of Associations and Foundations

Article (62): A General Federation for Associ ations and Foundations shall be established,
which will have the status of a legal person and which will include in its membership the
governorate federations and the federations of a specific type in accordance with the
following:
1st. The head Office of the Federation shall be in the Capital Secretariat and it
may open up branches in the governorates.

2nd. The management of the Federation shall be carried by an Executive Office,
which shall be elected by the General Board.

3rd. The legal period for the General Federa tion shall be set for four (4) years.

4th. The General Federation shall have its in ternal procedures that shall be issued
by the General Board of the Federation.

Article (63): The General Fede ration of Associations and Foundations is responsible for
the following:
1st. Preparation of a general outlook on the role of the associations and
foundations in the implementation of the social development programs.

2nd. Undertake the necessary studies for the provision of the required funding
needed by the associations and foundati ons and for the development of their
resources, and to undertake contacts with the domestic and external entities that
will help in the provision of assistance and aid and to give them advice on the
methods for enhancing their financial capabilities.

3rd. Preparation of the technical and administrative pr eparation and training for
the staff of the associations and foundations and their members in coordination
with the federations by type and the governorate federations.

Article (64): The General Federation shall ha ve a General Congress which is responsible
for the election of the General Board of th e Federation from among its members and is
composed of the General Congress of:
1st. The Executive Offices of the Gover norate Federations and the Federations of
Specific Type.

2nd. Delegates of the Congress tt the G overnorate level, the organizational
procedures shall set the constitution of the General Federation, and shall set the
rules of the General Board and the Control Committee and the method of electing
their members.

Article (65): The Executive procedures of this Law shall set forth the procedures and
conditions of the formation and establishmen t of the Federation of Specific Type and
General Federation.

Article (66): The General Board of the Genera l Federation elects an Executive Office of
seven members at least, but no more than fifteen members.

Chapter VII: Penalties

Article (67): The following penalties are withou t prejudice to the penalties that are more
severe stipulated in the Criminal Law, Penal Law or any other law.

Article (68): The punishment of imprisonment for a maximum of one year or a fine of a
maximum of YR 100,000 is meted out to anyone who:
1. Wrote or presented or maintained a record or document that are supposed to be
maintained as ordained by the Law, wh ich contains fraudulent data knowingly,
and all those who gave any data so men tioned to any entries not responsible, or
intentionally covered up any information required by Law to be presented to the
relevant concerned entities.
2. Undertook activities that are in excess of the purposes for which the association or
foundation was established, or who spent its funds for a purpose that does not
serve the purpose thereof, or used its f unds in speculative activities for his own
account or for the account of associati on or foundation, in violation of the
provisions of this Law.
3. Participate in the continuation of the ac tivities of an association or foundation
which has been decreed for dissolution or liquidation knowingly so, and the
knowledge is considered proven agains t all by just merely publicizing the
issuance of the dissolutio n and liquidation decree.
4. The disposal or the use of the exemptions or the facilities referred to in this Law
for purposes other than those specifically set for hereunder.
5. All receivers who distribute to members or others the assets or property of the
association or foundation, in violation of the regulations thereof or the decree for
the dissolution thereof.

Article (69): The punishment of imprisonment of a maximum of six months, or a fine of a
maximum of YR 50,000 to anyone who:
1. Permits anyone other than the members of the association or foundation, whose
names are registered in its registers, to participate in the management, and
discussions of the General Assembly, without the approval of the Board of
Directors.
2. Solicit the collection of contributions fr om the public or from a legal person or
more for personal purposes otherwise than the conditions and situations that are
permitted by this Law to do so.

3. Who was proven to attempt to ruin or ha rm the association or foundation or any
of its management committees, or who atte mpted to infringe upon its activities or
work; whether he was from the associ ation or foundation or from outside.

Article (70): For any other violations of th e provisions of this Law, or its Executive
Procedures, or decrees relate d to if, the perpetrator thereof shall be penalized by
imprisonment of a maximum of three months or a fine of a maximum of YR 30,000.

Chapter VIII: Final Provisions

Article (71): Associations or foundations may appeal to the court of competent
jurisdiction against any measure taken against it by the Ministry or any other Government
organ.

Article (72): The members of any associati on or foundation may appeal to the court of
competent jurisdiction against any decrees or measures taken by the Board of Directors
that are in violation of the provisions of this Law and the other effective applicable laws,
or the organization procedures, within 30 days of the date of issuance of the decree or the
violation thereof or the date of being notified of such a decree.

Article (73): The General Assembly or the Board of Directors may form permanent or
temporary committees, in accordance with the organizational procedures of the
association or foundation.

Article (74): The members of the Board of Di rectors and the employees of the association
or foundation shall be personally liable for th eir actions while working for the association
or foundation or as a result of a deficiency or negligence in the performance of the duties
assigned to them.

Article (75): The Chairman and members of th e Board of Directors and the employees of
the association or foundation should keep the in formation and date of the association or
foundation confidential and shoul d not disclose thereof, unless it is for those are
concerned, in accordance with the provisions of this Law.

Article (76): The net profits, proceeds and a ssets of the association or foundation may not
be used obtain any direct or i ndirect personal benefits of any of the members of the Board
of Directors, or employees or founders or contributor thereof.

Article (78):
1st. Every association or foundation shall op en an account with any recognized bank in
the Republic of Yemen, where it maintains its funds. It may keep an amount with its
cashier sufficient to meet the expenses of the association or foundation for a maximum
period of two months.

2nd. In all cases, the association or foundati on should deposit all its revenues to the bank
as they are collectcd, without any deductions thereof for meeting any other expenditure.

Article (79): Non-Yemeni associations or foundations may open offices or branches in
Republic of Yemen, provided that there is noth ing in its purposes which violates Islamic
values, or the provisions of this Law, the C onstitution and the other effective applicable
laws, and provided that such offices and br anches are registered in the appropriate
registers set up for this purpose in the Mini stry Headquarters, in accordance with the
procedures outlined in the Executive Procedures of this Law.

Article (80): The citizens of fraternal and friendly countries may set up associations or
foundations through which they engage in cult ural, sports and social functions, provided
that its purposes should not incl ude what is construed as a violation of Islamic values, or
the provisions of the Constitution, this La w and the effective applicable laws, and
provided that they present an official application therefore through their embassies or
their diplomats that are accred ited in the Republic of Yemen, to the Ministry of Foreign
Affairs and from there to the Ministry.

Article (81): Fraternal and friendship soci eties may be set up, which will work for
cooperation in cultural, social, and economic fields, that are not in violation of Islamic
values, or the provisions of the Constitution or this Law, and which work to enhance
relationships between the fraternal and friendly countries and Republic of Yemen.

Article (82): The existing associations and foundations are hereby granted a period of one
year to renew and adjust their situation in accordance with the provisions of this Law.

Article (83): The Executive Procedures of this Law shall set the fina ncial resources of the
Governorate federations and th e Federations by specific type and the General Federation.

Article (84): Any association or foundation es tablished in accordance with the provisions
of this Law may not proceed with its activities except after it has completed the
registration procedures thereof.

Article (85): The provisions of this Law are not applicable to the labor unions,
cooperative associations and foundations.

Article (86): The Executive Procedures of th is Law shall be issued by a Decree of the
Prime Minister, based on a pr oposal presented by the Minister, within a period of six
months maximum from the date of issuance of this Law.

Article (87): Law No. 11 for the Year 1963 concerning Association and any other legal
stipulations that conflict w ith the stipulations hereunder pr ovided is hereby cancelled.

Article (88): This law is effective from the date of issuance and shall be published in the
Official Gazette.
Issued at the office of the presidency in Sana’a
Ali Abdullah Saleh
President of the Republic

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