COOPERATIONAL INSTITUTE And MUTUAL Decree 420/96 Please refer to the Institute for the purpose of promoting the emergence of new cooperatives and mutual partners, cooperation between cooperatives and mutual structures and the efficiency of both sectors to promote corporate reversal and the development of regional economies. Displace the National Cooperative Action Institute and the National Mutual Action Institute.

Bs. As.15/4/96

See Background

VISTO Law No. 24,629, and

CONSIDERING:

That Act No. 24,629 delegates powers in the field of administration in the National Executive Branch in the terms of article 76 of the National Constitution, in order to carry out, in its scope, the reorganization of the national public sector to achieve greater efficiency and rationalization of the same, by modifying, merging, transfer of agencies to the provinces, prior agreement, and total or partial deletion of objectives, competences, functions and responsibilities that have been superimposededededededed, or whose maintenance is unnecessary.

That the NATIONAL INSTITUTE OF COOPERATIVATIVE ACTION (INAC), a decentralised body under the Ministry of Mining and Industry of MINISTERY OF ECONOMY AND ARTWORKS and PUBLIC SERVICES, has established its functions and powers in the Nros Laws. 20,337 and 23,427 in terms of education and promotion of cooperative activity.

That the NATIONAL INSTITUTE OF MUTUAL ACTION (INAM), a decentralized body under the SECRETARIAT for SOCIAL DEVELOPMENT of PRESIDENCE DE LA NATION, has its functions and activities established in Law No. 19,331 and its amendments and Law No. 20,321 and its amendment No. 23,566.

The promotion and development of cooperative and mutual action, through technical, economic and financial assistance and the promotion of the training of managers and social groups for the improvement of efficiency in the administration and delivery of services by cooperatives and mutual partners, is the responsibility of both Institutes throughout the country.

That the analysis carried out on the objectives, structures and functioning of both decentralized agencies, within the framework of the policy of generating greater economic activity and creating new jobs, arises the need to enhance cooperative and mutual activities throughout the country from the State.

That it is the decision of the National Executive to give these activities the greatest support and diffusion, for which it is necessary to unify such tasks in a single NATIONAL INSTITUTE OF ASOCIATIVISMO AND SOCIAL ECONOMY (INAES).

That the implementation of such a decision will also allow immediate reduction of operating and operating costs, while the new agency will develop its activities at a single headquarters and with a lower administrative and service structure.

That unification of responsibilities will also enable the implementation of a coherent and efficient policy for both cooperative and mutual action, by providing better assistance to both activities within the country, facilitating due attention, control and control, follow-up, technical assistance, training and full participation of large social sectors that currently do not have adequate information or advice on the subject.

That within the unified action of the Institute that is proposed, education and promotion of cooperative and mutual activity is particularly relevant throughout the national territory.

It is of the interest of the National Executive that both cooperative and mutual action take place throughout the country, in order to allow the growth of economic and labour activity following the fundamental objective of full employment in regional economies and in all other productive activities.

That the objective of the National Executive Branch in creating the new NATIONAL INSTITUTE FOR ASSOCIATIVISMO AND SOCIAL ECONOMY (INAES) is to promote the emergence of new cooperatives and mutuals to achieve increasing levels of productivity, to promote cooperation between cooperatives and mutual structures, to promote the business reversal and productivity of existing ones and to make the cooperative and regional sectors more efficient for the development of the economies.

That in order to fulfil the objectives and actions predetermined by the Nros Laws. 19,331, 20,321, 20,337, 23,427 and 23,566, the NATIONAL INSTITUTE OF ASOCIATIVISMO AND SOCIAL ECONOMY (INAES) shall develop and present to the National Executive the corresponding minimum organizational structure indispensable for its proper functioning, in the terms established by this decree.

That the creation of the new body and the power to apply the legal norms for cooperatives and mutuals requires that the NATIONAL INSTITUTE OF ASOCIATIVISMO AND SOCIAL ECONOMY (INAES) evaluate and propose to the NATIONAL EXECUTIVE PODER a new bill that covers cooperative and mutual activities throughout the country, with the active participation of the provinces and municipalities to give national effect.

That the present decree is issued under the powers conferred upon the National Executive by article 99, paragraph 1, of the National Constitution and Act No. 24,629.

Therefore,

THE PRESIDENT OF THE ARGENTINA NATION

RIGHT:

Article 1 ). Trust, within the framework of the SECRETARIAT for SOCIAL DEVELOPMENT of the PRESIDENCE OF NATION, the NATIONAL INSTITUTE OF ASOCIATIVISMO AND SOCIAL ECONOMY (INAES). Art. 2o . Displace the NATIONAL INSTITUTE OF COOPERATIONAL ACTION (INAC), created by Law No. 20.337 and the NATIONAL INSTITUTE OF MUTUAL ACTION (INAM), created by Law No. 19.331 and its amendments. Art. 3o . The NATIONAL INSTITUTE OF ASOCIATIVISMO AND SOCIAL ECONOMY (INAES) should be associated with the fulfilment of the objectives and responsibility for the implementation of the provisions of Acts No. 19.331, 20.321, 20.337, 23.427 and 23.566, and the other emerging obligations and rights of the rules currently governed by the National Institutes of Cooperative Action and of Mutual Action, Art. 4o . The conduct and administration of the NATIONAL INSTITUTE OF ASOCIATIVISMO AND SOCIAL ECONOMY (INAES) will be in charge of a Directory composed of UN (1) President, DOS (2) Vocals representing the NATIONAL EXECUTIVE PODER, DOS (2) Vocals representing the mutual and DOS (2) Vocals representing the cooperatives.

The members of the Board shall be appointed by the NATIONAL EXECUTIVE PODER, those acting on behalf of the mutuals and the cooperatives shall be proposed by entities that group the mutuals and cooperatives.

The Board will session with a quorum composed of the President and TRES (3) Vocales at least. Decisions shall be taken by a mere majority of votes of the members present, including the President, who in the event of a tie shall have a double vote.

The legal representation of the NATIONAL INSTITUTE OF ASOCIATIVISMO AND SOCIAL ECONOMY (INAES) shall be by the President of the Board, who in case of absence may delegate his functions and powers to one of the vowels representing the NATIONAL EXECUTIVE PODER. The performance of the functions of President or Vocal on behalf of the NATIONAL EXECUTIVE PODER shall be incompatible with the title or exercise of functions of director, administrator, manager, president, manager, manager, professional or employee of natural or legal persons engaged in any of the activities of competence of the said Institute.

(Article replaced by Article 1 of the Decree No. 1192/2002 B.O. 08/07/2002) Art. 5o . Based on the assumption by the President of the NATIONAL INSTITUTE OF ASOCIATIVISMO AND SOCIAL ECONOMY (INAES), the members of the Board, councils and officials designated by the National Executive Power who hold extra-curricular positions in the NATIONAL EXSTITUTE OF COOPERATTIVE ACTION and in the NATIONAL EX-INSTITUTE. The powers and responsibilities of both dissolved agencies shall be assumed by the head of the agency established by this decree, unless they have been expressly repealed by it. Art. 6th . Within a period of TREINTA (30) days from the date of assuming its functions, the President of the NATIONAL INSTITUTE OF ASOCIATIVISMO AND SOCIAL ECONOMY (INAES) shall raise for approval the organizational structure of the organism. Art. 7o . Once the positions authorized in the organizational structure approved, through designations or contracts, the President of the NATIONAL INSTITUTE OF ASOCIATIVISMO AND SOCIAL ECONOMY (INAES) must submit to the Chief of Staff of Ministers the list of surplus personnel from the plants of the former National Institutes of Cooperative Action and of Mutual Action, in compliance with guidelines 2429.6 Art. 8o . Within the time limit of TREINTA (30) days from the approval of the organizational structure, the President of the NATIONAL INSTITUTE OF ASOCIATIVISMO AND SOCIAL ECONOMY (INAES) must present to the National Budget Office the programmatic budgetary adequacy resulting from the restructuring, that from the implementation of this Decree and its organizational changes it reflects, in such a way that they remain. As a result of this restructuring, increases in subsidies that the Institute grants to cooperatives and mutuals may be determined. Art. 9th Within the time limit of TREINTA (30) days from the approval of the programmatic budget adequacy, the President of the NATIONAL INSTITUTE OF ASOCIATIVISMO AND SOCIAL ECONOMY (INAES) must raise to the NATIONAL EXECUTIVE PODER the draft Annual Programme of Cooperative and Mutual Action for the year 1996, which should contain the policies, objectives and actions to be taken Art. 10. DE Transfer to the NATIONAL INSTITUTE OF COOPERATTIVE ACTION And MUTUAL (INACyM), all of the budgetary provisions in force, assets, liabilities and staff of the former National Institutes of Cooperative Action and Mutual Action. Art. 11. de Within the time limit of SESENTA (60) days from the date of assuming his duties the President of the NATIONAL INSTITUTE OF ASOCIATIVISMO AND SOCIAL ECONOMY (INAES) shall:

(a) To bring together in one physical place the activity of the body.

(b) Proceed to the disabling of the remaining movable or immovable property, in accordance with the current regulations.

(c) Analyse existing tax policies in the field of their competence and propose, through the Social Development SECRETARIAT of the NATIONAL PRESIDENCE, any changes that it deems relevant, in accordance with the objectives of the National State in the field.

Art. 12. de At the end of NOVENTA (90) days from the date of assuming his duties the President of the NATIONAL INSTITUTE OF ASOCIATIVISMO AND SOCIAL ECONOMY (INAES) shall elevate the National Executive Power through the SECRETARIAT for SOCIAL DEVELOPMENT of PRESIDENCE DE LA NATION, a draft law on cooperatives, mutuals and public and private organizations and institutions in general linked to the cooperative and mutual movement, which covers the growth and consolidation of these activities throughout the country, based on the principle of decentralization provided for in Law No. 24,629. Art. 13. La The General SINDICATURA OF THE NATION will control the compliance of the actions set out in this decree, and must inform the Chief of Staff of Ministers on the periodicity determined by this decree. Art. 14. . Expenditures required to comply with this measure shall be charged against the provisions in force in the National Budget for the year 1996 for the ex-INSTITUTO NACIONAL COOPERATIVATIVE ACTION and the ex-INSTITUTO NACIONAL DE ACCION MUTUAL, pending the appropriate budgetary adjustments. Art. 15. . Communicate, publish, give to the National Directorate of the Official Register and archvese. . MENEM. . Jorge A. Rodriguez. . Domingo F. Cavallo. . Carlos V. Corach. (Note Infoleg: By art. 1 Decree No. 721/2000 B.O. 30/08/2000, it was established that the above-mentioned Institute shall be referred to as the NATIONAL INSTITUTE OF ASOCIATIVISMO AND SOCIAL ECONOMY (INAES), which is why its name is replaced in the present text. ) Background - Article 4 or replaced by art. 2nd Decree No. 721/2000 B.O. 30/08/2000; - Article 4 or replaced by art. 1st Decree No. 723/96 B.O. 10/07/1996.