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Of Agricultural Production, Credit And Services Cooperatives Law

Original Language Title: Ley de las Cooperativas de Producción Agropecuarias y de Créditos y Servicios

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Law of the Agricultural Production and Credit and Services Cooperatives


Document: Law of the Agricultural Production and Credit and Services Cooperatives
Type of document: Law
Date of issue: 02/11/2002
Number of Legal Instrument: 95
Broadcaster: National Assembly of People's Power
Date of entry to the repository: 21/06/2016
Source:
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RICARDO ALARCON DE QUESADA : President of the National Assembly of the People's Power of the Republic of Cuba.

I DO KNOW That the National Assembly of People's Power, in the two-thousand-two November session, corresponding to the Ninth Ordinary Session of the Fifth Legislature, has approved the following:

AS FOR: The Constitution of the Republic, in its article 20, recognizes the right of small farmers to associate themselves with each other, both for the purposes of agricultural production and for the obtaining of state credits and services. regulate the exercise of that right.

AS REGARDS : The agricultural cooperatives, in their two forms, the ones of production and the credits and services, recorded in the Law of Agrarian Reform of May 17, 1959 and its accelerated development from the I Congress of the Communist Party of Cuba, have It is an advanced form of socialist production and, moreover, the social development of peasant life as one of the principles of the agrarian policy of the Revolution.

AS REGARDS : Law No. 36, Law of Agricultural Cooperatives of 22 July 1982 has governed the development of the Cuban cooperative movement for twenty years, has constituted the indispensable legal support that allowed to transform in an orderly way and voluntary small peasant production, in forms of collective production; however, it is necessary to incorporate the positive experiences obtained in recent years and to assimilate the socio-economic and structural changes that have occurred in the country.

AS FOR: The 9th Congress of the National Association of Small Farmers, agreed to propose to the National Assembly of the People's Power the enactment of a new cooperative legislation that encourages in the present circumstances the strengthening and continuous development of the sustainable agricultural production of cooperatives and small farmers and their family, as an important way to contribute to the rise of the national economy.

BY TANT: The National Assembly of People's Power, in use of the powers conferred on it in point (b) of Article 75 of the Constitution of the Republic, agrees:

ACT NO. 95

LAW OF COOPERATIVES OF AGRICULTURAL PRODUCTION AND OF CREDITS AND SERVICES

CHAPTER I

OF THE GOALS OF THE LAW

ARTICLE 1. This Law has the following objectives:

  1. to update the legislation in the field of Agricultural Production and Credit and Services Cooperatives, taking into account the socio-economic and structural changes that have occurred in the country;
  1. contribute to the strengthening of cooperatives as socialist economic entities, with autonomy, self-management and social projection;
  1. to obtain increases in sustainable agricultural production with greater efficiency and quality;
  1. encourage a greater exchange of actions and collaboration between cooperatives and the local organs of the People's Power; and
  1. promote the creation of new cooperatives.

CHAPTER II

GENERAL PROVISIONS

ARTICLE 2. For the purposes of this Law, it is understood by:

Production of directives : those agricultural and forestry products whose size and destination are determined by the State to cover part of the basic needs of the national economy and which are contracted to this end with the cooperatives.

Other agricultural and forestry production: those that cooperatives may sell to state or other authorized entities, participate in the Agricultural Market, or allocate them to their own supply or to other cooperatives,

Fundamental line of production: the agricultural production to which the cooperative is usually dedicated, which constitutes the main source of its income and represents a basic production for the development of the national or territorial economy.

Social object : includes its fundamental line and other agricultural and forestry products or other lawful activities of a productive nature, services and marketing linked to agricultural production, which have been duly authorized to cooperatives.

Reserve to cover contingencies: This is an irrepressible and obligatory financial fund that must be created and maintained by each cooperative from its profits, the amount of which must not be less than 10% of the value of its assets, which is exclusively intended to solve economic situations. difficult, due to natural disasters or other causes not covered by insurance.

Agricultural goods : land, animals, facilities, plantations, equipment and other means and instruments of the cooperative destined for agricultural production, as well as the related housing and basic means of cooperatives, while their property is not transferred to its occupants.

ARTICLE 3. Cooperatives are governed by the following principles:

  1. voluntary: the incorporation and permanence of the members of the cooperatives is absolutely voluntary;
  1. cooperation and mutual assistance: all members work and join their efforts for the rational use of land and agricultural goods, property or in use by cooperatives or cooperatives;
  2. contribution to the development of the national economy: all the plans and programs of the cooperatives are aimed and have as a fundamental objective to work for the sustainable economic and social development of the nation;
  1. cooperative discipline: all its members know, comply and consciously abide by the provisions of this Law, its regulations, the agreements of the General Assembly and the other laws and regulations that apply in cooperatives;
  1. collective decision: all acts that govern the economic and social life of cooperatives are analyzed and decided in a democratic manner by the General Assembly and the Board of Directors, in which the minority acts and is subordinated to the majority approved;
  1. territoriality: small farmers are integrated and belong to the cooperative of the territory in which their lands are located, in order to facilitate the best and most economical management of the cooperative in relation to its members;
  1. welfare of the cooperatives and their families: cooperatives work to achieve the rational satisfaction of the material, social, educational, cultural and spiritual needs of their members and their families;
  1. cooperation between cooperatives: cooperatives provide collaboration with each other through the purchase of products for self-sufficiency, feet of breeding, seeds, provision of services for production, exchange of experiences, and other lawful non-profit activities;
  1. human solidarity: they practice human solidarity with their members, workers and other people who live in the communities where they are located;
  1. social interest: all their actions and actions are aimed at the social interest.

ARTICLE 4. The Agricultural Production Cooperative is an economic entity that represents an advanced and efficient way of socialist production with its own patrimony and legal personality, made up of the land and other assets contributed by the Small farmers, to which other people are integrated, to achieve sustainable agricultural production.

ARTICLE 5. The Credit and Services Cooperative is the voluntary association of small farmers who have the ownership or usufruct of their respective lands and other means of production, as well as the production they obtain. It is a form of agricultural cooperation through which the technical, financial and material assistance that the State provides to increase the production of small farmers and facilitate their marketing is carried out and viabilizes. It has its own legal personality and responds to its acts with its heritage.

ARTICLE 6. The cooperatives have social objectives and objectives aimed at improving the living conditions of the cooperatives and their families, as well as contributing to the social development of the country, the territory and the communities in which are locked.

These cooperatives promote the conscious participation of their members in the economic and social tasks of the nation, the locality and the community.

ARTICLE 7. Cooperatives work in the education of their members to comply with the principles that govern them, as well as in their technical training and the training of their cadres.

ARTICLE 8. The Agricultural Production Cooperatives have the following fundamental aims:

  1. to develop sustainable agricultural production with economic efficiency, in the interests of the national economy, the community and the cooperative itself;
  1. rationally use the agricultural land, property or usufruct of the cooperative and other agricultural goods and productive resources with which they count;
  1. increasing the quantity and quality of the production of directives and promoting their rapid marketing, and
  1. to develop other agricultural and forestry products and to provide agricultural services that have been authorized in their social object.

ARTICLE 9. The Credit and Services Cooperatives have the following fundamental purposes:

  1. to plan, hire, buy, sell and use in an organized and rational manner the resources and services necessary for its members and the cooperative, due to agricultural production;
  1. to manage, process and collaborate in the control, use and recovery of the bank credits needed for its members and the cooperative itself, for agricultural production;
  1. planning and marketing the production of directives by the members and the cooperative;
  1. marketing other products and services authorised in its social object; and
  1. to acquire, lease and exploit in a collective manner agricultural and transport equipment and to build the necessary facilities to improve the efficiency of agricultural production and marketing, authorized in its social object.

ARTICLE 10. The National Association of Small Farmers represents the interests of small and cooperative farmers, promotes and encourages their full incorporation and participation in the cooperative movement, works in their strengthening and consolidation as a form of socialist production, for which this Law and its accompanying regulations point to specific attributions.

CHAPTER III

OF THE CONSTITUTION

ARTICLE 11-Small farmers have the right to associate themselves with agricultural production cooperatives, to unify their lands and other agricultural goods of those who own them and to express their will in the assembly called for this purpose. and by formal application of the constitution to the competent bodies.

ARTICLE 12. Small farmers who have decided to join the Agricultural Production Cooperatives are entitled to the collection of their land and other agricultural goods, according to the official assessment made to the effect, which are incorporated in their entirety to the The cooperative's assets.

ARTICLE 13. Small farmers who own or use land, have the right to associate themselves in Credit and Services Cooperatives, expressing their will in assembly called for the effect and by formal request of constitution to the agencies competent.

ARTICLE 14. The constitution of Agricultural Production Cooperatives is authorized by the Ministry of Agriculture on a proposal from the National Association of Small Farmers, heard the Ministry of Sugar's opinion when it comes.

The Constitution of Credit and Services is also authorized on the proposal of the National Association of Small Farmers, by the Ministry of Agriculture or Sugar as appropriate.

The requirements and formalities for the formation of both forms of cooperatives are established in their respective General Regulations and acquire legal personality from their registration in the corresponding Register of the National Office of Statistics.

ARTICLE 15. The Ministry of Agriculture or Sugar, as appropriate, in conjunction with the National Association of Small Farmers, when they consider it appropriate and with the purpose of stimulating the formation of new Production Cooperatives Agriculture, they propose to the Ministry of Finance and Prices, the exemption or bonus of taxes to the new entities during its initial phase, which will not exceed five years.

CHAPTER IV

RELATIONS WITH THE ORGANS AND AGENCIES OF THE STATE

SECTION FIRST

OF RELATIONS WITH THE STATE, ITS ORGANS AND AGENCIES OF THE CENTRAL ADMINISTRATION AND ITS ENTITIES.

ARTICLE 16. The cooperatives, which are the subject of this Law as producing entities, are inserted into the system of primary organizations of the country's agricultural production and to these effects have with the State the following obligations:

  1. rationally use agricultural soils in the lands owned by the Agricultural Production Cooperatives, in the land owned or used by small farmers belonging to the Credit and Services Cooperatives and in which they entities have delivered the State in usufruct;
  1. to use and exploit the agricultural property of its property and those received in usufruct;
  1. develop and propose to the Ministries of Agriculture or Sugar, as appropriate, their production plans and development programmes;
  2. to sell the production of directives as determined by the competent body;
  1. to recruit, acquire and rationally use inputs and other productive and financial resources;
  1. adequately protect land, animals, crops, plantations, forests, facilities, equipment, dwellings and other property or in the use of cooperatives, in compliance with the provisions in force in the field of protection and security;
  1. comply with and apply the phytosanitary, veterinary, land use and conservation regulations, forest, water resources and all other environmental protection related to the protection of the environment;
  1. comply with the policy of species and varieties and the regulations related to the care of the genofondo and the use of suitable seeds;
  1. to apply the advances of science and technology, and the introduction of new technologies;
  1. comply with and enforce the provisions on land control established by the Ministry of Agriculture;
  1. comply with the existing financial, credit and accounting regulations;
  1. pay the tax obligations that are payable to you in time;
  1. comply with and enforce the legislation of the agricultural sector and any other legislation which they are obliged to do;
  1. properly utilize according to their productive needs to students under the martial principle of study-work, and
  1. use animal traction, biofertilizers and biopesticides in favour of saving and increasing production and its quality.

ARTICLE 17. The State exercises the control of the fulfillment of the obligations of the cooperatives through its organs, agencies of the Central Administration, its provincial and municipal structures and its organs of Control or Inspection, because of its respective competences.

ARTICLE 18. The State and the Government provide all possible support for the constitution, development and strengthening of cooperatives, and to do so in accordance with their powers, they carry out the following actions:

  1. the delivery of land to usufruct, where this is possible and necessary for the production of the cooperatives;
  1. technical assistance for the development, through the provision of technical information, access to the results of research and experimentation, allocation, reclassification and post-graduation of its technicians;
  1. provision of technical services for the protection of plants, veterinary, soil and agrochemicals, seed certification and other related to agricultural production;
  2. to facilitate and collaborate with the introduction of science and technology that are accessible to the cooperative;
  1. provide them with a specific legal framework;
  1. allocation of resources and inputs for production and social works;
  1. establishment of fair and stable prices for their production;
  1. granting of agricultural credits;
  1. economic aid, in accordance with the rules laid down; and
  1. any other deemed necessary.

ARTICLE 19. It is for the Ministries of Agriculture or Sugar, as appropriate:

  1. to authorize the social object of the cooperatives, on a proposal from the General Assembly heard the opinion of the National Association of Small Farmers and to control their compliance;
  1. jointly approve their production plans and development programmes with the cooperative, in addition to monitoring its implementation;
  1. to establish state policy and to lay down provisions for the allocation and acquisition of inputs and other productive resources for the production, self-supply and social works of cooperatives and to control their compliance;
  1. designate the State-owned enterprises responsible for purchasing the production of directives, and for the sale of inputs, other productive resources and services;
  1. to inspect and advise in compliance with the regulations in force in plant health, veterinary, soil, forestry and the policy of varieties and seeds;
  1. to inspect and advise on agricultural legislation and the land control system;
  1. to inspect and advise on economics and accounting;
  1. carry out audits, in accordance with the provisions laid down in the relevant regulations;
  1. advise on the application of agrotechnical and zootechnical standards; and
  1. In the framework of their respective competences, they have heard the opinion of the National Association of Small Farmers, regulations for the better functioning of cooperatives.

SECTION 2

RELATIONS WITH THE STATE ENTERPRISES

ARTICLE 20. The cooperative relations with the state enterprises are contractual for the purpose of selling the production of directives, other productions that mutually agree and acquire inputs and productive resources, as well as other products and services. necessary for the fulfilment of its economic and social activities.

To this end, undertakings comply with the policy and the provisions on the production of directives and on inputs and other productive resources which are the subject of a contract and are established and dictated by the Ministry of Agriculture or Sugar, as corresponds.

SECTION III

RELATIONS WITH THE LOCAL ORGANS OF POPULAR POWER

ARTICLE 21. The cooperatives promote and maintain relations of cooperation with the local organs of the People's Power for the economic and social development of the communities and municipalities in which they are framed within the limits of this Law.

Cooperatives promote the development of social, educational, cultural and recreational activities, which are coordinated, when necessary, with the local organs of the People's Power, who lend all possible support to them.

ARTICLE 22. The cooperatives can supply agricultural production directly to the social institutions, after agreement with the Council of the corresponding Municipal Administration and the subscription of contracts with the entities that come.

Agricultural production not collected by the collecting entities or which are at risk of deterioration, are marketed by each cooperative for the consumption of the locality in coordination with the Council of the corresponding Administration.

ARTICLE 23. The cooperatives and the local organs of the People's Power can lend themselves to each other for the construction of works of benefit to the community or the cooperative, in accordance with the legal provisions in force and those that are established in the General Regulations.

CHAPTER V

OF THE ADDRESS AND ADMINISTRATION

ARTICLE 24. The General Assembly is the top management body of the Agricultural Production Cooperatives and the Appropriations and Services, it is integrated by all the members, who elect from their bosom by means of the secret and direct vote to the President and others Members of the Board. The Assembly is considered valid for this election when the two-thirds of its members are present.

ARTICLE 25. The Board of Directors is the management body of the cooperative, it is composed of no less than five and no more than eleven members, it is subordinated to the General Assembly and it gives it regular account of its acts and decisions. He exercises his duties when the General Assembly is not assembled.

ARTICLE 26. The President of the General Assembly, who is also of the Board of Directors, assures and responds to the fulfillment of the agreements and decisions of both bodies, holds the legal representation of the cooperative and pays regular account of its management before the Board of Directors and the General Assembly.

ARTICLE 27. When the President or other member of the Board of Directors demonstrates incapacity for the position, he incurs criminal actions in the exercise of the same or other conduct that makes him demerit of the good public concept, it may be revoked before the compliance with the term of his term of office, by the General Assembly, which elects the substitute.

The revocation process can be promoted exceptionally by the National Association of Small Farmers.

ARTICLE 28. According to the case, the cooperatives have an Administrative Council or an Administrator appointed by the General Assembly on a proposal from the Board of Directors, and subordinate to it.

The Administrative Board or the Administrator is in charge of the productive, administrative and economic tasks, in compliance with the agreements of the General Assembly and the decisions of the Board of Directors to which it pays account of its management periodically.

ARTICLE 29. Each cooperative is the Control and Control Commission, consisting of no less than three and no more than five members, which is responsible for monitoring compliance with the legal provisions and the use of financial and financial resources. materials of the cooperative. This Commission is chosen on the same occasion as the Board of Directors of the General Assembly, which it regularly reports on its management. It cannot belong to the members of the Board of Directors.

ARTICLE 30. The General Regulations of the two cooperatives regulate the functions and functions of the General Assembly, the Board of Directors, the Administrative Board, the Administrative Board, the Control and Taxation Committee, and the President's responsibilities.

CHAPTER VI

OF HERITAGE AND PROPERTY

SECTION FIRST

THE HERITAGE AND PROPERTY OF THE AGRICULTURAL PRODUCTION COOPERATIVES

ARTICLE 31. The ownership of the Agricultural Production Cooperatives forms the basis for the sustainable agricultural development of the cooperative economy and contributes to the strengthening of the national economy. It is also the economic base for the achievement of the social objectives of the cooperative and it is the responsibility of its members for its protection and care.

ARTICLE 32. The heritage of the Agricultural Production Cooperatives is constituted by:

  1. the land, other agricultural goods, facilities, cultural, recreational and other assets contributed by its members or acquired by purchase or any other title and those constructed by the cooperative;
  1. animals and plantations, agricultural production and other production belonging to the cooperative, as well as forest production in accordance with the provisions of the existing forestry legislation;
  1. dwellings built, acquired or delivered to the cooperative as a basis of links or basic means;
  1. the welfare of the land given in usufruct;
  1. the accumulated reserves and the financial resources of the cooperative; and
  1. the rights recognised in the law.

The State can grant land, forests and agricultural facilities to usufruct, with the obligation to use them rationally, according to their aims, to protect and to care for them, but these do not integrate their patrimony.

ARTICLE 33. The members of the cooperatives who have contributed land and other agricultural goods and who, for any reason, cause a reduction in this or in case of dissolution, are entitled to the recovery of the unamortized amount and other debits that they have with them. the cooperative.

ARTICLE 34. The ownership of the land of the Agricultural Production Cooperatives may be transferred in favor of the State in accordance with the legal procedure established for reasons of public utility or social interest, at the request of the Minister of Agriculture, heard from the National Association of Small Farmers and the Sugar Ministry, as appropriate.

It can also be transferred in the interests of the cooperative in favor of the State or other cooperatives and by permuse for which the agreement of the General Assembly is required and the authorization of the Ministry of Agriculture, heard the Ministry of Sugar in cases where appropriate.

ARTICLE 35. The land owned by the cooperatives cannot be taxed or foreclosed. The usufruct, the lease, the aparceria and any other form of taxation or partial transfer in favor of natural and legal persons of the rights and actions emanated from the property of the cooperative on the land are prohibited.

ARTICLE 36. The lease or any act of disposition on other agricultural goods owned by the Agricultural Production Cooperatives, requires the approval of the General Assembly according to the regulations that will be established in the General Regulation.

ARTICLE 37. In the event of the death of the cooperativist, the payment due for the assets contributed, the profits not received and the advances to be paid are transmitted to his heirs.

SECTION 2

HERITAGE AND PROPERTY OF CREDIT AND SERVICE COOPERATIVES

ARTICLE 38. The assets of the Credit and Services Cooperatives are constituted by:

  1. buildings, installations, machinery, equipment, agricultural implements and other goods acquired by cooperatives for collective use;
  1. the collective fund, made up of the contribution of its members;
  1. accumulated reserves and other financial resources;
  2. plantations and agricultural production of land received in usufruct; and
  1. housing built, acquired or delivered to cooperatives as a basis of links or basic means.

ARTICLE 39. The Credit and Services Cooperatives can receive land, forests and agricultural facilities in usufruct by the State, for collective use. These goods do not integrate the assets of the cooperatives and are obliged to their rational use, according to their purpose, protection and care.

ARTICLE 40. The lease or any act of disposition on the assets owned by the Credit and Services Cooperatives requires the approval of the General Assembly, according to the regulations that will be established in the General Regulation.

SECTION III

OF THE dwellings

ARTICLE 41. The houses located in the lands contributed to the Agricultural Production Cooperative, continue to be personal property of the cooperative, and its legal occupant maintains the rights established in the legislation in force. The cooperative grants these the right to land.

ARTICLE 42. The houses built or acquired by the cooperative on land owned by them with a link or basic means are occupied by the cooperative members agreed by the General Assembly, who have the right to acquire their property. property in the case of the related ones, by means of the payment of their legal price, after the end of the stay established in the legislation in force.

The cooperative grants its members the right to land on a free basis for the purpose of obtaining ownership of these dwellings.

ARTICLE 43. Notwithstanding the provisions of this Section on the ownership of dwellings, permuse, or cession of any other right, must be previously approved by the General Assembly without prejudice to the fulfillment of the legal procedures established. In the case of hereditary transmission, it complies with the provisions of the legislation in force.

ARTICLE 44. The Credit and Services Cooperatives can build housing for their salaried workers in the land that the State has previously granted them the right of land, according to the regulations that will be dictated by the competent body. These dwellings have the character of related or basic means.

CHAPTER VII

OF THE ECONOMIC SYSTEM

SECTION FIRST

OF THE ECONOMIC REGIME OF AGRICULTURAL PRODUCTION COOPERATIVES

ARTICLE 45. The Agricultural Production Cooperative would pay for the work of each member according to the quantity and quality of the same, and according to the socialist principle "of each according to his capacity; to each according to his work".

The cooperatives, regardless of their contribution or not on land to the cooperative, have the right to participate in the profits of the cooperative, according to the quantity and quality of the work they have done personally.

The cooperativist regularly receives a cash advance in correspondence with the results of the work carried out, as provided for in the General Regulation.

ARTICLE 46. The cooperatives close annually their financial statements certified by the Ministry of Agriculture or Sugar, as appropriate, through which the profits of the period are determined, after settling the obligations with the bank, payment of taxes and other expenses incurred in the production process.

ARTICLE 47. Determined the annual amount of the profits, after deducting the funds allocated to the reserve to cover contingencies and the payment of the income tax, is obligatory part of those for the payment of the lands and goods contributed by the cooperatives.

From the rest of the utilities, a part is destined for the fund of operations and the socio-cultural fund, and another part equal to distribute among the cooperativists, according to what the effect establishes the General Regulation.

ARTICLE 48. The payment of the land and property contributed by the cooperatives is carried out annually with the percentage of the profits agreed by the General Assembly, which cannot be less than 20% of these, until its liquidation.

ARTICLE 49. The operations fund is dedicated to solving the expenses and expenditures of the next year and can be dedicated to:

  1. acquisition of tangible fixed assets and circulating assets;
  1. construction of dwellings;
  1. construction of production and social facilities;
  1. scientific-technical development and training activities;
  1. development of the community;
  1. activities in favour of the environment; and
  1. others to be agreed by the General Assembly.

ARTICLE 50. The socio-cultural fund cannot be less than 5% of the annual profits and is dedicated to:

  1. contribute to the financing of the National Association of Small Farmers;
  1. developing social, cultural, recreational and sporting activities;
  1. to stimulate the outstanding co-operators; and
  1. to provide economic assistance to the cooperatives, with the agreement of the General Assembly.

ARTICLE 51. When the cooperative has fully liquidated the payment of the assets contributed to the cooperatives, and constituted more than half of the reserve to cover contingencies, it can distribute more than 50% of the profits, up to 70% when the has completed. For these purposes, the progressive scales are set out in the General Regulation.

ARTICLE 52. The cooperatives that can distribute up to 70% of their profits according to the provisions of the previous article, dedicate part of these utilities to encourage the permanence of the cooperatives from the five years of work continuous, depending on the scale and requirements to be established.

These cooperatives also dedicate part of their profits to reward the retired contributors and founders, in dependence on the years of work and merit obtained.

The scales and requirements for granting the incentives and prizes are set out in the General Regulation and the amount of the profits to be allocated annually for that purpose, is approved by the General Assembly.

ARTICLE 53. Cooperatives that have losses are sold by the reserve to cover contingencies, profits from future periods, and insurance in the cases where appropriate.

The State may grant economic aid in exceptional cases, subject to the controls, restrictions and conditions that are established for each case, for the purposes of the economic recovery of the cooperative.

SECTION 2

OF THE ECONOMIC REGIME OF CREDIT AND SERVICE COOPERATIVES

ARTICLE 54. The Credit and Services Cooperatives create a collective fund with the contribution of their members in the form and amount agreed upon in the General Assembly. This fund is intended to:

  1. cooperate with the financing of the National Association of Small Farmers;
  1. developing social, cultural, recreational and sporting activities;
  1. to stimulate the outstanding members;
  1. contributing to the construction and development of social works; and
  1. to assist the cooperativists financially, with the agreement of the General Assembly.

ARTICLE 55. The Credit and Services Cooperatives, for the fulfilment of the economic activities authorized in their social object, create and maintain a bank account of operations from the income earned in those activities.

ARTICLE 56. The Credit and Services Cooperatives make annually the financial statement of their economic activities, which is certified by the Ministry of Agriculture or Sugar as appropriate.

The favourable balance obtained after the funds for the reserve are allocated to cover contingencies and all payments for appropriations, taxes and other debts of the corresponding period shall be the profits for:

  1. creating a development fund;
  1. to stimulate workers;
  1. contributing to the economic and social development of the community;
  1. to take action in favour of the environment; and
  1. other expenses to be agreed by the General Assembly for collective benefit.

ARTICLE 57. The development fund is intended for the purchase of tangible fixed assets, application of science and technology, training and any other activities that contribute to the development of the cooperative.

CHAPTER VIII

OF COOPERATIVES AND EMPLOYEES OF COOPERATIVES

SECTION FIRST

OF THE CO-OPERATORS

ARTICLE 58. They may be members of the Agricultural Production Cooperatives, the contributors of land and other agricultural goods, their spouses, children, other family members and workers, who meet the requirements laid down in their General Regulations.

Small farmers or owners of land, their spouses, children, other family members and workers may be members of the Credit and Services Cooperatives, who meet the requirements laid down in their General Regulations.

ARTICLE 59. The member of an Agricultural Production Cooperative may not be an owner or user of land, or belong simultaneously to another cooperative, or maintain other labor activity that is detrimental to the purposes of the cooperative.

By way of exception and prior to the approval of the General Assembly, any of its members may, for a certain time, carry out legal work activities not related to the cooperative.

ARTICLE 60. The members of the cooperatives work consciously to fulfill the aims of their organization, participate in the common work, in the care and protection of the cooperative property, and of the cooperativists, of the land and other goods received in usufruct and in all other activities to be agreed upon.

It is also the duty of the cooperative, to maintain relations of mutual assistance with the other members, according to the socialist morality, to fulfill the labor and cooperative discipline and to ensure the fulfillment of the socialist legality.

ARTICLE 61. The cooperatives participate in the benefits of the economic activity of the cooperative, of the social, cultural, recreational and other activities of a social character promoted and organized by the cooperative.

They also enjoy the benefits of self-sufficiency and the housing allocated to them by the cooperative in accordance with their internal regulations.

The members of the Agricultural Production Cooperatives are entitled to the benefits of social security in accordance with the legislation in force in this area, for which cooperatives comply with financial contributions and other obligations. that according to that legislation corresponds

ARTICLE 62. The cooperative members have the right to attend and participate with a voice and vote in the General Assembly, to elect, to be elected or appointed to the positions and responsibilities of the management and administration organs of the cooperative, to know and approve their economic plans and financial statements, as well as participating in socialist emulation.

ARTICLE 63. The condition of a member of the cooperative ceases by voluntary application, retirement or death. It may also cease by disciplinary measure imposed by the General Assembly with the approval of two thirds of its members, for repeated failure to fulfil its duties as a cooperative or to engage in conduct that makes it undeserving. of the good public concept.

The General Regulations regulate the benefits to be granted to the members of the cooperative, or their heirs to the death of their members.

SECTION 2

OF THE EMPLOYEES OF THE COOPERATIVES

ARTICLE 64. Both the Agricultural Production Cooperatives and the Credit and Services Cooperatives can hire salaried workers for the fulfillment of the economic activities approved in their social object.

In the case of workers hired to carry out permanent duties, they are instructed for the cooperative life, at the end of their membership, once the trial period has been satisfactorily expired as set out in the Regulations. General and be approved by the General Assembly.

ARTICLE 65. Workers in both types of cooperatives receive their wages and other benefits, including social security benefits, in accordance with the provisions of the legislation in force.

Workers who join as members of the Agricultural Production Cooperatives are entitled to the participation of the utilities from the first day of their incorporation as workers.

CHAPTER IX

OF LABOUR DISCIPLINE, CONFLICT RESOLUTION AND MATERIAL RESPONSIBILITY

SECTION FIRST

OF THE COOPERATIVE WORK DISCIPLINE

ARTICLE 66. The members of the cooperatives are obliged to observe and comply with the established cooperative discipline, whose infractions and measures to be applied are indicated in the General Regulations, and in the Internal Regulations of each cooperative.

ARTICLE 67. It corresponds to the Board of Directors of the cooperatives, to know of the indisciplines and to impose the disciplinary measures according to the infraction and the personal conduct maintained by the cooperativist, with the exception of the definitive separation that only be imposed by the General Assembly.

The Cooperativists inconsistent with the measures imposed by the Board of Directors may appeal to the General Assembly.

The General Assembly is the only body authorized to have the readmission of the cooperative separated, when it considers that it has rectified its conduct and is again deserving of the right to join the cooperative.

ARTICLE 68. Workers in cooperatives are obliged to comply with labour discipline, as set out in their General and Internal Regulations, in which the infringements and measures to be applied are established.

The infringements are known to the Board of Directors, which directly applies the measure corresponding to the seriousness of the fact and the personal conduct maintained by the worker, with the exception of the final separation, which is the power of the General Assembly.

Workers who do not comply with the measures implemented by the Board are entitled to complain to the General Assembly.

Workers who do not comply with the decisions of the General Assembly can go to court as established in the current labor legislation.

SECTION 2

OF THE SOLUTION OF CONFLICTS

ARTICLE 69. The conflicts or complaints arising between the cooperatives and the Board of Directors regarding their alleged rights are known and resolved by the General Assembly.

ARTICLE 70. Claims for workers ' rights, wages and social security for workers in cooperatives are known and resolved by the Board of Directors, in the event of the worker's inconformity, the worker has the right to go to the General Assembly. and, if the non-conformity persists, the right to go to court is recognized as established in the current labor legislation.

ARTICLE 71. Disputes of an economic or contractual nature between cooperatives and between cooperatives and other entities are settled by the competent courts.

It is up to the General Assemblies of the Credit and Services Cooperatives, to know and to resolve the conflicts or complaints that arise from the failure of the cooperative members with the plan of production of the cooperative.

Disputes on land rights, claims or occupations are settled by the competent authorities of the Ministry of Agriculture in accordance with the legislation in force.

ARTICLE 72. The National Association of Small Farmers provides its collaboration and mediation, when necessary, in the solution of conflicts that may arise between the cooperatives and small farmers with the direction of the cooperatives, as well as between them and the agencies of the Central Administration of the State and its dependencies.

SECTION III

OF THE MATERIAL LIABILITY

ARTICLE 73. The members of the cooperatives are obliged to take care of and protect the assets that make up the assets of these and those received in usufruct.

When, by any action or omission of a member of the cooperative, damage, loss or loss of property is caused, without the fact being a constitutive of crime, the cause of the property is obliged to compensate the cooperative for the damages caused.

ARTICLE 74. It is for the Board of Directors according to the economic scope of the damage, and in accordance with the rules laid down in the General Regulation, to determine the material liability, its value and the form of compensation.

The member inaccordance with the provisions of the Board of Directors may establish his or her complaint to the General Assembly.

ARTICLE 75. The workers of both types of cooperatives are equally responsible for the damages, loss or loss caused by their action or omission to be caused to the property or in the usufruct of the cooperative.

To the workers responsible, they are applied the labor legislation in force in the field. It is up to the Board of Directors to apply the material liability and to the General Assembly to know of the complaint that the non-compliant party is involved in.

ARTICLE 76. The powers of the Administrative Council or the Administrator concerning material liability, conflict resolution and cooperative and labor discipline are regulated in the General Regulations.

CHAPTER X

OF THE MERGER, DIVISION AND DISSOLUTION OF THE COOPERATIVES

SECTION FIRST

OF THE MERGER AND DIVISION

ARTICLE 77. The cooperatives may, heard the opinion of the National Association of Small Farmers and the Ministries of Agriculture or Sugar, as appropriate, after agreement of their respective General Assembly, by the favorable vote of half plus one of its members, uniting to constitute a greater or divided in more than one to achieve greater efficiency according to the fulfillment of its aims and social object; equally part of a cooperative can be segregated to be integrated to another.

ARTICLE 78. The new cooperative is a legal continuation of the rights and obligations of those who have been unified, and in case of division the new cooperatives assume the proportional share that corresponds to them.

The merger, division or segregation of Agricultural Production Cooperatives, once agreed upon by the General Assembly, requires the approval of the Ministry of Agriculture, heard by the Ministry of Sugar, where appropriate; and the and services require the approval of the Ministry of Agriculture or Sugar as appropriate.

The ups and downs settle in the corresponding Register of the Office for National Statistics.

SECTION 2

OF THE DISSOLUTION

ARTICLE 79. The cooperatives, may, heard the opinion of the National Association of Small Farmers and the Ministries of Agriculture and Sugar as appropriate, after agreement of their respective general assemblies by the favorable vote of the half plus one of its members, request the start of the process of dissolution of the cooperative.

ARTICLE 80. The process of dissolution of the Agricultural Production Cooperatives can also be started exceptionally, at the request of the National Association of Small Farmers on a proposal or hearing the opinion of the Ministry of Agriculture or the Ministry of Agriculture. of Sugar, as appropriate, due to public utility or social interest, or in the event of serious violations of the principles governing the life of cooperatives, the performance of illegal or unauthorized activities in their social object and bankruptcy economic.

In credit and service cooperatives, the exceptional process of dissolution can be initiated for causes of public utility or social interest, which affect all or part of the lands owned by its members.

ARTICLE 81. To carry out the liquidation of the assets of a cooperative in the process of dissolution, a Liquidating Commission is integrated, chaired by the Ministry of Agriculture and, with representation of the Ministry of Sugar, where appropriate, of the Board of Directors. of the cooperative, of the National Association of Small Farmers, of the corresponding Banking Agency, of the Provincial Department of Housing, when the latter has connected housing or basic and the Ministry of Finance and Prices, the which analyses the most favourable solutions to the rights of cooperatives, compliance with the obligations of cooperatives and the continuity of agricultural production, raising their proposals to the Minister of Agriculture or Sugar as appropriate.

ARTICLE 82. The dissolution of the Agricultural Production Cooperatives is approved by Resolution of the Minister of Agriculture, heard the opinion of the National Association of Small Farmers and the Ministry of Sugar, where appropriate and, in the same, It has its own record of the Office for National Statistics.

The dissolution of the Credit and Services Cooperatives is approved by the Minister of Agriculture or Sugar's Resolution as appropriate, heard the opinion of the National Association of Small Farmers and in the same one also has its own of the corresponding register.

SPECIAL ARRANGEMENT

UNICA: Cooperatives, and in particular their governing bodies, carry out and support their activities for the defence of the country and the principles of the Socialist Revolution. For this purpose they organize, execute and control, within the framework of their competence, the integral preparation for the defense in the productive activities, services or other kind that they have in their position, according to the law, as well as for the compliance with the civil defence measures and the plans related to these tasks.

TRANSITIONAL PROVISIONS

FIRST: The General Regulations of the Agricultural Production Cooperatives and the Credit and Services Cooperatives approved by the Executive Committee of the Council of Ministers will continue until the new Regulations are enacted. Provisions that contradict the provisions of this Law shall not apply.

SECOND: The provisions of Articles 55, 56 and 57 relating to the economic and financial activities of credit and service cooperatives shall not apply until they have been officially constituted by their governing body with the requirements of the laid down in the General Regulation.

FINAL PROVISIONS

FIRST: The National Association of Small Farmers, together with the Ministries of Agriculture and Sugar, present the proposals for the General Regulations of the Agricultural Production Cooperatives and the Appropriations and Services in a term One hundred and eighty days (180) from the publication of this Law in the Official Gazette of the Republic, raising them to the consideration and approval of the Executive Committee of the Council of Ministers.

SECOND: The Ministers of Agriculture and Sugar are empowered, within the framework of their respective powers, to lay down the provisions that are appropriate for the best application of the provisions of this Law.

THIRD: The Ministry of Finance and Prices, heard the opinion of the Ministry of Agriculture, the Ministry of Sugar and the National Association of Small Farmers, will dictate in a term of ninety days (90) from the publication of the present Law in the Official Gazette, the Rules for the constitution and use of the Reserve to cover contingencies.

FOURTH: The National Institute of Housing with the Ministry of Agriculture and the Ministry of Sugar heard the look of the National Association of Small Farmers, will dictate in a term of ninety (90) days, from the publication of This Law in the Official Gazette, the Standards for the solution of dwellings built on land owned or used by cooperatives of agricultural production and small farmers.

QUINTA: Law No. 36 "Law of Agricultural Cooperatives" of 22 July 1982 and all laws and regulations are repealed to comply with this Law, which will begin to apply from its publication in the Official Gazette. of the Republic.

DADA In the Chamber of the National Assembly of the People's Power, the Convention Palace, in the city of Havana, two thousand two days in November.