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Law No. 12 of 2004 on Private Associations and Foundations
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Chapter Four
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Finance and Control of the Association
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Law No. 12 of 2004 on Private Associations and Foundations
Law Summary Record
Type:
Law
Number:
12
Date:
10/05/2004 Corresponding to 21/03/1425 Hijri
Number of Articles:
48
Status:
In force
Official Gazette :
Issue:
8
Offcial Journal Issue
Publication Date:
09/06/2004 Corresponding to 21/04/1425 Hijri
Page from:
202
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Section Name
Finance and Control of the Association
23 Article
The funds of an Association shall be the property of that Association. Members, or a withdrawing member, or a member whose membership is cancelled shall not be entitled to such funds.
24 Article
An Association shall abide by the rules, regulations and accounting forms issued by the Ministry.
25 Article
An Association shall keep at its headquarters all records, books and documents required by and in accordance with the rules, regulations and principles of accounting.
26 Article
An Association shall deposit its funds in its name with one or more local banks selected by the board of directors. Withdrawals may not be made from these funds without the signature of the chairperson, or his deputy and treasurer.
27 Article
An Association may, following the approval of the Ministry, and consistent with its purposes, invest the surplus of its funds within the State to help finance its activities.
28 Article
The board of directors of an Association shall submit to the general assembly the final accounts for the end of the financial year, audited by licensed chartered accountants, and shall also submit the draft budget for the following financial year, a copy from which shall be served to the Ministry at least one month in advance of the date of the annual general meeting. The Ministry may cross-check these two documents.
29 Article
An Association may not fundraise, except with the permission of the Minister for a specific purpose for a limited period and in a manner that is consistent with the legislation and decisions in force.
30 Article
On the proposal of the Minister, the Council of Ministers may grant a subsidy or a loan to an Association and may also exempt an Association from any taxes or fees in order to help it achieve its goals.
31 Article
- Amended
An Association may not join or participate in or become annexed to any Association, organization or club based outside the State unless approval has been given by the Minister.
An Association may not send or receive any loans, gifts, donations, bequests, endowments or other funds, to or from a person, Association, body or club based outside the State unless the approval of the Ministry has first been obtained. An Association shall send a copy of all transfer and receipt slips to the Ministry, indicating the name and address of the sender and the recipient.
32 Article
- Amended
The accounts and activities of an association shall be subject to the supervision and control of the Ministry in order to verify their compliance with the law and the Articles of Association of the Association and its prescribed accounting principles.
The Ministry may assign one or more auditors to monitor the Association’s accounts when necessary, and such auditor or auditors may, at any time, inspect the books, records and documents of the Association , and may request such data as is deemed necessary for the performance of auditing duties. The auditor or auditors shall submit a report to the Ministry with recommendations on completion of the audit.
33 Article
The Minister may, by means of a decision, approve the opening a bank account for any registered Association outside the State if it is based on the same underlying principles that organize Associations in accordance with the provisions of this Law.
The Minister’s decision in this regard shall explain the manner in which the account should be opened and the methods used to follow up this activity.
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