FARMERS' ORGANIZATION ACT 1973

LAWS OF MALAYSIA _____________ ONLINE VERSION OF UPDATED TEXT OF REPRINT _____________ Act 109 FARMERS’ ORGANIZATION ACT 1973 As at 1 April 2012 2 FARMERS’ ORGANIZATION ACT 1973 … … 15 June 1973 Date of publication in the Gazzette … … 21 June 1973 Latest amendment made by Act A1295 which came into operation on … … … Date of Royal Assent … 1 January 2008 PREVIOUS REPRINTS First Reprint … … … 1994 Second Reprint … … … 2000 Third Reprint … … … 2006 3 LAWS OF MALAYSIA Act 109 FARMERS’ ORGANIZATION ACT 1973 ARRANGEMENT OF SECTIONS PART I PRELIMINARY Section 1. Short title, application and commencement 2. Interpretation PART II FORMATION OF FARMERS’ ORGANIZATIONS 3. Formation 4. Prohibition 5. Farmers’ Organization to be body corporate 6. Objects of Farmers’ Organizations PART III REGISTRATION 7. Registrar of Farmers’ Organizations 8. Register 4 Laws of Malaysia ACT 109 PART IV RIGHTS AND LIABILITIES Section 9. Members and member-units of Farmers’ Organization 10. Disposal of produce to or through a Farmers’ Organization 11. Lien and set-off in respect of share or interest of members and member-units 12. Share or interest not liable to attachment or sale 13. Transfer of interest on death of member or dissolution of member-unit 14. Directors 15. Funds of Farmers’ Organization 15A. Power to borrow moneys, etc. 15B. Investment of funds 16. Reserve Fund 17. Settlement of disputes 18. Case stated on question of law PART IVA CONFEDERATION OF AREA AND STATE FARMERS’ ORGANIZATIONS 18A. Procedure of confederation of Area Farmers’ Organizations 18B. Registration of State Farmers’ Organization 18C. Procedure for confederation of State Farmers’ Organizations PART V INSPECTION, SUSPENSION AND DISSOLUTION 19. Power to inspect 20. Power to suspend and dissolve 21. Appeal 22. No business during suspension Farmers’ Organization 5 Section 23. Management during suspension 24. Audit 24A. Right of access to records, etc. PART VI MISCELLANEOUS 25. Register of members 26. Proof of entries in books of Farmers’ Organization and member-units 27. Special powers of Minister to exempt from requirements as to registration, etc. 28. Power to exempt from duty or tax 28A. Annual general meeting 29. Prohibition of the use of the word “Farmers’ Organization” 30. Trade union laws and Companies Act not to apply 31. Offences 32. Prohibition and restriction on registration of agro-based co-operative societies respectively 33. (Deleted) 34. (Deleted) 35. Regulations 36. Repeal 7 LAWS OF MALAYSIA Act 109 FARMERS’ ORGANIZATION ACT 1973 An Act to provide for the registration of Farmers’ Organizations, the control and supervision of such Farmers’ Organizations and for matters connected therewith. [Throughout Malaysia—1 November 1973] BE IT ENACTED by the Seri Paduka Baginda Yang di-Pertuan Agong with the advice and consent of the Dewan Negara and Dewan Rakyat in the Parliament assembled, and by the authority of the same, as follows: PART I PRELIMINARY Short title, application and commencement 1. (1) 1973. This Act may be cited as the Farmers’ Organization Act (2) The Minister may by notification in the Gazette appoint a date when this Act shall come into operation and may appoint different dates for the coming into operation of all or different parts of this Act into all or different parts of Malaysia. Interpretation 2. In this Act, unless the context otherwise requires— 8 Laws of Malaysia ACT 109 “agro-based co-operative society” means any co-operative society which, upon the coming into operation of this Act, is registered under the Co-operative Societies Act 1948 [Act 287]*, the Co-operative Societies Ordinance 1958 of Sabah [Sabah Ord. 3 of 1958]* and the Co-operative Societies Ordinance of Sarawak [Sarawak Cap. 66]* and whose principal objects or main functions concern agricultural production, agricultural credit, marketing or processing or any such commercial and trading ventures: Provided that where there is a dispute as to whether any cooperative society is an agro-based co-operative society, such dispute shall be referred to the Farmers’ Organization Authority whose decision shall be final and shall not be called in question in any court; “Farmers’ Organization” means any organization of farmers formed under section 3 at Area, State or National level and registered under section 9; “Farmers’ Organization Authority” or “Authority” means the Authority established under the Farmers’ Organization Authority Act 1973 [Act 110]. PART II FORMATION OF FARMERS’ ORGANIZATIONS Formation 3. (1) An Area Farmers’ Organization may be formed in accordance with the provisions of this Act or any regulations made thereunder for any area in any State by not less than fifty persons who fulfil the requirements stated in subsection 9(1) and who have before such formation assembled at a meeting for the purpose of forming a Farmers’ Organization. * NOTE—Act 287, Sabah Ord. 3 of 1958 and Sarawak Cap. 66 have been repealed and substituted by the Co-operative Societies Act 1993 [Act 502]—see section 95 of Act 502. Farmers’ Organization 9 (2) Any two or more Area Farmers’ Organizations registered in accordance with this Act may with the approval of the Registrar and in accordance with any regulations made thereunder confederate into one State Farmers’ Organization. (3) Any two or more State Farmers’ Organizations registered in accordance with this Act may with the approval of the Registrar and in accordance with any regulations made thereunder confederate into a National Farmers’ Organization. Prohibition 4. No Farmers’ Organization shall carry on business unless it is formed and registered in accordance with the provisions of this Act. Farmers’ Organization to be body corporate 5. Upon registration under this Act, a Farmers’ Organization— (a) shall be a body corporate with perpetual succession and a common seal and shall have the power to enter into contracts to institute and defend actions, suits and legal proceedings and to do all things necessary for the purpose of achieving the objects mentioned in section 6; and (b) may acquire by lease, purchase, donation, gift, devise, bequest or otherwise any movable or immovable property for any of the objects of such organization and for such purposes may sell or lease or otherwise deal with any such property. Objects of Farmers’ Organizations 6. (1) A Farmers’ Organization may be formed for the purpose of promoting the economic and social interests or wellbeing of its members or member-units and shall have the power to do all things 10 Laws of Malaysia ACT 109 necessary to achieve the said purpose and in particular, but without prejudice to the generality of the foregoing, it shall have the power— (a) to provide extension services and training facilities to farmers so as to equip them with technology essential for the advancement of agriculture, horticulture, animal husbandry, home-economics, agri-business and other commercial enterprises; (b) to expand agricultural production amongst farmers and smallholders so as to promote greater diversification and commercialization of agriculture and to expand and promote agri-business; (c) to make available farm supplies and daily necessities including other facilities required for progressive farming and better rural living; (d) to provide farm mechanization facilities and services necessary in modernizing farming operations; (e) to provide credit facilities and services and to promote greater investment in agricultural and economic pursuits; (f) to promote, encourage, facilitate and offer services for rural savings; (g) to provide marketing services, storage, drying complexes, warehousing and other facilities; (h) to operate and provide transportation facilities to enhance agricultural marketing and related operations; (i) to establish and operate processing plants and milling complexes necessary for processing of agricultural products; (j) to facilitate capital formation and investment among members or member-units through the establishment of Farmers’ Organization 11 companies or equity participation in trading and business ventures; (k) to assist members in acquiring land and to undertake land development projects for the benefit of members; (l) to promote and stimulate group action through various community projects and facilitate leadership development; (m) to provide social services, educational and recreational facilities to enhance the social advancement and wellbeing of farm families. (2) Notwithstanding the powers conferred by subsection (1), a Farmers’ Organization shall not establish any company or participate in the equity of any trading or business ventures without the prior written approval of the Registrar, and the Registrar may, in giving such approval, impose any condition he deems fit. (3) Without prejudice to the powers conferred upon the Registrar in subsection (2), the Registrar may, by order in writing, limit, impose conditions on or regulate the powers of any Farmers’ Organization to ensure efficiency in, and to avoid duplication of, the functions of such Farmers’ Organization. (4) Any person who is dissatisfied with any order of the Registrar under subsection (2) or (3) may appeal to the Minister within thirty days of such order and the Minister may confirm, vary or revoke such order; and the decision of the Minister shall be final and shall not be called in question in any Court. PART III REGISTRATION Registrar of Farmers’ Organizations 7. (1) For the purposes of this Act there shall be a Registrar of Farmers’ Organizations (in this Act referred to as “the Registrar”) 12 Laws of Malaysia ACT 109 who shall be responsible for the registration, supervision and control of all Farmers’ Organizations. (2) The Director General of the Farmers’ Organization Authority shall be the Registrar. (3) The Registrar may in writing delegate to any person, including any officer in the public service in the States of Sabah and Sarawak, any of his powers under this Act except his powers to suspend or dissolve any Farmers’ Organization. Register 8. The Registrar shall keep and maintain or cause to be kept and maintained a register or registers which shall contain particulars relating to the registration of all Farmers’ Organizations as he may think expedient. PART IV RIGHTS AND LIABILITIES Members and member-units of Farmers’ Organization 9. (1) Any person who is a citizen of Malaysia, has attained the age of 18 years and— (a) is engaged in agricultural or livestock production; (b) whose income is derived from agricultural or livestock production; or (c) is in command of any of the factors of agricultural or livestock production, shall, subject to any regulations made hereunder, be eligible to be a member of a Farmers’ Organization. Farmers’ Organization 13 (2) An agro-based co-operative society or any group of persons shall, subject to any regulations made hereunder, be eligible to be a member-unit of a Farmers’ Organization. (3) The members and member-units of a Farmers’ Organization which is formed and registered in accordance with this Act shall not exercise the rights of a member or member-unit until he or it has made such payment to the Farmers’ Organization in respect of membership or acquired such interest in the Farmers’ Organization as may be prescribed by any regulations made hereunder or by its constitution or rules. (4) A member or member-unit shall cease to be a member or member-unit of any Farmers’ Organization— (a) when such member resigns voluntarily in accordance with the constitution or rules of such Farmers’ Organization; (b) when such member is deemed to have ceased to be a member by any regulations made hereunder or by the provisions of the constitution or rules of such Farmers’ Organization; (c) in the case of a member, on the death of such member or in the case of a member-unit, on its dissolution. Disposal