The words and phrases listed below (wherever they appear in this Regulation) shall have the meanings specified next to each of them unless the context requires otherwise.

Ministry: Ministry of Social Affairs.

Minister: Minister of Social Affairs.

Association: Any cooperative association registered under the provisions of the Cooperative Societies Law.

General Assembly: All members contributing to the capital of the cooperative association. 

Board of Directors: The Board of Directors of the cooperative association.

Member: The founding member or a member who joins the association after its establishment.

Law: The Cooperative Societies Law issued by the Council of Ministers Resolution No. (73) dated 3/9/1429 AH.

Regulation: The Implementing Regulation of the Cooperative Societies Law.

Bylaws: The bylaws of the association.

Supervisory Authority: The branch of the Ministry responsible for supervising cooperative associations in each region.

The term "cooperative society" refers to any society formed by a group of individuals, including legal entities, in accordance with the provisions of the law.

The primary objective of the cooperative society is to improve the social and economic conditions of its members in the areas of production, consumption, marketing, or services through the joint efforts of the members, adhering to cooperative principles.

• Cooperative societies work to achieve their objectives in accordance with the following cooperative principles:

  • - Voluntary and open membership.

  • - Participation in decision-making and setting decisions.

  • - Autonomy.

  • - Economic participation of members.

  • - Cooperation among cooperatives.

  • - Education, training, and information.

  • - Concern for the local community.

The name of the association must include an indication of its cooperative nature and clarify its main objectives and type of work, such as being a multi-purpose association, agricultural, consumer, professional, marketing, fishing, housing, or other names of associations according to their characteristics and purposes that are applicable under the law.

The association consists of individuals and legal entities with no fewer than twelve members, and in exceptional cases deemed appropriate by the Minister, it may be established with no fewer than five members.