*FARMERS' ORGANIZATION ACT 1973

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

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.

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

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

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

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;

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;

to make available farm supplies and daily necessities including other facilities required for progressive farming and better rural living;

to provide farm mechanization facilities and services necessary in modernizing farming operations;

to provide credit facilities and services and to promote greater investment in agricultural and economic pursuits;

to promote, encourage, facilitate and offer services for rural savings;

to provide marketing services, storage, drying complexes, warehousing and other facilities;

to operate and provide transportation facilities to enhance agricultural marketing and related operations;

to establish and operate processing plants and milling complexes necessary for processing of agricultural products;

to facilitate capital formation and investment among members or member-units through the establishment of

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companies or equity participation in trading and business ventures;

to assist members in acquiring land and to undertake land development projects for the benefit of members;

to promote and stimulate group action through various community projects and facilitate leadership development;

to provide social services, educational and recreational facilities to enhance the social advancement and wellbeing of farm families.

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.

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.

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.

The Director General of the Farmers’ Organization Authority shall be the Registrar.

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

is engaged in agricultural or livestock production;

whose income is derived from agricultural or livestock production; or

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.

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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.

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.

A member or member-unit shall cease to be a member or member-unit of any Farmers’ Organization—

that every such member or member-unit who or which produces any such article shall dispose of the whole or any specified amount, proportion or description thereof to or through the Farmers’ Organization; and

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that any member or member-unit who or which is proved or adjudged, in such manner as may be prescribed by the regulations made hereunder, to be guilty of a breach of the rules or contract shall pay to the Farmers’ Organization as liquidated damages a sum ascertained or assessed in such manner as may be prescribed by the aforesaid regulations.

No contract entered into under the provisions of this section shall be contested in any court on the ground only that it constitutes a contract in restraint of trade.

Lien and set-off in respect of share or interest of members and member-units

The liability of a member or member-unit for the debts of a

Farmers’ Organization shall be determined in the proportion of the

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share or interest held by the member or member-unit to the total debts of the Farmers’ Organization.

Transfer of interest on death of member or dissolution of member-unit

in respect of a deceased member, transfer the share or interest of such deceased member to the person nominated in accordance with any regulations made hereunder, or if there is no person so nominated, to such person as may appear to the Board of Directors to be the heir or legal representative of the deceased member or may pay to such nominee, heir or legal representative a sum representing the value of such deceased member’s share or interest as determined in accordance with any regulations made hereunder;

in respect of a dissolved member-unit, pay to the liquidator a sum representing the value of such dissolved member-unit’s share or interest as determined in accordance with any regulations made hereunder.

A Farmers’ Organization may pay all other moneys due to the deceased member or dissolved member-unit from the Farmers’

Organization to such nominee, heir, legal representative or liquidator.

All transfers and payments made by a Farmers’ Organization in accordance with the provisions of this section shall be valid and effectual against any demand made upon the Farmers’ Organization by any other person.

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Directors

For the purpose of conducting the business operations of each of such Farmers’ Organizations, there shall be a General Manager and other officers and servants of such Farmers’ Organization to be appointed in accordance with any regulations made hereunder or the constitution or rules of such Farmers’ Organization.

The responsibilities and duties of the General Manager, the officers and the Board of Directors aforesaid shall be in accordance with the constitution or rules of such Farmers’ Organization.

The directors shall hold office, retire and may be removed from office in accordance with the constitution or rules of such

Farmers’ Organization.

The office of a director shall be deemed to be vacated in any of the following cases that is to say:

subscriptions of members and member-units; and

moneys acquired, accrued or derived by virtue of the powers of such Farmers’ Organization conferred by this

Act or any regulations made thereunder.

Power to borrow moneys, etc.

At each annual general meeting, every Farmers’ Organization shall determine, subject to the limits imposed by the Registrar pursuant to subsection (1), the maximum limit of indebtedness which it may incur at any time in the coming financial year on account of moneys borrowed or to be borrowed and of other financial commitments and obligations entered into or to be entered into both before and during that financial year.

Investment of funds

in any bank approved by the Registrar from time to time;

in any of the securities of the Federal Government or of the Government of any State;

in securities issued in the Federation with the approval of the Treasury by any public authority established under Federal or State law;

with the approval of the Registrar, in the share capital or securities of any registered body or company;

with the approval of the Registrar, in the purchase of lands or buildings or in the construction of buildings; or

in any other mode approved by the Registrar.

Reserve Fund

among members, member-units, past members, past member-units and persons claiming through members, member-units, past members, past member-units and deceased members;

A claim by any Farmers’ Organization for any debt or demand due to it from a member, member-unit, past member, past member-unit or the nominee, heir or legal representative of a deceased member or liquidator of a dissolved member-unit or a claim by the higher level

Farmers’ Organization for any debt or demand due from a lower level Farmers’ Organization shall be deemed to be a dispute touching the business of such Farmers’

Organization.

The Registrar may, on receipt of a reference under subsection (1)—

An appeal against the decision of the Registrar or the arbitrator under subsection (2) shall lie to the Minister and shall be made within two months from the date of the decision.

A decision of the Minister in an appeal under subsection (3)

shall be final and shall not be called in question in any court.

Any decision of the Registrar or the arbitrator or under subsection (2) or, if there be an appeal therefrom, the decision as confirmed or varied by the Minister, shall be enforced in the same manner as if the decision had been a judgment of a Sessions Court.

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Case stated on question of law

The High Court shall hear and determine the question of law so referred.

PART IVA

CONFEDERATION OF AREA AND STATE FARMERS’

ORGANIZATIONS

Procedure of confederation of Area Farmers’ Organizations

At such meeting of each Area Farmers’ Organization, a special resolution shall be proposed for the confederation and that an application shall be made to the Registrar for the purpose.

Registration of State Farmers’ Organization

that the special resolution in favour of the proposed confederation has been duly passed by each Area

Farmers’ Organization corresponding in all material particulars with the resolution passed by the other Area

Farmers’ Organizations;

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that the scheme of confederation contained in such resolution in the case of each Area Farmers’ Organization corresponds in all material particulars to the resolution of the other Area Farmers’ Organizations; and

that the provisions of the constitution or rules of the proposed State Farmers’ Organization is in accordance with the regulations made under this Act, he shall register or cause to be registered the State Farmers’

Organization according to the rules made under this Act.

Procedure for confederation of State Farmers’ Organizations

to inspect the accounts and property of any Farmers’

Organization or member-units of such

Farmers’

Organizations; and

to hold an inquiry into the workings of the business and financial conditions of such Farmers’ Organization or member-units of such Farmers’ Organizations.

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Power to suspend and dissolve

As soon as the order under subsection (1) has been made the

Registrar shall cause an inquiry to be made in respect of such

Farmers’ Organization in respect of which the order was made or any aspect of the business of such Farmers’ Organization.

After the inquiry under subsection (2) has been made the

Registrar may revoke the order of suspension or order that such

Farmers’ Organization be dissolved as he thinks expedient.

Subject to any appeal made under section 21, the order for the dissolution of any Farmers’ Organization shall take effect on the expiry of the period of three months after the date of publication of the order.

Any Farmers’ Organization affected by an order under this section shall be dissolved in accordance with the regulations made under this Act.

Appeal

to summon at the time of his audit any officer or past officer, agent, servant or member of the Farmers’

Organization or member-unit who he has reason to believe can give material information in regard to any transaction of the Farmers’ Organization or member-unit or the management of its affairs;

to require the production at such place and within such period as may be specified by him of any book or document relating to the affairs of, or any cash or securities belonging to, the registered

Farmers’

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Organization or member unit by the officer or past officer, agent, servant or member in possession of such book, document, cash or securities.

Where in the course of the winding-up of a Farmers’

Organization or member-unit of such Farmers’ Organization or consequent upon an audit under section 24 or an inquiry or inspection under section 19 it appears that any person who has taken part in the organization or management of such Farmers’ Organization or member-unit or any past or present officer, agent, servant or member of the Farmers’ Organization or member-unit has misapplied or retained or become liable or accountable for any money or property of such Farmers’ Organization or member-unit or has been guilty of misfeasance or breach of trust in relation to the Farmers’

Organization or member-unit or on the application of the liquidator or of any creditor or contributory, the Registrar or other authorized person shall have the power to examine into the conduct of such person and make an order requiring him to repay or restore the money or property or any part thereof with interest at such rate as the

Registrar thinks just or to contribute such sum to the assets of such

Farmers’ Organization or member-unit by way of compensation in regard to the misapplication, retention, dishonesty or breach of trust as the Registrar thinks just and such order shall be enforced in the same manner as if the order has been a judgment of a Court.

the date at which the name of any person was entered in such register or list as a member;

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the date at which the name of any agro-based co-operative society or group of persons was entered in such register or list as a member-unit;

the date at which any such person, agro-based co-operative society or group of persons ceased to be a member or member-unit of such Farmers’ Organization.

Proof of entries in books of Farmers’ Organization and member-units

No officer of any such Farmers’ Organization or member-unit shall, in any legal proceedings to which the Farmers’ Organization or member-unit is not a party, be compelled to produce any of the

Farmers’ Organization’s or member-unit’s books, the contents of which can be proved under subsection (1) or to appear as a witness to prove any matters, transactions or accounts therein recorded, unless the court for special reasons so directs.

Special powers of Minister to exempt from requirements as to registration, etc.

The Minister may, by general or special order, exempt any

Farmers’ Organization from any other provisions of this Act, or may

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direct that such provisions shall apply to such Farmers’ Organization with effect from such date or with such modifications as may be specified in the order.

Power to exempt from duty or tax

the duty or tax which under any law for the time being in force may be payable in respect of the profits of such

Farmers’ Organization or of the dividends or other payments received by the members or member-units of such Farmers’ Organization on account of profits;

the stamp duty with which, under any law for the time being in force, instruments executed by or on behalf of any such Farmers’ Organization, member-unit or by an officer or member and relating to the business of such

Farmers’ Organization or member-unit or any class of such instruments are respectively chargeable.

Annual general meeting

Notwithstanding subsection (1), the Farmers’ Organization may apply to the Registrar for extension of time to hold the annual general meeting.

Prohibition of the use of the word “Farmers’ Organization”

Any person who contravenes the provisions of this section shall be guilty of an offence and shall be liable to a fine not exceeding five hundred ringgit, and, in the case of a continuing offence, to a further fine of fifty ringgit for each day during which the offence continues.

Trade union laws and Companies Act not to apply

neglects or refuses to do any act or refuses or fails to furnish any information required for the purposes of this

Act or any regulations made thereunder;

gives false information or makes any false statement on any matter required under the provisions of this Act or any regulations made thereunder to be given or made;

fails to obey any requisition or lawful written order issued under the provisions of this Act or any regulations made thereunder; or

violates or fails to comply with any other requirements of this Act or any regulations made thereunder,

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shall be liable to a fine not exceeding one thousand ringgit and, in the case of a continuing offence, to a further fine of fifty ringgit for each day during which the offence continues.

*Prohibition and restriction on registration of agro-based co-operative societies

In particular and without prejudice to the generality of the power conferred by subsection (1), such regulations may—

Upon the coming into force of this section—