Associations Act of Maldives

Act No: 1/2003

Associations Act of Maldives

1. Introduction and Name

(a) This Act pertains to the establishment, registration and administration of associations, societies and clubs etc in the Maldives.

(b) This is Act is called “Associations Act”

2. Establishment and Administration

All associations in the Maldives shall be established and administered, after having registered the association under this Act, according to this Act and regulations made under this Act.

3. Directives of Government Departments

Government departments shall undertake whatever realistic measures possible, in their policy-making, coordination and execution, to seek and find ways to develop and encourage, within the domain of laws and regulations, all voluntary organisations working for the development of Maldives and are registered under this Act.

4. Rules of Procedure

All associations shall have Rules of Procedure formulated according to this Act and according to regulations made under this Act.

5. Information and Sections Required in the Rules of Procedure

The following information and sections shall be included in the Rules of Procedure of all associations.

(a) Name of association

(b) Full address of registered office of the association.

(d) That the capital and property of the association shall not be distributed among the members and the executive committee members of the association.

(e) That the members, the executive committee members and founding members shall have no right of possession over the property and money of the association.

(f) In the event of the dissolution of the association, after having discharged its debts and liabilities, if the association had any property or money, that the ownership of such property and money shall be transferred to a voluntary organisation or a government approved charity fund.

(g) Procedure of membership and types of membership of the association

(h) Procedure of termination of membership and expulsion

(i) If subscription is to be taken or not. If it is taken the rules and amount of subscription.

(j) Fundraising procedure to administer the association and its activities.

(k) The executive committee of the association, its designations and duties of these designations

(l) Procedure of assigning or electing members to the executive committee and procedure of their expulsion

(m) Rules on general meetings of the association, the convening, quorum, chairing and recording and maintaining minutes of these meetings.

(n) Rules on the meetings of the executive committee of the association, the convening, quorum, chairing and recording and maintaining minutes of these meetings.

(o) Voting procedure of general and executive committee meetings of the association and how matters are passed in these meetings

(p) Procedure of dissolution of association

(q) Procedure to amend Rules of Procedure

(r) Other information that has to be included in the Rules of Procedure according to the regulations made under this Act.

6. Registration of Association

(a) At least two persons wishing for the registration of an association shall submit to the Registrar, the Rules of Procedure of the association to be registered, the registration fee mentioned in section (c) of this article and request to register the association according to this Act and regulations made under this Act. Whereas a request submitted for the registration of an association shall be registered if what is stipulated in the Rules of Procedure of the association are not contrary to the principles of Islam or to this Act or to any other laws of the Maldives.

(b) The applicants for the registration of an association according to section (a) of this article, shall be 18 years old.

(c) A registration fee of Rufiyaa 100/- (one hundred) shall be paid by any association requesting to register it according to section (a) of this article.

7. Certificate of Registration

The Registrar shall issue a certificate to the association stating that the association has been duly registered, upon registration of the association according to article 6.

8. Notice to Amend Rules of Procedure

The Registrar shall have the discretion to give notice, according to this Act and regulations made under this Act, to amend the Rules of Procedure of the association submitted to be registered, prior to its registration.

9. Name of Association

(a) The name of the association will have to be acceptable to the Registrar. If the Registrar deems that the proposed name of the association is unacceptable, the name shall not be registered.

(b) All associations shall display the name of the association in Thaana script, in the place where the office of the association is located, so that the name is publicly seen from the outside.

10. Change of Name

A special resolution passed by a general meeting of an association registered under this Act, may determine to change its name.

11. Registration of New Name

Having decided to change the name of the association according to article 10 of this Act, upon submission of the proposed new name to the Registrar, and if the Register deems the name acceptable, the Registrar shall register the name and issue a registry of the association under the name. The recognised date of changing the name of the association shall be the date of the issuance of the association registry under the said name.

12. Consequences of Changing Name

As a consequence of changing the name of the association, according to articles 10 and 11 of this Act, the association shall not deviate from any of its rights or duties, or from any lawsuit sued by the association or being sued against the association.

13. Consequences of Registration

(a) Upon registration of the association according to this Act, the association, under the name by which it is registered, is a legal entity independent of its members, capable of and having the right, under the provisions of this Act, to execute the Rules of Procedure, to sue and to be sued, to seek and acquire movable and immovable property according to the law and to acquire property in a sustained basis.

(b) It is legally binding on the association and on every member of the association, to implement the articles stipulated in the Rules of Procedure of the association, upon its registration.

14. Symbol, Flag, Colour and Motto

(a) An association registered under this Act shall only use a specified symbol or flag or colour or a motto, having submitted such a symbol or flag or colour or motto to the Registrar of associations, and upon their due registration.

(b) If the Registrar of associations deemed unacceptable, the proposed symbol or flag or colour or motto submitted according to (a) of this article, such symbol or flag or colour or motto shall not be registered.

15. Founder-members of the Association

(a) The applicants who submitted request to register an association according to article 6 of this Act are its founder-members.

(b) Within six months following the date of registration of an association under this Act, having convened the general meeting of the association and having designated or elected its executive committee according to the rules of the association, the Registrar of associations shall be notified the information regarding the members designated or elected to the executive committee, within 30 days of the convening of the general meeting. And any further changes that ensue or are brought to the executive committee shall be notified to the Registrar of associations within 30 days of such changes.

(c) The founder-members of the association shall take all the responsibilities and liabilities of the association until the association is duly registered according to this Act, and having been registered, until having convened the general meeting stipulated in (b) of this article and until the executive committee is designated or elected. After the executive committee has been designated or elected all responsibilities and liabilities of the association shall be vested on the executive committee of the association.

16. Registration of Members

(a) Every association shall have a registration of members that acknowledge the names and addresses of those who acquired membership of the association according to the rules stipulated in its Rules of Procedure

(b) Upon request by the Registrar of associations, a copy of the membership registry of the association or a list of members shall be submitted.

17. Subscription

Every association is capable of taking a subscription from the members of the association according to the rules stipulated in its Rules of Procedure.

18. Amending Rules of Procedure

Under this Act, and under the regulations formulated under this Act and according to the Rules of Procedure of the association, amendments to the Rules of Procedure of the association decided upon by a special resolution passed by a general meeting of the association, shall be amended upon the approval of the Registrar of associations.

19. Forbidding Establishment of Association

Establishment of an association for any of the objectives stated in this article is forbidden in order to maintain the self-government of the Maldives and uphold public order.

(a) To contradict a tenet of Islam, or to insult Islam, or to violate the religious unity of Maldivians, or to bring diminution to this unity, or to expose or spread ideologies and slogans of religions other than Islam.

(b) To commit any act contrary to the Constitution of the Republic of Maldives or the laws of Maldives.

(c) To commit any act that may bring diminution to the independence, self-government and sovereignty of the Maldivian State or the Maldives.

(d) To secede a part of the territory of the Maldives, or a section of Maldivian citizens from the authority of the Maldivian State.

(e) To gain or acquire any kind of military training or carry out any military activity save for the requirement of the Maldivian State.

(f) To bring diminution to the rights of Maldivians or section thereof, or to create disharmony among the public.

(g) To commit any act that would support, encourage or abet any of those mentioned in (a), (b), (c), (d), (e) and (f) of this article.

20. Functions of the Association

Upon registration of the association according to article 6 of this Act, the association has the discretion to begin implementing the objectives of the association according to the laws and regulations of the Maldives and the Rules of Procedure of the association.

21. Holding Business Under Association Name

(a) For the purpose of fundraising in order to achieve an objective mentioned in the Rules of Procedure of the association registered under this Act, in accordance with the laws and regulations of the Maldives and the Rules of Procedure of the association, it is lawful for the association to conduct business transactions provided they are not carried out in order to earn revenue for association members and the profit of such a transaction is not received by association members.

(b) Such business transactions conducted by an association as mentioned in (a) of this article, shall not exceed or broaden more than the other functions and activities of the association. And every such transaction shall always be a specific transaction carried out in order to fundraise for achieving an objective mentioned in the Rules of Procedure of the association.

22. Seeking and Receiving Foreign Aid

Any association registered under this Act shall seek or receive any foreign aid according to relevant regulations of the Government.

23. Association Loans

(a) Any association shall take any loan or liability, according to the Rules of Procedure of the association, after having passed the matter by the executive committee and having established and arranged ways to pay such a loan.

(b) Any association, shall take a loan or a financial liability that exceeded the money and assets in its possession, after having passed it by the executive committee of the association, and after gaining support to pass a special resolution by a general meeting to facilitate it.

24. Members of the Executive Committee

A member of the executive committee shall be 18 years of age by the Gregorian Calendar and a member of the association and if the member is an associated member, the member shall be the member appointed to represent that association.

25. Abusing the Legal Identity of Association

Even if the association, upon registration, is an independent legal identity separate from its members according to article 13 of this Act, if this identity was used as a cover up to commit an unlawful act, the offender or offenders of such an act shall take responsibility for it.

26. Account Management

Every association shall maintain and keep detail accounts of its revenues, monies, details of expenditure, association assets, debts and other liabilities.

27. Location of Accounting Documents and Their Duration

The accounting documents of every association shall be kept in the registered office of the association, available to association members upon request, and shall remain in the office for a duration of 5 years from the date of their issuance.

28. Annual Financial Statements and Annual Report

Every association shall prepare annually, the annual financial statements of its revenues and expenditure and an annual report describing the performance of the association and its activities and have the statements and the report passed by the executive committee, and after having them signed by the executive committee, they shall be submitted to the general meeting of the association for their approval.

29. Submission of the Financial Statements and Report to the Registrar

Every association shall submit to the Registrar of associations, the annual financial statements and annual reports mentioned in article 28 of this Act and the auditor’s report mentioned in article 30 of this Act, within 30 days of having them submitted to the general meeting according to the procedure mentioned in the two articles.

30. Auditors

Among the associations registered under this Act, those identified to conduct auditing according to the regulations formulated under this Act, shall audit according to the regulations and submit the Auditor’s Report to the general meeting of the association.

31. Dissolution of Association by the Association

(a) An association shall resolve for the dissolution of the association, having conducted itself according to the rules of dissolution in the Rules of Procedure, and having passed a special resolution for the purpose of dissolution in a general meeting of the association.

(b) Upon resolving for dissolution of the association by the association in accordance with (a) of this article, and having publicly announced it, and having examined whether any debt or lawsuit is held against the association, and if such a debt or lawsuit against the association is pending, having settled it according to the regulations formulated under this Act, and having submitted to the Registrar of associations for the dissolution of the association, the Registrar of association shall annul the association provided all necessary measures have been taken according to this Act, the regulations formulated under this Act and the Rules of Procedure of the association.

32. Annulment of Registration of Association

(a) If the association fails to conduct in the two years following its registration, any activity among those resolved to be conducted by the association, or if two consecutive years elapsed without any action, or if any association repeatedly act contrary to this Act or to the regulations formulated under this Act, or if any act mentioned in article 19 of this Act is committed, the Registrar of associations has the discretion to annul the registration of the association after giving the association a duration of time to settle the debts and property of the association.

(b) When the registry of the association is annulled according to (a) of this article, all the rights and privileges endowed upon the association upon registration of the association under this Act shall end, and the association is annulled.

33. Dissolution of Association Under Court Order

If an association registered under this Act is ordered to be annulled by a relevant court, having being proven in court to be an association unable to pay its debts or if it was proven in court that it was run for unlawful purposes or for any other reason, the Registrar of associations shall annul the registration of the association after giving it a duration of time to settle its debts and assets.

34. Associations Registered Abroad

(a) An association established or registered outside the Maldives, save the international organisations and associations joined by Maldives, those operating in the Maldives under an agreement with the Government or as a result of an international convention that Maldives is signatory to, such an association shall operate in the Maldives, having sought permission to operate in the Maldives according to the laws and regulations of the Maldives, having submitted to the Registrar of associations, the required information as stipulated by the regulations formulated under this Act, and after having registered the association as a foreign association operating in the Maldives.

(b) Associations registered as foreign associations operating in the Maldives as in (a) of this article, shall operate in the Maldives according to this Act and the regulations formulated under this Act, and without any differentiation in the registration procedure as stipulated in article 6 of this Act or other procedures to be followed according to this Act and regulations formulated under this Act.

35. Exceptions

Associations among students operating in secondary schools and below are exempt from this Act.

36. Associations in Existence at time of Implementation of Act

(a) Associations, clubs, parties and societies etc operating under the registration according to Act 26/82 (Registration Law of Associations, Clubs, Parties, Societies etc) at the Ministry of Home Affairs and Environment at the time of the implementation of this Act, shall be regarded as registered according to this Act upon commencement of implementing this Act.

(b) The Rules of Procedures of associations registered at the Ministry of Home Affairs and Environment prior to the implementation of this Act, having amended them according to this Act, shall submit them to the Registrar of associations within 1 year of commencement of this Act.

37. Punishments

(a) If an association fails to undertake a task obligatory according to this Act or according to regulations formulated under this Act, or fails to undertake a task in an assigned period of time, or disobeys an order given at the discretion of the Registrar of associations, the Registrar of associations has the discretion to impose a fine on the association not exceeding Rufiyaa 500/- (five hundred).

(b) The punishment for whoever established or operated an association without registering it according to this Act or establishing or operating it save according to what is stipulated in this Act, shall be imprisonment, banishment or house arrest for a term between 1 year and 5 years.

38. Formulation of Regulations

The Regulations to be formulated under this Act shall be operated by whom it is assigned by the President.

39. Explanations

In this Act, unless the context otherwise requires,

(a) “Association” means organisations such as societies and clubs established according to law, for commercial and non-commercial purposes.

(b) “Registrar of associations” means the body to which the President assigns the tasks assigned for the Registrar of associations according to this Act.

(c) “Special Resolution” means any resolution passed by a two-third majority of members entitled to vote in a general meeting of the association.

(d) “Person” or “persons” include legal entities.

(e) “Publicly announce” means to publicise according to the regulations formulated under this Act, in a daily newspaper issued in the Maldives and to transmit from radio and television.

(f) “Executive Committee” means the total designations assigned or elected in order to operate an association according to its Rules of Procedure.

(g) “Voluntary Organisations” mean any association registered under this Act established for the purpose of a common good.

40. Annulled Act

Upon implantation of this Act, Act 26/82 (Registration Law of Associations, Clubs, Parties, Societies etc) is annulled.