Lower House approves articles of draft cooperatives law, refers penal code amendments for further review

AMMAN — The Lower House on Monday approved seven articles of the 2025 draft law on cooperatives, out of a total of 25 articles, and referred the draft amendments to the 2025 Penal Code to the parliamentary Legal Committee for further study.

The legislative session, chaired by Speaker Ahmad Safadi, was attended by Prime Minister Jafar Hassan and members of the Cabinet, according to the Jordan News Agency, Petra.

Minister of Political and Parliamentary Affairs Abdul Monem Oudat said that the draft law regulates the establishment and operation of cooperatives and outlines the conditions under which they must function. He emphasised that cooperatives governed by the new law will not fall under the jurisdiction of the Private Associations Law.

Minister of State Ahmad Owaidi Abbadi noted that although the term "cooperatives" had been used previously, it has since been updated. He stressed that the definitions outlined in the draft are necessary and appropriately placed, adding that cooperatives within each governorate will be organised into governorate-level unions, while sectoral unions will serve specialised fields.

During the session, lawmakers introduced an amendment to Article 5, adding a new clause stipulating that any member who misses three consecutive meetings without an acceptable excuse will forfeit his or her membership.

They also amended Article 1, changing the title of the legislation to the “Law on Cooperatives” and specifying that it will come into force 30 days after its publication in the Official Gazette, deviating from the recommendations of the Agriculture and Water Committee.

The Chamber had referred the draft law to the Agriculture and Water Committee on 10 March 2025. The committee completed its review and approved the draft earlier this month.

The draft law provides for the creation of a Cooperative Development Fund within the Cooperative Institution to offer essential financing to the sector. The fund aims to ensure the equitable distribution of resources, support small- and medium-sized production projects, and create employment opportunities, particularly in the agriculture sector.

The bill also establishes a Cooperative Development Institute to promote the cooperative model and train national personnel in management, operations, and accounting systems, strengthening cooperatives' capabilities and improving their performance.

Other provisions aim to regulate, monitor, and govern cooperative activities to protect members' rights and ensure organisational sustainability.

The draft law also addresses the receipt and allocation of external funding and grants to support the sector’s growth as an economic pillar, and simplifies the procedures for establishing and registering specialised and regional cooperatives in line with international cooperative principles and best practices.

Additionally, the law seeks to enhance the participation of women and youth in the cooperative sector and encourages the establishment of cooperatives by persons with disabilities and residents of remote areas.