Purpose and Scope
ARTICLE 1. — The purpose of this Act is to ensure that the agricultural producers come together on a product or product group basis and establish agricultural producer associations with a legal personality in order to plan the production according to the demand, improve the product quality, offer to the market such products as complying with the applicable norms and standards provided that it does not take possession of the same, and to take measures enhancing the marketability power of the products at the national and international level.
This Act covers provisions relating to the establishment, operation, management, tasks and duties and supervision of the agricultural producer associations.
Definitions
ARTICLE 2. — The following terms and expressions shall stand for the meanings as provided nearby to them below;
a) Ministry: Ministry of Agriculture and Rural Affairs,
b) Agricultural producer: Natural and legal persons who produce any vegetal and animal products as well as fisheries by means of fishing and aquaculture and offer the same to the market,
c) Association: Agricultural producer associations with legal personality which are established voluntarily on the basis of a certain product or product group,
d) Association Bylaws: The legal arrangement setting out the procedures and principles regarding the establishment and operation of the associations and higher bodies founded by the producers,
Product or product group
ARTICLE 3. — The agricultural producer associations may be established with respect to any vegetal and animal products and fisheries. For which product or product group an association will be established shall be determined under a Regulation to be introduced by the Ministry in the light of the requirements and priorities of the agricultural sector.
Establishment and registration of the agricultural producer associations
ARTICLE 4. — The associations shall be established at least at the district level, through joining of minimum sixteen agricultural producers who operate on the basis of a certain product or product group and undertake to market a quantity of agricultural production as specified in their by-laws through these associations. The total production capacity of the association should not be lower, on a product basis, than a minimum level to be determined by the Minister under a regulation.
At most one association may be established at district level for the same product or product group. The associations shall take such measures to ensure the broad involvement of the agricultural producers.
An association shall gain its legal personality upon filing an application with the Ministry, accompanied with by-laws signed by the members.
The by-laws of an association must be signed in person by the natural persons and through authorized representatives by the legal entities. The by-laws of the association any its annexes shall be examined by the Ministry within thirty days.
The producers having gained the capacity of a founding member by signing the by-laws of the association shall elect an interim board of directors of five persons from among themselves. This interim board of directors shall represent the association until the first next general meeting.
If any contradictions with the legislation or omissions are discovered in the by-laws of the association, the interim board of directors shall be asked in writing to remedy the same. In case such omissions are not completed or contradiction with the legislation is not remedied within thirty days from the service of such notice, no registration shall be done by the Ministry and the founding members shall be notified thereof, after which the general provisions shall apply.
Tasks and Duties of Association
ARTICLE 5. —For the purposes of this Act, the tasks and duties of the associations are:
a) to conduct or cause to be conducted market researches concerning the products produced by their members,
b) to find markets for the products of their members and regulate the market offer of the products,
c) to provide technical support to the members with regard to the production techniques, harvesting, storage and packing,
d) to provide guiding assistance to the members in input provision,
e) to ensure the production of varieties suitable for the internal market and exports,
f) to provide training and publication services as well as consultancy services,
g) to take measures to improve the product quality and apply the product standards,
h) to monitor the agricultural practices at the farm level, to keep their records and issue documents as necessary,
i) to ensure the application of the standards related with the packages and packing materials,
j) to spread the environmental-friendly production techniques,
k) to assist in storage of products and renting of depots for this purpose, where necessary, for their members,
l) to take actions with respect to promotion of products,
m) to keep any records concerning the products,
n) to discharge such tasks and duties required by the international product or common market arrangements specific to the product recognized by the Republic of Turkey,
o) to draw up specimen type contracts for their members and coordinate the activities in this respect within the scope of contracted production.
Organs of association
ARTICLE 6. — The organs of an association are the general assembly, board of directors and board of auditors.
Tasks and Powers of the General Assembly
ARTICLE 7. — The general assembly shall consist of the association members.
The tasks and powers of the general assembly are:
a) to elect the members of the board of directors and board of auditors,
b) to examine the study reports,
c) to decide upon the acquittal or not of the reports issued by the board of directors and auditors,
d) to accept or reject the final accounts,
e) to discuss and approve the budget and study program to be proposed by the board of directors,
f) to authorize the board of directors in personnel affairs, purchasing or selling of movable and immovable property and setting of membership fees,
g) to establish the service share to be deducted, not exceeding two thousandth of the sales values of the products marketed through the association,
h) to elect representatives to the central association,
i) to approve dismissals from membership,
j) to take other decisions and measures.
The general assembly shall convene with the simple majority of the whole number of members. If the required majority is not met at the first meeting, such requisite of majority shall not be sought for the second meeting. The general assembly may be convoked for an extraordinary meeting upon a decision of the board of auditors or directors or upon written request of one third of the general assembly members.
Tasks, powers and responsibilities of board of directors
ARTICLE 8. — The board of directors shall consist of minimum five and maximum seven members elected by the general assembly from among its members for a term of four years. Also, substitute members shall be elected in the same number.
Those having acted as the chairman of the board of directors for two consecutive terms shall not be elected for the same office again unless an office term elapses after their tenure.
The tasks and powers of the board of directors are:
a) to accept member,
b) to establish the agenda of general assembly, to prepare the activity programs and convoke the general assembly,
c) to maintain the accounting records of the association on a balance sheet basis and to submit the estimated budget, final account and carry forward proposals, monthly trial balance and reports pertaining thereto,
d) to appoint and dismiss the association personnel,
e) to purchase services for the association,
f) to purchase and sell movable and immovable properties for the association as authorized by the general assembly and to manage and protect the property of the association,
g) to follow the market prices of the products or product groups falling within the activity field of the association and to conduct or cause to be conducted the market researches,
h) to enter into cooperation with the appropriate persons, authorities or agencies in order to enhance the quality of product or product group,
i) to hold meetings to inform the association members and carry out training activities,
j) to represent the association at home and abroad,
k) to convoke the general assembly on an extraordinary basis where necessary,
l) to draw up specimen type contracts for their members and coordinate the activities in this respect within the scope of contracted production.
m) to discharge other tasks and duties to be assigned by the general assembly.
The members of the board of directors shall be responsible for their performance relating to the association activities for a period of ten years.
Tasks and powers of board of auditors
ARTICLE 9. — The board of auditors shall consist of three members to be elected by the general assembly from among its own members. Also, substitute members shall be elected in the same number.
The tasks and powers of the board of auditors are:
a) to examine the balance sheet and books of the association,
b) to submit the auditors' report drawn up concerning the activities of the board of directors to the general assembly for approval,
c) to convoke the general assembly on an extraordinary basis where necessary.
Membership requirements, dues and dismissal
ARTICLE 10. — The agricultural producers wishing to become a member of the association shall meet the following general requirements:
a) to make production intended for the market of the product or product group in which the association is engaged,
b) to have a farmer certificate,
c) in case of natural persons, to complete the eighteen years of age,
The special conditions required for membership shall be laid down in the by-laws of the association.
Any legal entities intending to apply to the associations for membership should be authorized by their own internal organs.
The board of directors shall accept the membership of those meeting the membership criteria within one month from the date of application. The membership shall become active only after the payment of the initial dues.
The members of the association shall be liable to pay an initial dues and annual dues for each year. The initial dues and annual dues may not be lower than ten percent and higher than fifty percent of the monthly gross minimum wage applied to those older than sixteen. No further annual dues shall be claimed for the year for which an initial dues has already been collected. The amounts of initial dues and annual dues shall be established by the general assembly upon a proposal of the board of directors based on the degrees and tariffs to be set.
The circumstances and cases requiring a dismissal from the membership shall be established in the by-laws of the association.
Revenues of association
ARTICLE 11. — The revenues of the association are:
a) membership fees,
b) fees collected in return for the consultancy services provided to the members,
c) donations, funds and aids granted at home and abroad,
d) proceeds gained from the movable and immovable assets,
e) advertising, promotion and publication revenues,
f) service share to be deducted on the sales value of the products marketed through the association,
g) other revenues.
The associations may not distribute dividends from their revenues to the members.
Expenditures of association
ARTICLE 12. — The expenditures of the association shall cover those for the activities carried out in line with the corporate purposes and those incurred to protect the rights and interests of the members.
Central associations
ARTICLE 13. — The associations may be organized as a central association at the national level on the basis of a product or product group.
The central association shall consist of at least seven agricultural producer associations operating on the same product or product group. No more than one central association may be established for the same product or product group.
The establishment of the central associations shall be subject to the provisions applying to the establishment of the agricultural producer associations.
The general assembly of the central association shall consist of one representative to be elected by the general assemblies of the member associations each.
The number of members of board of directors and auditors, tasks and responsibilities of thereof shall be set out in the by-laws.
Tasks and powers of the central associations
ARTICLE 14. — The tasks and powers of the central associations are:
a) to assist and guide their members in complying with production plans at national level concerning the product or product group in which they are engaged and with the rules relating to the marketing of their products,
b) to support, monitor and evaluate the activities of their members,
c) to represent their members at home and abroad,
d) to involve in the efforts of the Turkish Union of Agricultural Chambers on the basis of products and send a representative to function in the advisory board,
Revenues and expenditures of central associations
ARTICLE 15. — The central associations shall receive shares from the membership fee revenues of their member associations at such rates to be fixed by the general assembly. In any case, this amount shall not exceed ten percent of the membership fee revenues of the associations.
The expenditures of the central association cover those for the activities carried out in line with the corporate purposes and those incurred to protect the rights and interests of the members.
Tasks and powers of the Ministry
ARTICLE 16. —The powers and duties of the Ministry with regard to the associations are:
a) to perform the operations with respect to the establishment of the associations and central associations,
b) to inform and guide the associations and central associations within the framework of the international agreements, national plans and programs,
c) to support the efforts of the associations and central associations in technical terms and to supervise the central associations in technical terms,
Penal provisions
ARTICLE 17. — The penalties applicable to the Civil servants shall apply to the members and personnel involving in the organs which commit an offence with respect to the monies as well as the monetary instruments, bills and other property of the associations and their superior bodies or alter the balance sheets, reports and any other papers and books to constitute an offence or destroy the same in an intentional manner.
Auditing
ARTICLE 18. — The financial auditing of the associations and central associations shall be conducted by the certified financial consultants or independent auditing agencies before the meeting of the general assembly. The results of such auditing shall be made available to the members prior to the general meeting.
The procedures and principles relating to the identification of auditing agencies and auditing performance shall be laid down in a regulation to be introduced by the Ministry.
Exemption
ARTICLE 19. — All movable and immovable properties owned by the association, and purchasing, selling, building and uses thereof as well as all services and activities carried out by the association shall be exempt from all taxes, duties, charges and contributions except for the stamp duty.
Other applicable provisions
ARTICLE 20. — In case of matters for which no provision is made hereunder, the general provisions and the relevant provisions of the Associations Act No 2908 of 6/10/1983 shall apply.
Alignment of existing agricultural associations
ARTICLE 21. — The agricultural associations already existing on the effective date of this Act may operate under this Act, provided that they meet the procedures and principles set in the regulation to be introduced by the Ministry.
Regulations
ARTICLE 22. — The regulations provided for in this Act shall be prepared and put into force by the Ministry within six months from the effective date of this Act.
Effective date
ARTICLE 23. — This Act shall take effect on the date of publication.
Execution
ARTICLE 24. —The provisions of this Act shall be governed and executed by the Council of Ministers.
