Civil Code > TITLE IX. COLLECTIVE EXPLOITATION OF PROPERTY 4

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Chapter 3. Official associations of landowners

Section 1. Formation of association

Art. 1501.- Areas of improvement.

Where considerable works are to be done in a given area in consequence of which the value of the parcels of lands situate within such area will be altered, such area may be declared to the an improvement area by Imperial Decree and the landowners within the area may by the same Decree be constituted into an official association of landowners.

Art. 1502.- Formation by owners.

The owners of land within a given area may of their own motion constitute themselves into an association of landowners for the purpose of exploiting such area collectively or doing within such area collective works for its improvement.

Art. 1503.- Application for approval.

An association of landowners which consist of not less than one half of the owners holding not less than one half of the land situate I the area concerned may require the Ministry of Agriculture to approve it and to grant it the character of an official association.

Art. 1504.- Inquiry.

The Ministry of Agriculture shall consult with all the landowners concerned with a view to establishing whether the economic and social advantages which an association is expected to produce are such as to justify any modification of rights of ownership which its activities may render necessary.

Art. 1505.- Draft charter.

(1) Where the inquiry results in conclusions favorable to the granting of official approval, the Ministry of Agriculture shall draw up a preliminary draft of the charter.

(2) All interested parties shall be invited to make observations on such draft.

(3) The final draft shall be drawn up by the Ministry of Agriculture within six months from the preliminary draft having been drawn to the notice of the landowners concerned.

Art. 1506.- Grating of approval.

Approval of official associations shall be granted by a notice published in the Negarit Gazeta by the Ministry of Agriculture.

Art. 1507.- Contents of Decree or notice.

(1) A decree under Art. 1501 or a notice under Art. 1506 shall specify in a precise manner the area within which the association shall carry out its activities.

(2) It shall contain approval of the charter of the association.

Art. 1508.- Control of associations.

Official associations of landowners shall carry out their activities under the control of the authorities of the province in which the land or the majority of land comprised in the area specified in the Decree or notice is situate.

Section 2. Functioning of association

Art. 1509.- Meetings of association. 1.- Principle.

(1) All the owners of land situate within the area specified in the Decree or notice shall as of right be members of the official association.

(2) They shall form the general meeting of the association.

Art. 1510.- 2. Meetings.

(1) The general meeting of the association shall meet every year at such time and place as are fixed by the charter.

(2) Other meetings may be convened from time to time by the managers for urgent business or where one fifth of the members of the association so require.

Art. 1511.- 3. Decisions.

Decisions shall be taken at meetings by a majority vote of the members who are present or represented.

Art. 1512.- Managers.

(1) The meeting shall appoint and dismiss the managers of the association and supervise their activities.

(2) Those provisions in the Title of this Code relating to “Bodies Corporate and property with a specific destination” which apply to the directors of ordinary associations (Art. 426-428) shall apply to the managers of an association of landowners.

(3) The provisions of the same Title which relate to the powers and liability of the directors of ordinary associations (Art. 429-435) shall apply to the powers and liability of the managers of an association of landowners.

Art. 1513.- Amendment of charter.

(1) Only such provisions in the charter which the charter itself declares to be capable of modification may be amended by the meeting.

(2) No other provisions in the charter may be amended except with the written permission of the Ministry of Interior.

Art. 1514.- Appeal against decisions of meeting.

(1) Notwithstanding any provision to the contrary, any member of the association may appeal to the court against any decision taken at a meeting where such decision is contrary to the law or the charter and the has not agreed to such decision.

(2) The right of appeal shall be barred if no exercised within six months from the member having known of the decision and in any case within two years from such decision having been executed

(3) The court may stay the execution of the decision pending appeal.

Art. 1515.- Duties and representation of the association.

(1) The association may enter into agreements through its representatives.

(2) It may in the same manner sue or be sued.

(3) The provisions of the Title of this Code relating to “Extra-contractual Liability and Unlawful Enrichment” (Art. 2027-2178) shall apply to associations of landowners as they apply to ordinary associations.

Art. 1516.- Ownership of land.

The charter shall specify whether the members of the association shall retain the ownership of their land or whether such ownership shall pass to the association.

Paragraph 1. Where private ownership is maintained

Art. 1517.- Principle.

(1) Unless the charter provides to the contrary, the members of the association shall retain the ownership of their land.

(2) They shall exercise their rights in ownership subject to the provisions of the following Articles.

Art. 1518.- Restrictions on rights in ownership

The association may restrict the rights of the owners of land situate within the area to the extent necessary for the collective exploitation of the area or for the doing of works authorized by the notice published in accordance with Art. 1506.

Art. 1519.- Compensation.

The owner whose rights are restricted under Art. 1518 or whose land is charged with a servitude shall be entitled to compensation.

Art. 1520.- Amount of compensation.

(1) The association shall be liable for the payment of the compensation provided by Art. 1519.

(2) The amount of such compensation shall be fixed by the meeting of the association.

(3) The owner concerned may appeal to the court against the amount thus fixed within three months from having been informed of the decision of the meeting.

Art. 1521.- Surrender of land.

(1) An owner may relieve himself of the obligation to pay such contributions as may be required from him by the association by surrendering his land to the association or such other person as may be designated by the association.

(2) The association shall in such a case forthwith reimburse to the owner the value of his land.

(3) The owner may object to any work being done on his land until he is reimbursed.

Art. 1522.- Value of land.

(1) In fixing the value of the land under Art. 1521, regard shall be had to the provisions of the charter.

(2) Failing such provisions, the value shall be fixed by an appraisement arbitration committee in accordance with the provisions of Chapter 1 of this Title (Art. 1473-1476).

Paragraph. 2. Where ownership passes to association

Art. 1523.- Time of transfer of ownership.

Where the charter provides that the land situate within the area where the association carries out its activities shall become the property of the association, the ownership of such land shall be transferred to the association at the time when the notice is published in accordance with Art. 1506.

Art. 1524.- Effect of transfer.

(1) The rights which owners or usufracturaries enjoyed on the land prior to its being transferred to the association shall be replaced by a right in ownership or usufruct in a share in the property owned by the association..

(2) Servitudes charging land the ownership of which is transferred to the association shall remain in existence after transfer.

(3) Without prejudice to the provisions of the charter protecting the rights of all interested parties, mortgages or rights or pre-emption or recovery existing on land the ownership of which is transferred to the association shall lapse.

Art. 1525.- Value of share.

The value of the share referred to in Art, 1524 shall be fixed by the charter having regard to the value of the land at the time when the charter is drawn up.

Art. 1526.- Appraisement of land. -1. Principle.

The value of the land shall be fixed on an uniform basis, having regard to the average value of the hectare in the relevant area.

Area. 1527.- 2. Adjustment of value.

(1) The amount assessed under Art. 1526 shall be adjusted having regard to the nature of the land, the facilities it offers for individual exploitation and the value of the works or constructions done by the owner and which become the property of the association.

(2) The provisions of sub-art. (1) shall not apply unless the land concerned was exploited prior to being transferred or works had been done to facilitate its exploitation or increase its yield.

Art. 1528.- Rights and duties of associations.

(1) TH association shall have on the land or other property it owns the

(2) It shall have the same duties as an individual owner.

Art. 1529.- Exploitation of land.

(1) The general meeting of the association shall determine the manner in which the land belonging to the association shall be exploited.

(2) It shall fix in accordance with the charter the rights and duties of the members of the association.

Art. 1530.- Assignment or attachment of share.

(1) The members of the association may assign their share in the property of the association for consideration or by gratuitous title.

(2) They may on their death transmit their share to their heirs or legatees

(3) There share may be attached by their personal creditors.

Art. 1531.- Davison of share.

The charter may provide that shares may not be divided or lay down restrictions regarding the division of shares.

Art. 1532.- Consent of association.

(1) The consent of the association shall be sought by the assignee, legatee or purchaser of a share unless he be the spouse or descendant of the person from whom he received the share.

(2) Notwithstanding any proof to the contrary, the consent of the association shall be deemed to have been obtained where the association does not notify its refusal within three months from the person concerned having required the consent of the association or having participated in the capacity of member in a meeting of the association.

Art. 1533.- Consent refused.

(1) Where it refuses to give its consent, the association shall, if so required, inform the person concerned of its intention to buy the share or name to such person a solvent buyer approved by the association.

(2) The person concerned may retain his share where the association fails to give him notice or to name a buyer within three months.

Art. 1534.- Conditions of assignment.

(1) The person to whom notice has been given or a buyer named in accordance with Art. 1533 shall assign his share to the association or other buyer.

(2) The price to be paid for the share shall be fixed in accordance with the provisions of the charter.

(3) Failing such provisions,. It shall be fixed by arbitrators.

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