UNOFFICIAL CONSOLIDATED VERSION LAW ON ASSOCIATIONS AND FOUNDATIONS OF BOSNIA AND HERZEGOVINA. Article 1

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1 Official Gazette of BiH, 32/01, 42/03, 63/08, 76/11, 94/16 UNOFFICIAL CONSOLIDATED VERSION LAW ON ASSOCIATIONS AND FOUNDATIONS OF BOSNIA AND HERZEGOVINA PART I: ASSOCIATIONS AND FOUNDATIONS I.1. General provisions Article 1 1. This Law shall regulate the following: the founding of associations and foundations, their organs and legal status, registration, assets, cessation of operations and deletion from the registry, changes of the statute and other issues pertaining to the work of associations and foundations that opt to register on the level of Bosnia and Herzegovina pursuant to this Law. 2. This Law shall regulate the registration of offices, branch offices or other types of organisations of foreign or international associations and foundations that opt to register pursuant to this Law on the level of Bosnia and Herzegovina. 3. Provisions of this Law shall apply to the registration of sport associations in Bosnia and Herzegovina, unless otherwise stipulated in a separate law. Article 2 1. Pursuant to this Law, an association is created by a common agreement in which a group of three or more natural or legal persons, in any combination, voluntarily associate to further a common interest or public interest, in compliance with the Constitution and the law, and who do not intend to gain profit. 2. Associations may enter into alliances or other types of organisations for the purpose of furthering their interest on a higher level (a higher-level association), unless otherwise specified in a separate law. 3. Higher-level associations shall enjoy all rights and freedoms granted to associations.

2 4. Associations and higher-level associations shall be free to associate and cooperate with international organisations founded with the purpose of furthering the same interests and rights. 5. A foundation is a legal person without its own members, intended to manage assets for the public benefit, or for charitable purposes. A foundation becomes a legal person of Bosnia and Herzegovina when it is registered in accordance with this Law. Article 3 1. Natural persons who are citizens of Bosnia and Herzegovina, foreigners who reside in Bosnia and Herzegovina and legal persons who are registered therein, shall be free to voluntarily associate into associations or foundations for any purpose in compliance with the Constitution and the laws of Bosnia and Herzegovina. 2. Associations and foundations shall be free to carry out their activities in the entire territory of Bosnia and Herzegovina regardless of where they have been registered. Article 4 1. An association or foundation may perform economic activities only if the principal purpose of such activities is pursuing goals specified in the statute. 2. An association or foundation may perform unrelated economic activities (economic activities that are not directly related to the implementation of main goals of an association or foundation specified in the statute) only through a separately established legal person. 3. Profit generated from an association s or foundation s unrelated economic activities can only be used for advancing goals specified in the statute. 4. The following persons shall not directly or indirectly obtain profits or other financial benefits gained through the activities of associations or foundations: founders, association members, members of managing bodies, responsible persons, employees or donors. 5. The limitation set out in the previous paragraph does not exclude reimbursing such persons for work or for expenses related to the implementation of lawful aims and activities as determined by the statute of the association or foundation. 6. The limitations set out in this Article shall not affect the assets of the association or foundation as referred to in Article 46 of this Law. Article 5 1. Associations and foundations shall be independent in determining their goals and activities in compliance with the Constitution and the law.

3 2. The activities and goals of an association or foundation may not contravene the constitutional order of Bosnia and Herzegovina, nor may they be directed at violating guaranteed human rights or instigating inequality, hatred or intolerance based on racial, national, religious or other affiliation or orientation. 3. The goals and activities of a registered association or foundation shall not include electioneering, fundraising for candidates, or financing candidates or political parties. 4. Associations and foundations shall submit annual and financial reports, in compliance with laws, other regulations and the statute. 5. Associations and foundations shall submit the financial report referred to in Paragraph 4 of this Article to the competent authorities in the territory where the association or foundation is registered, and to the Ministry of Justice of Bosnia and Herzegovina for publication on the Ministry s website, no later than 30 th April of the current year for the previous financial year. Article 6 The work of a registered association or foundation shall be public. Article 7 1. Every registered association or foundation shall have its full name and seat. 2. In performing their activities, registered associations and foundations may use only their registered names. 3. The name of a registered association or foundation must be in the three official languages and two scripts used in Bosnia and Herzegovina. 4. Along with its full name, an association or foundation may use an abbreviated name mentioned in the statute, which must be in the three official languages and the two scripts used in Bosnia and Herzegovina and contain the defining features of the full name of the association or foundation. 5. The name of an association or foundation may be in a foreign language, in which case it must be in Latin or Cyrillic script. 6. An association or foundation may take on the name or part of the name of a natural person, with prior consent, or the name of a deceased person, with prior consent of the descendants. An association or foundation may take on the name or part of the name of a historical or renown person, with prior consent, or if the person is deceased ensure appropriate usage of the name, with prior consent from the descendants, should there be any. 7. Should the name of an association or foundation be in a foreign language, in compliance with Paragraph 5 of this Article, an official translation of the name

4 in the three official languages used in Bosnia and Herzegovina shall be entered in the Registry. 8. An association or foundation may have a logo. 9. The name, abbreviated name or logo of a registered association or foundation must be clearly distinguishable from the name or logo of other registered associations or foundations. Article 7a Expressions in one grammatical gender shall refer to both the male and female gender. Article 8 1. An association or foundation shall be entered in the registry of associations and foundations kept by the Ministry of Justice of Bosnia and Herzegovina (hereinafter: Ministry). 2. The process of registration, changes to the entry in the registry and dissolution of an association or foundation shall be governed by this Law and the Law on Administrative Procedure. 3. An association or foundation shall become a legal entity on the day of registration. I. 2. ASSOCIATIONS I The Founding of Associations Article 9 1. An association may be established by at least three founding members. The founding members may be natural persons who are citizens of Bosnia and Herzegovina or foreigners who reside in Bosnia and Herzegovina, or legal persons registered therein. Natural and legal persons may found an association together, but there cannot be more than three founding members. 2. An association qualified for registration must be established through the enactment of a founding act.

5 3. Activities performed in the period between the establishment and registration of an association may create obligations only for those persons who actually performed the activities. 4. Unless otherwise specified in a separate law, founding act or statute, an association shall be deemed to have been established for an indefinite period of time. Article 10 An association may be registered only if its inaugural assembly adopts a founding act and the statute, and appoints the managing bodies in accordance with this Law. Article The founding act of an association shall contain: a) Full names or titles of the founders and their addresses; b) The name of the association; c) The seat and address of the association; d) The goals and activities of the association; e) Full name of the person authorized to represent the association in the process of applying for entry in the registry of associations; f) Full names and signatures of the founding members; g) Number and date of the founding act. 2. If the founder of an association is a legal person, the founding act shall be signed by its representative who shall add his/her own signature next to the full name of the legal person and its stamp. Article The statute of an association shall contain: a) Full name of the association, its abbreviated name (if there is any) and its address; b) The goals and activities of the association; c) The procedure for admission and dismissal of members; d) The organs of the association, the method of their election, their authority, their quorum and voting rules, the duration of their mandates, the person authorized to convene sessions of the assembly, the conditions and modalities of dissolution or cessation of operations. e) The rules for acquisition, use and disposal of assets of the association, as well as the body authorized to oversee the use of these assets;

6 e1) Manner of submitting financial reports and performance reports; f) Transparency of work; g) The procedure for amending the statute, authorization and method of enactment of other general acts; h) A description of the shape of the seal and its content as well as the association s logo; i) The representation of the association; j) The conditions and procedures for merger, separation or dissolution of the association, including any specific rules on quorum or qualified majority in the voting procedures; and k) The procedure for disposal of remaining assets in case of dissolution of the association or cessation of its operations. Article A registered association may implement programs and projects for the public benefit. 2. Public benefit programs or projects implemented by the institutions of Bosnia and Herzegovina shall refer to long-term or short-term comprehensive activities with a clear thematic focus that contribute to the society and raise the quality of life, i.e. contribute to social development. 3. The institutions of Bosnia and Herzegovina shall sign agreements with associations after publishing an open call for the implementation of public benefit programs and projects. 4. Public benefit activities particularly refer to: the promotion of human rights, the rights of people with disabilities, protection of children with developmental difficulties, the rights of national minorities, equality and anti-discrimination, protection from violence, activities of children and young people, combating different types of addiction, promoting volunteer work, humanitarian activities, social protection, environmental protection, protection of nature, health protection, art, education, culture and all other activities that may be deemed as being for the public benefit. 5. An association that has been granted funds to implement a public benefit program or project shall submit a report to the donor and inform the public via its website.

7 6. An association that has been granted funds to implement a public benefit program or project shall be entitled to receive tax breaks, custom exemptions and other benefits, in compliance with specific regulation. 1. Upon the Ministry s proposal, the Council of Ministers shall adopt a by-law stipulating the criteria for designing and implementing public benefit programs and projects carried out by associations. Article A registered association can merge or separate into another association. 2. Merger is the establishment of a new association that takes over all assets of three or more associations that are merging. Upon merger, these associations shall cease to exist and the same provisions regarding the establishment of an association stipulated in this Law shall apply to the registration of the newly established association. 3. An association may separate into two or more associations. Upon separation, the association shall cease to exist, and the same provisions regarding the establishment of an association stipulated in this Law shall apply to the registration of the newly established associations. 4. An association may establish offices, branch offices or subsidiaries in compliance with provisions in its statute. I.2.2. Membership Article A registered association may establish its own membership criteria, subject only to anti-discrimination provisions set out in the Constitution and laws of Bosnia and Herzegovina. 2. An association shall keep a record of its members. The records shall be kept electronically or in another suitable manner and shall contain: a) Full name or title of a member and the address; b) The date of joining the association and membership card number; c) Type of membership, in accordance with the statute; d) Date of termination of membership in the association; 3. The list of members must be available for inspection upon the request of competent authorities. 4. Any member of an association may initiate proceedings before the competent court to repeal a general act of the association that was adopted in violation to provisions of

8 the statute or other general acts of the association, no later than six months from the day when the said act was adopted. I.2.3. The Organs of an Association 1. An association must have an assembly. Article All members of the association shall make up the assembly and have equal voting rights, unless otherwise stipulated in the statute. 3. The statute may also provide for the establishment of other organs. 4. The assembly shall appoint one or more persons to represent the association in legal transactions, unless the statute foresees the establishment of a managing board or other organs. Article 17 In the case of a foreign or international association, it is sufficient for the association to have documents and organs, however named, that perform the functions defined by this law. Article 18 The assembly, as the highest organ of an association, shall be in charge of the following: a) Enactment of the statute, its amendments, and other acts determined in the statute; b) Deciding on the merger, separation or dissolution of the association, the establishment of other legal persons, as well as other changes in the status of the association; c) Appointment and dismissal of members of the managing board, if the association has such an organ; d) Adoption of the reports prepared by the managing board, if the association has such an organ; and e) Deciding on all other issues that are not under the authority of other organs of the association. Article 19

9 1. The managing board, or the person authorized to represent the association shall do the following: a) Prepare sessions of the assembly; b) Prepare drafts of the statute and other acts to be enacted by the assembly; c) Implement the policies, conclusions and other decisions made by the assembly; d) Manage the assets of the association; e) Submit annual or periodic performance reports to the assembly for adoption; and f) Perform other duties as determined in the statute. Article 20 DELETED I.3 FOUNDATIONS I.3.1 The Establishment of Foundations Article A registered foundation may implement programs and projects for the public benefit. 2. Public benefit programs or projects shall refer to long-term or short-term comprehensive activities with a clear thematic focus that contribute to the society and raise the quality of life, i.e. contribute to social development. Public benefit activities particularly refer to: the promotion of human rights, the rights of people with disabilities, protection of children with developmental difficulties, the rights of national minorities, equality and anti-discrimination, protection from violence, activities of children and young people, combating different types of addiction, promoting volunteer work, humanitarian activities, social protection, environmental protection, protection of nature, health protection, art, education, culture and all other activities that may be deemed as being for the public benefit. 3. The institutions of Bosnia and Herzegovina shall sign agreements with foundations after publishing an open call for the implementation of public benefit programs and projects. 4. A foundation that has been granted funds to implement a public benefit program or project referred to in Paragraph 2 of this Article shall submit a report to the donor and inform the public via its website. A foundation that has been granted funds to implement a public benefit program or project referred to in Paragraph 2 of this Article shall be entitled to receive tax breaks, custom exemptions and other benefits, in compliance with specific regulation.

10 5. Upon the Ministry s proposal, the Council of Ministers shall adopt a by-law stipulating the criteria for designing and implementing public benefit programs and projects carried out by foundations. 6. A registered foundation can merge or separate into another foundation. Merger is the establishment of a new foundation that takes over all assets of foundations that are merging. Upon merger, the foundations shall cease to exist and the same provisions regarding the establishment of a foundation stipulated in this Law shall apply to the registration of the newly established foundation. A foundation may separate into two or more foundations. Upon separation, the foundation shall cease to exist, and the same provisions regarding the establishment of a foundation stipulated in this Law shall apply to the registration of the newly established foundations. 7. A foundation may establish offices, branch offices or subsidiaries in compliance with provisions in its statute. Article A foundation may be established by one or more natural or legal persons (hereinafter: the Founders), whereas an association may be founded through a combination of natural and legal persons. The Founders need not be citizens of Bosnia and Herzegovina or legal persons from Bosnia and Herzegovina. 2. A foundation may be established by unilateral declaration, by contract, will, legacy or other appropriate legal act, which must contain all information necessary for the establishment and registration of the foundation. 3. A foundation must have a founding act, a statute and a managing board, or acts and organs that are substantially equivalent. In the case of a foreign or international foundation, it is sufficient for the foundation to have documents and organs, however named, that perform the functions described in this law. Article The founding act of a foundation shall include: a) The full names or titles of Founders and their addresses; b) The name of the foundation; c) The seat and address of the foundation; d) The goals and activities of the foundation; e) Cash or other assets, no lesser than two thousand convertible marks, provided by the Founders; f) The full name and address of the person authorized to apply for entry in the Registry; g) The full name and signature of the Founders; i) The number and date of the founding act.

11 2. If the founder of a foundation is a legal person, the founding act shall be signed by its representative who shall add his/her own signature next to the full name of the legal person and its stamp. 1. The statute of a foundation shall contain: Article 24 a) The full name, abbreviated name (if any), and the seat of the foundation; b) The goals and activities of the foundation; c) The organs of the foundation, the method of their election, their authority, quorum and voting rules, duration of mandate, the person authorized to convene sessions of the managing board, the conditions and modalities of dissolution or cessation of operations; d) Rules of management and the use of assets of the foundation; d1) Potential users of the foundation s funds; e) Procedures for amending the statute, as well as the authorisation and procedures for enactment of other general acts; f) Conditions and procedures for the merger, separation or cessation of operations of the foundation, including all voting rules that require special quorum or qualified majority votes; g) Criteria for the disposal of assets of the foundation in case it ceases operations; and h) The description of the shape and content of the foundation s seal, as well as its logo. I.3.2. The Organs of a Foundation Article The managing organ of a foundation is the managing board. 2. The statute of a foundation may also provide for other organs of the foundation. Article 26

12 1. The managing board of a foundation is responsible for achieving the goals and carrying out the activities of the foundation, and it may also perform other tasks as determined by the statute and in accordance with the law. 2. The managing board of a foundation shall have at least three members. 3. Members of the managing board of a foundation may be citizens of Bosnia and Herzegovina or foreign nationals, in accordance with the Law on Movement and Stay of Aliens and Asylum. 4. Members of the managing board cannot be: minors, individuals employed with the foundation, or members of other organs of the foundation. 5. The managing board of a foundation is in charge of: a) Enactment of the statute, its amendments, and other acts determined in the statute; b) Managing the assets of the foundation; c) Appointing persons authorized to represent the foundation; d) Decision on merger, separation or cessation of operations of the foundation, as well as other changes in the status of the foundation; e) Preparing financial and other reports; and, d) Decision on all other issues that are not under the authority of other organs of the foundation. Article 27 DELETED I.4. REGISTRATION OF ASSOCIATIONS AND FOUNDATIONS Article Registration of associations and foundations shall be voluntary. 2. The registry of associations and foundations shall be kept by the Ministry, in compliance with provisions of this Law. 3. The registry of associations and foundations shall also be kept electronically, for associations and foundations registered with the Ministry. 4. The registry shall be open for public scrutiny. Any person shall be entitled to request in person or by mail a copy of an entry from the registry or any other document from

13 the application file, in compliance with the Law on Freedom of Access to Information of Bosnia and Herzegovina. 5. By way of derogation from Paragraph 4 of this Article, the authorized representative of an association or foundation may request from the Ministry to withhold certain information in the registry from the public, if it represents a risk to the personal integrity of the Founders or members of the association or foundation. The Ministry shall decide on the request in a separate decision. 6. By way of derogation from Paragraph 5 of this Article, copies of personal documents (ID cards, passports, etc.) of the Founders and members of any organ of an association or foundation shall not be available to the public. Article 29 DELETED Article When two or more associations or foundations register essentially the same names or logos, the Ministry shall issue a decision, either ex officio or upon the request of a party, directing the subsequently registered association or foundation to: a) Submit a request to change its name, abbreviated name or logo in the registry, no later than thirty days from the day of receiving the decision, and b) If it fails to submit the request within the prescribed deadline, it shall be removed from the registry of association and foundations. 2. The decision referred to in Paragraph 1 of this Article shall be delivered to all parties involved. 3. The decision referred to in Paragraph 1 of this Article cannot be appealed, but it may become subject to administrative proceedings. 4. If an association or foundation fails to comply with provisions from Paragraph 2 of this Article, the Ministry shall issue a decision to remove the entry from the registry of associations and foundations. 5. The decision referred to in Paragraph 4 of this Article cannot be appealed, but it may become subject to administrative proceedings. Article 31

14 1. An application for registration of an association or foundation shall be submitted by the person authorised to do so through the founding act of an association or foundation, and it shall contain: a) Minutes from the inaugural assembly; b) The founding act; c) The list of Founders; d) Verified copies of ID cards or passports of Founders or the decision on registration from the registry for legal persons; e) Two copies of the Statute; f) A statement in which the person submitting the application declares under penalty of perjury that the association or foundation has not been registered with another registration body in Bosnia and Herzegovina; g) Decision on appointing the organs of the association or foundation; h) Full name and address of the person authorized to represent the association or foundation; i) A copy of the logo, if any, of the association or foundation; j) Consent form referred to in Article 7 Paragraph 6 of this Law; k) Proof referred to in Article 23 Paragraph 1 Item e), for foundations only; l) Other proof as stipulated in the statute of an association or foundation. 2. The form and manner in which the application is to be submitted shall be established by regulations of the Ministry. Article Upon receiving the application for registration, amendments to the entry or removal of information from the registry, the Ministry shall issue a confirmation of receipt. The Ministry shall be obligated to issue a decision no later than 30 days from the day the application was submitted. 2. In case factual information entered in the registry has changed, the registered association or foundation cannot participate in any legal transactions before the issuing of the decision, i.e. before the amendments to the entry have been made. Article The decision on registration of an association or foundation shall contain: a) The number and date; b) Registration number; c) The full name and abbreviated name (if any); d) The address; e) Description of the logo of the association or foundation, if any; f) Goals and activities; g) Full names of persons authorized to represent the association or foundation in legal transactions;

15 h) Acquiring the status of a legal entity. 2. In addition to the decision on registration of an association or foundation, the Ministry shall also deliver a verified copy of the statute. Article If during the registration process the Ministry establishes, based on the application and other acts, that the association or foundation does not fulfil the requirements set out in this Law, or that the application for registration is incomplete, the Ministry shall notify the applicant and shall state the reasons for not carrying out the registration. The applicant shall have 30 days to complete or amend the application, starting from the day of receiving the notification. If the applicant fails to address these issues within the prescribed period, the Ministry shall issue a decision rejecting the application for registration. 2. If the Ministry finds that the goals and activities of the association or foundation contravene the provisions of Article 5 of this Law, the Ministry shall issue a decision refusing the application for registration and shall state the reasons for the refusal. Article 35 Decisions referred to in Articles 33, 34, 43 Paragraph 2, 45 and 51 of this Law are final and cannot be appealed, but they may become subject to administrative proceedings before the Court of Bosnia and Herzegovina. Article An association or foundation shall notify the Ministry of any changes of information in the registry, no later than 30 days from the day when the change was made. 2. The Ministry shall issue a decision approving the changes of information in the registry, in compliance with Article 32 of this Law. Article 44 Decisions on registration of associations and foundations, decisions on changing the information in the registry, as well as decisions on the cessation of operations of an association or foundation shall be published in the Official Gazette of Bosnia and Herzegovina, at the applicant s expense, as well as the Ministry s website. Article Legal provisions regulating the registration of associations and foundations shall apply also to the registration of offices, branch offices or other types of organisations of foreign

16 and international associations and foundations, or other international organisations, unless otherwise stipulated by law (hereinafter: foreign non-governmental organisations). 2. An application for registration shall contain the following: a) Proof that the foreign non-governmental organisation is in the registry of its country of origin; b) The document on opening an office, branch office or other types of organisations in Bosnia and Herzegovina; c) Full name and address of the person authorized to represent the non-governmental organisation in Bosnia and Herzegovina (verified copy of an identification document of the authorized person); d) seat and address of the office in Bosnia and Herzegovina. 3. If laws in the country of origin do not require entry in the registry, the foreign nongovernmental organisation shall submit another document when applying for entry in the registry. The document must be verified by the competent authorities and prove that the organisation is a legal entity in its country of origin. 4. If the decision on entry in the registry in the country of origin does not contain information about the goals and activities specified in the statute of the association, the statute or another internal act clearly detailing the goals of the foreign nongovernmental organisation shall be submitted with the application for entry in the registry. 1.5 ASSETS OF ASSOCIATIONS AND FOUNDATIONS Article 46 Revenue of an association or foundation may include: a) Membership fees for associations; b) Voluntary contributions and gifts from public institutions, natural and legal persons, both domestic and foreign, in cash, services or assets of any kind; c) State subsidies and contracts with the state, public institutions, natural and legal persons, both domestic and foreign; d) Revenue from interest, dividends, capital gains, rents, fees and similar sources of passive income; and e) Revenue acquired from achieving the goals and implementing the activities of an association or foundation, as defined by its statute.

17 2. If Founders of an association or foundation are public bodies, they cannot participate in open calls for funding from the public budget. They must fund their programs and projects from other sources, in compliance with provisions of this Law. Article A registered association or foundation shall be obligated to keep its business records and prepare financial reports in accordance with generally accepted accounting principles for non-profit organisations. An association or foundation shall submit annual financial reports to the assembly or the managing board, in compliance with provisions in the statute. 2. An association or foundation shall be obligated to keep the financial report referred to in Paragraph 1 of this Article for a minimum of five years, unless a longer retention period is specified in a separate regulation. 3. An association or foundation must make all information regarding its work and activities available for public scrutiny, in accordance with legal provisions. 4. An association or foundation shall dispose of its assets as it sees fit. 5. An association or foundation may declare bankruptcy. Bankruptcy proceedings shall be managed by the competent court with territorial jurisdiction over the registered seat of the association or foundation, in compliance with relevant laws. 6. Members of the association or the competent body constituted through the statute shall oversee the work of the organisation. If any violations of the statute become apparent, members of the association and the competent body shall be obligated to inform the assembly. If the violation is not discussed nor addressed at an assembly session within 30 days from the day of delivering the written notification, a lawsuit may be filed before the competent court, in accordance with Article 15 Paragraph 3 of the Law. 7. The competent body of the foundation constituted through the statute shall oversee the work of the foundation. If any violations of the statute become apparent, the competent body of the foundation shall be obligated to inform the managing board. If the violation is not discussed nor addressed at a meeting of the managing board within 30 days from the day of delivering the written notification, a lawsuit may be filed before the competent court. 8. The Ministry s Administrative Inspector may inspect the work of an association or foundation registered in accordance with this Law, in order to determine the following:

18 a) Whether the association or foundation reports changes to the statute, goals and activities, the name, the address, persons authorized to represent the association and foundation or the cessation of operations of the association or foundation; b) Whether the association or foundation is using information not entered in the registry when performing legal transactions; c) Whether the association or foundation is using the name entered in the registry; d) Whether assembly sessions or meetings of the managing board are held; e) Whether the association or foundation delivers financial reports referred to in Article 5 Paragraph 5 of this Law to the Ministry; f) Whether the association keeps a list of its members in accordance with provisions of this Law, and g) Whether the association or foundation has ceased to exist in accordance with Article 51a of this Law. 9. While inspecting the work of an association or foundation, the inspector shall be obligated to do the following: a) Set a deadline for addressing any mistakes or oversights; b) Issue a mandatory misdemeanour report; c) Inform the State Investigation and Protection Agency if there is suspicion of money laundering or terrorism financing. 10. The inspector shall be obligated to inform the registration organ of any measures referred to in Paragraph 9 of this Article, for the purpose of entry in the Registry. 11. Overseeing an association s or foundation s compliance with legal provisions shall be in the authority of government organs in charge of overseeing compliance in that particular area of activity and in the territory where an association or foundation is registered as having its seat. Article 48 Organs of a registered association or foundation shall be obligated to manage the assets of an association or foundation in a responsible, diligent and lawful manner, and in the best interest of the association or foundation. I.6 VOLUNTARY AND INVOLUNTARY DISSOLUTION OF ASSOCIATIONS AND FOUNDATIONS Article 49 An association or foundation may dissolve voluntarily or, under conditions set out in this Law, may be dissolved involuntarily.

19 Article A registered association or foundation can dissolve voluntarily through a decision of its competent body. 2. Unless otherwise provided by the statute, a decision to dissolve voluntarily requires a qualified majority of two-thirds of the votes of an association s members, or twothirds of the votes of a foundation s managing board. 3. In case of voluntary dissolution of a registered association or foundation, the association or foundation shall adopt a liquidation plan consistent with its statute and this Law. Article 51 An association or foundation shall be removed from the registry once the decision on the cessation of operations of an association or foundation issued by the Ministry becomes final, or when the Court of BiH adopts a final ruling to suspend an association or foundation. Article 51.a 1. An association or foundation shall cease operations if: a) The competent body of the association or foundation adopts a decision on dissolution or a decision on merger or separation of the association or foundation; b) It is determined that the association or foundation has ceased to perform its activities. 2. An association or foundation shall be deemed as having ceased performing its activities if: a) An assembly session or meeting of the managing board has not been held in twice the time set out in the statute for holding assembly sessions and meetings of the managing board; b) The number of members of an association drops below three and the competent body of the association does not adopt a decision on admitting new members within three months from the fact; c) The number of members of a foundation s managing board drops below three; d) It is impossible to change the foundation s statute. 3. The person authorized to represent an association or foundation shall be obligated to deliver to the Ministry a document proving the cessation of

20 operations of the association or foundation no later than 30 days from the day when the association or foundation ceased to operate under Paragraph 2 of this Article. 4. Once the Ministry confirms the facts referred to in Paragraph 1 and 2 of this Article, it shall issue a decision on the cessation of operations of an association or foundation. Article 51.b 1. An association or foundation shall be suspended if: a) An association or foundation contravenes provisions of Article 5 Paragraph 2 and 3 of this Law; b) An association or foundation continues to carry out activities that violate the goals set out in the statute, even after being penalized for it (Article 53 of this Law); c) An association or foundation continues to violate provisions of this Law, even after being penalized for it (Article 53 of this Law); d) The requirements from Article 30 Paragraph 5 of this Law have been met. 2. The proceedings for suspending an association or foundation shall be initiated before the Court of Bosnia and Herzegovina by the authorities in charge of overseeing the work of associations and foundations. Article 51c. 1. The Court of Bosnia and Herzegovina shall pass a ruling on suspending an association or foundation. 2. The suspension ruling shall include measures regarding the disposal of assets, as well as all other necessary measures. 3. Provisions of the law regulating criminal proceedings shall apply to the proceedings for suspending an association or foundation initiated under Article 5 Paragraph 2 of this Law. Article 52 Upon dissolution or cessation of operations and the settling of debts, the remaining assets of an association or foundation shall be transferred in accordance with the statute to another registered association or foundation with similar goals and activities. PART II: PUNITIVE PROVISIONS

21 Article The Ministry may impose a fine ranging from BAM and 3, BAM against an association or foundation for: a) Performing activities that deviate from the goals and activities of the association or foundation; b) Failing to use its registered name in legal transactions; c) Failing to report changes to the entry in the registry within 30 days from when the changes were made; d) Using the profit from economic activities contrary to the law and the statute; 2. The Ministry shall impose a fine ranging from BAM to 1, BAM against the authorized representative of an association or foundation for acts referred to in Paragraph 1 of this Article. PART III: TRANSITIONAL AND FINAL PROVISIONS Article An association or foundation registered prior to the enactment of this Law that wants to register under this Law, shall be obligated to harmonize its documents with the provisions of this Law and submit the new registration documents to the competent ministry no later than six months from the day when this Law enters into force. 2. An association or foundation registering under the conditions referred to in the preceding paragraph shall be exempt from paying administrative fees. Article From the day of entry into force, any association or foundation required to register under this Law that has commenced but not completed the registration procedure before other authorities in Bosnia and Herzegovina, shall be allowed to withdraw from the said procedure and proceed instead with the registration in accordance with provisions of this Law. 4. Associations and foundations referred to in the previous paragraph shall be entitled to reimbursement of any fees already paid during registration before other authorities.

22 Article The regulation on registering associations and foundations of Bosnia and Herzegovina, foreign international associations and foundations, as well as other non-profit organisations shall be harmonized with provisions of this Law no later than 60 days from its entry into force, and published in the Official Gazette of BiH. 6. The regulation shall regulate the form and content of the registry of associations and foundations of Bosnia and Herzegovina, foreign and international associations and foundations, as well as other non-profit organisations, rules for entry in the registry and managing the registry, rules for submitting the request to amend information in the registry and the form of this request, rules for managing the record books, rules for keeping the registry, issuing registration certificates as well as other issues pertaining to managing the registry and the entries. Article 56a. 1. The Ministry shall invite associations and foundations that have acquired the status of a public benefit association or foundation to harmonise their acts with provisions of this Law, in accordance with the Law on Associations and Foundations of Bosnia and Herzegovina, no later than 60 days from the law s entry into force. 2. Upon the Ministry s proposal, the Council of Ministers shall adopt a by-law no later than 90 days from the day when this Law enters into force, regulating the criteria and requirements for designing and implementing public benefit programs and projects carried out by associations and foundations. Article 57 This Law shall enter into force eight days after being published in the Official Gazette of Bosnia and Herzegovina.