A new law that will streamline the operations and better protect capital base of thousands of members of various cooperative societies, has come into effect in Saudi Arabia.

According to reports from Saudi Gazette, more than 160 cooperative societies with a total of 140,000 members will come under the new law.

The law, passed by the Council of Ministers chaired by Custodian of the Two Holy Mosques King Abdullah, is meant to increase the effectiveness of these cooperative societies, said Minister of Social Affairs Abdul Mohsen Al-Akass.

Under the new law, each society should have no fewer than 12 members, the share of each of whom should not exceed 10 percent of the society’s capital.

Another provision indicates that the society’s membership is open to every individual as long as he meets the conditions defined in the bylaw.