Cooperative
Societies are a powerful and effective tool for wealth creation and investment.
Many people have heard about them, but only few understand them and the immense
opportunities they offer. Cooperatives have the capacity to reduce poverty,
enhance job creation, encourage savings, reduce business risk and improve
national productivity.
A
Co-operative Society is an autonomous and voluntary association of individuals
who come together with the objective of owning common property, and promoting
the economic interest of its members.
Different
countries have regulatory authorities for cooperative societies. However, those
Federal Law grants powers to the certain to establish a Directorate for
Cooperatives which will be in charge of registering and regulating
cooperatives.
Application for Registration
An Application for registration shall be made to the Director of Cooperatives and shall be signed by at least ten individuals qualified for membership of the society. All applications for registration must be accompanied by the Bye-Laws of the applicant Co-operative Society which are the rules and regulations which govern the affairs of the Co-operative Society.
An Application for registration shall be made to the Director of Cooperatives and shall be signed by at least ten individuals qualified for membership of the society. All applications for registration must be accompanied by the Bye-Laws of the applicant Co-operative Society which are the rules and regulations which govern the affairs of the Co-operative Society.
The
Director of Co-operatives has the authority to refuse to register a
Co-operative Society where such an Applicant Society’s Bye-Laws, for example,
do not comply with the provisions of the Co-operative Societies Rules.
Benefits of Registering a Co-operative Society
• Upon registration a Cooperative Society becomes a legal entity with the right to sue or be sued in its corporate name and assumes capacity to enter into contracts or agreements.
• Cooperatives can own movable and immovable property, of any description, in its corporate name.
• Profit and Gains made from trading or business activities of Cooperative Societies is exempted from Corporate Tax Liabilities
• A cooperative society has a separate legal entity. Hence, the death, insolvency, retirement, lunacy, etc., of the members do not affect the perpetual existence of a cooperative society.
• Government has adopted cooperatives as an effective instrument of socio-economic change. Hence, the Government offers a number of grants, loans and financial assistance to the cooperative societies
• The management of cooperative society is entrusted to the managing committee duly elected by the members on the basis of ‘one-member one -vote’ thus making the model democratic.
• Upon registration a Cooperative Society becomes a legal entity with the right to sue or be sued in its corporate name and assumes capacity to enter into contracts or agreements.
• Cooperatives can own movable and immovable property, of any description, in its corporate name.
• Profit and Gains made from trading or business activities of Cooperative Societies is exempted from Corporate Tax Liabilities
• A cooperative society has a separate legal entity. Hence, the death, insolvency, retirement, lunacy, etc., of the members do not affect the perpetual existence of a cooperative society.
• Government has adopted cooperatives as an effective instrument of socio-economic change. Hence, the Government offers a number of grants, loans and financial assistance to the cooperative societies
• The management of cooperative society is entrusted to the managing committee duly elected by the members on the basis of ‘one-member one -vote’ thus making the model democratic.
Tips for a running a successful Community Cooperative Society
Set the rules: It’s mandatory for Cooperatives to have a registered bye-law which would detail subjects like constitution of management committee, tenure of management committee, contributions, procedure for disbursing money, procedure for doing business with third parties, meetings, book keeping and accounts, dispute resolution procedure etc. Bye Laws ensure fairness and accountability among members and reduces abuse to barest minimum.
Set the rules: It’s mandatory for Cooperatives to have a registered bye-law which would detail subjects like constitution of management committee, tenure of management committee, contributions, procedure for disbursing money, procedure for doing business with third parties, meetings, book keeping and accounts, dispute resolution procedure etc. Bye Laws ensure fairness and accountability among members and reduces abuse to barest minimum.
Due Diligence
To minimize or
eliminate the risk of losing money, it is important that cooperatives
investigate any investment or business opportunity before making the decision
to invest or engage in the business. It is also important for a Cooperative
Society to engage the right professionals to advice members on every business.
Do
you desire to enhance your income source and quickly attain financial freedom.
Use the cooperative society platform. We can assist you to get your cooperative
registered and up and running. Contact us on 09012424030, email: greenviewsuites@gmail.com.
