Information On Formation Of A Cooperative Society

LAGOS STATE COOPERATIVE FEDERATION (LASCOFED)

Lagos state cooperative Federation is the Apex body of all cooperative societies in Lagos state with the vision to make Cooperative Movement a reference point for economic empowerment programmes.

  1. DEFINITIONS OF A COOPERATIVE SOCIETY
  2. According to International Labour Organization (ILO)

A Cooperative society is an association of persons, usually of limited means, who voluntarily, democratically come together to achieve a common economic and social objectives of its members by making an equitable contribution to the risk and benefits undertaking.

  1. According to International Cooperative Alliance (ICA) on 25th September, 1995.

A cooperative is an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned and democratically-controlled enterprise.

POINTS TO UNDERSTAND FROM THE DEFINITIONS

  1. Autonomous Association
  2. Voluntary Association
  • Democratic Control
  1. Equitable Contributions
  2. Meeting individual’s economic, social and cultural needs.

 

  1. VALUES OF COOPERATIVE
  2. Self-help
  3. Self-responsibility
  • Democracy
  1. Equality
  2. Equity and solidarity.

 

  1. MOTTO FOR COOPERATIVE MOVEMENT

“Each for All and All for Each”.

  1. THE 3 TIERS OF COOPERATIVE SOCIETIES
  2. Primary Society: This refers to a unit cooperative society at the grass root level. This society could either a community based or an industrial based cooperative society.
  3. Secondary Society: This is the combination of different primary societies to form a Cooperative Union.
  • Apex Society: This refers to cooperative at the tertiary level for which Lagos State Cooperative Federation stands for. It is the combination of all the cooperative unions in the state.
  1. COOPERATIVE PRINCIPLES
  2. Voluntary and Open Membership
  3. Democratic Member Control
  • Member Economic Participation
  1. Autonomy and Independence
  2. Education, Training and Information
  3. Cooperation Among Cooperatives
  • Concern for Community for Sustainable Growth and Development.
  1. TYPES OF COOPERATIVE SOCIETY
  2. Cooperative Thrift and Credit Society (CTCS).
  3. Cooperative Multipurpose Society (CMS).
  1. COOPERATIVE THRIFT AND CREDIT SOCIETY: This society under Cooperative Bye-Law is only allowed to collect savings and to issue loan to members as at when due.
  1. COOPERATIVE MULTIPURPOSE SOCIETY: This society is engaged in more activities than collection of savings and issue loan. It can venture into businesses, buy and sell goods or properties to members or the general public.
  1. COOPERATIVE BYE-LAW

This can be referred to as the policy established to guide the activities of a cooperative society. It is expected of every cooperative society to have a bye-law which is binding on the society.

  1. SOCIETY’S NAME

The captioning of the society’s name should include the following:

  1. The name of the cooperative society.
  2. The name of the geographical area should be included in a closed bracket in the society’s name.
  • The society’s name must indicate either the society is a Cooperative Thrift & Credit Society (CCTCS) or Cooperative Multipurpose Society (CMS).
  1. The name of the cooperative society must end with the word “Limited”.
  1. MEMBERSHIP
  2. A registered cooperative society can only have a minimum number of 10 members.
  3. Anyone who is interested in joining the society must write an application to that effect.
  • ENTRANCE FEE: Every member of a cooperative society is expected to pay a unified amount of money as an entrance fee. This is statutory and the amount must be based on the agreement of the general meeting. The fee is non-refundable and it is an income to the society.
  1. NOMINEE FORM: It is expected of individual member of a cooperative society to fill a nominee form. The form allows an individual member to give the society the name and a brief information about the person that he/she would like to receive on his/her behalf, his/her due benefits in the society in case of death, insanity or other unforeseen contingency.
  2. MONTHLY SAVINGS: Every member of a cooperative society must be an economic member of the society through a monthly financial commitment. Each member is liable to make a monthly saving with the society as convenient for him/her.
  3. SHARE CAPITAL: It is very important that every member of a cooperative society pays a share capital most especially members of cooperative multipurpose societies. This stands as members’ ordinary shares in the society’s investment(s).
  • COOPERATIVE SOCIETY MEETING: Cooperative societies hold a number of meetings and every member is expected to attend meetings regularly. These are:
  1. Ordinary General meeting.
  2. Special General Meeting.
  3. Annual General Meeting.
  1. QUORUM

This means that the presence of at least one third of the members of a cooperative society shall form a quorum at meetings.

  1. ELECTION OF OFFICERS

The officers of a cooperative society must be elected officers. The election must be conducted at any of the above stated meetings as the need arises. The election is conducted on the ground of the cooperative principle of Democratic Members Control “One man one vote”.

The cooperative officers are:

  1. President
  2. Vice President
  • General Secretary

  1. Financial Secretary
  2. Treasurer

The society can decide to have more elected officers but the decision has to be based on the agreement of the general meeting and must reflect in the society’s bye-law.

Note: The president, General Secretary and one other member of the management which is usually the Treasurer are the trustees of a cooperative society and they stand to be the signatories to the society’s bank account