Posted by Chester Morton / Thursday 19 October 2017 / No comments
How to form a co-operative society
CO-OPERATIVE SOCIETY
Definition
Co-operatives describes a form of business organisations where a group of consumers or producers come together voluntarily or out of their free will to form an association with the aim to produce, distribute or consume a particular good or service. A co-operative can therefore be seen both as a business organization and an association. In a co-operative, the owners are united often by the fact that they have a common interest. One main reason why people form co-operative is because they believe that by coming together, they can better protect their interest.
HOW TO FORM A CO-OPERATIVE SOCIETY
Required number of people
First of all, there must be adequate number of people who have the intention of constituting a co-operative. The people must be at least ten in number.
Write agreement to form a co-operative
The members must write an agreement to the effect that they want to form a co-operative. This agreement, which may be referred to as a resolution must contain the nature of business the co-operative would like to engage in, the kind of co-operative they seek to operate and how they intend
to raise money for their activities as well as how much is their starting capital.
Deposit agreement with Director of Co-operative
This agreement or resolution must be signed and deposited with the Director of Co-operative. If the Director is satisfied that the agreement does not violate any laws concerning how to form such a c-operative, he/she may issue a certificate for the co-operative to begin its business activities.
Publication and gazetting of name
The name of the co-operative is subsequently published and gazetted.
Appointment of Directors
Once it is formed, the co-operative must appoint it directors from among its members. The co-operative must also have an auditor who audits its accounts from time to time.
