Posted by / Thursday 19 October 2017 / No comments

How to form a co-operative society

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.  

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.

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