WHAT IS A CO-OPERATIVE?

"The people's welfare can best be secured by institutions organized by the people themselves, because these institutions are most likely to possess the characteristics that appeal to the people and therefore the stability to perpetuate their services"- Alphonse Desjardins.

What is a Co-operative?

A co-operative is define as an autonomous association of persons united voluntary to meet their economic, social, cultural needs and aspirations through a jointly-owned and democratically controlled enterprise. A co-operative may also be defines as a business owned and controlled equally by the people who use its services or who at it, who are referred to as members (International Co-operative Alliance).

Like companies co-operatives are economic organizations whose income generating activities are devoted to the economic and social welfare of their members by providing services which enable individuals to improve their personal skills and economic means for self advancement.

Co-operative is an idea, a thought, a certainty that yes we can, that anything the human mind can believe, the human mind can achieve. It is also important to note that "every individual forms his own estimate of himself and that basic estimate goes far towards determining what he or she becomes. You can do more than you believe you can. You can do more than you believe you are. Belief stimulates power within yourself. Have faith in faith. Don't be afraid to trust faith."

Co-operative approach implies:-

• Treating people as origin of action, not as objects to be manipulated or serviced
• Encouraging people to work together and help one another solve mutual problems
• Designing useful structures, processes, products and services so as to meet people's needs rather than profit making purposes alone.

DUTIES OF GENERAL MEETINGS

General Meetings of co-operatives usually have the following duties:-

MEETINGS

a) Consider and confirm the minutes of the previous General Meeting.

b) Consider reports of committees, the Commissioner or his/her representative and the audited accounts on the society’s activities during the past financial year.

c) Consider and resolve on the manner in which any available surplus shall be distributed or invested, subject to the Act and rules.

d) Elect or remove members of the Committee and the Supervisory Committee, subject to the Act, Rules and these by-laws.

e) Fix the indemnity for the elected committee members and management staff.

f) Consider recommendations from the Committee, against suspension and expulsion of members.

g) Consider appeals against refusal of membership by the Committee.

h) Confirm or reject admission of new members by the committee.

i) Fix the maximum liability which the society may incur in loans and deposits from both members and non-members.

j) Approve the estimates of income and expenditure for the financial year following the General Meeting.

k) Fix the honoraria, if any, for officers or employees of the society.

l) Decide on the management structure, including the establishment of branches to facilitate efficient and cost effective delivery of services to members.

m) Appoint bankers, auditors and advocates of the society for the ensuing year.

n) Affiliate the society to National Co-operative Organization for SACCO societies and the Apex society, subject to approval of the General Meeting;

o) Transact any other business of the society for which notice has been given to members in the manner prescribed in these by-laws.

SUSPENSION AND EXPULSION OF MEMBERS OF A SACCO

The committee may suspend a member subject to the decision of the general meeting to expel who:

a) fails to fulfill his/her obligations to the society whether stated in these by-laws, general internal regulations, a resolution of the general meeting or in contravention of any other legal document, provided such a member has been called upon to do so but has failed,

b) Is convicted in a court of law for a criminal offence involving dishonesty or fraud or is, imprisoned for a period of three months or more,

c) Is a member of another society having similar objects,

d) Acts in any manner prejudicial to the interests of the society.

Provided that, no member shall remain in suspension for a period of more than 12 months.

PROCEDURE OF SUSPENSION AND EXPULSION

a) Upon formal and written proof that a member has committed a violation punishable by expulsion, the committee shall serve a thirty (30) days written notice to the member stating the reason(s) for the proposed expulsion and requiring him/her to file a defense.

b) Upon the expiry of the 30 days and taking into consideration the member’s defense if any, the committee shall initiate administrative inquiry and make a decision on its findings within 15 days. The Committee may;-

i. Suspend the member pending expulsion by the General Meeting or

ii. Impose any other punishment as provided for in the applicable law.

c) The suspended member may appeal to the supervisory committee if not satisfied with the decision of the committee.

d) The committee and supervisory committee shall present their findings to the next General meeting which may either lift the suspension or expel the member.

e) A member who is expelled from the Sacco society shall have the right to appeal to the tribunal.

ACCORDING TO INTERNATIONAL CO-OPERATIVE ALLIANCE....

• Worldwide more than 1 billion people are members of cooperatives.
• Cooperatives provide 100 million jobs worldwide, 20% more than multinational enterprises.
• The economic activity of the largest 300 cooperatives in the world equals the 10th largest national economy.

• 

  Money can't buy happiness, however it can rent it :-)

  In India and China combined, more than 400 million people are part of cooperatives.
• In Germany and the United States, one in four people are cooperative members while in Canada that number is four in 10!
• In Japan, 1 out of every 3 families is a member of a cooperatives.
• In Indonesia, cooperatives provide jobs to 288,589 individuals.
• In Kenya, 250,000 people are employed by cooperatives.
• Canadian maple sugar cooperatives produce 35% of the world's maple sugar production.
• In Colombia, the 8,124 cooperatives were responsible for 4.96% of the GDP in 2009. They employ over 137,888 people - 46% of which are men and 54% women.
• In Kenya, cooperatives are responsible for 45% of the GDP and 31% of national savings and deposits. They have 70% of the coffee market, 76% dairy, 90% pyrethrum, and 95% of cotton.
• In Poland, dairy cooperatives are responsible for 75% of dairy production.
• In the UK, the largest independent travel agency is a cooperative.
• In Vietnam, cooperatives contribute 8.6% of the Gross Domestic Product (GDP).
• Costa Rica counts over 10% of its population as members of cooperatives.
• In Germany, 20 million people are members of cooperatives, 1 out of 4 people.
• In Singapore, 50% of the population (1.6 million people) are members of a cooperative.

1)    To observe and operate within provisions of the Co-operative Societies Act, Rules, Society By-law and the various policy documents.

2)    Operate within the budget, and avail the Trial Balances and Economic reports to the respective Government offices.

3)    To provide efficient, timely and quality services to their members.

4)    The members have obligation to elect leaders who are transparent and accountable.

5)    Committee have obligation of providing minutes of Management, Special and Annual General Meetings to the Sub-County Co-operative Officer at all times.

6)    The committees have an obligation to invite the Co-operative Officers to all their meetings.

7)    The society has an obligation to provide accurate, timely and up to date information to the Sub-County Co-operative Officer.

8)    The society has an obligation to pay audit and supervision fee to the Ministry of Industrialization and Enterprise Development Department of Co-operative Development and Marketing.

Related articles

• Meetings in Co-operative Societies (funnyardstick.wordpress.com)
• Suspension and Expulsion of a Member of a Sacco/co-operative (funnyardstick.wordpress.com)
• Duties and Powers of the Management Committee/board of Directors (funnyardstick.wordpress.com)

OBLIGATION OF CO-OPERATIVE MOVEMENT

1)    To observe and operate within provisions of the Co-operative Societies Act, Rules, Society By-law and the various policy documents.

2)    Operate within the budget, and avail the Trial Balances and Economic reports to the respective Government offices.

3)    To provide efficient, timely and quality services to their members.

4)    The members have obligation to elect leaders who are transparent and accountable.

5)    Committee have obligation of providing minutes of Management, Special and Annual General Meetings to the Sub-County Co-operative Officer at all times.

6)    The committees have an obligation to invite the Co-operative Officers to all their meetings.

7)    The society has an obligation to provide accurate, timely and up to date information to the Sub-County Co-operative Officer.

8)    The society has an obligation to pay audit and supervision fee to the Ministry of Industrialization and Enterprise Development Department of Co-operative Development and Marketing.