A COOPERATOR IS NOT COARSED TO BECOME A MEMBER, BUT VOLUNTARILY JOINED

4.1d.                Because Co-operative societies are voluntary organizations, means that people should not be forced directly or indirectly to become a member. Research shows that in some part of the country, people are indirectly forced to join a co-operative group by asking them to form a co-operative society so that they can benefit from incentives from the government. i.e fertilizer or loan.

If this trend of systematic forcing of people to set up co-operatives persists, it then means that people are not allowed to become members of co-operative society willingly or on their own volition (voluntary) rather, because some persons feel they can make use of co-operative society to achieve their selfish gains or maybe they desire to use it to get free gift from the government. We could say here that this action breach the principle of “Voluntarily Joined Together”. One question we must not fail to ask ourselves here is, what happens to the co-operative society if government or other father Christmas-like donors are not ready to support them, Will they be able to operate effectively on their own?

ACHIEVE COMMON ECONOMIC END:-

4.1e.    All co-operators must understand that the main purpose of setting up or forming co-operative society is to collectively achieve profitable goals. Such goals could include; making extra profit, increasing the number of members in order to be able to generate enough money, so that the co-operative will be able to buy more goods, or perhaps for them to make more profit for themselves, and also to create guarantee for one another.

DEMOCRATICALLY WORKING TOGETHER AS ONE

4.1f.     Any business that is formed by more than one person is expected to be controlled, democratically. And in the case of co-operative society, democratically control is used because when an election is to be conducted, it is “one man, one vote” except in the case of the president who shall have a casting vote in addition to his ordinary vote.

The one man, one man vote principle conjectured by the co-operative movement, is strictly adhered to as the position and financial capability of the member does not affect this aspect of the law (Democratic Means, Equal Right). This means that, whether the member is a Chief, Reverend, Oba or pastor. Every member only has the right to vote once. And the habit of trying to vote for someone who is not present must never be allowed. This is called, voting by proxy. By this one man, one vote policy, it means majority carries the vote. Therefore what ever is decided by this means is binding on all members where a quorum is formed to reach such decision(s).

COOPERATIVE AS A BUSINESS ORGANIZATION:-

Can You Identify Someone Among ACFA Member

4.1g.    By this, we mean that co-operative Society is formed as a business venture. They also have as one of its responsibilities to offer charitable services to the community or society they belong; this does not mean that they can render such humanitarian services like the Red Cross does etc.

Let’s take for instance a co-operative Society that wants to render humanitarian service to his member by given “Blanket Loan” to majority of them without observing laid down rules. Such group will easily collapse. Therefore, business techniques must be employed to successfully run a co-operative society in order to continue to be in business^*.

MAKING EQUITABLE CONTRIBUTION:-

4.1h.    The fact that cooperative is a viable tool in reaching those in the grassroot is undisputed because from the explanation of the following terms used in defining the co-operative society is a business set up by those with a limited means. Therefore, any contribution made by individuals in the group must be in relation to his/her financial convenience.

In order not to make any of the members’ inferior, the minimum and maximum capital contribution should be pegged in such a way that all cooperators will be able to pay their shares. To understand this concept, compare the fact that although the capital shares of each affiliate co-operative societies, although different  from one group to another, the beauty should be that all members can conveniently key in.

ACCEPTING A FAIR SHARE OF THE RISK AND BENEFITS

4.1i.     This means that all members must contribute both their presence and their cash to the running of society. The running of a Co-operative society is not like running other public limited liabilities, ie private companies or joint stock companies; where the shareholders don’t normally participate directly in the operation of the business. In co-operative, the management is directly done by the members. This means the shareholders directly participate in the running of its affairs. Because of this truth, there is no time the investor is given second hand information about the business as him/her is also involved in the operation of the business. If on the other hand there is loss observed in the process, every member must also share the risk.

How to Become a Successful Cooperative Society

 ACFA

5.1.      In this section we will consider the followings:

1.      Books co-operative must possess before being registered

2.      Who are co-operative members?

3.      What is meeting?

4.      What are the objectives of meeting?

5.      Who can call for meeting and why?

6.      How can Co-operative Society/Unions generate money/fund?

BOOKS CO-OPERATIVE MUST POSSESS BEFORE BEING REGISTERED:-

5.1a.    The following are some of the prescribed books to be acquired before a co-operative society is registered:-

(1)                     A membership and Attendance Register, showing the name address and occupation of every member, the number of share held by him, the date of his admission to membership, the Nominee appointed under Bye-Law II, and the members attendance at general meeting

(2)                     A cash book showing the receipts, expenditure and balance on each day on which business is done

(3)                     Cash receipt book

(4)                     Payment voucher

(5)                     General Ledger

(6)                     Personal Ledger with accounts for each member; depositor and creditor

(7)                     Loan register showing installments for repayment of loans

(8)                     Minute book for   proceedings of General and Committee Meetings

(9)                     Register of share payments

(10)                 Stationery register

(11)                 Loan bond book showing particulars of and containing bonds for all loans issued

(12)                 Correspondence files

WHO ARE CO-OPERATIVE SOCIETY MEMBERS?

5.1b.    Most persons today don’t know the formalities of setting up Co-operative Society, and because they want to get all benefits to themselves, they the write names of anybody they feel like in their Club Note or Membership Register and claim that they are his/her members. But from the co-operative design, who actually are qualified to member of the co-operative society?

a.  Membership:

      The membership shall consist of:-

(1)               Person who join in the application for registration

(2)               Person admitted in accordance with these bye-laws.

b.  Every member of the Society must be:-

(1)   Ordinarily resident in THE STATE. But a member who departs the field of membership of the Society, may retain his membership therein, but may not borrow there from in excess of his/her saving and share capitals;

(2)    Someone of good character;

(3)  Somebody that is not less than 18 years of age, except in the case of the minor heir of a

        deceased member and where the Director grants exemption from this qualification:

 (4)   Someone that is not already a member of any other Society of which the primary objectives    

        is to grant loans to its member, except with the permission of the Director.