Compliance Issues as per the Act and Rules

The latest revised Act and the new Rules of November 2004 have introduced amendments and provisions which should be complied with by all co-operative societies. The compliance issues that affect societies include:-

  • I LOVE BEING COMPLIANT

    I LOVE BEING COMPLIANT

  • every co-operative society shall hold its annual general meeting within four months after close of its financial year (by 30th April for Sacco Societies)
  • every co-operative society shall present to members its audited accounts and balance sheet for each year within four months after close of financial year. The audited accounts shall be displayed in a conspicuous place for members to read at least two weeks before they are presented to members in a general meeting.
  • the audited accounts and balance sheet shall be presented to the Commissioner for registration before they are presented to members in a general meeting
  • borrowing powers shall be fixed by members in a general meeting subject to approval by the Commissioner.
  • every co-operative society with employees shall have terms and conditions of service for staff. The terms and conditions shall be approved by the commissioner.
  • the manager shall be a counter signatory to all documents and contract of the society.
  • all society committee shall file an indemnity-Form V of the Co-operative Societies Act shall be signed by the management committee members agreeing to uphold the values of accountability, honesty and transparency in dealing with the affairs and resources of the society and accepting liabilities arising from lack of upholding such values. This is done within fourteen days after being elected, and if they do not, they will automatically lose their positions. The indemnity figure shall be fixed by members in a general meeting.
  • all committee members shall fill wealth declaration forms within thirty days after elections, and if they do not, they automatically lose their positions.
  • supervisory committee should write periodic reports (quarterly) and table their findings at management committee meetings. It shall also submit its reports to the commissioner present the report to the general meeting.
  • committee members shall be elected for three years, subject to one third retiring annually but being eligible for re-election.
  • every society shall have members funds separated into shares and deposits.
  • every society shall maintain a reserve fund where one fifth of the net surplus in any years shall be credited. An account should be maintained for the fund.
  • no co-operative society shall invest its funds in non-core business except with the approval of the Commissioner and the general meeting through a special resolution.
  • estimates of income and expenditure shall be prepared and presented to members for approval in a general meeting at least three months before the end of the preceding year.
  • every member of a co-operative society shall appoint a nominee or nominees, who shall inherit his/her shares or interest in the society upon his death.

 

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