Co-operative Societies

Commerce SSS2 First Term

WEEK 2

Co-operative Societies

Performance Objectives

The student should be able to:

        1. Describe the formulation of a co-operative society.

        2. List their characteristics.

 Content

Definition of Co-operative Society

A co-operative society is a voluntary organization in which individuals, traders and businessmen with common interest pool their resources together to promote the welfare interest of their members. It is controlled by the members.

Formation of a Co-operative Society

A co-operative society is recognized in law as a legal person. It can own property, enter into a contract, as well as sue and can be sued. Therefore a co-operative society must be registered before it begins operation. A co-operative society is formed by a group of persons not less than ten (10).

The co-operative society must have a by-law which must contain the rules and regulations of the society. The society must show evidence of being able to sustain itself. The cooperative society must keep certain books and records necessary for the running of society. Application form stating the particulars of the society must be obtained and submitted.  Then the Registrar of co-operatives issues a certificate which gives birth to the co-operative society.

Characteristics of Co-operative Societies

Co-operative Societies have the following characteristics:

1. It is formed by individuals

2. The individuals in the society are united with common interest and goals.

3. Co-operative societies are formed and maintained by the members.

4. All members in a cooperative society are equal.

5. Members give themselves mutual support.

6. Co-operative societies promote the welfare of their members.

7. An election in co-operative societies is through the democratic process.

8. Co-operative societies give loans to members.

9. Saving of money is compulsory for members of a co-operative society.

10. They hold the end of the year meeting called Annual General Meeting (AGM) which is mandatory to all co-operative societies.

History of Co-operative Movements

The formation of co-operative society started ina town of Rochdale in the industrial section of Lancashire in Great Britain. The first co-operative society in the world was formed on October 28, 1844, in Rockdale. It was formed by a group of 28 men who were weavers. The reason for the formation was to assist one another from the poor condition of living they found themselves as a result of the industrial revolution in Europe. The leader of the group was Charles Haworth. The name of the first co-operative society was the Rochdale Equitable Pioneer society. The society made the first co-operative law which they called the Rochdale's principles.

Early contributors to the co-operative movement include Robert Owern and William King The first attempt to form a co-operative society in Nigeria was in 1922 when a group of cocoa producers came together to form a producer co-operative society with the aim of getting reasonable prices for their products.

Presently, co-operative societies can be found in virtually all commercial activities which have contributed to the development of the Nigerian economy by increasing the standard of living of the members.