COOPERATIVE LAW

Topic of the day

The meaning of cooperative law

The requirements to form cooperative society

Types of cooperative society in Nigeria

THE MEANING OF COOPERATIVE LAW

Co-operative law refers to the set of rules and regulations that regulate how cooperatives operate. Now, a cooperative is like a team where people come together for a common goal, such as running a store or producing goods. Cooperative law outlines how these groups should be organized, how decisions should be made, how profits should be shared, and how members should be treated fairly. It's like a rulebook that helps everyone in the cooperative work together smoothly and fairly.

THE REQUIREMENTS TO FORM COOPERATIVE SOCIETY

The requirements for establishing a cooperative may vary in different countries or regions, but there are generally some common steps and standards:

1. Minimum Number of Members: Typically, there are minimum number of members required to form a cooperative. Depending on local laws, this can range from a small number of people to a larger group.

2. Common goals: Members must share a common goal or purpose for forming a cooperative, such as pooling resources to achieve economic, social or cultural benefits.

3. Legal Documents: Legal documents outlining the cooperative’s charter, goals, rules, and regulations often need to be drafted and filed. This may involve drafting articles of incorporation.

4. Registration: Cooperatives generally need to be registered with the appropriate government department or agency. This involves submitting the required documents and paying any necessary fees.

5. Contribution: Members are typically required to make financial contributions to the cooperative through membership fees, purchase of shares, or other forms of investment. This funding helps get the cooperative up and running.

6. Democratic Structure: Cooperatives generally operate on a democratic basis, with each member having an equal say in decision-making regardless of investment level.

7. Compliance: Complying with legal and regulatory requirements is critical. This may involve regular reporting, holding regular meetings, maintaining financial records and complying with tax and other legal obligations.

These requirements may vary depending on the specific laws and regulations of the region or country in which the cooperative is located. It is recommended to consult with legal counsel or an expert familiar with partnership law to ensure that all necessary steps are followed.

TYPES OF COOPERATIVE SOCIETY IN NIGERIA

In Nigeria, cooperatives can be classified into various types based on their main objectives and service sectors. Some common types of cooperatives in Nigeria include:

1. Agricultural cooperatives: Mainly engaged in agricultural activities, including crop cultivation, livestock raising and agricultural product processing. Members pool resources to improve agricultural productivity and marketing.

2. Consumer Cooperative: A group of individuals who come together to purchase goods and services in bulk at reduced prices. This helps members obtain products at a lower cost than purchasing them individually.

3. Credit/Savings and Loan Cooperatives: These cooperatives provide financial services to their members, providing savings, credit and loan facilities. Members contribute to savings and can obtain affordable loans for a variety of purposes.

4. Housing Cooperative: Members cooperate to address housing needs through collective financing, construction, or acquisition of housing units. This enables members to own or rent affordable housing.

5. Worker cooperative: Made up of employees who jointly own and manage a business. Employees participate in the company's profits, decisions, and operations.

6. Marketing cooperatives: focus on assisting members in collectively marketing their products. They help sell products, negotiate better prices, and get member merchandise into a larger market.

7. Multifunctional Cooperatives: These cooperatives are diversified cooperatives engaged in various economic activities, combining elements of different types of cooperatives such as agriculture, consumer services and credit services.

Each type of cooperative in Nigeria sets specific goals based on the needs of its members and contributes to economic development by promoting cooperation, economic empowerment and community development.