Register of co-operative societies
The Commissioner shall keep or cause to be kept at his office a record called the register of co-operative societies wherein shall be entered particulars relating to the registration of societies and their by-laws and any amendments thereto.
Every entry in the register shall be made by, or under the direction of, the Commissioner and shall be signed by him and every alteration, interlineation or erasure shall be initialed by the Commissioner.
Application for registration
An application for the registration of a society under section 6 of the Act shall be made to the Commissioner in Form I set out in the Schedule to these Rules and shall be accompanied by an appraisal in writing of the viability of the society and a non-refundable fee of five hundred shillings.
Certificate of registration
Upon registration of a society and payment of a fee of three thousand shillings, the Commissioner shall forward to the society—
(a) a certificate of registration in Form IIA set out in the Schedule to these Rules or certificate of provisional registration in Form IIB, as the case may be;
(b) a copy of the by-laws of the society as registered by him and certified under his hand as having been registered by him;
(c) a copy of the Act and the Rules made thereunder;
(d) a copy of the application for registration.
Notification of refusal to register a society
Where the Commissioner refuses to register a proposed society or its by-laws, he shall give the applicants his reasons in writing for such refusal within sixty days of the refusal.
A person aggrieved by the Commissioner’s refusal under sub-rule (1) may appeal against the refusal to the Minister on paying a filing fee of one thousand shillings.
Power to make by-laws
A co-operative society shall make by-laws in respect of the following matters—
(a) its name;
(b) its registered office and postal address;
(c) its area of operation and membership common bond;
(d) the objects of the society;
(e) the purposes to which its funds may be applied;
(f) the disposal of its accumulated funds;
(g) the qualification for membership, the terms of admission of members and the mode of their admission;
(h) the withdrawal and expulsion of members and the payment, if any, to be made to such members and the time within which such payment shall be made;
(i) the rights, liabilities and obligations of members, including the minimum share-holding and produce delivery;
(j) the transfer of the shares or interests of the members;
(k) the manner of raising funds, including the maximum rate of interest on deposits;
(l) its general meetings, the procedure and quorum of such meetings, power of such meetings and representation and voting at such meetings;
(m) the appointment, suspension and removal of members of the Committee and officers and the powers and duties of the Committee and officers;
(n) the period of its financial year;
(o) the authorization of officers to sign documents on its behalf;
(p) the settlement of disputes; and
(q) such other matters as may be expedient for the better carrying out of the provisions of these Rules.
If the objects of the society include the creation of funds to be lent to its members, by-laws shall also be made in respect of the conditions and other requirements on which loans and advances may be made to members including—
(a) the rate of interest;
(b) the maximum amount which may be lent to a member;
(c) the extension, renewal and recovery of loans;
(d) the period and purpose of loans;
(e) the security for loans; and
(f) the consequences of default in the repayment of any sum due.
Amendment of by-laws
Any amendment of the registered by-laws of a co-operative society under section 8 of the Act shall be made by a resolution of members at general meeting in respect of which at least fifteen clear days notice of the proposed amendment shall have been given to the members of the society.
No resolution under sub-rule (1) shall be valid and effective unless—
(a) in the case of a co-operative society with unlimited liability, half of the members of the society are present at the meeting and three quarters of them vote in favour of the resolution; or
(b) in the case of a co-operative society with limited liability, a majority of the members of the society present at the meeting or in writing vote in favour of the resolution:
Provided that when written votes are used, the following conditions shall apply—
(i) all members of the society shall have been sent by the secretary or manager of the society voting papers to enable the members within reasonable time before the meeting to record their votes and return them to the secretary or manager; and
(ii) the votes shall have been examined, counted and the results notified to members by the Committee.
When in pursuance of the provisions of section 8(2) of the Act, amendment is sent to the Commissioner, it shall be accompanied by a certification in Form III set out in the Schedule to these Rules together with a copy of the amendment in quadruplicate.
Upon registration of such amendment of by-laws, the Commissioner shall issue a copy duly signed by him on payment of a fee of one thousand shillings.
Membership of society
No co-operative society shall fix any limit to the number of its members.
Any member of a co-operative society who ceases to qualify for membership of the society under section 14 of the Act, or under these Rules or the by-laws of the society, shall forthwith cease to be a member of the society and the Committee shall direct the secretary or manager to strike his name off the register of members.
Transfer of shares
Subject to the provisions of section 20 of the Act and sub-rule (3) of this Rule, and subject to the approval of the Committee, a member may transfer his share or shares in a co-operative society to any other member of the society or to any person whose membership of the society has been approved by the Committee.
No transfer of a share in a co-operative society shall be valid and effective until
such transfer has been recorded in the register of the society.
No transfer of a share or shares in a co-operative society shall be valid and effective if made by a member indebted to a society whether such debt is due for payment or not.
When for any reason other than death, a member of a co-operative society registered with limited liability holding deposit from non-members ceases to be a member, he may, subject to section 20 of the Act, transfer his share or shares in such society to another member, or to a proposed member approved by the Committee of such society, but he shall not be entitled to repayment from the society of any money paid by him in respect of such share or shares.
Rights of a member
Subject to the provisions of the Act, these Rules and the registered by-laws of the co-operative society, a member of a society may transfer his membership to another registered society.
No society shall operate without a budget approved by a general meeting.