kiambu county co operative societies bill 2015

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PEHANI SACCO EDUCATION

KIAMBU COUNTY
CO-OPERATIVE SOCIETIES BILL 2015

By Stephen MwangiMr. Co-operative@Frenzyied on Twitter

CONTENTS OF THE BILL

Preliminary

Administration and offices

Registration of co-operatives

Management of co-operatives

Rights and obligations of co-operative societies

Rights and liabilities of members

Accounts and funds of a co-operative society

Inquiry inspections and winding-up

General provisions

PRELIMINARIES

Purpose -establishment of legal and institutional framework for registration and regulation of co-operative societies in order to-Promote growth and development

Enhance good governance

Promote local economic growth and development

Promote the realization of Article 36 of the Constitution on freedom of association.

PRELIMINARIES CONT

The Act shall apply to any person operating or intending to operate a co-operative society or a branch of a co-operative society in the County. -Will have to be licensed to operate in the county-May be fined maximum of 5 million or imprisoned for a term not exceeding 12 months or both.







PRELIMINARIES CONT





ADMINISTRATION AND OFFICES

The Executive Committee Member shall be responsible for the growth and development of co-operative societies in the county.

ADMINISTRATION AND OFFICES CONT

-There shall be a Director for Co-operative whose office shall be an office in the County Public Service. -The Director shall (a) Process applications for registration of co-operatives; (b) Supervise and inspect and ensure compliance; (c) Maintain registers; (d) Supervise dissolution, division or amalgamation; (e) Advise the Department responsible for co-operatives; (f) Undertake any other functions assigned by this Act or by County Executive Committee Member.

REGISTRATION OF CO-OPERATIVES

A co-operative society may be registered with either (a) Limited liability or(b) Unlimited liability At least 15 people intend to operate a co-operative society or a branch of a co-operative society within the County may apply to the Director for registration.

REGISTRATION OF CO-OPERATIVES CONT

A co-operative society shall be a body corporate with perpetual succession and a common seal

REGISTRATION OF CO-OPERATIVES
CONT

-All co-operative societies or branches of co-operative societies within the county shall within 6 months from the commencement of the Act apply for registration. -Failure to comply attracts a fine of 5 million Shillings or imprisonment for a term not exceeding 12 months or to both.

REGISTRATION OF CO-OPERATIVES
CONT

All co-operatives shall be issued with a license to carry out the business of co-operatives

A license shall be valid for a period of one year-renewed on an annual basis upon payment of the requisite fee.

A license shall not be renewed unless the society has

(a) Continued to comply the provisions the Act and relevant laws, regulations and guidelines; (b) Adheres to the directives issued by the Director in implementing the Act; (c) Continues to promote the principles of co-operatives; and (d) There is no valid objection from its members for renewal of the registration certificate.

REGISTRATION OF CO-OPERATIVES CONT

-If a co-operative society fails to apply for renewal of license or the renewal of the licence is declined, the co-operative society shall cease to carry out the business of a co-operative society within the County. -Executive Committee Member may withdrawal the license for gross violation of the Act -The Director may order the closure of an office or a branch

REGISTRATION OF CO-OPERATIVES CONT

(1) A co-operative society shall display the Certificate of Registration and the license at its registered office and at its branch offices or places that it carries on its business. (2) Failure attracts a fine not exceeding one hundred thousand.

MANAGEMENT OF CO-OPERATIVE SOCIETIES CONT

The Annual general meeting of a co-operative society shall be supreme authority of the co-operative society.

The annual general meeting shall be held within four months from end of each financial year of the co-operative society and shall be convened by written notice of at least fifteen days to the date of the meeting.

The quorum for an annual general meeting shall be fifty plus one of the voting members.

MANAGEMENT OF CO-OPERATIVE SOCIETIES CONT

(1) A co-operative society may convene a general meeting for purposes of discussing a matter which by agreement of members was set to be discussed at such a meeting during the Annual General Meeting. (2) A co-operative society may convene a special general meeting to- (a) discuss a matter which in the opinion of the Executive Committee is of an urgent nature; (b) To receive the report of the supervisory committee; or (c) To address any directive issued by the Director which may not wait for the Annual General Meeting.

MANAGEMENT OF CO-OPERATIVE SOCIETIES CONT

(1) Committees: (a) Administration Committee responsible for giving directions in regard to the business of the society; and (b) Supervisory Committee which be responsible for verification of all transactions and report to the AGM and the Director. (2) Members of the committees may be remunerated for only four sittings in a year at such rate the members in an annual general meeting shall determine subject to approval by the Director. (3) Notwithstanding, in circumstances warranting special sittings, members of the committees may be remunerated for the special sittings subject to prior sanction of such meetings by the Annual General Meeting and approval by the Director.

MANAGEMENT OF CO-OPERATIVE SOCIETIES CONT

(1) A person shall not be elected as a committee member of a co-operative society unless that person- (a) has attained the minimum basic education; (b) has met the constitutional threshold of integrity; (c) is a member of the co-operative society; and(d) has held an elective position for two terms;(2) The tenure of an elected committee member shall be as set out in the By-laws but shall not exceed three years subject to renewal of such term once.

MANAGEMENT OF CO-OPERATIVE SOCIETIES CONT

-A member of a committee shall be removed from his position if Following an audit, is under investigation for mismanaged of the affairs of the society

Is under investigation for a criminal offense not related to the co-operative societys operations; or

(c) Is under bankruptcy proceedings. (d) is unable to conduct his or her business due to ill health; (e) has held the office for a period of two terms; or (f) dies.

MANAGEMENT OF CO-OPERATIVE SOCIETIES CONT

If a vacancy in the position of a member of the committee falls before the next annual general meeting, the Members of the Committee shall nominate one of the members as an interim member to transact business until the next annual general meeting and such member shall not be deemed an elected member for purposes of the Act.

MANAGEMENT OF CO-OPERATIVE SOCIETIES CONT

A person appointed as a member of a committee shall within thirty days of such appointment and not later than thirty days after ceasing to be such a member submit with the Director a declaration of his or her wealth.

RIGHTS AND OBLIGATIONS OF
CO-OPERATIVE SOCIETIES CONT

A co-operative shall be governed by the provisions of its By-laws approved by the Director.

A co-operative may from time to time amend its by-laws subject to approval by the Annual general meeting and the Director.

A co-operative may develop rules for better carrying out of the functions set out in the by-laws subject to approval by the Annual general meeting and the Director.

RIGHTS AND OBLIGATIONS OF
CO-OPERATIVE SOCIETIES CONT

(4) The by-laws shall bind the co-operative society and the members to the same extent as if they were signed by each member (5) The By-laws of a co-operative society may provide for the imposition of fines not exceeding 50,000 shillings on its members for any infringement of the by-laws.

RIGHTS AND OBLIGATIONS OF CO-OPERATIVE SOCIETIES CONT

A co-operative society or a branch of a co-operative society may recruit persons to their membership provided the person has attained the age of fifteen years and either - (a) Is within common bond; or (b) Is a resident within or occupies land within the area of operation of the co-operative society. (c) must meet the criteria set out in the Regulations under this Act.

RIGHTS AND OBLIGATIONS OF CO-OPERATIVE SOCIETIES CONT

-No co-operative society shall fix any limit to the number of its members. -No co-operative society shall recruit into its membership more than a third of non-Kenyan nor shall non Kenyan members be allocated more than a third of the total shares.

RIGHTS AND OBLIGATIONS OF CO-OPERATIVE SOCIETIES CONT

-A co-operative society shall keep at its registered office and at its branch offices (a) A copy of its by-laws and rules; (b) Books of accounts including the audited accounts in the last five years; (c) Records of members including the members profiles; (d) Minutes of the meetings; (e) Any other documents as may be directed by the Director. -Any member of the co-operative or the Director or a person authorized by the Director shall have unlimited access to the records of the co-operative society at reasonable time.

RIGHTS AND OBLIGATIONS OF
CO-OPERATIVE SOCIETIES CONT

-A co-operative society shall not later than ninety days from the final

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