THE BYE LAW OF WEMA COOPERATIVE SOCIETY LIMITED MOTTO: EACH FOR ALL AND ALL FOR EACH
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THE BYE LAW OF WEMA COOPERATIVE
SOCIETY LIMITED
MOTTO: EACH FOR ALL AND ALL FOR EACH
BYE LAWS OF THE COOPERATIVE THRIFT AND CREDIT
SOCIETY LIMITED
INTERPRETATION
All words and expressions used in these bye-laws and defined by
Section 2 of the Co-operative Societies Law Chapter 29 of the Laws of
Ondo State 1973, shall have the meanings respectively assigned to them
below:
1) “Financial Year” means the period of twelve months beginning on
1st January and ending on 31st December the same year.
2) The Laws means the Co-operative Societies Laws Chapter 29 of the
Laws of Ondo State.
3) “Officer” includes a president, chairman, secretary, treasurer,
members of Committee or other persons empowered under the
regulations or bye laws to give directions in the business of the
society.
4) “Person” includes any company or association or body of persons
cooperate or incorporate.
5) “Regulations” mean regulations made under the Law as amended
from time to time.
6) “Director” means Director of Co-operative Societies, Ondo State.
7) “Management Committee” means the governing body of the
society to whom the general management of its affairs is entrusted.
8) “Committee” means an elected body of persons within the society
to whom specific duties and delegated by the society.
a. If there shall arise any doubt regarding the meaning of
intention of these bye laws, the matter shall be referred to the
Registrar for his ruling
NAME, ADDRESS AND AREA OF OPERATION
1) NAME AND ADDRESS: This society shall be called
_____________________________________________ Cooperate Thrift
and Credit Society Limited and its address shall be
___________________________________________________________
2) AREA OF OPERATIONS: The area of operations of the Society shall
be ________________________________________________________
3) OBJECTS:
The objects of this society are to promote the economic interest of
members by:
The provision of facilities for regular thrift savings by members without
such savings being removed from their control.
The creation of funds to be lent to its members at fair and reasonable rates
of interests for provided or productive purposes.
Any other measures designed on cooperative principles to encourage
among its members the spirit and practice of thrift, mutual help and self-
help.
4a) MEMBERSHIP
The members shall consist of:
1. Person who join in the application for registration
2. Persons admitted in accordance with these bye laws
4b) Pensionable retired staffs who wish to continue their membership may be
allowed.
4c) member of other society who wish to join our corporative must ensure
his/her obligation to our corporative secured
5) QUALIFICATION
Every member of the society must be:
(i) Ordinary resident in _____________________________________
______________________________________________________
or having the following common bond of association; occupation,
worship or cultural affinity; but a member who leaves the field of
membership of this society may retain his membership therein, but
may not borrow there from in excess of his savings or credit
balance with the society.
(ii) Of good character;
(iii) Of not less than 18 years of age except in the case of a minor heir
of a deceased member and where the registrar grants exemption
from this qualification.
(iv) Not a member of any society the primary object of which is to
grant loan to its members except with the permission of the
Registrar.
6) ADMISSION:
(i) Application of membership shall be in writing and shall be
disposed of by the management committed who may grant or refuse
admission, and in case of refusal, shall state their reasons. Any
applications so refused shall be informed in writing. He may appeal
through a member of the society to the next General Meeting of
members, which may take such decisions think it.
7) DECLARATION OF OBLIGATION:
Every member shall on joining the society under to the Management
Committee a true and complete statement of his indebtedness outside the
society.
8) LIABILITY:
The ability of member for the debt of the society shall be limited to ten
naira (N10.00) per member.
9) LIABILITY TO PAST MEMBER:
(i) A past member shall be liable for the debts due by the society as
they existed on the date when he ceased to be a member for a
period of two years from the date on which he ceased to be a
member.
(ii) The estate of a deceased member shall be liable for the debts due
by the Society, as they existed at the date of his deceased for a
period of two years after his deceased
10) NOMINEE
(a) Every member shall nominate in writing a person or persons to
whom should he/she dies or become permanently insane, the
amount standing to his credit shall be transferred. The member at
any time changes his nominee by paying a nominal fee of one ten
kobo. The name of the nominee shall be entered in the Register of
members and any alterations shall be signed by the member. If not
admitted to membership, the nominee shall in the case of death or
permanent insanity of the member be paid the value of the member
savings or interest less any sum due to the society.
(b) When no nominee had been appointed prior to death, the
Management Committee shall repay the aforementioned sum to the
person who after due examination appears to be the legal personal
representative of the deceased.
11) TERMINATION OF MEMBERSHIP:
1. Membership shall terminate by: death, permanent insanity.
2. Where a specific employment or residence is a condition for
membership ceasing to be so employed or to reside in the specific
place.
3. Expulsion by two-thirds majority of a general meeting.
Completely withdrawing ordinary savings and any other deposits.
12) EXPULSION:
A member may be expelled for:
1. Repeated failure to make thrift savings as laid down in the bye-law.
2. Repeat failure to pay debts due from him to the society.
3. Conviction on a criminal offence involving dishonesty.
4. Misconduct or other acts contrary to the stated objects of the
society or the interest of cooperative movement.
When membership terminates owing to death, permanent insanity or
expulsion, the society shall pay in the former case, to the nominee or if
none has been nominated to the legal representative and in the latter case
to the expelled member, the sum of his credit less any sum due to the
society, but only as funds become invaluable available and provided that
the society need not to pay any sum until the accounts for the year have
been prepared and audited.
13) SOURCES OF FUNDS:
a. The funds of the society shall be made up of
i. Entrance Fees
ii. Members Savings
iii. Deposits and loans from members and non-members.
iv. Surplus arising out of the business of the society.
v. Miscellaneous sources approved by the Registrar.
b. Ordinary Saving:
Every member shall contribute at the end of every month a sum of
money to be known as ordinary savings. Member shall contribute,
whatever is convenient out of which 85% shall be credited to
members. Savings and the balance of 15% to deposit. Payment of
ordinary saving shall be effected by deduction from salary at
source where practicable, in the case of salary earners or paid at
such meeting and date as may be decided by the Committee, failure
to pay for ordinary savings by the due date may result in fine of not
more than N10 for every full month of arrears. In the case of salary
earners, every member shall sign an authority to the effect that
deduction of savings contribution be made from his salary. This
authority shall be valid for twelve months and shall be renewable
annually.
c. Deposits:
Members may make special deposits with the society for a period
of not less than 7 days, such deposits may earn interest at a rate to
be fixed by the Management Committee but in no case hall interest
on deposit exceed 3%.
d. Deposits and Loan from Non-members:
The society shall not incur and liability towards non-members in
excess of a sum equal to three/fourth of the total aggregate value of
the member’s saving, deposits and all reserves, and shall not begin
to accept any such deposits or loan from non-members without the
written permission of the Registrar provided that the society may
borrow from a Cooperative Central Financing Organization of
which it is a member to the extent laid down in the bye-laws of
such organization.
C members who wish to bring funds are allowed to do so. Such fund
shall be in the purse of the cooperative for three months and will
attract 3% interest rate.
14) WITHDRAWALS:
a. Ordinary Savings:
No member shall have a right to withdraw part or all ordinary
saving except on termination or final withdraws of membership
from the society.
b. Deposits:
Deposits shall be withdrawn’s provided a notice of writing of at
least 7 days to given to the Management Committee
C. No member is allowed to withdraw his/her membership unless such
member has spent two years being a member and having given six month
notice of withdrawal. However any member who wants to withdraw
his/her membership before the expiration of the time frame will pay
penalty fee of 5% on such member’s savings.
d. disengage staff are exempted from withdrawal of membership clause
as such staff can withdral their total savings immediately after
disengagement.
15) CONSTITUTION AND DUTIES OF GENERAL MEETING:
The ultimate authority under the law in all the affairs of the society shall
be the general body of members who shall meet from time to time and at
least once in three months to review and direct the work of the society.
a. Quorum:
The presence of at least one fourth of the members shall be
necessary for the disposal of any business at a general meeting
provided hat where the total number of members excepts one
hundred, twenty-five members shall surface.
b. If no quorum is present at a meeting, an adjournment may be made
for a date not less that 7 days or more than 15 days thereafter, the
number of memes present at any such adjourned meeting shall
form a quorum regardless of the number present.
c. However, the President or Vice President, General Secretary, and
the Coop Manager can for a quorum for an extra ordinary meeting.
16) ANNUAL GENERAL MEETING
The annual General Meeting shall be held latest three months after the
preparation of the annual report of the cooperative have been prepared.
The duties of the Annual Genial Meeting shall be:
i. To receive from the outgoing Committee a report on the preceding
year’s f working of the society with the statement of accounts.
ii. To decide upon the disposal of the surplus in accordance with the
provisions of bye-laws 25.
iii. To consider any communication received from the Registrar.
iv. To elect the President, Vice-president, Treasurer and Committee
for the ensuring year.
v. The year end of the cooperative is December of every year.
17) ORDINARY GENERAL MEETING:
The duties of the ordinary general meeting shall be:
i. To elect, suspend or remove officers and members of the
committee.
ii. To confirm the admission of expulsion of the members.
iii. To amend, repeal any existing bye-laws or enact any new one in
accordance with bye-law 20 (d).
iv. To fix the rate of interest of be charged on loans to members.
v. To ratify the appointment or dismissal of the Secretary on the
recommendation of the Management Committee.
vi. To dispose of any other business brought before it.
18) SPECIAL GENERAL MEETING:
A Special General Meeting may be called at any time by the Registrar, a
monthly of the management committee or supervisory committee or the
President on the written request of at least fifteen members.
19) VOTING OF MEMBERS:
All questions shall be decided by a majority vote of the members present
and voting. Each member shall have one vote only. The Chairman shall
have a casting vote which he can exercise when there is a tie.
20) OFFICERS AND THEIR DUTIES;
i) The President Vice-President, Treasurer and Secretary elected
at the Annual General Meeting shall hold office for one year and
shall resign at the next Annual General Meeting, but shall be
eligible for reelection. They shall be ex-officio members of the
other committee. Any vacancy arising due to death, removal,
withdrawal or transfer of an officer shall be temporarily filed by a
majority of the remaining members of the Management
Committee.
ii) The President shall preside at all General and Management
Committee Meeting of the Society and shall have powers to
convene meetings. In the absence of the President, Vice-president
if any, shall be the chairman and as such shall have all powers of
the President in the absence of both, a member of the Management
Committee shall be elected chairman of the meeting.
iii) Treasurer: The treasurer shall take charge of all money received
by the society and shall make disbursement in accordance with the
directions of the Management Committee/ he shall sign the Cash
Book in token of its correctness and produce the Cash Balance
whenever called upon to do so by the Management Committee, the
Registrar or his representatives and at every General Meeting. He
shall sign all members Pass Books. He shall deposit all funds over
the limit fixed by the General Meeting in any Bank approved for
this purpose by the General Meeting. All such sums shall be
deposited in the name of the society.
iv) Trustees: The President, the Secretary and if the General Meeting
so desires, one other member of Management Committee shall be
the trustees of the society. It shall e their duty to sign on behalf of
the society all cheques and legal documents including those
concerned with transfer of funds, acquisition and disposal of the
society’s property.
v) Secretary: The Secretary shall keep and maintain correctly and up-
to-date the prescribed books and register. He shall procure from
borrowers the due execution of bonds with security. The secretary
shall prepare all receipts, vouchers and documents required by the
Regulations or Bye Laws or called for by the Management
Committee. He shall sign on behalf of the society and conduct all
its correspondents. He shall summon and attend all meetings,
record the proceedings of such meetings and have them duly
signed. He shall prepare and submit to the Management Committee
the Annual Accounts and Statements and certify copies of entries
in the books under Section 32 of Ordinance.
21. FIDELITY INSURANCE
The society shall take fidelity insurance for the Secretary, Treasurer or
any other officer who handle cash on behalf of the society.
22. CONSTITUTION AND DITTIES OF THE COMMITTEE
(i) MANAGEMENT COMMITTEE
Subject to law, the Byelaws and the resolutions of the General Meeting, the
Executive Management of the Society shall vested in the management
Committee.
(ii) CONSTITUTION:
The Management Committee shall consist of lest nine members over the
age of 21 years including the President, Treasurer, Secretary, and one or
more Vice- President. The member shall be elected for one year at
Annual General meeting. All but one – the oldest in office shall eligible
for election. But he can again stand for election after the lapse of one
year. Where there is a tie the one not eligible for election be decide by
secret ballot.
(iii) CREDIT COMMITTEE:
The Credit Committee shall consist of 5 member s the age of 21 years
elected for one year Annual General Meeting. A quorum shall consist of
3 members. Meetings shall be hail on the call of the chairman from time
to time as the business of the committee.
(iv) DUTIES OF THE CREDIT COMMITTEE SHALL BE:
(a) To receive application loans and examine them against the background of
the financial conditions, personal habits, previous record of borrowing, Purpose
of loans, ability to repay fully and promptly, character and financial standing of
the sureties and doing so shall with bye- law (iii).
(b) To decide on terms of repayment in granting loans.
(c) To call for at regular interval comparative statement of loans analysis of
delinquent loans and reasons for them in order to evaluate the quality of
their work.
(d) To committee may at its direction wave a member’s contribution towards
ordinary savings during the currency, of a loans, the repayment of which
may impose more hardship on such member if he were to continue to
make his normal savings along with the repayment of his loan.
Alternating, the Committee may adopt a laverplan payment which enable
a borrowing to continue to contribute a proportion of his total payment to
his ordinary savings while repaying his loan. (See Appendix iii).
(v) SUPERVISORY COMMITTEE:
At any Annual Meeting there shall be elected 3 members as
supervisory committee.
(a) This committee shall meet at least once three month to or cause to make
on examination of the affairs of the society. Examination shall include an
audit of its books an n inspection of the securities cash account and loans
(b) Ascertains that all by the Management Committee and any other
committee are conformity with ordinance and bye- laws society.
(c) Make a written report to the management committee of its findings
following each Examination.
(d) Verify the passbook of the member with the account of the treasurer
annually.
They shall pay to the following check list:
1. Is a receipt issued for every item of cash received?
2. Is there a payment voucher for every amount paid?
3. Is too much cash kept on hand?
4. Are any unused cheques on hand signed in blank?
5. Is the cash book balanced regularly (daily weekly and monthly)?
6. Are all expenses approved by the Management Committee and Vouchers
signed by he president?
7. Are the Management balance compiled monthly/
8. Do these balances agree with the general control account?
9. Are the minutes signed by the chairman and secretary
10. How many loans are delinquent?
NAME: …………………………………..
AMOUNT …………………………………..
11. How many loans are overdue (a) within 1 year (b) over 2 year
12. What action is being to recover them?
13. Are all officers handling cash duly bonded?
14. Does the Society carry a burglary and robbery insurance?
Has the borrow in addition to the agreement entered into special
agreement with the society, authorizing , the society to claim his retiring
benefit or gratuities any unpaid balance of the loan in the event of death,
retirement or termination off appointment?
15. Has auditor’s report been read and discussed at meeting of the
management committee
(f) The supervisory committee shall have the power of recommend the
suspension of any officer, any officer all member of the management
violation of the ordinance or bye- laws of the society.
23. LOAN
( i ) PURPOSE OF LOANS
Loans shall be retracted to members only and shall be made for
provident and provident and productive proposes only upon such security
and terms as the credit committee shall have approved.
(ii) APPLICATION FOR LOANS:
Application for loans shall be on form prepared and furnishing by
the Management committee and shall set out the purpose for which the
loan is desired, the security (if any) and such other date as may be
required.
(iii) CONDITIONS GOVERNMENT LOANS
No loans shall be granted:
(a) To any individual other than a member of the society.
(b) To any member whose monthly savings are in arrears.
(c) For a period of exceeding the time limit fixed by the General
Meeting.
(d) If it would bring a member’s total indetedness at the time of the
loan to an amount exceeding his maximum credit limt.
(iv) RATE OF INTEREST ON LOANS:
Rate of interest shall be fixed from time to time by the Management
Committee but shall in no case exceed 15 percent annum on unpaid balances.
Incase of default in repayment, penalty interest at twins the normal rate may be
charged.
(v) MAXIMUM CREDIT LIMIT:
The maximum limit of each shall be:
……………………………………………..
The committee shall bear in mind the availability of funds, the principle of
making credit available to as many as are qualified and the securities offered. (
see Appendix – for Guide on loans)
(v) BONDS AND SECURITIES
Every borrower shall execute a bond of the society and shall furnish
sureties. Who midst be member of the society.
(vi) DUTIES OF SURETY:
A surely must be reputable member of the society and shall personally
guarantee.
(a) Repayment of the loan if borrowed defaults.
(b) The correctness of the particulars on which the value of the borrower’s
securities is based.
(c) That loan is used for the purpose by the borrower in his application mis-
use of loan shall reported the surely to the Committee Immediately.
(vii) RECALL OF LOANS:
All loans shall be issued subjected to the right of the society to call for
immediate repayment.
(1) If any misapplication is proved
(2) If the borrower gives an indication of resignation
(3) Persistently default for a period pf over three months
(viii) LOANS TO ANOTHER SOCIETY :
Subject to the prior approval of the registrar, a loan may be granted to
another registered.
This Loan must be approved by the Registrar and at an approved rate of
the cooperative. The repayment of such loan will not exceed a period of
12 months.
(ix) COMMITMENT AS SOCIETY
A member’s Committee as surely shall not when taken together with his
own exiting exceed his maximum credit limit.
24. USE AND CUSTODY OF FUNDS:
(a) The funds of the society may be deposited with the approval of the
Registrar in the Cooperative Banks, Commercial Bank, State Banks and
trust companies operating in accordance with the laws of Nigeria or in
any other Central Financial Society in which the society is eligible to hold
membership.
(b) INVESTMENT:-
Such funds of the society are not required for current use may be invested in any
manner permitted by the Law and Regulations and approved by the Registrar.
(c) OPERATION OF THE BANK ACCOUNT:- The society’s bank accounts
Shall be Trustee Accounts. Before money is withdrawn from the bank, the
cheque or withdrawal slip be signed the Secretary at least one of the Trustee.
25. DISPOSAL Of SURPLUS:
The annual not surplus of the society shall be appropriated in the following
manner:-
(1) Not less than 25% to the reserve fund, unless a lower rate is prescribed by
the Registrar under the law.
(2) 2½ to the Education Fund.
(3) Such honoraria donations or other appropriations as may interest .
(4) Dividend on members saving and loan, rebate of interest.
(5) General reserve
(a) RESERVED FUNDS:-
When amount appropriated to reserve fund equals the total limited
liability of member as contained in these bye-laws, no further
contribution shall be made to this account, the reserve fund shall belong
to the society and no one is entitled to claim a specific share in it except
with business of he Society, but shall not be funded an invested in the
Cooperative Banks or other banks, approved by the general meeting.
(b) Dividend
Dividend at rate fixed by Management Committee may be paid on
member’s saving and total loans repaid on the basis of income earned
during the year. (See Appendix for examples).
(c) Education funds :-
Not less than 2½% of the year net surplus shall be carried to an Education
Funds 50% of which shall be paid to the LASCOFED Limited for the
promotion and the extension of Co-operatives societies.
(d) Registrar’s Approval:-
The appropriate of the net surplus shall be subjected to approval by the
Registrar and governed in all respects by the spirit and letter of the law
and Regulations.
(26). AUDIT AND SUPERVISION FEES
Audit and supervision fees at the rate assessed by the Registrar shall be
paid annually to the LASCOFED Limited
27. BOOKS AND ACCOUNTS:
A. Prescribed Book and Records:
Accounts and records shall be maintained in the forms prescribed by th
Registrar and shall include the followings:
i. Membership and Attendance Register showing the name, address and
occupation of every member, the date of admission to membership, the
nominee and the member’s attendance at meetings.
ii. A cash book showing the receipts, expenditure and balance on each day
business is done.
iii. General Ledge
iv. Personal Ledger with accounts for each member, Depositor or Creditor
v. Loan register showing installments for repayment of loans.
vi. Minute Book for proceeding of General and Committing meetings.
vii. Loan Bond File containing bonds for all loans issued.
viii. Such other records as may be prescribed by the Register.
B. PASSBOOK
Every member shall keep and maintain a passbook showing particulars of
his accounts with the society.
28. DISSOLUTION AND DIVISION OF THE SOCIETY SPLITTING
UP OF THE SOCIETY
11. At any time the Register may on the written request of not less than one-
third of the members, the number not being less than 25 or when the
membership exceeds 90 on the written request of at least 30 members
authorize such members to form themselves into separate society of the
same type and to this shall be transferred the total savings of those
members and proportionate amount of the original society’s funds and
liabilities.
DISPUTE AND LIQUIDATION :-
(I) Disputes:-
Any disputes arising or concerning the society, its member past or
presents or person claming through them shall be referred to the register for
settlement by arbitration as provide for the ordinance.
(ii) Liquidation:-
The society shall not be liquidated expected by order of the register in
accordance with section 54 and 55 of the law. in the case there is any surplus
after meeting all liability of the society and repaying all sum to the credit of the
members, such surplus shall be dispose off as decided by the approve in writing
or registrar.
(iii) Miscellaneous provision
(a) Affiliation to the Local Multipurpose Cooperative Union
Unless there are reason to the contrary accepted by the registrar the
society shall; affiliate itself at the earliest possible time to any local
multipurpose cooperative Union Limited, formed in it area or operation.
(b) Fines:-
Any member’s osr officer who absent himself from a general or
committee without reasonable excuse or otherwise act in a manner considered to
be against the best interest of the society may be fined an amount not exceeding
………………..
(c) Seal
The Secretary shall hold in safe custody the seal of the society on behalf
of the trustees. The seal shall be of pattern approved by the Registrar.
Documents shall be sealed at least by two of the trustee one of whom must be
the Secretary.
D. Other Issues
Eligible candidate for the post of the President and Vice President should
preferably be a Business Service Manager (BSM) OF A BRANCH IN Wema
Bank PLC.
E. TENURE OF THE EXECUTIVES:
Executives shall be allowed to spend two 2 terms on a position and maximum of
three (3) terms as an Executive.
(d) Amendment of Bye-laws:-
Any amendment of or addition, to these bye-laws shall be made by the
general meeting of the society in accordance with the Regulations and shall not
be valid until such amendments or additions are registered by the Registrar.
I hereby certify that the foregoing bye-laws of the ……………………………..
……………………………………………………………………………………
Co-operative thrift and Credit Society Limited No …………………………….
Of ………………………………………………………………………………
Has been registered under the Cooperative Societies Law Chapter 29 of the
Laws of Ondo State of Nigeria 1973.
DIRECTOR OF COOPERATIVE SOCIETIES,
ONDO STATE
NIGERIA
APPENDIXES
I
GUIDE ON LIQUIDITY AND LOAN POLICY
GUIDE ON LIQUIDITY AND LOAN POLICY
Cash in Bank – Current Account 5%
Cash in Bank – 7 day (deposit Account 20%
Govt. Securities (Treasury Bills) 5%
Short Term Loan (Less than 1 year) 65%
Medium Term Loan (1-2 years) 5%
100%
II
NEW METHOD OF CALCULATING DIVIDEND
(THRIFT AND CREDIT SOCIETIES)
Example: -
Net Surplus for appropriation N1,000
Grand Total of savings compiled from members
monthly saving balances N19,200
Grand Total of loans repaid compiled from loan balance N149,960
Retie of grand total of savings to grand total of loans repaid 1.9
Proportion of interest on grand total of savings N100
Proportion of interest on grand total of N1,000
Loans repaid N900
Rate of Dividend payable on savings balances 50x240
N960x1
11/4 kobo per N Unit
Rate of Dividend loan repaid 450x240
11/2 kobo per N Unit
LEVEL PLAN PAYMENT: -
A member whose monthly contribution is N3.00 can payable in twenty
months, the interest at 15% per annum (two and half kobo per N per month)
reducing balance will have his contributions worked out as shown in the table
below.
Principal Loan N400.00
Interest 52.50
N452.50
Month Total payment
N . K
Loan payment
N . K
Interest
N . K
O.S.
N . K
1 25.00 20.00 5.00 -
2 25.00 20.00 4.75 0.25
3 25.00 20.00 4.50 0.50
4 25.00 20.00 4.25 0.75
5 25.00 20.00 4.00 1.100
6 25.00 20.00 3.75 1.25
7 25.00 20.00 3.50 1.50
8 25.00 20.00 3.25 1.75
9 25.00 20.00 3.00 2.00
10 25.00 20.00 2.75 2.25
11 25.00 20.00 2.50 2.50
12 25.00 20.00 2.25 2.75
13 25.00 20.00 2.00 3.00
14 25.00 20.00 1.75 3.25
15 25.00 20.00 1.50 3.50
16 25.00 20.00 1.25 3.75
17 25.00 20.00 1.00 4.00
18 25.00 20.00 0.75 4.25
19 25.00 20.00 0.50 4.50
20 25.00 20.00 0.25 4.75
Total N500.00 N400.00 N52.50 N47.50
CO-OPERATIVE THRIFT AND CREDIT SOCIETIES NOTES
GUIDANCE ON BOOK-KEEPING
It is one of the duties of the Secretary (Bookkeeper) to maintain correctly
and up-to-date the prescribed books and records of the society.
The following procedure will be observed in the keeping of such records.
1. The columns of this register should show the following particulars of
every member: - (i) Name (ii) Address (iii) Occupation (iv) Number of
nominee (vii) signature (viii) date of cessation of membership (ix)
attendance at General Meeting.
NOTE: Every member should be made to sign or thumbprint column
(vii) otherwise; he is not legally a member.
2. CASH BOOK:
The Cash Book shows the receipts, payment and balance on each day on
which business in done. The Cash Book has two sides, namely (a) the left
hand side which is called the Debit (Dr.) and (b) the right hand side
which is called the Credit (Cr.) side the Dr. side is for receipt while the
Cr. Side is for (payments).
(a) DR. SIDE FOR RECEIPTS:
This side has the following columns:
i. Date (year on top, then month, then day)
ii. Receipt Number (this column should be ruled by hand inch wide)
iii. Particulars or narration
iv. General Ledger Folio
v. Cash Column
vi. Bank Column for Current Account
vii. Bank Column for Savings or Deposits Accounts.
NOTE: For every money received by the society, the Secretary must
issue an official cash receipt acknowledgment.
POSTINGS:
(i) Every receipt as issued must be separately entered in the cash book with
date and particulars of account in respect of which it is received.
Where member’s savings, loan repayment etc, are made through deduction from
salary at source, the monthly total of such deductions on the Deduction Sheet
must be entered in the Cash Book in respect of the month which the deduction is
made.
(B). CR. SIDE FOR PAYMENT:
The columns of the credit side are the same as those of the debit side, but
instead to the Receipt No. “for column (2) substitute “Payment Voucher No.”
NOTE: For every payment made by the society the Secretary must prepare a
Payment Voucher. The person receiving the money must sign the P.V which
must be counter signed by the President to show that such payment is
authorized.
POSTINGS:
Every such payment voucher must be separately entered in the Cash Book with
date and particulars of account in respect of which the payment is made.
(c). BANKS TRANSACTION:
Payment to bank for which the evidence is the Society’s Bank Pass Book or
Teller must also be similarly separately entered. In the case of payment
bank, the money which is paid by the society and therefore, entered in the
cash column on the credit side of the Cash Book is received by the Bank
and is therefore, entered in the Bank Column Current or Savings/Deposits)
on the Debit of the Cash Book. This kind of entry of the same amount on
the both sides but in different columns of the Cash Book is called a “Centre
entry”. The position will be reversed when money is withdraw from the
bank.
NOTE: Contra entries need no further posting to the General Ledger because
the necessary double-entry (debit and credit or vice versa) has been made in
the Cash Book.
(d). Because of the need for a column for cash, another column for Bank
Current Account and yet another column for Bank Savings/Deposit
Account. It is better to buy and use a three-column Cash Book than two
column Cash Book.
(e). The Cash Book should be balanced at the end of the every month.
GENERAL LEDGER:
The General Ledger contains Accounts which are general in nature and
not particular to individual members. The account may be all or some of the
following.
1. Annual subscription to Local Multi-purpose Cooperation Limited.
2. Affiliation Fee
3. Audit and Supervision Fees.
4. Annual Subscription to the Local Multipurpose Cooperative Union
Limited, for example the Cooperative Union of Western Nigeria Limited.
5. Fares.
6. Interest on Deposits
7. Interest on Thrift Savings.
8. Interest on Loan from Union/Cooperative Bank.
9. Salaries and Wages.
10. Postage and Stationary.
11. Entertainment
12. Entrance Fees
13. Fines.
14. Interest on Loans to Members.
15. Interest on Investment.
16. Interest on Deposition Union.
17. Bank Interest.
18. P.O.S.B. (i.e. Post Office Savings Bank) Interest.
19. Donations.
NOTES:
(a) Account (1) to (2) above are Income and Expenditure Account items.
(b) Account I to II above usually have debits entries and balance while
Accounts 2 to 20 above usually have credits entries and balances.
(c) Account “Study Expenses” or “Sundry Income” should be avoided in
order to prevent malpractices. Every expenditure or income should be
given a name or posted under an existing Account.
The General Ledger contain further Accounts
20. Deposes in Credit Union
21. Deposits Co-operating Bank
22. Share in Credit Union
23. Investments
24. Loans of Member
25. Interest due to from union
26. Interest due to P.O S.B.
27. Interest due to Bank
28. Investment interest due
29. Building and equipment
30. Appropriate Account
31. Sundry Debtors (to be named in list)
32. Share Capital
33. Thrift savings
34. Special Savings
35. Deposits
36. Reserve Fund
37. General Reserve
38. Educational Fund
39. Loans from Union
40. State union – i.e co-op., Union of Western Nigeria
41. Sundry creditors ( to be named on a list)
Notes:
(a) Account (21) (41) are balance sheet items
(b) Accounts (21) to (32) usually have debit balance, while Accounts (33) to
(42) usually have credit balance.
(c) The appropriate Account (31) above may be debit or credit according to
whether the society has accumulated profits or accumulated losses.
(d) The debit side the credit side of the General Ledger Accounts each has
the following column:
(i) Date (ii) Narration or particular (iii) folio (v) Amount
POSTINGS:
The above General Ledger Account have to be posted from the cash book
when cash or cheque is received or paid OR from the Journals when debit or
credit note is received or forwarded.
CLOSING THE ACCOUNTS
The General Ledger Account should be balanced and closed only once a
year on the 31st of December .For the other month a running total of each
account should be carried and entered as such in the trial Balance
(4) PERSONAL LEDGER
The personal ledger contains Account which to an individual
member’s deposited ledger the following particular have to be shown.
1. Serial number and name of member
2. Member’s Address Signature
3. Address
4. Date Admitted
5. Date Membership ceases and
6. Reason fore ceasation of member
Government Co- operating officer, no person (other than the owner
himself) should allowed to see Personal Ledger Account of a member
unless with the express permission of the owner.
(c) Personal Ledger Balances should be prepared at the end of every month.
The total of each account, e.g. savings should agree with the total of the
same account in the General Ledger.
(5) LOANS REGISTER
The loan Register is a record of all loan transactions a member has with
the society, it has column for the following particulars:
1. Serial Number
2. Name of Member
3. Names of Sureties
4. Amount required
5. Estimated Value of borrower’s crops or Article of trade
6. Purpose of Loan
7. Minute Books of Loan
8. Date of loan
9. Loans Bond No
10. Amount Granted
11. Payment Voucher No.
12. Borrower’s Signature in Receipt of the Loan
13. Cash Book Folio
14. Date of Completion of Loan
15. Amount Paid
16. Loan interest Calculation of interest on loans: Formula:
PRINCIPAL X (NO OF MONTHS + 1) x3+2
17. Cash Book Receipt No
18. Date Repaid
19. Balance Due.
Postings:
The Loan Register is posted from payment voucher (when issuing loans)
and cash receipt when receiving loan repayment and / or interest on loans).
6. LOAN BOND:
The Loan Bound is a written agreement between the society and the
member who borrows from the society. It contains the details of the name of the
borrower, the amount borrowed, purpose of the loan system and period of
repayment and the names of his sureties. Usually printed Loan Bond Forms are
available to buy. Great care should be exercised to fill the form correctly and
completely.
7. FORMS OF APPLICATION FOR LOANS:
These are printed forms which members should complete when applying
for loans, the forms should be correctly and completely filed.
8. REGISTER OF SHARE PAYMENTS:
This Register shows the name of each member and the amount of his or
her shares. If payment is made instalmentally, the amount paid each time should
be correctly recorded in this Register.
9. MONTHLY ANALYSIS BOOK.
This book shows a break-down of the payment made by every member
each month. It shows (1) name of member (2) total amount paid in the month
(3) amount paid as shares (4) amount paid as savings (5) amount paid as deposit
(6) Loan repayment (7) Loan interest payment, other transactions may be
included if and when, occasion warrants such inclusion. From Monthly Analysis
Book the Personal Ledger of each member is posted
10. MINUTES BOOK:
The proceedings of both Committee and General Meetings should be
recorded in the Minutes book. It is advisable to keep separate Minute books for
Committee and General Meeting to make for easy reference and also for the
Minute Book should be ruled into six columns for index as follows.
(1) No of meeting
(2) Date of Meeting
(3) Type of Meeting (General or Committee)
(4) Number Present
(5) Quorum
(6) Folio Decision of meetings should be recorded accurately and concisely.
Minutes of a Committee Meeting should be recorded in the course of the
meeting and signed by all members present at the end of the meeting. The
minutes of a previous meeting should always be read and adopted at the
beginning of the following meeting. On adoption the President (or
Chairman) of the meeting should sign the minutes
11 AUTHORITY FOR DEDUCTION:
In Societies where savings are made by deduction from salary at source,
forms of authority for deduction from salary at source should be
completed by each member. The completed forms should then be sent to
the paymaster. The paymaster make the deductions monthly and sends
them either to the society or to the bankers of the society.
12. MONTHLY FINANCIAL STATEMENTS:
The Secretary (Book-keeper) should prepare the following statements at
the end of every month in order to make possible the assessment of the
financial situation of the Society.
(a) Trial Balance:
This is a summary of the Balances of the ledger accounts and of the
cash in hand and in the bank
(b) Personal Ledger and General Ledger balances
(c) Analysis of Operating Statement.
These statements should show the amount incurred on every item
of expenditure for the month and the amount received on every
item of income for the month. They should also show the amount
budgeted for every income and expenses.
V
NOMINEE – FORMS II
DECLARATION OF NOMINEE UNDER – REGULATIONS 23 (i) OF
THE COOPERATIVE SOCIETY ACTS CAP 39 1958
REVISED EDITION
Name of Society: ………………………………………………………………...
…….…………………………………………………………… Society Limited
Declaration made this day ……………………………………………………...
of …………………………………………………………………………………
One Thousand, Nine Hundred and ……………………………………..………
I, ………………………………………………………………... (Name in Full)
of …………………………………………………………………………………
(Ondo and Home-Town Address: ……………………………………………….
…………………………………………………………………………………....
being a member of the above named Society, hereby declare that the
person/persons named below shall be my nominee/nominees under the terms of
the Bye-Laws of the above mentioned Society, namely the person/persons to
whom, in the event of my death, all sums due to me by the Society shall be
transferred.
1. ……………………………….……...………… (Here insert the nominee)
2. ………………………………………...………. and relations to declarer)
(if more than one, state)
3. ………………………………………………...... (the ratio of distribution)
( )
4. ……………………………………………….......... ( )
This declaration cancels any previous declaration by me. Signed, sealed and
delivered by the said:
Mr./Mrs,/Miss ……………………………………………………………………
(Name and Signature of Declarer)
In our presence, both of us being present at the same time
1. …………………………..……… 1. …………………………………
2. …………………………..……… 2. …………………………………
(Signature & Name of Witnesses and Addresses of Witnesses)
NOTE; Witness sign as witnesses to the Declarer’s signature and not to terms
of the declaration.
VI
APPLICATION FOR SETTLEMENT OF A DISPUTE UNDER THE
COOPERATIVE SOCIETIES ACT CHAPTER 39 1958
REVISED EDITION
Whereas a dispute has arisen between …………………………………………...
……………………………………………………………………………………
……………………………………………………………………………………
I/we (Name of Names and title) ………………………………………………….
……………………………………………………………………………………
Hereby apply to the Director of Cooperative Society, Ondo State for the said
dispute to be settled in accordance with Section 46 of the Cooperative Societies
Act Chapter 39 of 1958 (Revised Edition).
AMENDMENT OF BYE LAWS
Having give due notice of the proposal of all members at a general meeting of
or society held at …………………………………………………………………
on ………………………………… at which ……………………………………
Members out of a total membership of ………………………………... attended
it was unanimously passed that the former Bye Laws be replaced by a new set
of bye laws for a ………………………………………………………... society.
Resolution ………………………………………………………………………
………………………………………………………………………
………………………………………………………………………
Bye-law/bye-laws:-
We attach herewith our Bye-Law and certificate (where necessary) for
registration of the amendment.
President ……………………………………
Secretary ……………………………………
Committee ……………………………………
Committee ……………………………………
I hereby certify that the above amendment to bye-law/bye-laws
…………………………………………….. of the …………………… has/have
been registered under Section 5 of the Cooperative Societies Laws, Cap 39 of
the Cooperative Societies Ordinance of the Federation of Nigeria Revised
Edition (1958) as Registered Amendment.
No. ……………………………………………………. of 19 …………………..
Date at Ondo this …………….. day of ……………………… 19 ……………..
Director of Cooperative Society
Ondo State,
VIII
AUTHORITY FOR DEDUCTION FORM F.1B (INDIVIDUAL)
Name of Society: …..………………………………………………….. Limited
………………………………………………….. Department
………………………………………………………………..
………………………………………………………………..
AUTHORITY FOR DEDUCTION FROM PAY
………………………………………………………………. is a member of the
……………………………………………………. Society Ltd. have read the
bye-laws of the Society hereby authorize the ……………………………………
Department to deduct from my monthly salary the sum of ……………………...
and to pay such deduction to my Society each month.
Dated this ………………….. day of ………………………………. 19 ………..
Signed ……………………………… …………
Position ………………………………………...
Department …………………………………….
Name of witness to declaration …………………………………………………..
Signature …………………………………………………………………………
AUTHORITY FOR DEDUCTION (EMBLOC) FORM F 1A
Name of Society ………………………………………………………………….
………………………………………………………………….. Society Limited
…………………………………………………………………......... Department
Thro: ……………………………………………………………………………...
………………………………………………………………….. Society Limited
We, the undersigned members of the above named society request the deduction
from our salaries, until further notice, of the sum (as shown against our names
hereunder) per month may be made and paid to the ……………………………..
A/C No: ………………………………………… of the above named society at
……………………………………………… Bank ……………………. Branch
Dated this ………………….. day of ………………...…..…… 19 ……………..
S/N NAME AMOUNT SIGNATURE
1.
2
3
4
5
6
7
8
9
10
TOTAL
N.B. This authority cannot be canceled except by a notice duly given
APPLICATION FOR LOAN (INDIVIDUAL)
1. I hereby apply for a loan of N ( ) for a period of months to be
repaid in monthly payments of N ( ) excluding/plus interest
2. I desire this loan for the following provident or productive purpose.
3. Name of Guarantors (i) Mr. Mrs., Miss
(ii) Mr. Mrs., Miss (iii) Mr. Mrs., Miss
4. SECURITY (in addition to your credit society Shares/Saving)
5. I am not indebted to any other credit society, bank or loan agency except
as herein stated, the statements herein are made for the purposes of
obtaining the loan and are true to the best of my knowledge and belief
Name and Signature of Applicant Address.
6. PERSONAL INFORMATION
(i) Phone Number (If any)
(ii) Nearest Relative, Name and Address
(iii) Employed by (iv) Official Address
(v) Position/Rank (vi) Monthly Salary/Income
(vii) Name of your Bank and Saving Account Number
7. CREDIT OBLIGATION Balance Owed
1. ___________________________ N K
Name of Creditor & Address
2. ___________________________ N K
Name of Creditor & Address
3. ___________________________ N K
Name of Creditor & Address
8. CO-GUARANTORS
(a) (i) Name
(ii) Address: (No Box Not Allowed)
(iii) Employed by/Occupation
(iv) Official Address
(v) Position
(vi) Salary/Income (Annual) N
(vii) Name of Bank and Savings Account No.
(b) (i) Name
(ii) Address: (No Box Not Allowed)
(iii) Employed by/Occupation
(iv) Official Address
(v) Position
(vi) Salary/Income (Annual) N
(vii) Name of Bank and Savings Account No.
On this day of 19 we approve/disapproved
the loan for N
1. ……………………………………………………………………………..
2. ……………………………………………………………………………..
3. ……………………………………………………………………………..
CREDIT COMMITTEE
FORM F. 3
LOAN BOND
AGREEMENT made this …………….. day of ………………… 19 ………..
between the ……………………………. Cooperative Thrift and Credit Society
Ltd., 9 (hereinafter called the Lender) on the one Part and
M ……………………………………………………… (hereinafter called the
Borrower) requires he sum of N ……………………… k ……………….. for
the purpose of …………………………………… and whereas the borrower has
applied to the lender for the said sum of N ……………………………… for the
purpose aforesaid which the lender has agreed to lend upon having the
repayment thereof together with interest thereon secured in the manner
hereinafter appearing.
Now this Agreement witnessesth:
1. In pursuance of the said agreement and in consideration of the sum of N
……………………….. now paid by the ……………………………..
Credit Society Limited, to the borrower receipt whereof the borrower
hereby acknowledges) the borrower covenants with the lender as follows:
a. The borrower will repay the sum of N …………………………….
With interest thereon at the rate of ……………………….. from
the date hereof over a period of months in equal and consecutive
monthly installments of N …………………….. the first
installment being due on the day of ………………. 19 …………...
b. During the continuance of this agreement, the borrower shall pay
by cash regularly each month the sum of N………………….. to be
paid over to the credit of the lender.
2. If the borrower is expelled from membership of the society, the whole
outstanding principal and interest shall become payable forthwith.
3. The borrower may terminate this agreement at any time by paying to the
Society the amount of principle and interest outstanding in respect of the
said loan.
4. No neglect, delay or indulgence on the part of the Society in enforcing
any of the terms of conditions of this agreement of the bye-laws of the
Society shall prejudice the strict right of the lender in regard to this loan.
5. Where the borrower failed to pay the balance outstanding before leaving
the service, the two guarantors will be called upon to pay the amount
outstanding. In the absence of valid guarantors, the borrowers would be
required to complete form F.4 together with this if he is employed.
SOCIETY OFFICERS
……………………….. ………………………..
Borrower’s Signature President
GUARANTORS:
1. ……………………………
Name & Signature Signature: …………………
2. ……………………………
Name & Signature Signature: …………………
AUTHORITY FOR DEDUCTION FROM PA GRATUITY OR OTHER
RETIREMENT BENEFITS IN THE EVENT OF
DEATH OR OTHERWISE
(A) In consideration of a loan N ……………………………….. from the
………………………. which loan I agree to repay together with interest
at the rate of N ……………………… for a period of ……………………
commencing from …………………… and ending ……………………....
(B) I, Mr./Mrs./Miss. ………………………………………… an employee
hereby declare and say as follows that in the event of my
death/transfer/retirement/resignation etc, from the ………………………
Department before the said loan is liquidated the total outstanding
balance un respect of the loan should become due to payable and should
be deducted by/the ………………………………. from my last
paying/gratuity/retirement benefits/other credits due to me from the
……………………… Department and credited to the loan balance or
any part thereof.
(C) In furtherance to paragraph (b) above, the hereby certified that I,
Mr./Mrs./Miss ………………………………….. and owing the sum of
…………………………….. to the ………………………… limited as
scheduled since no other known source is available from which the
recovery can be made: it is recommended that approval of the Trustee of
the Fund should be sought to recovering the amount from my
pensions/death/benefits etc.
Particulars N K
This claim certificate is hereby forwarded for the joint actions of the
General Manager and the Trustee of the Fund.
(D) If I resign or retire as the case may be from the Department the full
liquidation of my loan balance the society is hereby authorized acting in
my capacity and in good faith, to fill in Paragraph C above with my
outstanding debt and submit the form to my department for settlement of
the debt from benefits in the department.
I ……………………………. signed, sealed ad delivered this certificate
on this ……………… day of ……………….. 19 …………….. in the
belief that I have read and understood the contents of the agreement.
BORROWER Full Name: ……………………………………..
Signature: ………………………………………
Rank: …………………………………………...
Department; ……………………………………
SOCIETY’S OFFICERS sign as witnesses to the borrower’s
1. Name: ………………………………………………………………
President’s Sign.: …………………………………………………...
2. Name: ………………………………………………………………
Secretary’s Sign.: ………………………………………………......
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