Are you considering registering a co-operative society in Cross River State? Whether you are establishing it for investment purposes or as a humanitarian venture, this article will provide a clear guide on how to register a co-operative society in Cross River State, with a special focus on the procedure and requirements.
WHAT LAW GOVERNS THE REGISTRATION OF CO-OPERATIVE SOCIETIES IN CROSS RIVER STATE?
The Co-operative Societies Law, Cap C13 Laws of Cross River State 2004, regulates the procedure for the registering and operating a Co-operative Society in Cross River State.
WHAT ARE THE CONDITIONS FOR REGISTERING A CO-OPERATIVE SOCIETY IN CROSS RIVER STATE?
To form and register a co-operative society in Cross River State, the following eligibility criteria must be met:
1. Number of Members: A minimum of 10 members are required to establish a co-operative society. This is under the Co-operative Societies Law of Cross River State, which stipulates that a co-operative society must have at least 10 members to be legally recognized. A larger membership may be more appropriate for certain co-operatives (e.g., small-scale producers, and agricultural co-operatives)[1].
2. Age and Legal Status of Members: All co-operative members must be legal adults (16 years and above) with full legal capacity to form a co-operative. Members should be Nigerian citizens or foreign residents with valid identification in Nigeria[2].
3. Common Interest or Purpose: All members of the co-operative society must share a common interest or purpose, which could be based on their profession, business, geographical location, or social. Examples include: agricultural co-operatives, savings and loan soandeties, or consumer co-operatives.
4. Commitment to the Co-operative’s Objectives: The founding members must demonstrate a shared commitment to the goals and values of the co-operative, including mutual assistance, economic empowerment, and improving living standards.
WHAT ARE THE REQUIREMENTS FOR THE REGISTERING A COOPERATIVE SOCIETY IN CROSS RIVER STATE?
The following documents are required for the registration of co-operative societies in Cross River State:
a. Proposed name: A cooperative must have a proposed name with which it intends to be registered.
b. Constitution or By-Laws: A written constitution or by-laws that outlines the structure, goals, responsibilities, and rules governing the co-operative. The constitution must clearly state the purpose of the co-operative, the duties of members, and how disputes will be resolved[3].
c. List of Founding Members: This document should include the names, addresses, and contact information of all founding members, including their signatures. It should also specify each member’s role in the cooperative.
d. Minutes of the Inaugural Meeting: The minutes from the inaugural meeting, where the co-operative was formally established, should include a resolution for registration. The founding members and the chairman of the meeting should sign these minutes.
e. Proof of Identity: Copies of identification documents (such as National ID cards, driver’s licenses, or international passports) for all members of the co-operative.
HOW TO REGISTER A COOPERATIVE SOCIETY IN CROSS RIVER STATE
Once you have met the eligibility criteria and gathered the necessary documents listed above, you can begin the registration process. Below is a detailed step-by-step guide on how to register a co-operative society in Cross River State.
i. Formation of the Co-operative: The first step in forming a co-operative society is the gathering of the founding members who share a common purpose or interest. During this stage, the members discuss and agree on the goals, structure, and purpose of the co-operative. The members should also elect leaders (such as a chairman, secretary, and treasurer) to manage the society’s affairs until it is formally registered.
ii. Choosing a Name for the Co-operative Society: Selecting a name for your co-operative society is a critical part of the registration process. The name must be unique and should not conflict with the names of already registered co-operatives or businesses. The name should reflect the mission or objectives of the co-operative. It is important to check the availability of the name with the Cross River State Ministry of Commerce and Industry to avoid any legal issues.
iii. Preparing the Constitution or By-Laws: The constitution of the co-operative society is a foundational document that outlines the structure, purpose, rules, and governance of the co-operative. It is essential to prepare a well-drafted constitution that addresses the following: the objectives and goals of the co-operative, the structure of the co-operative (e.g., leadership positions, members’ roles, etc.), rights and responsibilities of members, procedures for the admission of new members and the termination of membership, rules for handling disputes, financial management, and meetings, contributions, shareholding, and profit-sharing arrangements[4], etc.
Once the constitution is drafted, all founding members must review, approve, and sign it before proceeding with registration.
iv. Application for Registration: After preparing the constitution and gathering all the required documents, the next step is to submit an application to the Ministry of Commerce and Industry in Cross River State. The application should include[5]:
a. The completed registration form provided by the Ministry.
b. The signed constitution of the co-operative.
c. The list of founding members.
d. The minutes of the inaugural meeting.
e. Proof of identity and address for all members.
The Ministry may require additional documentation or clarification at this stage.
v. Payment of Fees: The next step involves paying the prescribed registration fee. The fees for registering a co-operative society in Cross River State are typically determined by the Ministry of Commerce and Industry. Fees can vary based on the type of co-operative and its activities. Payment is usually made through bank drafts or bank transfers to a designated government account. The payment receipt should be attached to the registration application.
vi. Inspection and Verification: Once the application has been submitted, the Ministry of Commerce and Industry will conduct an inspection and verification of the details provided. This may involve verifying the identities of the members, inspecting the co-operative’s premises (if applicable), and confirming that all documents are in order. The Ministry may also request a site visit or additional information to ensure compliance with legal and regulatory requirements.
vii. Approval and Registration: If all requirements are met and the inspection is successful, the registrar will approve the registration of the cooperative society. This is done by issuing a letter of recognition for the society to operate as a co-operative society[6]
A certificate of registration, signed and sealed by the registrar serves as conclusive evidence of registration of the society.[7].
By following these steps and ensuring all the required documents are in place, you can successfully navigate the process of registering a co-operative society in Cross River State.
BENEFITS OF REGISTERING A CO-OPERATIVE SOCIETY IN CROSS RIVER STATE
Registering a co-operative society in Cross River State offers numerous benefits, both legally and practically. These benefits help improve the long-term sustainability of the co-oporative and provide members with opportunities they might not have access to without formal registration.
1. Legal Recognition: One of the most significant benefits of registering a co-operative society is gaining legal recognition as a corporate entity. This enables the co-operative to enter into contracts, own property, and protection under the law[8].
2. Access to Government Grants and Loans: Registered co-operatives can access government funding programs, which can be instrumental in helping the co-operative grow.
3. Protection for Members: Registration provides important protections for co-operative members, including limited liability and dispute resolution mechanisms.
4. Increased Credibility and Trust: Registered co-operatives gain credibility with external stakeholders, including customers, investors, and suppliers. This increased trust can result in better business opportunities and partnerships, as stakeholders are more likely to engage with a legally recognized entity.
5. Access to Business Networks: Once registered, a co-operative society can participate in business and industry networks, allowing members to expand their business contacts, share knowledge, and collaborate with other co-operatives or businesses in their sector. This networking helps co-operatives access new markets, products, and services that can lead to growth and success.
These benefits provide both immediate and long-term advantages for co-operatives and their members, enhancing the impact they can have in their communities and contributing to their economic empowerment.
CAN A CO-OPERATIVE SOCIETY BE REGISTERED WITH THE CORPORATE AFFAIRS COMMISSION (CAC)?
No, a co-operative society cannot be registered with the Corporate Affairs Commission. Co-operative societies are legal entities governed by the Co-operative Society Laws of various States, and the Co-operative Society Act. They are also administered by a separate agency beside the Corporate Affairs Commission.
CONCLUSION
Co-operative societies serve as powerful tools for community development and financial empowerment. Prospective founders are encouraged to register their societies to take advantage of the benefits provided by the government and private sector corroborations.
If you need professional assistance with registering your Co-operative Society in Cross River State on your behalf, reach out to us HERE, or through the Whatsapp icon on this page, and we’ll respond to you.
[1] Section 4, Co-operative Societies law, Cap C13, Laws of Cross River State, vol2
[2] Section 23 ibid
[3] Section 9 ibid
[4] Section 9 Co-operative Societies law, Cap C13, Laws of Cross River State, vol2
[5] Section 5 ibid
[6] Section 6 ibid
[7] Section 8 ibid
[8] Section 7 ibid
