Nigeria Real Estate Hub

Management of Cooperative Society

February 14
13:30 2014

Understanding management of cooperative society is the key to the success of any society. You may say Knowledge is expensive but ignorance is more expensive.

Effective management of cooperative society is not possible without adequate and up-to-date knowledge of cooperative management, the proper ways and means to which Trustees and Committees can be put to good use.

How to even ensure and encourage people to voluntarily and effectively serve in the various committee capacities is a skill that must be learnt.

At our company; Realty Point Ltd and on this platform it is always my pleasure to share knowledge and vital bodies of information and I will be doing same as regards management of cooperative society, that is. functions of the trustees and committees in a cooperative.

The President presides at all general and management of cooperative society meetings and has power to organize such meetings but in his absence, the vice president (if any) will be the chairman and have all powers of the president. However, in the absence of both of them, a member of the management of cooperative society will be elected chairman of the meeting.

The Treasurer takes charge of all money received by the society and makes disbursements in accordance with the directives of the management committee. He signs the cash book monthly after ensuring its correctness and produces the cash balance whenever called upon to do so by the management committee, the registrar or his representatives and at every general meeting. He also deposits all funds over the limit fixed by the society and signs all members’ passbooks.

The Secretary keeps and maintains correctly, an up-to-date prescribed books and register. He prepares all receipts, vouchers and documents required by the regulations or byelaws and procure from borrowers the due execution of bonds with security. He summons and attends all meetings, records the proceedings and submits to the management committee, the Annual Accounts and Statements and certified copies of entries in the books. He also signs on behalf of the society and conducts all its correspondence.

The above mentioned – management of cooperative society – people are referred to as Trustees and they endeavour to always equip themselves with valuable information and knowledge to make efficient managers of societies businesses.

However, within the society there are committees functioning in various capacities as well and they are highlighted below.

The Management of Cooperative Society (Committee) consists of at least nine members inclusiveof the Trustees and one or more Vice Presidents and must be over the age of 21years. The management of cooperative society is entrusted in this committee and are usually elected for one year (or the stipulated number of years by the Cooperative’s bye-law) at the Annual General Meeting of the society and subject to the law, byelaws and resolutions of the general meeting.

The Credit Committee can consist of a maximum of 5 or a minimum of 3 members over the age of 21 years elected for one year (or as may be stipulated by the Cooperative’s bye-law) at the Annual General Meeting. They meet at the discretion of the chairman or at the request in writing of at least two members of the committee.Their duties are to receive applications for loans and examine them against the background of the financial conditions, personal habits, previous record of borrowing, the Cooperative’s Credit Policy and purpose of loans, ability to repay fully and promptly and the character and financial standing of the guarantors. They also decide on the terms of repayment of loans granted and at regular intervals call for comparative statements of analysis of unpaid loans and reasons for them.

The committee may at its discretion wave a member’s contribution towards the ordinary savings during the settlement of a loan if the repayment and contribution towards saving will impose more hardship on such a member. Alternatively, the committee may adopt a lever plan payment which enables a borrowing member to continue to contribute a proportion of his total payments to his ordinary savings while repaying his loan.

The Supervisory Committee consists of at least three members elected at the Annual General Meeting and they meet at least once every three months to make or cause to be made, an examination of the affairs of the society which shall include an audit of its books and an inspection of the securities, cash accounts and loans. They ascertain that all actions by all committees are in conformity with the ordinance and byelaws of the society, make a written report to the management committee of its findings following each examination, give an annual audit report and submit same to the annual general meeting and also verify the passbooks of the members with the accounts of the treasurer annually. In some cooperatives, the Supervisory Committee is called Audit Committee.

Conclusively, one of the basic principles of cooperative societies is to educate, train, inform and as well as to consistently expose members to the dynamic social, economic and political environment of business. The effect of such training is to enable individual member always be in a position to take advantage of new innovations, knowledge or information which if implemented will positively influence the growth and development of the people and by implication, the societies.

I will like to recommend Prime Asset Housing Cooperative Multi-purpose Society Limited, www.primecooperative.org. You can call 08059899748 for further enquiry.

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