BRIEF NOTES ON THE CO-OPERATIVE SOCIETIES ACT (Chapter 62)

1OBJECTIVE OF THE ACT

  • Register co-operatives
  • Regulate co-operatives

2CO-OPERATIVE PRINCIPLES

  • Open and voluntary membership
  • Democratic control
  • Limited interest on capital
  • Distribution of surplus to members in proportion to their patronage
  • Promotion of education
  • Co-operation among co-operatives at local, national & international levels

3SOCIETIES WHICH MAY BE REGISTERED

Those which -

  • promote the economic interests of its members in accordance with co-operative principles
  • promote the economic interests of both its members in accordance with essential co-operative principles and the public generally or any section of the public
  • facilitate the operations of both the above types of societies

4CONDITIONS OF REGISTRATION

  • 10 persons (primary societies)
  • 2 or more societies/trade unions (secondary societies)
  • "co-operative" and "limited" as part of its name
  • By-laws are not contrary to the Act

5PRIVILEGES AND DUTIES OF SOCIETIES

On registration, a society -

  • becomes a body corporate
  • has perpetual succession
  • has power to hold movable and immovable property
  • has power to enter into contracts
  • has power to sue and be sued
  • has power to do all things necessary for the purposes of its by-laws
  • may make or amend its by-laws

-15 days notice required

-amendments shall not bound a member to subscribe more shares without his written consent

  • shall notify Registrar of Co-operative Societies (RCS) of every change of registered address
  • shall maintain Register of members and shares
  • shall notify RCS of names, occupations and addresses of all officers
  • shall not impose fines >$500 for infringement of by-laws, except with RCS approval
  • shall produce moneys and books of societies and furnish information to RCS
  • shall submit audited accounts, annual report and keep proper accounts and records
  • may federate and form secondary societies and apex organisation
  • shall hold Annual General Meetings

-within 6 months of end of FY

6RIGHTS AND LIABILITIES OF MEMBERS

Qualifications for membership -

  • 16 years (12 years for school co-ops) or
  • registered society or trade union
  • citizen or resident in Singapore
  • meet residence, employment, profession requirements as prescribed in by-laws
  • credit co-op individual membership restricted to those who belong to pre-existing common bond of association or community of interest

Votes of member -

  • individual - 1 vote
  • institution - such number of votes as provided in the by-laws

Maximum of 20% share-holding for individual member

Right to withdraw from society

  • notice shall not exceed 1 year for primary society
  • notice shall not exceed 2 years for secondary society

May nominate a person to receive sum due on his death

May be expelled for contravening the Act, the rules, the by-laws or for acting in any way detrimental to the interest of the society

7ORGANISATION AND MANAGEMENT OF SOCIETIES

Supreme authority shall be vested in the General Meeting of its members

Extra-Ordinary General Meeting (EGM) -

  • requisition by 60 members or 20% of members
  • members making requisition have power to convene EGM if committee fails to convene it within 1 month of receiving requisition

Quorum -

  • 30 or 20% of members or delegates

Voting -

  • decision by majority of votes
  • chairman no casting vote
  • election by secret ballot

Committee of Management -

  • 5 to 30 members, including chairman, vice-chairman, secretary and treasurer
  • if < 5 members - shall co-opt

Eligibility for membership in Committee -

  • 21 years old except for school co-operatives
  • citizen of Singaporeor resident in Singaporeexcept with RCS approval
  • not be an undischarged bankrupt
  • not be convicted of an offence involving fraud or dishonesty
  • 5-year disqualification period applicable for non-credit co-ops
  • No time bar for credit co-ops
  • not be convicted of an offence under this Act
  • not be dismissed as an employee of a society
  • not be previously found to have misused or mismanaged the funds of a society

Meetings of Committee -

  • not less than once in 3 months

Restrictions on honoraria and allowances -

  • honoraria and allowances to officials to be approved at general meeting

8PROPERTY AND FUNDS OF SOCIETIES

Restrictions on loans -

  • society shall not make a loan or allow credit to any person other than:
  • a member of the credit society or his immediate family member;
  • an employee of the credit society ; or
  • another society that is not a member of the credit society, with the written consent of RCS

Restrictions on borrowing -

  • society shall determine at general meeting the maximum liability it may incur in loans from non-members and seek RCS’ approval for this;
  • credit society shall determine at general meeting, the maximum liability it may incur in loans or deposits from its members and their immediate family members.
  • RCS may reduce the maximum liabilities or impose conditions

Investment of Funds -

  • society to invest its funds in such manner as it thinks fit, subject to the same duty of care imposed on trustees under the Trustees Act

Central Co-operative Fund (CCF) -

  • 5% of first $500,000 of surplus to the CCF
  • 20% of any surplus in excess of $500,000 to either the CCF or the Singapore Labour Foundation (SLF), as society may opt
  • used to further co-operative education, training, research, audit and general development of the co-operative movement

Payment of Dividend -

  • not exceeding 10% of share capital

Bonus Certificates -

  • maturity in 5 years (no interest or dividend)

Bonus Shares -

  • maturity in 10 years

9DUTIES AND POWERS OF REGISTRAR

  • Convene special meeting
  • Inspect books, accounts, papers & securities of society
  • Audit or authorise auditor to audit accounts of society
  • Hold an inquiry
  • Examine books of society
  • Issue Winding-up Order
  • Appoint liquidator
  • Cancel registration
  • Settle disputes
  • Suspend activities
  • Remove committee of management

10MISCELLANEOUS

Minister -

  • may make rules for carrying out or giving effect to provisions of Act
  • exempt a proposed society from any of the requirements of the Act
  • exempt a society from any provision of Act or direct that the provision be applied with modification

Offences under the Act -

  • carrying on business under a name of "Co-operative" without the Registrar’s sanction
/ $5,000 or $500 for every day that offence continues after conviction
  • neglects or refuses to do an act or furnish information for purposes of the Act
  • makes a false return or furnishes false information
  • disobeys any summon or order issued under the Act
  • pretend to be a member of a Committee
  • performs any act which requires the consent or approval of the RCS, without first obtaining his consent or approval
  • a society or officer or member neglects or refuses to do an act or thing required by the Act to be done
  • does an act prohibited by the Act
/ $10,000 or $500 for every day that offence continues after conviction

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