Welcome back..

BECOMING A MEMBER OF A COOPERATIVE OUTFIT: HOW AND BENEFITS.



Becoming a cooperative member is very simple. just join one.
How? by signifying your intention and abide with all the rules and regulations and the Bye-Laws of that Society.

join a cooperative outfit is very easy and simple. in most cases it invovles the following;

1. Registration - the individual signifies his intention by obtaining a Registration form. you fill and submit it to the cooperative secretariat for processing. in most cases there is always a fee attached to admission for membership. the fee will be dependent on the cooperative concern. this is usually a one time payment as a member. however another fee called Re-Entry fee is collected if you withdraw your membership and seeking re-admission

2. Savings - This is an important part of your membership. As a cooperator you will have to be making regular and consistent monthly contributions. for the sake of your membership and for the sake of you (yourself). Your history and adherence to this will determine your qualification for the benefits and welfare packages offers by the individual cooperatives. There is always a minimum amount for contribution. The amount for savings monthly would be determined by each member but subject to minimum limit. Any amount being save can be increased or reduced as members deem it fit. however the more your savings the more the benefit. Members are always been warn that small savings but consistent speaks volume more than big savings but inconsistent. Members are also allow to make bullet savings.

3. Share Capital - As a member you must be involve in share capital investment. This is what the cooperative use for short, medium and long term investment on behalf of the cooperative in many sector of the economy. The benefits and packages from share investment cannot be quantified. As a member the bigger you participate here the better for you.

In conclusion

Registration give you the opportunity to participate in the society.

Savings gives you the opportunity to request for loan at a cooperative rate and smaller yearly interest gains.

Share Capital gives you the opportunity to gain loans, bigger yearly interest gain,investment opportunities and welfare packages.

however both savings and share capital are cannot be done in isolation, except in some outfit, they compensation each other.


to be continued.......

Am realy enjoying dis, its an eye openner.. Do we also need to register the coperative society with CAC?

I'm interested: itunuomotayo@yahoo.com

Akdams: Welcome back..

BECOMING A MEMBER OF A COOPERATIVE OUTFIT: HOW AND BENEFITS.



Becoming a cooperative member is very simple. just join one.
How? by signifying your intention and abide with all the rules and regulations and the Bye-Laws of that Society.

join a cooperative outfit is very easy and simple. in most cases it invovles the following;

1. Registration - the individual signifies his intention by obtaining a Registration form. you fill and submit it to the cooperative secretariat for processing. in most cases there is always a fee attached to admission for membership. the fee will be dependent on the cooperative concern. this is usually a one time payment as a member. however another fee called Re-Entry fee is collected if you withdraw your membership and seeking re-admission

2. Savings - This is an important part of your membership. As a cooperator you will have to be making regular and consistent monthly contributions. for the sake of your membership and for the sake of you (yourself). Your history and adherence to this will determine your qualification for the benefits and welfare packages offers by the individual cooperatives. There is always a minimum amount for contribution. The amount for savings monthly would be determined by each member but subject to minimum limit. Any amount being save can be increased or reduced as members deem it fit. however the more your savings the more the benefit. Members are always been warn that small savings but consistent speaks volume more than big savings but inconsistent. Members are also allow to make bullet savings.

3. Share Capital - As a member you must be involve in share capital investment. This is what the cooperative use for short, medium and long term investment on behalf of the cooperative in many sector of the economy. The benefits and packages from share investment cannot be quantified. As a member the bigger you participate here the better for you.

In conclusion

Registration give you the opportunity to participate in the society.

Savings gives you the opportunity to request for loan at a cooperative rate and smaller yearly interest gains.

Share Capital gives you the opportunity to gain loans, bigger yearly interest gain,investment opportunities and welfare packages.

however both savings and share capital are cannot be done in isolation, except in some outfit, they compensation each other.


to be continued.......

Please @akadams, explain the bolded section (Share Capital) of your last comment. Does this mean investment in the Stock Exchange Market or does mean Investment in Capital Projects (Assets)?

Thanks so far for your eye-openers.

Nairaplus:

Please @akadams, explain the bolded section (Share Capital) of your last comment. Does this mean investment in the Stock Exchange Market or does mean Investment in Capital Projects (Assets)?

Thanks so far for your eye-openers.

am intrested....
omo.rotec@yahoo.com

kasonud@yahoo.com

@Akdams,please I'm interested,my email is chizen2002@yahoo.com
This is the kind of initiative that I have been looking for

Nairaplus:

Please @akadams, explain the bolded section (Share Capital) of your last comment. Does this mean investment in the Stock Exchange Market or does mean Investment in Capital Projects (Assets)?

Thanks so far for your eye-openers.

3. Share Capital - As a member you must be involve in share capital investment. This is what the cooperative use for short, medium and long term investment on behalf of the cooperative in many sector of the economy. The benefits and packages from share investment cannot be quantified. As a member the bigger you participate here the better for you.


Share Capital gives you the opportunity to gain loans, bigger yearly interest gain,investment opportunities and welfare packages.

however both savings and share capital cannot be done in isolation, except in some outfit, they compensate each other.

@Nairaplus........In the banking sector, they say the life of a bank is in its deposit. The more the deposit the healthier the bank.
such may be said concerning a cooperative outfit too. the more the money the better for the cooperative society and its members.
One of the two major ways a cooperative outfit raise funds is Share capital investment of members.
the same way a company goes to the public to raise funds through new share issues, bonus share and right issue. that same way the cooperative approaches its own members too for more participation.
Depending on the cooperative outfit, share capital can be raise as Ordinary shares and/or Preference share.
Also, depending on the outfit, in some members participation in share capital is voluntarily. In some participation is compulsory but limited to ordinary shares alone and voluntarily for Preference shares. And in some participation in both shares are compulsory but limited in ratio.

There are rules and regulation that has to be abide to as detailed in the Bye-Laws of the society concerned.

The funds raised from share capital investment is put in a separate account of the society. And its utilization also depend on the cooperative outfit as detailed in its Bye-Laws under its aims and objectives, which also came as a result of the vision and mission of the people that came together to form it. But by and large, the utilization is majorly in properties, money and capital markets, daily income businesses, syndicated loans, business like transportation, etc

pcnwamadi: Am realy enjoying dis, its an eye openner.. Do we also need to register the coperative society with CAC?

No,its only with the state Dept. of Cooperative services under the Ministry of Agriculture and cooperative in the state you you plan to locate the Secretariat of the cooperative.

BECOMING A MEMBER OF A COOPERATIVE OUTFIT: HOW AND BENEFITS continues.........

Like i said earlier on,

1. Registration gives you the opportunity/right to participate in the society.

2. Savings gives you the opportunity to request for loan at a cooperative rate and smaller yearly interest gains.
A member qualifies for loan after 6 months of membership for an amount twice his/her SAVINGS contribution.

The loan availment is however not automatic. It is subject to the following;
> amount in the members' savings contribution.
> members' monthly consistency.
> Loan purpose.
> members' loan credibility.
> members' exposure limit as regards guarantor-ship.
> availability of fund.

The issue of collateral has been simplified and demystified by the operations of cooperative. However collateral administration of each cooperatives differs. Most follows some of these options;
> members to guarantee members.
> savings to guarantee a loan
> 2 savings to guarantee a loan
> share capital to guarantee a loan

the only issue is that a guarantor member will not have access to the amount he/she guarantees until the borrowing member pays back.


However the major benefit of being a cooperator is not just in the easy of getting loans but actually in the mode of repayment and interest rate being charged on those loan.
Loan duration can be spread as much 1 month to 12 or 15 months depending on the outfit as stated in the Bye-Laws.
Loan interest charged is not more than 15% per annum as stated by the the Regulations. That means no cooperative society can charge more 15% on loan granted to MEMBERS only. The amount to be charged therefore depend on the outfit concern. Most societies charges 1% per month (12% per annum)on loan granted to MEMBERS.

But the beauty of all this as a cooperator is that as member you can always eat your cake and still have it. How?
All interest paid on loan as a members for loan borrowed becomes an interest earned by the society at the end of an accounting year. of which out of this the Management Committee gives back to the members on pro rata bases on the year savings. As a member you lose nothing at the end of the day.

Now the question is whether a cooperative outfit gives out loan to non members or would-be prospectus? Yes or No. If yes, how and at what interest. This however is under request.


to be continued.......

welcome........

Concerning interest charge on members loan as being reasonable when compared to what other financial institutions charges.
some cooperative outfit however don't charge interest on loan repayment.
This societies called it Zero interest on loans. This is legal and it is in accordance with their vision and mission. And also there religious and traditional belief. they thought when you collect interest on loan you making the borrower more miserable. rather they supported profit sharing.

But the argument is this and debatable even on this forum;

1. The operation of those that collect interest is 'as you pay back pay the agreed interest also'. Now just like in the Bank, whether you made profit or not, the loan and the interest accrued must be paid back on or before or as at when due. No story. Any story will be tantamount to violation of agreement and off course this attract more charges. All this is make known to the borrower from the beginning of the loan contract.

2. The zero interest loan repayment believes in profit sharing. what they do is that when you request for loan. you have a lot of question to answer.
> the amount required
> purpose
>your own commitment
>duration
> monthly Profit accurable
> collateral (for non members)
> relevant document supporting your claim profit, etc
After all these, your purpose for the loan must be workable to produce the expected profit before you can get the loan.
If they don't belief in it you don't get it. or if both parties disagrees on profit sharing mode you dont get it. They determine the profit sharing percentage. Now the problem is what happen if the business eventually failed. the borrower will still pay from his/her contributions or from collateral.

so somebody should tell me which is model is sincere.

As a financial expert i tend to say that;
Interest charge model is
1. easy to access loan
2. interest accruable is lesser.1% compare to profit sharing.
3. formalities are lesser.

i have never been a part of a zero interest cooperative so am actually speaking from the research i did. if any body has a contrary opinion let us know.


CREATION OF COOPERATIVE FUNDS

cooperative sources their funds from
> entrance fees, re-entry fees, sale of forms,
> share capital, members savings
> surplus from business of society operations
>other miscellaneous sources
>loans from other financial institutions like banks, other cooperatives, cooperative union etc.
> dues and levies from members, grants, donation etc.


USES
. To the promotion of aims and objectives of the society
. To any other activities permitted in the Bye-Laws or by the appropriate statutory bodies/authorities


To be continued............

Lets go there......


OFFICERS OF A COOPERATIVE SOCIETY

Includes the following but not limited to;
1. President
2. Vice President
3. General Secretary.
4. Treasurer
5. Assistant General Secretary
6. Financial Secretary
7. 2 - 4 Ex-Officio members

this people represents the Management Committee members.
number 1, 3 and 4 represents the principal officers in the Management Committee.
and they operate with their various functions.
however the number of officer in the Management Committee should not be less than seven. however it is advised that it should not be more than eleven.

Various committee are also been set up to assist the management committee in carrying out its responsibilities.
committees like
> Supervisory committee
> Credit committee
> Land/Estate committee
> Investment committee
> Personnel/Education committee

Therefore a member can be assure of participation.

Don't just view. Let have your concur, questions, comments, advise and observations rolling in.

And if you are just joining us on this thread; read from the beginning.

thank you.

@AkAdams, thanks so far. Your posts have been so helpful. Thanks to you I will attempt creating a co-operative from my end here.

Is there anything more we need to know concerning the workings of the co-operative?

What are the modalities for applying and obtaining commercial bank loans?

@Akdams, thanks so far. Your posts have been so helpful. Thanks to you I will attempt creating a co-operative from my end here.

Is there anything more we need to know concerning the workings of the co-operative?

What are the modalities for applying and obtaining commercial bank loans?

please I have interest you can contact for more detail on mail box Dejikenny@gmail.com

Thank you all for your interest. Its now time to act. pls propose when we can have our first meeting. Its important to know your location. If you are in lagos, then Ikeja, Ikorodu, Apapa are nice location for the meeting but I await your response.

Good day everybody. My IPAD crashed. Will be back very soon. meanwhile all contributions are still welcome. Thank you.

integrityfood: Thank you all for your interest. Its now time to act. pls propose when we can have our first meeting. Its important to know your location. If you are in lagos, then Ikeja, Ikorodu, Apapa are nice location for the meeting but I await your response.

i suggest Ikeja because of its centralization.

Nice idea, was once in a cooperative, very benefical. Sign me up twinzupnorth@yahoo.com

Interested. Isomadtech@gmail.com

I am interested. Olaolaakanji@ymail.com

please those who are interested and ready should endeavour to attend our meeting scheduled for July. the date and venue will be announce later. email integrityfood@gmail.com

Pls sign me up grandtopbizness@aol.com

dis is brainwave...count me in...pls wen is d first meetin?@integrityfoods...akadams..do u resid in lagos?

Please sign me in resilienceguy@gmail.com

Akdams: Good day everybody. My IPAD crashed. Will be back very soon. meanwhile all contributions are still welcome. Thank you.

Am back, fully on the net now.

Sorry for d long break, may someone suggests when we may meet? i am in Ikorodu

I followed the proceedings and moderation of this thread religiously, and I must confess - this is one of the best thread ever in Nigeria considering the level of unemployment in the country.

This is a real eye opener to many idle young Nigerian graduates. I commend all the contributors of this thread and I want to say that I am in. @ fertilenigeria@gmail.com, current location: uyo -akwa ibom state.

I am currently in a co-orporative society but I want to join yours considering your wealth of experience in the field.

I will use my blog to invite my readers to this thread if it works.

Am seriously interested my email is suutchuculi@gmail.com

You might be interested in attending this seminar with Funke Bucknor-Obruthe (CEO, Zapphire Events) and Wole Aderinkomi (Head SkyeBank Small Business group. visit www.faculty.osiworld.com for registration details.

back on board.
more facts to come.
more contributions are welcome.

@integrity... how far.