Kenya - Renewal or Cancel a Co-operative Society

ProcedureEdit

(1) The Director may, by order in writing, cancel the registration of a primary society if, at any time, it is proved to his satisfaction that the number of the members of the soci-ety has been reduced to less than ten or in the case of an industrial society, to less than six and the order shall take effect from the date it is made.

(2) If the Director, after holding or making an inquiry or conducting an inspection under the cooperative Act or on receipt of an application made by not less than three fourths of the members of the registered society, is of the opinion that the society ought to be dissolved, he may make an order in writing for the cancellation of the registration of the society.

(3) A member of a registered society may, within two months from the date of an order made under subsection (2) of this section appeal against the order to the Minister or Commissioner, as the case may be.

(4) Where no appeal is lodged within two months from the making of an order cancelling the registration of a society, the order shall take effect on the expiry of that period and where however an appeal is presented within two months, the order shall not take effect until it is confirmed by the Minister or the Commissioner, as the case may be.

(5) Where the Director makes an order for the cancellation of the registration of a society under subsections (I) and (2) of the section, he may make such further orders as he may think Fit for the custody of the books and documents and the protection of the assets of the society until the order cancelling the registration takes effect.

(6) No registered society shall wind or be wound up except by an order of the Director or of a court in Kenya.

A person aggrieved by an order of the Director made under the cooperative Act may appeal to the Minister or Commissioner, as the case may be, within 30 days from the date of the order and the decision of the Minister or the Commissioner shall be conclusive

Appointment of liquidator after cancellation of registration of a society.

(1) Where the registration of a society is cancelled by an order under cooperative Act, the Director may appoint a suitable person, subject to his direction and control, to be the liquidator of the society.

(2) A liquidator appointed under the Act shall subject to the guidance and control of the Director and to any limitation imposed by the Director by an order made under section 47 of this Act, have powers to--

(a) Decide, subject to any bye-laws defining the liability of members, the contribution to be made by present and past members or by the estate of deceased members of the society to its assets;

(b) Appoint a day by notice in the country or State Gazette before which creditors whose claims are not already recovered in the books of the society shall state their claim for admission to be excluded from any distribution made before they have proved them;

(c) decide any question of priority which arises between creditors;

(d) refer a dispute to arbitration, and to institute in his name or office and defend suits and other legal proceeding on behalf of the society;

(e) decide by what person and in what proportion the costs of liquidation are to be borne;

(j) give such directions as to the collection and distribution of assets as may be necessary in the course of the winding up of the society;

(g) with the approval of the Director, compromise any claim by or against the society;

(h) call such general meetings of members as may be necessary for the proper conduct of the liquidation, giving not less than fourteen days of notice for every such meeting;

(i) take possession of the books, documents and assets of the society;

(j) sell the property of the society where necessary;

(k)carry on the business of the society as far as may be necessary for winding it up beneficially, provided that he shall not for this purpose be entitled to grant any loan;

(I)arrange for the distribution of the assets of the society in the convenient manner when a scheme of distribution has been approved by the Director.

When the winding up proceedings are completed the certificate of registration shall be returned to the appropriate authority who shall cancel the registration of the society, and the society shall, upon the date of such cancellation, cease to exist.

Required DocumentsEdit

A certified copy of a resolution passed at the first meeting of the group with the PCO.
Four copies of the proposed by-laws of the society.
Four copies of the feasibility statement.
Feasibility study report on cooperative society

Office Locations & ContactsEdit

Ministry of Industry, Trade and Cooperatives - Head Office
State Department of Co-operatives
Social Security House, Block A, 17th, 23rd Floor
P.O. Box 30418-00100, Nairobi, Kenya
Telephone: +254 20-2731531
Fax: +254 20-2731511
Email: [email protected] , [email protected]
Website:Ministry of Industry, Trade and Cooperatives

EligibilityEdit

1. Different cooperative societies have different requirements as listed below:-

An Agricultural cooperative Society must have no less than fifty (50) members
A Savings and Credit Cooperative Society at least twenty (20) members
People with Specialized Skills at least ten (10) members
Other types of Cooperative Society at least ten (10) members

2.In order for a group to be registered as cooperative society, members must fulfill the following:-

A member must be at least fifteen (15) years of age;
Board members should be eighteen (18) years of age;
Every member must have a common need with other members of the society;
A member must be in an occupation relevant to the primary society;
A member must be capable of paying fees and buying shares

FeesEdit

You should pay a renewal fee of 1000 to renew a cooperative society

ValidityEdit

1.Letter of recognition (pre-cooperative society three (3) years

2.Certificate of registration no validity period but can be cancelled if the society acts contrary to the cooperative society act.

3. Renewal of a cooperative society which can take 3 more years before expiration.

Documents to UseEdit

Please attach documents that can be used by people. e.g. links

Sample DocumentsEdit

Please attach sample completed documents that would help other people.

Processing TimeEdit

Ninety (90) days

InstructionsEdit

1.The cooperative society must meet the minimum number of members if the membership is less than the required number then Cancellation of registration of a society is expected due to lack of membership.

2.Members must meet age and all other requirements if the age limited required is not meant the expected the society to be cancelled at registration ;

3.Be ready to always prepare accounts within three months after the end of each financial year but if the books of accounts are not prepared in time then this my lead to cancellation of the society ;

4.A board member who has failed to perform may be disqualified and may not be re-elected for a period of six (6) years on renewal;

5.Ensure that application forms are signed by the right people basing on the type of cooperative society to be registered;

6.If applicant want to register a cooperative society and do not have enough members this may lead to cancellation of the society on renewal it is better to start by registering a pre-cooperative society;

7.Applicants must get a registered address to which all notices and communications are to be sent;

8.In cases of any changes in the address of society, always notify the registrar;

9.If application is rejected, applicants may appeal in court within sixty days upon receiving notice when the six days elapse then know that the cooperative society is cancelled;

10.Upon refusal if no appeal is submitted within the given time, the ministers decision is final either to cancel the society on renewal ;

11.Registration is upon satisfaction of the registrar if he/she is not satisfied the expect to cancel the cooperative society on registration;

Required InformationEdit

1.previous registration certificate

2.Area the society will operate

3.Objective of the society

4.Purposes to which funds may be applied, may be held, disposed of or invested.

5.Membership rules like terms of admission, shares and entrance fees

6.By-laws of the society

7.Rules regarding what payment to be made in cases of anything, for instance if a member is expelled or leaves;

Need for the DocumentEdit

A registered cooperative society is a society with its main objects as promotion of economic and social interests of its members by means of common undertaking. A cooperative society operates basing on mutual aid and conforms to cooperative principles; it is established for the purpose of facilitating operations of societies.

In Kenya, the Cooperative Societies Act provides direction on how cooperatives should be set up and run. These laws are made by the government through the Cooperatives Commission under the guidance of minister who is responsible for cooperatives. All cooperative societies in Kenya are registered, with or without limited liability, according to the cooperative society act and related rules. Registration, implementation and enforcement of the act and relate rules is done by a government appointed officer referred to as the Cooperatives Commissioner who is the Registrar of cooperative societies in Kenya.

The Cooperative Commission clearly sets out general provisions for registration of cooperatives, legal form of registered cooperatives, rights and duties of members, governance and management of cooperatives, special privileges of primary cooperatives, assets and funds of primary cooperatives, audit and inspection, dissolution of cooperatives and other miscellaneous provisions.

However there reasons that can lead to Cancellation of registration of a society in kenya which are discussed in this procedure below;

Information which might helpEdit

Enter other informations which might help.

External LinksEdit

Place some external links which might help.

OthersEdit

More information which might help people.