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Bye Laws

THE BYE-LAWS OF PARTNA REAL ESTATE MEMBERS (UYO) ¬¬MULTI-PURPOSE COOPERATIVE SOCIETY LIMITED

Partna (the “Website” and “Webapp”) mypartna.ng is a creation of Partna Real Estate Multipurpose cooperative society – a cooperative society registered and licensed under the laws of Nigeria. The projects listed on and by Partna MPCS are only available to and accessible by members of the Partna MPCS.

These terms and conditions of use (‘terms”) regulate access and usage of the Partna website and webapp including all versions and services provided by the mobile and online versions. The terms and conditions of use are the following:

1. NAME AND ADDRESS

The Society shall be known and called PARTNA REAL ESTATE MEMBERS (UYO) MULTI-PURPOSE COOPERATIVE SOCIETY LIMITED and its registered address shall be NO. 15 NTIEDO UDOSEN STREET, OFF UDO UMANA STREET, UYO Local Government Area, Akwa Ibom State.

2. AREA OF OPERATION

The area of operation of the society shall be UYO Local Government Area, Akwa Ibom State, Nigeria.

3. OBJECTS

The objects for which the society is established are as follows:

  1. TO ENGAGE IN LARGE SCALE FARMING AND TRADING/THRIFTSAVINGS AND CREDIT;
  2. To raise funds for on-lending to its affiliates on suitable terms and conditions and to accept deposits and loans from members and non members to augment its resources.
  3. To operate a savings scheme for members and non-members;
  4. To undertake the supply of consumer goods of daily necessity, Primarily to members and non-members also;
  5. To carry on the business of manufacture, import, export and marketing of general goods and services; To carry on the business of producers, refineries, stores, suppliers and distributor of petroleum products in all its branches;
  6. To carry on the business of estate development and management, erect buildings for rent and regulate the rent payable on such buildings in the interest of the members and the general public;
  7. To produce and market under license any kind of liquor, beverages, drinks, restaurant, bakery and confectionaries, drugs, fuel, chemical of all kinds, clothing or textile and wearing apparels of whatever type, bottles and iron, salt of all kinds, production and sale of soap and detergents, cosmetics and cream, shoes, leather bags, metal and junks and every other industrial goods of all kinds and to effect product quality control in order to eliminate adulterated goods;
  8. To operate a Motor Transport of all kinds and regulate the operation of Same by members;
  9. To promote Co-operative spirit standards and to encourage the development of the Co-operative Movement in the State;
  10. To invest and deal with the monies of the society not immediately required in such shares or upon such securities and in such manner as may from time to time be determined;
  11. To establish and run educational services;
  12. To do all such other lawful things as may be conducive or among members and to work towards the improvement of local living incidental to the attainment of the above objects or any of them and for the enhancement of the socio-economic well being of the members.

MEMBERSHIP

4. ELIGIBILITY

  1. Members must be individuals not below 16 years of age and who are ordinarily resident within or in occupation of land within the area of operation of the society.
  2. Member shall consist of persons who join in the application for registration of the society and those admitted in accordance with the bye law; and
  3. No person can claim admission as a matter of right. Membership shall be open to the employees of the society as well.

5. ADMISSION

An application for membership shall be made in writing to the secretary of the society and shall be disposed of by the Committee who may grant or refuse admission subject to ratification by the General Meeting. Any applicant so refused admission shall be duly informed.

6. DECLARATION OF OBLIGATION

Every member shall declare his obligation to patronize the society by selling always have his products to the designated co-operative depots.

7. FINANCIAL OBLIGATIONS OF A MEMBER

A member shall on admission to membership obliged to pay the prescribed entrance fee and buy the prescribed minimum number of shares in accordance with these Bye-laws and no member shall exercise the right of membership unless and until he has met his obligation in this regard.

8. LIABILITY OF MEMBERS AND PAST MEMBERS

  1. A member’s liability for the debts of the society shall extend to but not exceed the nominal value of the minimum shares laid down in Bye-Law 38. Such liability will not invalidate the provision of join surety-ship where the society has received loans or advance from co-operative Bank, Statutory Corporation, Government, or other finance agencies.
  2. The liability of a past member and or the estate of a deceased member for the debts of the society as they existed on the date on which he ceased to be a member shall not continue for period of more than two years reckoned from the date he died or otherwise ceased to be a member.

9. TERMINATION OF MEMBERSHIP

  1. The member may withdraw or resign from the society by giving six months notice to the Secretary in writing, provided no member may resign until he has paid all sums due to the society or where he is a surety for the debt of another member until that debt or loan has been paid or refunded.
  2. The society may terminate the membership of a member if he or she:
    • Ceases permanently to reside or ceases to have substantial economic interest in the society’s area of operation or
    • Contravenes the bye laws or is guilty of any act or conduct adjudged prejudicial to the interest of the society or
    • Is convicted of any criminal offence involving dishonest or sanctity of life, or
    • Is absent from general meetings without permission for six months consecutively, provided that a resolution to terminate the membership shall be presented at a general meeting upon a charge of which he is informed in writing by the Committee not less than on week before the meeting.
    • he membership of any member shall ceases on his death of insanity.
    • On termination of membership a member’s name shall be struck off the register of members and he may be paid back within six (6) months, the current value of his share subscription to his credit together with any other money or goods due to him from the society after deducting any money or goods from him to the society.

10. NOMINEES

  1. Every member of the society may nominate his nominee(s) or next-of-kin to whom in the event of his death the society shall pay a sum representing the deceased member’s share or any other sums due to him in accordance with the provisions of this bye-law. The nominee(s) shall also be called upon to refund any amount owed the society by the deceased member
  2. The appointment of a nominee shall be made in writing, signed by the member and attested by two members.
  3. Where desired by a member the nomination may be confidential and may be kept in a sealed envelope.
  4. Where more than one nominee is appointed by a member, the number of shares to be transferred, or the exact proportion in which the amount available would be shared by each nominee, shall be specified at the time of making the appointment.
  5. Every appointment of nominee shall be recorded in the register of members, and in the case of a confidential nomination by reference to the serial number of the respective sealed envelope therein.
  6. Where any money is paid to nominee who is a minor, receipt given either by a minor or by his/ her guardian and duly witnessed by a member shall be a sufficient discharge to the society.
  7. Any nomination made by a member may be varied when the member so desires and indicates in writing in the manner prescribed in sub-paragraph (II) above.
  8. In the event of no nominee having been appointed by a deceased member, the society shall pay the deceased member’s entitlement to the person who after due investigation appears to be or legal representative of the deceased member.

POWERS AND DUTIES OF THE MONTHLY GENERAL MEETING

11. SUPREME AUTHORITY

The supreme authority of the society shall be vested in the monthly general meeting of the members which every member has the right to attend the general meeting and vote on all questions.

12. DUTIES OF THE MONTHLY GENERAL MEETING

The monthly General Meeting of the members shall have the following duties in addition to those specified in Regulation 16 (3):

  1. To confirm the minutes of the previous General Meeting
  2. To decide the admission and expulsion of member
  3. To approve the disciplinary action including dismissal of paid secretary on the recommendation of the Management Committee.
  4. To approve business programme and social policy of the Society as drawn up by the Management Committee and to review the progress of the Society’s activities.
  5. To elect members of fill any vacancies existing in the Committee.
  6. To fix the rate of interest chargeable on loans to members.
  7. To decide on borrowing in accordance with Section 31 and 32 of the law.
  8. To consider and approve the lending policy submitted by the Management Committee in accordance with Section 30 (i) of the law.
  9. To consider the Audit Report and the Director’s Comment thereon, and measures for rectification of the defects pointed out by the Auditor(s).
  10. To dispose of other businesses duly brought forward by the Committee.

13. MONTHLY GENERAL MEETING

The Monthly General meeting of members shall hold at least once a month.

14. QUORUM

The presence of at least one quarter of the members of the society shall be necessary for the disposal of any business at the General Meeting, provided that where the total membership exceeds one hundred and twenty members, thirty members present shall form a quorum and provided that where this number is not present at commencement of the meeting the provision of Regulation 17 (3) shall apply.

15. ANNUAL GENERAL MEETING

  1. Annual General Meeting of the members of the society as soon as the Annual Accounts have been approved by the Director or Audited. At least eight clear days notice for meeting shall be given.
  2. The functions of the Annual General Meeting shall be:
    • To consider the outgoing Management Committee’s Report on the preceding year’s working of the society with Statement of Accounts.
    • To decide upon the disposal of the net surplus of preceding year in accordance with the provision of these Bye-Laws and subject to the Director’s approval.
    • To consider the annual plan of development and the budget of the society for the ensuring year.
    • To determine the maximum borrowing limit or maximum liability of the society for the ensuring year subject to the prior approval by the Director.
    • To elect officers such as President, Vice President, Treasurer and members of the Management Committee for the ensuring year.
    • To appoint delegates out of the officers and Committee members who will represent the society at the meetings of the respective Secondary and Apex Co-operatives to which the society is affiliated.
    • To deal with any business of the General Meeting.

16. SPECIAL GENERAL MEETING

A Special General Meeting may be convened at any time by the Committee of by the Director at the written request of at least one-fifth of the members which ever is least provide that:

  1. Such written request shall state the object of the proposed meeting.
  2. If the committee fails to call the Meeting within fourteen days from the receipt of such written request, the members requesting for the special General Meeting may convene the meeting. Notice for such meeting shall contain the obiect of the proposed meeting and statement to the effect that the meeting is convened on the failure of the committee to convene the meeting demanded and
  3. Where the Director convenes a special meeting, he may direct what matters shall be discussed at the meeting.

17. FIRST GENERAL MEETING

The first General Meeting of members shall have the same powers as are vested in the Annual General Meeting and shall be held immediately or not later than one month after the receipt of the Certificate of Registration of the society.

18. VOTING

Excepting the provision of the Law and Regulation 19 (1), (2) and 39 (a)-(b) (1&11), questions shall be decided by a simple majority of the votes cast. Each member shall have not more than one vote, provided that in the event of an equality of votes the chairman shall have a second or casting vote.

MANAGEMENT COMMITTEE

19. CONSTITUTION

  1. Subject to the Law, the Regulations and the Resolutions of the General Meeting, the Executive Management of the Society shall be vested in the Management Committee.
  2. The Committee shall consists of seven (7) members elected at the Annual General Meeting. They shall hold office for a term not exceeding one year provided they shall be eligible for re-election for another one term of one year and no more.

20. POWERS AND DUTIES OF THE COMMITTEE

  1. The Committee shall represent the Union before all competent public authorities and in all dealings and transactions with powers to institute or defend suits brought in the name of or against the society and in general, it shall carry out such duties in the management of the society except those reserved for the General Meeting and subject to any instructions or restrictions duly laid down by the society in General Meeting or in these Bye-Law.
  2. In particular the duties of the Committee shall include:
    • To comply with the Law, the Regulations and these Bye-Law in managing the affairs of the society;
    • To raise funds necessary for the purpose of carrying out the functions of the society;
    • To grant loans and advance to members on such terms and conditions as they may determine from time to time;
    • To admit members and allots shares and approve transfers of shares to nominee subject to ratification by the General Meetings.
    • To maintain such accounts and registers as are specified by the Director from time to time and as are found necessary by the society and to lay before the Annual General Meeting, Trading, Profit and loss Accounts and the Balance sheet;
    • To prepare the anual budget and development plan of the society and to present the same to the General Meeting for approval;
    • To place before the General Meeting of the society the audit report or Director’s Audit comments and to propose measures for rectification of defects pointed out therein,
    • To appoint sub-Committee(s) for carrying out any specific functions relating to the business of the society;
    • To appoint within the limits of the sanctioned budget against employees of the society, and subject of Bye-Law 12(iii) to discipline and terminate them;
    • To take adequate security from staff and
    • To do such other businesses as are consistent with the objects of the society.

21. RESPONSIBILITY

In their conduct of the affairs of the society the Committee shall exercise the prudence and diligence of ordinary men of business.
They may be held responsible for any loss through failure to exercise such prudence and or through acts contrary to the Law, the Regulations and the Bye-Laws.

22. REMOVAL FROM OFFICE

A member of the Committee shall cease to hold office if he or she:

  1. Cease to be a member of the society;
  2. Undertakes any paid employment in the society;
  3. Is removed by a resolution of the General Meeting or conduct prejudicial to the interest of the society;
  4. Fails to attend three consecutive meetings of the Committee without due excuse approved by the Committee
  5. Is declared insolvent;
  6. Becomes of unsound mind;
  7. Is convicted of any offence involving dishonesty or is imprisoned for three months or longer for similar offence.

23. MEETINGS OF THE COMMITTEE

  1. The Committee shall meet as often as the business of the society may require and, in any case, not less than once a month;
  2. The quorum for a meeting of the Committee shall be half of the Committee members,
  3. the president of the society shall be chairman or in his absence the Vice President, or in the absence of both a member of the Committee elected by the Committee to preside at the meeting.

24. SUB-COMMITTEE

The Committee may appoint functional Sub-committee including the one on education consisting of a few members of the committee and if need be other co-opted person for the efficient management of the various activities of the society. The powers and duties of each subcommittee shall be clearly set out in writing for its guidance. The Subcommittee shall be responsible to the management Committee.

25. ALLOWANCE TO COMMITTEE

Commettee members may be paid such allowance, compensation or reimbursement from the current expenditure of the society in respect of the business done for or money spent on official business of the society as may be approved by the General Meeting.

COUNCIL OF INSPECTION

26. ELECTION

  1. A council of inspection consisting of three members of the society shall be elected at the Annual General Meeting of the Society, provided that no member of the Management Committee shall be eligible for election into the Council.
  2. The term of office of members of the Council of Inspection shall be one year provided that members may be eligible for re-election for another one year term and no more.

27. MEETINGS AND QUORUM

For purpose of carrying out the duties conferred on it, the Council of Inspection shall meet not less frequently than once in every three months. Two of the members shall form a quorum.

28. POWERS AND DUTIES

The council of Inspection shall have the powers conferred on it by Regulation 48 and in addition shall have the power;

  1. To assist, supervise and advice the Management Committee;
  2. After each meeting, to report to the General Meeting (through the Management) on the activities of the society, bringing to its notice any irregularities or mismanagement.

29. ALLOWANCE TO MEMBERS OF THE COUNCIL OF INSPECTION

The member of the Council of Inspection may enjoy such allowances, compensation and re-imbursement in respect of any business done for the society as may be approved by the General Meeting.

OFFICER

30.

The society shall elect such officers and appoint such staff as are necessary for the proper management and administration of the society and efficient prosecution of the society’s objects. In particular the society shall have the following:

  • President
  • Vice President
  • Secretary/Manager
  • Treasurer

31. POWERS AND DUTIES OF OFFICERS

The President, Vice President, Secretary/Manger and the Treasurer who shall constitute the principal officers of the society shall exercise the power vested on them under these Bye-Law.

32. PRESIDENT

The duties of the president shall be:

  • To preside at all General and Committee Meetings of the
  • The President or in his absence the Vice President shall sign all payment Vouchers for disbursement paid out in accordance with the decision of the committee.

33. THE VICE PRESIDENT

The Vice President shall exercise the powers and perform the duties of the president in event of the absence of the President.

34. THE SECRETARY

  1. The Management Committee shall appoint a Manager or
  2. Secretary as paid officer of the Society. The Manager shall be
  3. responsible for the daily execution of administration of the society subject to the overall control of the Committee;
  4. The duties of the Secretary/Manager;
  5. The duties of the Secretary shall be to ensure efficient management of the society in accordance with the directive of the ‘Management Committee and the general meeting.
  6.  In particular the Secretary shall:
    • Maintain correctly and up-to-date the prescribed and other books and records needed by the society;
    • Summon and attend all meetings of the society and record their
      proceedings;
    • Run and supervise the office, shop, processing unit, farm and other establishment of the society.
    • Guide, supervise and control the work of other staff of the society;
    • Incur contingent expenditure within the limit fixed by the Management Committee;
    • Prepare and submit to the Management Committee the Annual.
      Accounts, Statements and Budget, and plan of Development;
    • Receive all communications and applications addressed to and meant for the society and enter into correspondence with the persons and agencies concerned on matters touching the affairs of the society.
    • With the approval of the Management Committee to take such innovative and creative action capable of accelerating economic development of the society;

35. TREASURER

The Treasurer who must be a member of the society shall have the following functions:

  1. Take custody of all money received by the society;
  2. Make disbursement in accordance with the directive of the committee;
  3. Produce the Cash Balance whenever called upon to do so by the Committee, the Director, the Inspector, or Auditor and at every general meeting;
  4. Sign all member’s pass books;
  5. Deposit all funds over the limit fixed by the General Meeting in any bank approved for this purpose by the General Meeting; all such sums shall be deposited in the name of the society;
  6. Sign and countersign such withdrawal cheques as may be authorized by the Committee Meeting;
  7. Be generally responsible for the safe custody of the society’s cash and other valuables and for ensuring that all cash transactions of the union are accurately recorded and properly receipted;
  8. furnish to the Committee such security as may be requested of him. He shall be held responsible for the loss of any money or valuables of the society under his care.

FUNDS OF THE SOCIETY

36. SOURCE OF FUNDS

The funds of the society may be derived from:

  1. Entrance fees
  2. Shares
  3. Savings and Deposits from Members;
  4. Deposits and Loans from non-members;
  5. Returns on the business and investments of the society;
  6. Borrowing from Co-operative, Commercial and Public/Private Sector financing agencies;
  7. Loans and Grants from the Government;
  8. Donations;
  9. Miscellaneous sources approved by the General Meeting and or the Director of Co-operatives.

37. ENTRANCE FEE

An approved applicant for admission into membership of the society shall pay an entrance fee of N……………………………………………………………………………..……………….or such other higher sum as may be approved by the General Meeting from time to time.

38. SHARES

Each share in the society shall be of the value of ………………………………………………………… and every member shall hold a minimum of 10,000 (ten thousand) shares. Shares shall be paid for in full on allotment or by installments provided that a first installment of N5000.00 (five thousand naira) only. shares shall be paid for in cash on admission, and provided that payment for the minimum shares shall be completed within ……………………………………………… dating from the date of admission to membership of the society.

39. SHARE CAPITAL

The share capital of the society shall be made up of unlimited number of shares to be owned by the members provided that no member shall hold more than one-fifth of the share capital of the society.

40. WITHDRAWAL OF SHARES

Subject to Regulation 10 (5) shares shall not be withdrawn except on termination of membership, provided that where the union runs on a deficit, shares shall be withdrawable after revaluation in accordance with regulation 10 (3) and (5).

41. TRANSFER OF SHARES

Shares may be transferred with the approval of the Management Committee to any other member or to a person admitted as members at the option of the transferor provided that

  1. Such transfer shall not be approved, if it would reduce the transferor’s paid-up shares below the minimum share holding. laid down in Bye-Law. 38.
  2. Such transfer may be approved where the transferor or is indebted to the society.
  3. No such transfer shall be valid and effective unless and until it has been duly registered by the secretary on the direction of the Committee, and
  4. Such transfer shall not affect any claim of the registered society on the transferor.

42. SAVINGS AND DEPOSITS OF MEMBERS

The society shall accept Savings and Deposits from its members.

43. LOANS, DEPOSITS FROM MEMBERS AND FROM EXTERNAL SOURCES

The society may borrow money and accept deposits from members and from external sources or incur any liability towards-non-members, provided that such amount shall not be in excess of a sum fixed as maximum liability of the society under Regulation 12.

44. CREATING FUNDS

The owned funds of the society may be held in the form of:

  1. A Reserve funds
  2. A Depreciation funds
    • An insurance fund includes price fluctuation and dividend equalization fund
    • Education fund
    • Development and common fund
    • Any other fund created with the approval of the Director.

45. USE OF FUNDS

The funds of the society shall be applied only to the furtherance of its stated objects in accordance with these Bye-Laws.

46. INVESTMENT OF FUNDS

The funds of the society may be invested in any manner permitted by the Law and Regulations and approved by the Committee of the society.

47. BANK ACCOUNT

  1. With the exception of such amounts as may be required for immediate use, the limit of which shall be fixed from time to time, the funds of the society shall be kept in current and/or savings Accounts in the banks approved by the Committee of the society.
  2. The society’s Bank Accounts shall be Trustee Accounts to be operated jointly always by the President, Secretary/Manager and the Treasurer as the signatories.

48. SAFE CUSTODY OF FUND

  1. The Management Committee shall take all necessary steps to ensure the Safe Custody of the Funds of the society.
  2. In particular, the Treasurer shall be held responsible for the safe custody of funds.
  3. The Committee shall ensure that the cash-in-safe and cash-in-transit shall be covered by an Insurance Policy.

THRIFT SAVINGS AND DEPOSITS

49. THRIFT SAVINGS

  1. Every member shall make monthly thrift savings of not less than
    N………………………………………………………………………………………………or such other higher minimum sum as the General Meeting may fix from time to time.
  2. Each member shall be issued with a saving pass book.
  3. At the end of each financial year the society shall pay interest on Thrift Savings at the rate not exceeding 5% chargeable to income and expenditure account of the society. Provided that where the financial position permits, further rate note exceeding 7½ % may be paid out of Appropriate Account after the declaration of the net surplus.
  4. A member may be exempted from making thrift savings by the committee for the period during which his circumstances do not permit of any such payment.
  5. Thrift savings are withdrawals provided such withdrawals shall be restricted where a member is indebted to the society either as borrower or surety.
  6. A member who fails to pay his monthly Thrift Savings shall be liable to a find of N20.00 for each month the savings are overdue.

50. DEPOSITS

  1. The society may accept fixed deposits-at-call from members and non-members;
  2. Fixed deposits shall carry an interest rate not exceeding 10% per annum, provided that deposits withdrawn before maturity may forfeit the interest on them either in part or in full.
  3. Deposits-at-call shall carry a definite charge to be fixed by the General Meeting.

LOANS

51. PURPOSES OF LOANS

The Society may grant loans to its members for productive and necessary purposes.

52. TERMS OF LOANS

  1. Loans may be short or medium term.
  2. Purposes for which the loans has been sanctioned shall determine the duration of the loan.

53. APPLICATION FOR LOAN

  1. Application for. Loans shall be submitted to the Secretary/manager and disposed of by the management
  2. The Management Committee shall consider all application for loans in the order in which they were received.
  3. While considering an application for a loan, the Management Committee shall in particular satisfy itself with the Credit worthiness and true worthiness of the applicant.

54. AMOUNT OF LOANS

The total amount of loan give to a member (except the secured loan) shall at no time exceed his maximum credit limit which in this. case shall be three (3) times the total aggregate value of paid-up shares or interest or savings of a member in the society.

55. ISSUE OF LOANS

Loans may be issued in cash or in kind.

56. LOAN SECURITY

Subject to any restrictions which may be imposed by the Director in accordance with the law, the society shall grant loans to members on the following securities:

  1. Two acceptable sureties who must be members of the society and whose maximum credit limited (MCL) as borrower and surety has been exceeded. Such surety shall jointly and severally be liable for the loan.
  2. Immovable property like landed property and plantations, i.e. real
  3. Movable property such as:
    • Agricultural produce on which the society is authorized to deal.
    • Gilt-edged securities such as Government Bonds,
      Debentures and Promissory Notes.
    • Life Insurance Polices and Share certificates of reputable companies.

57. MISAPPLICATION OF LOANS

  1. If the Management Committee is satisfied that a borrower has applied a loan to purpose other than for which it was approved, the Committee may recall the loan immediately together with penal interest at a rate as would be decided by the Committee.
  2. The loan and the penal interest shall than be a debt due to, the society and shall be recovered as such.

58. REPAYMENT OF LOANS

  1. Both Loan and Interest shall be repayable. according to the repayment scheduled fixed by the Management Committee.
  2. Repayment of a crop loan, which may be through the proceeds of the borrower’s produce marketed through the society, shall be regulated on the basis of the ensuing main crop season.

59. EXTENSION OF LOANS

If by reasons of sickness or some other causes a borrower is unable to repay his loan and interests on schedule to the society and notifies the committee in writing to that effect in advance of due date, the management committee may, with the consent of the sureties grant an extension not exceeding one year from the original date of retirement of the loan.

60. OVERDUE LOANS

  1. When a loan is not repaid on the date due the loan, account shall at once be closed and the balance transferred. to overdue loan account and the borrower informed of the fact and of the amount of principal, and interest outstanding against him.
  2. The defaulter shall be charged penal interest on the outstanding principal due at the rate to be fixed by the committee.
  3. Thereafter, the committee shall promptly take step to recover the total amount due firstly by deducting part or all of it from amount due to the borrower in respect of the sale of his produce, and thereafter the committee shall take lawful steps for the recovery of the debt first from the borrower and then from the sureties or both.
  4. Cases of overdue loans may be referred to the Director of Cooperatives under the law after one month of the loan being overdue.

61. LOANS INTEREST

  1. Interest on loan shall be charged at a rate to be fixed by the General Meeting provided that such rate shall not exceed 15%.
  2. In case of default in payment of interest on loans, penal interest shall be charged at twice the normal rate.

CONSUMER GOODS AND AGRICULTURAL PALM PRODUCE SUPPLIES

62. SUPPLY OF CONSUMER GOODS

  1. The society may cater for the Consumer needs of members by supplying them such communities as are necessary from time to time at reduced prices.
  2. For purpose of sub-paragraph (i) above: the society shall procure its goods from sources approved by the general meeting.
  3. The society may undertake the processing and manufacturing of its commodities

63. AGRICULTURAL/PALM PRODUCE SUPPLIERS

The society may undertake the supply to its members at reasonable prices such farming/palm produce equipment, tools, drums and other agricultural inputs as are necessary.

64. PALM PRODUCE AND GINGER MARKETING

The Society shall decide from time to time which produce it shall market.

  1. The Marketing may be in the Society’s own name, that is by outright purchase from members etc. or through agency agreement, provided that where it is by agency the society shall not accept liability for trade loss to the principal, except the loss is caused by the society’s negligence.
  2. The committee shall be competent to take all decision in respect of approved schedule and unscheduled produce. In regard to the marketing of other crops the decisions of the committee shall be subject to the approval of the General Meeting.
  3. Every member of the society shall deliver to the society as may be approved by the committee such quality products produced by him. A member who sells the approved produce outside the society shall be fined 10% of the value of the products so disposed outside the society

65. PROCESSING

To ensure higher returns on member’s product and to meet the requirements of the market on the basis of changing demand, the society may process members produce before sale. For this purpose the society may either own processing plants or facilities or take them on lease or hire whichever may be cheaper, provided the committee’s decision in this respect shall be subject to approval by the General Meeting.

66. SUB-STANDARD PRODUCE

Produce which falls below standard set by the society or which do not meet quality requirements of the grading authority may be rejected and the society shall be under obligation to purchase it or arrange for its final disposal.

OTHER ACTIVITIES

67. FARMING

  1. The society may acquire farmland for the purpose of joint or collective farming.
  2. The nature of crops to be planted and live-stock to be reared, the farm layout, preparation and execution of work programme and method of disposal of the produce shall be determined by the Committee subject to the approval of the General Meeting.
  3. The society may sub-let jointly acquire farmland to members, provided that the nature of crops to be planted, the farm layout and method of disposal of the produce are determined by the society. Produce from farms so individually developed shall be marketed through the society only

68. OTHER ECONOMIC AND SOCIAL ACTIVITIES

Based on need, the society may establish other economic and social undertakings such as water and electricity supply and charge consumers for the services rendered. Guidelines covering such project shall be prepared by the committee and approved by the General Meeting.

DISPOSAL OF NET SURPLUS

69. NET SURPLUS

The Annual Net surplus of the society shall be determined at the end of each financial year after crediting to the income and expenditure account all incomes received or due during the financial year and charging to it all expenditure met or accrued during the same year, and after making allowance for depreciation of fixed or other assets, bad debts, interest on savings and deposits, audit and supervision fee and previous years’ losses at rates provided for in these bye-laws or as may be approved by the General Meeting and the Director.

70. APPROPRIATION

The Net surplus of the society shall be appropriated as follows:

  1. At least 25% shall be carried to the reserve fund unless permission is given by the Director to reduce this account;
  2. Not more than ten (10%) may be allocated to Education Fund.
  3. Not more than 15% may be set aside as dividend on shares;
  4. Members’ patronage bonus may be paid at the rate not exceeding 5%;
  5. An allocation of 5% may be made to common good or social services fund.
  6. Staff bonus may be paid at a rate not exceeding 5%.
  7. 7% may be paid as additional thrift Savings Interest in accordance with bye-law 49(c).
  8. An allocation of not more than 10% may be made for payment as honorarium to members of the committees and finance committee/council of inspection, provided 2/3 (two/thirds) of the Honorarium will go to the Management Committee and 1/3 (one-third) to the Finance Committee/Council of Inspection.
  9. 5% may be set aside as provision for Audit and Supervision Fee.
  10. Annual Subscription may be provided for at the rate of 5%.
  11. All allocation of 5 percent may be made to development fund
  12. The balance may be allocated as approved by the General Meeting as follows;
    • Bad Debt Reserve
    • Insurance Fund
    • General Reserve

71. BAD DEBT RESERVE

  1. A bad Debt Reserve created in accordance with Bye-law 70(1) (i) shall not be higher than the actual amount of debt to be declared
  2. A debt shall be declared bad after ten years of the existence of such debt, provided that during the ten years period all legal avenues for the recovery of the debt have unsuccessfully been explored and exhausted.

72. DIRECTOR'S APPROVAL

The distribution of the appropriated Net Surplus shall be subject to the Director’s prior approval in accordance with the Law.

STATUTORY FEES AND OTHER DUES

73. CO-OPERATIVE AUDIT AND SUPERVISION FEES

The society shall pay annually not later than 31″ March, Co-operative Audit and Supervision Fee at the rate assessed by the Director in accordance with the Provisions of Regulation 39(1), (2) and (3).

74. ANNUAL SUBSCRIPTION

The society shall pay Annual Subscription to the Akwa-Ibom Cooperative Federation (AKCOFED)Limited or other Co-operative Union/Apex with which the society is affiliate with which is responsible for the supervision of the society. The Annual subscription shall be paid at the rate fixed by the Secondary/Apex concerned.

SUNDRY PROVISIONS

75. REGISTERS, BOOKS, RECORDS AND ACCOUNTS

The society shall maintain the following Registers, Books, Records, and Accounts:

  1. A register of members showing the name, address, and occupation of every member, the number of shares held by a member, the date of his admission to membership and the date of termination of a member. The nominee, if any appointed under Regulation 9 or to reference to a confidential nomination under Regulation 10(4). Every member shall be required. to sign the register of members on admission.
  2. A cash book showing the receipts, expenditures and balances at any point in time.
  3. Personal Ledger Account for each member, depositor and creditor, miscellaneous and General Ledger Account.
  4. A loan Register showing loan particulars and loan repayment schedule.
  5. Minute book(s) for General and Committee Meetings.
  6. A pass-book for each member or depositor.
  7. A book of bonds showing all loans issued.
  8. Such other documents as may be required of the Union by the Director for the purpose of maintaining a true and accurate account and records of the society’s business.

76. POWER TO IMPOSE FINE

  1. Subject to the provision of Section 11(4) of the Law, the society may impose a fine upon a member for breach of any Bye-law of the society.
  2. In particular, the following fines may be imposed:-
    • Absence from Meeting: Any member who absents himself from the meeting of the society which he has a right to attend without valid excuse shall be liable to a fine of N30.00 (thirty naira) only for each meeting of the society that such member abstains.
    • Lateness to Meeting: A member who attends a meting of the society after reading of the minutes of the preceding meeting and without reasonable excuse to the Chairman of the meeting shall be liable to a fine of N10.00 (Ten Naira). only for eyery such meeting he so attends late.
    • Fine on default in payment of thrift savings when due shall be in accordance with Bye-law 49(1) of these Bye-laws.

77. TRUSTEES

The President, Secretary/Manager, and the Treasurer shall be the Trustees of the society, and shall be empowered to sign cheques in accordance with Bye-law 47(il) of these Bye-law. They shall execute all documents on behalf of the society.

78. COMMON SEAL

The Society shall have a Common Seal which design is appended herein and approved by the Director and the seal shall be custodies by the Secretary/Manager of the society. The common seal shall be affixed to all legal documents executed by the society which is required to be under seal in the presence of two attesting Officers of the society. The design of the common seal as approved by the Director is here appended.

79. INSPECTION OF BOOKS AND RECORDS

Subject to the Law and Regulations, the Books of Accounts, Records, Registers and papers of the society shall be open at all reasonable times for inspection by council of inspection of members and accredited Co-operative officials, provided that no person other than Co-operative official shall be allowed to see the personal Accounts and purchases cards of any member without that member’s consent.

80. MEMBERSHIP IN APEX SOCIETIES

The society shall affiliate with the Akwa Ibom Co-operative Federation Limited. It may also become a member in other secondary or Apex societies with which is has business relations.

81. AMENDMENT OF BYE-LAW

Subject to Section 12 of the Law and the Limitations, restrictions and procedures laid down in the Law and Regulation 39, the society may amend, add to or delete any Section of the foregoing Bye-Laws, or replace the whole Bye-Laws with new ones where the former are stolen, displaced, lost, defaced or rendered obsolete.

82

In all respects where provision is not specifically made for the management of the society in the foregoing Bye-Laws, the provisions of the Akwa Ibom State Co-operative Societies Law 2002 and the provisions of the Regulations made under the Law shall apply

INTERPRETATIONS

83. INTERPRETATIONS

  1. All words and expressions used in these Bye-laws and defined’ in Section 57 of the Akwa Ibom State Cooperative Societies Law Cap 35 of 2002 and Section 50 of the Regulations made under the Law shall have the meanings assigned to them in the above Section of the Law and Regulations.
  2. In addition, the following words or expressions shall have the meanings respectively assigned to them:-
    • “Financial Year” means the period of twelve months beginning on -1st January and ending on the following 31 December.
    • “The Law” means the Akwa Ibom State Co-operative Societies Law; cap 35 of 2002 and includes any amendment that may be made from time to time.
    • “The Regulations” means the Regulations made under the Law, and include any amendments that may made from time to time.
    • “The Director” means the Director of Co-operatives, Akwa Ibom State of Nigeria appointed under section one of Akwa ibom State Cooperative Societies Law, cap 35of 2002 or any other legislation in force and also any person when exercising such powers of the Director as may have been conferred upon him under the Law.
    • “MPCS” means ‘Multi-Purpose Co-operative Society” established and run in accordance with the Akwa lbom State Co-operative Societies Law, cap 35 of 2002, and in accordance with the. principles of Cooperation which may undertake multiple functions on. behalf of its members.
    • “Area of Operation” means the Geographical extent members of the society shall be drawn from and include the Area within which the registered address of the society is situate.
    • Without prejudice to the powers of courts to interpret statutes and Bye -laws, if there shall arise any doubt regarding the meaning or intention of any of these Bye-laws, the matter shall be referred to the Director for a ruling.

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