A CRITICAL ASSESSMENT OF THE IMPORTANCE OF STUDYING CO-OPERATIVE LAWS AND RULES AS A QUALIFYING COURSE FOR THE AWARD OF THE ORDINARY NATIONAL DIPLOMA IN CO-OPERATIVE ECONOMICS AND MANAGEMENT.
This research is channeled towards studying critically the origin, reasons, importance and the problems affecting the co-operative laws and rules. It specifically dealt with different sections of the co-operative laws and rules and their importance or otherwise the growth of the co-operative.
This law is passed to convey government recognition of co-operative societies as a desirable way of doing business for Nigerians in general, but more particularly those with a felt need.
Its prime objective is to provide self-help efforts to the people in the social, cultural and economic fields.
Government appreciates the role of International Co-operative Alliance (I C A), however, in identifying and enunciating the principles by which co-
operative in the whole world can best achieve their goals and retain their peculiar co-operative circle. This law is intended to translate those principles into legal norms and give them legal enforcement.
Government, therefore wishes to use the co-operative Act to according to legal recognition to co-operative and promote and exist them to operate successfully.
All the sections in this project is collected from Eastern Nigeria Co-operative Societies Decree 1993.
TABLE OF CONTENTS
1.1 OBJECTIVE OF THE STUDY
1.2 SIGNIFICANCE OF STUDY
1.3 PURPOSE OF STUDY
1.4 LIMITATION AND SCOPE OF STUDY
1.5 DEFINITION OF TERMS
2.1 CO-OPERATIVE LAW
2.2 HOW CO-OPERATIVE LAW LIMITS ITS GROWTH
2.3 CO-OPERATIVE LAW AND THE COURTS
2.4 MEMBERS OF CO-OPERATIVE AND ITS LAW
2.5 CONTENTS OF CO-OPERATIVE LAW
2.6 EASTERN NIGERIA CO-OPERATIVE LAW OF 1963.
3.1 CONTENTS OF THE CO-OPERATIVE RULES
3.2 OBSERVATION OF 1993 DECREE
4.1 CO-OPERATIVE MEMBERSHIP
4.2 DUTIES OF A MEMBER
4.3 THE POWERS AND DUTIES OF A CO-OPERATIVE REGISTRAR/DIRECTOR.
4.4 REPLACEMENT OF ENTIRE COMMITTEE.
5.1 SUMMARY OF FINDINGS
BACKGROUND OF THE STUDY
Co-operative law are those legislative enactment aimed at regulating and directing the activities of Co-operative Societies. It guides the ruling, formation of co-operative enterprises, so that it enables their activities to be stable, effective and efficient for the successful operation of a given co-operative society.
The Co-operative originated in Nigeria in 1935 under the NO. 39 Ordinance, while the rules follows in 1936. Both applied the rules follows in 1936. Both applied to the whole locating, then colony and protectorate of Nigeria. In 1952, the country was divided into 3 regions, North, West and East and co-operative was made a regular subject. Each adapted the 1935 ordinance with necessary amendments. In August, 1977, the then Federal Commissioner for Co-operative and Supply, Alhaji U.A Mutallh, set up a panel to review and unite the Nigeria co-operative society laws and rules with J.T Catlow Idowu as chairman.
It was General J.B Babangida at the face end of Military rule, decided to sign the draft into a decree, the Nigerian Co-operative Societies Decree No. 90 of 1993. Being a federal law which superseded all other laws of co-operative society in Nigeria.
1.1 OBJECTIVE OF STUDY
The motive behind this project is to undertake a study of a critical assessment of the important of studying co-operative laws and rules.
– To examine the impact of the co-operative law in every co-operative establishment.
– To examine the law meant for co-operative establishment.
– To know the limit provided by the law that differentiates it from other terms of business.
– To suggest ways and means of enhancement.
– To know that there is provision in the law of co-operative that every registered society must have their bye-laws.
1.2 SIGNIFICANCE OF STUDY
With the above project been carved out by the researcher, the society will get to know and understand that co-operative laws and rules will help to improve the economic activities of the society. This research work will equally help the federal government to improve the society, since it is the federal government that enact the law in which co-operative must follow. Co-operative law is a vital element in co-operative development which should not be under-rated.
The law should discriminate between full – rigid genuine co-operative, psendo co-operative and pre-co-operatives.
The law stipulates that all the co-operative should be registered and it must be reformed to reduce federal government control so that a true co-operative movement will emerge.
Co-operative law should take legislative cognizance’s of the higher-class, co-operatives and invest them will freedom to take their own decisions.
1.3 PURPOSE OF STUDY
Co-operative society is a dynamic and liable business enterprise that has unique ideologies and method. It should be regularized not as the same way as other business organizations.
a) To take the co-operative out of the content of preview of other laws.
b) To encode a legal personality on the co-operative and other privileged upon registration co-operative receive body cooperate status.
c) To grant special right to the co-operatives such as exemption from taxes.
d) Enlarging self and self – reliance in other to bring co-operative to the stage supervision and development.
e) Protection of its members is vital and third parties e.g, supplies creditors, employ the public.
f) To give good advice to co-operators on the proper way to manage their business.
g) Preventing fraud in the co-operative enterprise.
1.4 DEFINITION OF TERMS
According to OBODOECHI (2002, P. 30) defined Co-operative “as the process of man working in consonance with another to attain a positive result.” Co-operative entails man in a social frame working, striving to accomplish:
a) Religious result
b) Economic result
c) Political result
d) Cultural result
e) Ethnical result
f) Educational result.
These are legislative enactment aimed at regulating and directing the activities of the people.
These are rules made by the Director exercised by him, given to him by Section 54 of the law.
This is the going of weaker societies to become one.
It is the quarrel that arises in the society which affects the business activities of the society.
This is the power to demand payment of money stolen.
The authority to seize goods.
This is a bear truth or general law determining the existence and regulating the conduct of an organization and distinguishing it from other system.
This is a manner in which members are compensated for their involvement in the co-operative.