![Page 1: Savings Cooperative Formation committee presentation](https://reader036.vdocuments.us/reader036/viewer/2022083114/58edd3341a28ab76458b45af/html5/thumbnails/1.jpg)
Namibia Savings and Credit Cooperative
Proposed Formation of a Primary Savings and Credit Cooperative
23 August 2012
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A cooperative is a group of people acting together to ◦ meet the common needs and aspirations of its
members, ◦ sharing ownership and ◦ making decisions democratically.
Cooperatives are not about making big profits for shareholders, but creating value for customers
What is a cooperative?
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There are two types of cooperatives namely in Namibia as per the Cooperatives Act of 1996:
1. service cooperative – owned and managed by the people who use its services; and
2. workers’ cooperative – owned and managed by people who work in the business.
The Act further stipulates that a service cooperative must also enter into at least 51 per cent of its transactions with its members.
Types of Cooperatives
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Marketing and supply cooperatives
Consumer cooperatives
Housing cooperatives
Savings and Credit cooperatives
Types of Service Cooperatives
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The Namibia Consumer Protection Group is proposing the establishment of the Namibian Savings and Credit Cooperative.
The S&C Cooperative will act as a financial institution, and have the specific objectives to encourage savings and provide loan services.
Namibia Savings and Credit Cooperative
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a) promote the economic and social interest of its members by providing effective services to its members according to sound business principles;
b) have non-discriminatory voluntary membership;
c) be democratic and controlled by its members;
d) entitle every member to have one vote – regardless of the number of shares owned;
e) provide services be primarily to members;
f) limit the dividends so most profits are kept for the functioning of the cooperative; and
g) provide ongoing membership education.
Objectives
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Members must be◦ at least 18◦ a citizen of Namibia, or ordinarily resident of
Namibia
A primary savings and credit service cooperative shall be formed by at least a seven members. The cooperative shall be governed by its by-laws.
Establishing a Cooperative
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These by-laws include information regarding the name, address, type of cooperative, objectives, nature of business and place of business and other information as stipulated by the Act.
In addition the by-laws will include information
on the liability of its members – in the case of the proposed Savings and Credit Cooperative the liability shall be limited.
By-laws of the cooperative
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At least 7 members present
Elect formation committee of at least 7 members
Formation Committee shall elect a Chairperson, Secretary, and Treasurer
Minutes must be kept
Formation Process
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The committee shall◦ Convene meetings to advise prospective
members◦ Prepare the by-laws◦ Compile a list of its prospective members◦ Estimate share capital◦ Prepare a feasibility study◦ Prepare estimated Income and Expenditure, and
Cashflow Forecast
◦ Prepare Founders Meeting
Functions of the Formation Committee
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Sign the Register of Attendance
Elect 7 members to the Board
Board shall then meet to elect ◦ Chairperson◦ Secretary◦ Treasurer
Appoint CEO
Actions To Be Taken
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Convene Founders meeting to accept◦ Proposed by-laws◦ List of prospective members◦ Feasibility study and financials◦ Written declaration◦ Register of members
Elect◦ First Board and Supervisory Committee
Next steps