Co-operative Societies Act (No. 6 of 2000)

1. Short Tide and commencement

2. Interpretation

3. Commissioner for Cooperatives

4. Types of Cooperative Societies which may be registered Objects for which a Cooperative Society may be formed

6. Composition of Primary or Secondary Society

7. Apex Organisation

8. Functions of Apex Organisation

9. Conditions for registration

10. Qualification for membership

11. Disqualification for membership to a primary society

12. Study group

13. Functions of a study group

14. Name of society

15. Preliminary meeting of a society

16. Application for Registration

17. Registration

18. Cancellation of a provisional registration

19. Society to be. body corporate

20. Acts of societies not to be invalidated by certain defects

21. Certificate of registration

22. Address of society ~3. By-laws of society 9't Amendment of by-laws

25. By-laws to bind members

26. Restriction of membership in more than one society

27. Votes of members

28. Liability of a member

29. Liability of past member and estate of deceased member for debts of society

30. Nomination

31. Right of member to withdraw from society

32. Expulsion of member

33. Resister of members and shares

34. Registration on holding of share capi,tal

35. Restriction on transfer of shares o~/other interests

36. A copy of Act, Rules, Regulations, by-laws and list of members open for inspection

37. Contract with members 76 77

38. Imposition of fines upon members . Disposal of assets on liquidation 83.

39. Creation of charges in favour of societies Cancellation of registration 84.

40. Charge and set--off in respect of shares or other interests of members _ 85. Surcharge and attachment

41. Shares not liable to attachment or forced sale 86. Disputes to be referred to Commissioner

42. Transfer of shares or other interest on death or permanent insanity of 87. Establishment of Tn'bunal a member Sittings of the Tribunal Proof of entries in the books of society 88. 43. 89. Appeal to the Tribunal

44. Transaction by a society with Non-members 90. Proceedings of the Tribunal

4S. Production of Moneys and books of society 91. Miscellaneous powers of the Commissioner

46. Audit of society 92. Power of Minister to regulate

47. Annual reportt accounts and financial statements A Recovery of sums due to government

48. Duties of the auditor W' Prohibition of the use of the word "Cooperative"

49. Audit fees 95. Amalgamation of societies so. Annual General meeting 96. Offences

51. Functions of the Annual General Meeting 97. Certain Acts not to apply S2. Meeting of Delegates 98. Repeal and savings

53. First meeting S4. A special meeting

55. Quorum at meetings S6. Voting at meetings

57. Minutes of meetings FIRST SCHEDULE

58. Management Committee Term of office of Management Committee SECOND SCHEDULE S9.

60. Functioins of the Management Committee THIRD SCHEDULE

61. Meetings of the Management Committee

62. Liability of members of Management Commitee FOURTH SCHEDULE

63. Restriction relating to members of Management Committee

64. Functions of the chairperson. secretary or treasurer FIF111 SCHEDULE

6S. Investment of funds

66. Reserve fund A

67. Restrictions on loans •

68. Restrictions on borrowing

69. Capital

70. Central Cooperative Fund

71. Distribution of net surplus

72. Bonus shares

73. Assistance in organisation of cooperatives and technical advice

74. Power of Commissioner regarding accounts of societies

75. Inquiry by Commissioner

76. Examination of books of indebted society

77. Communication of defects in the operation of a society

78. Costs of inquiry and examination

79. Dissolution of societies

80. Power of the liquidator

81. Power of Commissioner to control liquidation

82. Enforcement of liquidation Order 78 79 CO-OPERATIVE SOCIETIES ACT NO. 6 OF 2 • "delegate" means (a) in the case of a primary society in which the general meeting ACT NO. 6 OF 2000 of members is substituted by a meeting of delegates, the re- presentative of a specified number of members elected to attend An Act to proride for oolllOlidltioin of the la• 1eladng to Cooperative Sodeda and votellt the meeting of delegates; and repeal of Cooperative Societies proclamation 1948 and Coopentfve ' I (b) in the case of a society which is itself a member of another Societies (Protection) Act 1"6. society, the representative of the former society, elected to attend and vote at meetings of the latter society. Enacted by the Parliament of Lesotho ''dividend'' means a portion of the net surplus of the society divided among its members in proportion to the paid up share capital held by them; PARTI "limited or limited by guarantee" means the liability of its members is limited Short title and commencement by its by-laws to - (a) the amount unpaid on the shares held by them; or· 1. ,· This Act may be cited as the Co-operative Societies Act, 2000 and shall come into operation on the date of its publication in the Gazette. (b) such amount as they undertake to contribute to the assets of the society in the event of it being liquidated. Interpretation "Management Committee" means the Management Committee of a.society

2. In this Act, unless the context otherwise requires - elected in accordance with section 58 (2), for the proper management of the affairs of the. society; ' 'allowance' 'means the remuneration paid to the Committee members or treasurer or any member carrying out the functions of a society in •'member'' includes a person or society qualifying for membership in a consideration of their services rendered to the society on regular basis; co-operative society joining in the application for registration of a society and a person or society admitted to membership after registration in ''Apex organisation'' means an organisation at national level established accordance with the by-laws; to facilitate the operation of study groups, primary societies or secondary societies affiliated to it; ''Minister'' means the Minister responsible for Agriculture, Cooperatives and Land Reclamation; "bonus" means a portion of the net surplus of a society divided among its members in proportion to the volume of business done by them with "net surplus" means the remaining portion of the surplus after provisions the society; ''By-Laws'' means the registered internal regulations made by a society e have been made for depreciation, bad debts, the reserve fund and the Central Co-operative Fund; in the exercise of any power conferred by this Act and includes a registered "officer" means a person empowered under this Act, the Rules made under amendment to the by-laws; this Act or the by-laws of the society to give directives in regard to the business of a society or to supervise such business; ''Commissioner'' means the Commissioner for Co-operative Development appointed under section 3 of this Act, and includes any person exercising ''pre-co-operative'' means any group of persons coming together for the such powers as may be conferred on him under this Act; purpose of establishing a society and recognised as such by any apex org~on or by the Commissioner and includes a provisionally registered ''Contributor'' means a person who has contnlmted to the assets of a society society; in the event of its being wound up; "primary society" means a society in which all members are individual "Co-operative Officer" means a member of the staff of the Department persons or village groups, formed under section 4 of this Act; · of Co-operatives; "rules and regulations" means rules made under this Act; "Co-operative Societies" are private business organisations of a special "secondary society" means a society in which all members are themselves nature which are registered under this Act and operate according to co- primary societies; operative principles and practices; ''Society'' means a co-operative society registered under this Act; 80 81 ''study group'' means a group of individuals who come together for the qualify for membership in terms of this Act. purpose of establishing a society and recognised as such by any co-operative apex organisation or by the Commissioner (2) A Secondary Society shall consist of two or more cooperatives. "sun,lus" means the economic results of a society as shown in the Apex organisation audited financial statements of that society, representing the excess of income over expenditure at the end of a financial year; 7. (1) There shall be, at the National Level, an Apex organisation which shall •'Tribunal'' means the Cooperative Societies Tribunal established under facilitate the operations of primary and secondary societies registered under this Act. section 87. (2) An Apex organisation shall consist of not less than two Secondary Societies. PARTD e • Functions of Apex Organisation Registration of Co-operative Societies 8. (1) The Apex organisation shall - Commissioner for Co-operative Development (a) provide information, education, training and advisory services on cooperative principles and on the Management of Cooperative

3. (1) There shall be a Commissioner for Co-operative Development who enterprises; shall be appointed by the Minister by notice in the Gazette. (b) assist study groups and societies registered under this Act in (2) The Commissioner shall - determining the feasibility of their projects; (a) register and protect co-operative societies in accordance with the (c) facilitate the registration of new societies; provisions of this Act; (d) provide, organise and supervise central services such as joint supply (b) advise the Minister on any matter relating to co-operative societies; of inputs, raw materials or implements, access to technical (c) encourage the establishment of co-operative societies in all sections services and loans, joint marketing of produce and joint of the economy and help co-operative societies to increase their use of any services or installations necessary to help others and efficiency; and members of affiliated societies and study groups in achieving their objects; (d) perform such other duties as may be assigned to him by the Minister or under this Act. (e) advise the Commissinaer on matters related to cooperative develop- Types of Co-operatives Societies which may be reglsterecl

4. The following co-operative societies or apex organisation may be formed e ment policy and legislation; (t) represent the cooperative movement of Lesotho at the national or international level; and registered in terms of this. Act: (g) coordinate activities of various secondary cooperative societies (a) primary society; and government agencies for the promotion of cooperative development. (b) secondary society; (c) apex organisation. (2) The Apex organisation shall make its own rules. (3) The Apex organisation may engage such consultants or experts as it Objects for wblcb a cooperative society may be formed thinks fit to advise it in respect of any matters arising in connection with the exercise

5. A Co-operative Society shall have as its object the promotion of economic of its functions under this Act. and social interests of its members in accordance with cooperative principles and practices. Conditions for registration Composition of Primary or Secondary Society 9. No society, other than a society of which a member is a registered society, shall be registered under this Act unless it consists of at least ten persons who

6. (1} A Primary Society shall consist of not less than ten individuals who qualify to be members in terms of this Act. 82 83 Qualfflcation for membersbtp (2) A society shall have -

10. No person shall qualify to be a member of a Primary Society unless he - (a)· the word "cooperative" as part of its name; and (a) is over the age of fifteen years; (b) the word "limited" or limited by guarantee at the end of its name. (b) is a citizen of Lesotho; PNlimlDary meetma of a Society (c) has made payment of a fee prescribed under the by-laws made under this Act. 15. (l) When, the Commissioner is satisfsicd that all requirements for registration of the proposed society are met by persons who qualify in terms of this Act to Dlsquallftcatilon for membership to a primary society form a society, he shall direct that a meeting be convened by those persons.

11. A person is disqualified from becoming a member of a sqciety if he - (a) is convicted of any criminal offence involving dishonesty; e .A. (2) At the meeting convened in acoordance with subsection (1), the following •11 be submitted to the Commissioner - (a) the propose<:{ by-laws of the 'society; (b) becomes of unsound mind; (c) is declared insolvent; (b) a written statement prepared and signed by persons present at such meeting and showing - (d) is dismissed at a general meeting as provided in this Act. (i) the objects of the proposed society; and Study Group (ii) the business prospects of the society.

12. (1) Persons who qualify in terms of this Act to become members shall, for (c) feasibility study and estimate of revenue relating to the proposed purposes of forming a primary cooperative society, convene a meeting. •society; and (2) Persons referred to in subsection (1) shall, for purposes of this Act be (d) a register of proposed members signed by persons who are present called a study group. at the meeting and who wish to become members of the proposed (3) A study group shall consist of at least ten individuals. society. (4) A cooperative officer or a person engaged by Apex Organisation shall, (3) Persons present at the meeting and whose names appear in the by-laws at the request of the study group, assist in the formation of a Cooperative Society. ofthe proposed society shall elect from among themselves and by a simple majority by secret ballot a provisional Management Committee which shall serve until the Functions of a study group tint General Meeting of the proposed society.

13. A study Group shall - (a) organise educational meetings and discuss the proposed Society, e its object, operations and benefits to members; 16. (1) A society shall, prior to carrying out its activities, submit to the (b) assess the probable membership and expected volume of business; commissioner and in the form set out in first Schedule to this Act, an application form for registration of the society. (c) compile a list of prospective members and a record of probable contributions in the form of shares labour or savings; (2) The application form for registration shall - (d) prepare, in consultation with the cooperative officer, the by-laws (a) contain information specified in the Second Schedule to this Act and for the proposed society; or; be signed by - (e) do all such acts as may be necessary in the proposed society. (i) in the case of a Primary Society, at least ten persons who qualify for membership in terms of this Act; Name of society (ii) in the case of a Secondary Society, duly authorised persons on

14. (1) No Society shall be registered by name which in the opinion 0,fthe behalf of at least two or more societies; Commissioner is objectionable or misleading or identical to that of a society which (iii) in the case of an Apex organisation by not less than two representa- is already registered. • tives of at least two secondary societies. 84 85 (b) be accompanied by - of a spciety where he is of the opinion that the conditions prescribed under this (i) three copies of the by-laws of the proposed society containing Act have not been complied with. signatures of at least three persons elected to the provisional (2) The cancellation made in terms of subsection (1) shall be deemed to be management committee; a refusal to register the society and that society shall immediately cease to operate (ii) a list of names and addresses, identity. numbers and occupations as a society. of persons elected to the provisional management committee (3) Where a provisional registration is cancelled in terms of subsection (1), of the proposed society; the Commissioner shall appoint a liquidator of the society. (iii) a description of the proposed business and other activities of (4) A society which contravenes the provisions of this sections commits an such society; offence and is liable on conviction to a fine not exceeding M2 000. (iv) a f~ibility study and estimated capital relating to t h e ~ society; (v) minutes of the PreHminary meeting signed by all persons who wish to become members of the proposed society; and • PARTm PRIVILEGES AND DUTIES OF SOCIETIES Societies to be body corporates (vi) any other document or information that the commisioner may require. 19. A society registered iii terms of this Act - (a) shall be a body corporate; Registration (b) shall have power to enter into contracts;

17. (1) The Commissioner may, where he is satisfied that a society has complied with all requirements necessary for registration of a society under this Act, register (c) may acquire, hold or dispose of movable or immovable property; a society and its by-laws. (d) may sue or be sued in its corporate name; and (2) Where the Commissioner is of the opinion that the requirements for (e) may perform the duties imposed on it and exercise powers conferred not registration have been complied with to his satisfaction, he may - on it by or under this Act. (a) register the society provisionally for a period specified in the certificate of registration and subject to its compliance with such Acts of Societies not to be Invalidated by certain defects terms and conditions as may be determined; or 20. An act of a society or of a Management Committee or of an employee of (b) in writing, refuse to register the society. . ..l society shall not be deemed to be invalid by reasons only of the existence of •me defect in the constitution of the society or of the Management Committee (3) The Commissioner shall, where he refuses to register the society , or in the appointment or election of an employee or on the ground that such employee ~ c e with subsection (2) paragraph (b), state reasons for his refusal. was disqualified for his appointment. (4) Refusal by the Commissioner to register a society is subject to appeal by the Minister. Certfftcate of registration (5) An appeal for refusal to register a society shall be made to the Minister 21. The Commissioner shall issue a certificate of registration as evidence that within thirty days of such refusal. the society is registered, (6) The society shall, on registration, pay such fee as may be prescribed Address of society by the Minister. (7) A society registered provisionally shall, subject to this Act and conditions 22. (1) A society registered under this Act shall have an address to which all prescribed by the Commissioner in writing, operate with the same status and powers notices and communications shall be sent. as a registered society. (2) The address declared in the application for registration shall be the registered address until it is changed in accordance with this Act. . CancellatiQn of a provisional realstratlon (3) Every change of address shall be notified to the Commissioner and to

18. (1) The Commissioner may, in writing, cancel the provisional registration every creditor of the society. 86 87 By-Jaws of society (4) The Commissioner shall not register an amendment to the by-laws of a society unless -

23. (1) The by-laws of a society shall set forth the following: (a) a resolution to amend the by-laws has been passed by not less than (a) the name, postal address and residential address of the society; three-fourths of the members present and voting at a meeting (b) the type of a society; duly convened for that purpose; (c) the objects of a society; (b) not less than 30 days' notice of the proposed amendment has been (d) the nature of the business and other activities carried on by the society; given to the members; and (c) he is satisfied that the amendment does not contravene any of the (e) the place where its main business is situated; provisions of this Act. (f) the manner in which members shall be ~tted ~ the requirem~ and conditions of admission of ~mbers including f~s payable a - (5) Three copies of any amendment to the by-laws of a society shall be respect of membership and the cll'CUIDStanceS under which mem~ submitted to the Commissioner and be accompanied by an application for registration ship may be terminated; of the amendment, signed by the chairperson and two members of the Management (g) whether the liability of its members is unlimited or limited; Committee of the societ}.'.. (h) the rights, duties and liabilities of members of the society; (6) The Commissioner shall register an amendment to the by-laws if he is (i) the manner of election, term of office, ~spensions ~ removal of satisfied that the amendment does not contravene any of the provisions of this Act. the management committee and the filliJlg of v~cies by way of (7) The Commissioner shall, in writing, where he refuses to register an election or appointment to the management COIDDllttee; amendment to the by-laws, give reasons for his refusal to the society. (j) provisions relating to the holding of an ~ General Meeting and (8) Where the Commissioner refuses to register an _amendment to the by- any other meeting or the procedure at meetings; laws of a society, an appeal shall be lodged with the Minister within two months (k) the amount of share capital and the division of Profits Shares; of the date of communication of the Commissioner's decision to the society, and (1) the manner in which the share capital may be increased or reduced; of Minister's decision thereon shall be final. (m) the minimum number of and the manner of payment for shares (9) Where the Commissioner registers an amendment to the by-laws of a which each member is requested to hold; society, he shall forward a copy of the amendment together with a certificate of (n) the manner in which repayment of amount paid in _respect of shares registration to the society. may be paid in case of termination of membership; (o) the purposes for which its funds may be utilised; . By-Jaws to bind members (p) the manner in which its surplus may be distributed by way of di~ I 2s. (1) The by-laws of a society shall, when registered, bind the society and (q) the condition on which loans may be obtained; the members of the society to the same extent as if they were signed by each member and contained covenants on the part of each member for himself or for his successors (r) the manner in which other funds may be invested; to observe all the provisions of those by-laws. (s) any other matter which may in the opinion of the Commissioner be necessary. (2) A member of a society shall not, without his written consent, be bound by any amendment of the society's by-laws registered after he became a member, Amendment of By-Jaws ifthat amendment requires the members to subscribe additional shares or to increase his laibility for the debts of the society in case of liquidation.

24. (1) A society may, subject to the provisions ofthis Act, amend its by-laws. (3) Any dispute arising out of the interpretation of a by-law shall be referred (2) An amendment which changes the names of this society shall not affect to the Commissioner for settlement. any right or obligation of the society or of any of its members or past memben, and any legal proceedings pending may be continued by or against the society under Restriction of membership in more than one Society its new name. (3) Any amendment of the by-laws of a s9Ciety shall have effect until it has 26. No person shall, except with the consent of the Commissioiner, be a member been registered by the Commissioner. of more than one society whose objects are provision of loans to members. 88 89 Vote of members Expulsion of member

27. (1) Each member of a primary society shall, irrespective of the number of 32. (1) A member who contravenes any of the provisions contained in this Act, shares he holds, have one vote only in the affairs of the society, and. such vote the Rules and Regulations made under this Act, or the by-laws of the society or shall be exercised in person and not by proxy. who acts in any way detrimental to the interests of the society may be expelled (2) In a secondary society or an apex organisation, each society which is from the society. a member shall have as many votes as may be provided in the by-laws of the (2) A society shall prescribe in its by-laws a procedure for the expulsion secondary society or an apex organisation, and may, subject to such by-Jaws, appoint of members. any number of deleg_ates, not exceeding the number of such votes, to exercise its voting power. (3) Such by-laws shall provide for reasonable notice of the charge and an Liability of a Member e I opportunity for making representations concerning the charge to be given to the members against whom the expulsion proceedings are directed.

28. (1) The liability of a member for the debts of a society in case of liquidation Register of memben and shares may be either limited by shares or limited by guarantee.

33. (1) Every society shall maintain a register of members and of shares held (2) The form of liability shall be deemed in the by-laws of the society. by the member. (3) In case of liability limited by shares, the liability of a member of a society (2) The register of members and shares shall reflect the following: present or past, shall be limited to the amount of shares held by him. (a) the date on which the name of any person was entered in such register Liability of past member and estate of deceased member for debts of society as a member;

29. (l) The liability of a past member for the debts of a society shall cease on (b) the date on which the name of any person was struck off the register; the expiration of two years commencing from the date on which he ceased to be and a member. (c) the number of shares held by a member. (2) The liability of the estate of a deceased member shall cease on the Registration OD holding of share Capital expiration of two years commemcing from the date of the death of the member. (3) A past or the estate of a deceased member shall not be liable for the 34. No member other than a society shall hold more than one-fifth of the total debts of the society, if the first audit of the accounts of such society after the share capital of a society. termination of membership of the past or deceased member discloses that the society is solvent. f I Restriction on transfer of Shares or other Interest

35. (1) The transfer of the shares or unpaid dividend or bonus of a member or Nomination past member or deceased member shall be subject to such conditions as are laid

30. (1) A member of a society may, in writing, nominate a person, in the presence down in section 34 or as may be prescribed by the by-laws of the society. of at least two witnesses, to whom the society may when he dies transfer his shares (2) No member of a society shall transfer any share held by him unless the or and other interest. transfer is in favour of the society, a member of the society or a person whose (2) Every society shall maintain a register of all persons so nominated. application for memberships has been accepted by the Management Committee of the society or a nominee appointed as such by a member. Right of member to withdraw from Society (3) No transfer of a share shall be valid and effective unless the transfer and the name of the transferee has been registered in the register of members and

31. A member may withdraw from a society subject to such conditions, and by shares on the direction of the Management Committee. giving the society such notice in writing as may be prescibed by the by-laws: A copy of Act, Rules and Regulations, By-laws and list of members open for Provided that in the case of a primary society such notice shall not exceed six inspection months and in the case of a secondary society or an apex organisation such notice shall not exceed twelve months. 36. Every society shall keep a copy of this Act, the Rules and Regulations made 90 91 under this Act, the by-laws· of the society and a list of its members which shall (2) No person shall transfer any property which is subject to a charge under be open for inspection, free of charge, and at all reasonable times at the registered subsection (1) of this section except with the prior written permission of the society address of the society. t.o whom the debt is due: • Contract 'with members Provided the rights of a bona tide purchaser or transferee are not affected.

37. (1) A society which has as one of its objects the sale of any article produced Cbarp and set-off In respect of shares or other interests of members or obtained by the work or industry of its members, whether it is the produce of agriculture, apimal husbandry, fisheries, handcraft or otherwise, may provide 40. A society shall have a charge upon the shares and on the deposits of a member in its by-laws that - or past or deceased member and upon any dividend, bonus or other sum payable t.o a member, past or deceased member in respect of any debt due to the society (a) every member who produces any such article shall dispose of the..a ~om such member or past member or estate of a deceased member, and may set whole or any specified amount, proportion or description thereo1 .,- •ff any such debt against any sum credited or payable to a member or past member to or through the society; and or estate of a deceased member as aforesaid in or towards payment of any such debt. (b) a member who contravenes the provisions of the by-laws or contract shall pay to the society as liquidated damages a sum ascertained or Shares not Hable to attachment or forced sale assessed in such manner as may be prescribed by the by-laws. 41. Subject to the provisions of section 46 of this Act, the shares held by a.member (2) The validity of any by-laws made or any contract entered into by a society shall not be liable to attachment or sale under any decree or order of a court in as provided in this section shall not be affected by reason only that it constitutes respect of any debt or liability insolvency by such member, and neither his trustee a contract in restraint of trade. in inslovency or a curator bonis duly appointed shall be entitled to, or have a claim on such shares. • Imposition of Fines upon members Transfer of mares or other Interests on death or permanent Insanity of a member

38. (1) The by-laws of a society may provide for the imposition of fines on its members for any infringement of the by-laws, but no such fine shall be imposed 42. (1) On the death of a member, a society may transfer the shares or other upon any member unless written notice of the intention to impose the fine and interests of the deceased member to a person nominated by the member in reason thereof has been served on and he has had an opportunity of being heard accordance with section 30 of this Act. or otherwise of showing cause why the fine should not be imposed. (2) Where there is no person nomimrted in accordance with section 30, the shares or other interests shall be transferred to the person who may appear to the (2) A fine imposed in accordance with subsection (1) shall be recoverable • Management Conunittee of the society to be the heir of the deceased member. by the society as a commercial debt due to the society. t (3) Where there is no heir, the shares or other interests shall be transferred t.o the person who may appear to the Management Committee to be the legal Creation of charges In favour of societies representative of the deceased member.

39. (1) Without prejudice to any other enactment as to the priority of debts, where (4) Where a person referred to in subsections (1), (2) or (3) does not qualify a society has - for membership under this Act or under the by-laws of such a society, the shares or other interest shall be transferred t.o the person who shall be nominated by the (a) supplied to any member or past member seeds, fertilizer, animals, nominee, heir or legal representative of the deceased member as the case may feeding stuffs, agricultural or industrial implements or machinery be, within six months of the death of the deceased member. or building materials; • • (5) A society shall, where a member becomes insane, transfer to a person (b) rendered any services to any member or past member; or nominated by the member in accordance with section 30, shares or other interests (c) lent money to any member who is past member to enable him to of the insane member. buy any such things or to obtain any such services as aforesaid, (6) The value of the shares of the deceased member or of the insane member shall be rq,resented by the sum actually paid by the member t.o acquire such shares. the society shall have a first charge upon things or upon any agricultural or industrial (7) All transfers and payments made by a society in accordance with produce, animals or articles produced therewith or therefrom or with the aid of provisions of this section shall be valid and effectual against any demand made such money or services. upon the society by any other person. 93 92 Proof of entries in the books of society Duties of the auditor

43. (1) A copy of an entry in any book of a society regularly kept in the course 48. (1) The· auditor shall - of business shall, ,if duly certified as provided in subsection (2) of this section, (a) inspect and audit the accounts and any other relevant record of the be prima facie eviclence in any legal proceedings, civil or criminal, of the existence society; of such entry and of the matters, transactions and accounts therein recorded and (b) inform the Commissioner and the society of1IIlY irregularity disclosed shall to the same extent be admissible. by the inspection and audit; (2) The copy of an entry in the books of a society shall be certified by (c) report to the Commissioner whether the financial statements or any declaration in writing at the foot of such a copy stating that it is a true copy of other accounts of the society reflect the true financial transactions such entry and that the books containing the entry are still in the custody of the and state of affairs of the society; society. • (d) state in his report whether - (3) The declaration made pursuant to subsection (2) shall be dated and signet!" by the chairperson and the secretary of the society. (i) proper accounts and other records of the society have been kept; (ii) the receipt, expenditure and investments of moneys and Transaction by a sodety with Non-members acq~sition and ~sposal of assets by the society have been, dunng the year, m accordance with this act or the by-laws

44. The transactions of a society with persons other than members shall be subject to the provisions of this Act and to such prohibitions and restrictions as may be of the society. prcscn'bed by the by-laws of the society. (e) report to the Commissioner and society any other matter arising out of the performance of the audit. Production of Moneys and books of sodety (2) The financial statements prepared by the ·society after the close of the

45. An officer, employee or member of a society who is in custody or control financial year shall be audited and reported on by the auditor. of moneys, securities, books, accounts or documents belonging to or relating to the affairs of a society shall, when he is required by the Commissioner, produce (3) The audit of the accounts of a society shall include an examination of the moneys, securities, books, accounts or documents belonging to or relating to and a report on overdue debts, if any, an examination of and a report on the valuation of the assets and liabilities of the society. the affairs of the society. • (4) The auditor may classify the society into one of the audit classes A to Audit of society C according to the classification in.muctions made by the Minister in the Regulations

46. A society shall, at least once a year, have its books and accounts audi~ lade under this Act. by the auditor appointed by the Commissioner in accordance with section 74(1). Audit fees Annual report, accounts and financial statements 49. Every society shall pay such audit fees as the Commissioner may prescribe.

47. (1) A society shall submit to the Commissioner not later than six months after the close of each financial year, the following: PART VI (a) an annual report on its activities; and ORGANISATION AND MANAGEMENT OF SOCIETIES (b) two certified copies of the financial statements of the society. Annual General meeting (2) the society shall keep proper accounts and records of its transactions and 50. (1) The supreme authority of a society shall be vested in the Annual General affairs and do all things necessary to ensure that all payments out of its moneys Meeting of its members. ~ correctly made and properly authorised and that adequate control is maintained (2) Subject to the provisions of this Act, every member shall have the right over the assets of, or in the custody of, the society and over the expenditure incurred to attend and vote at all Annual General Meetings of the society. by the society. •• (3) Every society shall provide in its by-laws for an Annual Geneilll Meeting (3) A society which contravenes the provisions of this section commits an to be convened by the Management Committee and to be held within three months offence and is liable on conviction to a fine not exceeding MS 000. of each financial year. 94 95 (4) Notice of every Annual General Meeting shall be given in writing to • (2) Every individual who is a member of a society other than an officer of each member or delegate entitled to attend the meeting. Such notice shall be given the society; may be elected as a delegate. at least thirty working days prior to the date of meeting. (3) A society having die general meeting of members substituted by a meeting (5) Every notice of the Annual General Meeting shall state the matters for of delegates, shall make by-laws specifying the methods of electing the delegates, discussion and the resolutions to be proposed, and no other subject shall be di&cusaed the number of individual members to be represented by each delegate and the term without the consent of the majority of the members present and voting at that of office of the delegates. meeting. First meeting Functions of the Annual General Meeting 53. (1) Every society shall within three months of the receipt of the certificate

51. The functions of the Annual General Meeting shall be - a of iegistration, unless the time is extended by the Commissioner, hold a first meeting (a) to consider and confirm the minutes of the previous Annual ~ . ,,of its members. (2) The business ofthe first meeting shall include the election of officers Meeting and of any other intervening general meeting; who shall serve in the provisional Management Committee until the first Annual (b) to consider the auditor's report and the report of the Management General Meeting prescribed by the by-laws of the society. Committee, or any other report by the Commissioner; (c) to approve the financial statements and budget; A Special Meeting (d) to consider and resolve the manner in which any available net swplus 54. (1) A Special Meeting of a society may be convened - is to be distributed or invested subject to the provisions of this Act and the by-laws made under this Act; (a) at any time when the Management Committe of the society deems it necessary; (e) to consider and adopt any amendments to the by-laws; (b) on reciept of a requisition for such a meeting signed by at least one- (f) to elect members of the management committee and any other committee whose qualifications for election shall be provided for fifth of the members or delegates of the society and stating the objects of the meeting. in the by-laws; (g) to decide appeals of persons whose applications for membership have (2) If the Management Committee fails to convene a meeting in accordance been rejected by the Management Committee; with subsection (1) (b) within one month of receiving the requisition for the meeting, the mem~ making the requisition may request the Commissioner in writing to (h) to consider and determine the maximum amount the society may convene the,meeting. borrow; (i) to hear and decide upon any complaints brought by members aggrieved by a decision of the committee except that notice of the t :. (3) Before the meeting referred to in subsection (2) is convened, the members Y making the requisition shall make a notice, to all members stating the objects of the meeting and the fact that the Management Committee failed to convene the intention to bring such complaint before the meeting shall be in meeting. writting and given to the Secretary at least fifteen days prior to the meeting; •and (4) The Minister may, notwithstanding any Regulations or by-laws prescribing the period of notice for a special meeting of a registered society, order (j) to transact any other general business of the society of which due the Comissioner to convene and preside over an extra-ordinary meeting in such notice has been given to members. manner and at such time and place as the Minister may direct. (S) The Minister may specify the agenda for the meeting to be convened Meetings of delegates in accordance with subsection (4).

52. (1) Notwithstanding the provisions of section SO of this Act, in a primary Quorum at l\feetings society, provision may be made by the by-laws of die society to substitute the general meeting of members by a meeting of delegates, each delegate representing a SS. (1) No business shall be transacted at any meeting unless a quorum of specified number of individual mem~rs, and in any such case all the provisions members or delegates is present. of this Act referring to meetings of members shall include reference to meetings (2) The quorum necessary for the transaction of business shall be two thirds of delegates. majority of members present and voting. 96 97 (3) If within thirty minutes of the time fixed for a meeting the members or present and voting at the Annual General Meeting of the society. delegates present are not sufficient to form a quorum, the meeting shall not proceed (3) If.during the term of office of the management committee, a vacancy if it is convened on the requisition of members or of delegates and shall stand occurs in the committee, the committee may, if the number of members falls below adjourned to the same day in the next week at the same time and place. the requirements of the by-laws, co-opt a member of the society to serve on the (4) If at the adjourned meeting, a quorum is not present within thirty minutes Management Committee until the next Annual General Meeting of the society. of the time fixed for the meeting the members or delegates present shall form a Tenn of office of Management Committee quorum, Provided the number is not less than one-eight of the total membership. The Total number of delegates at such a meeting shall also be within the same 59. The term of ofnce of the management committee shall be one year but may proportion. be eligible for re-election, except that the re-election shall not be for more than (5) The meeting with such reduced quorum shall not have power to amend three consecutive years. the by-laws. • ~unctions of the Man3gement Conm~ittee Voting at meetings

60. (1) The management committee shall -

56. (1) Except as otherwise provided in this Act or in the by-laws, any question (a) conduct and manage the affairs and business of the society and, subject referred to the members or delegates present at meetings shall be decided by a to any restrictions contained in the by-laws or in any resolution majority of votes. taken at a meeting of members; (2) At any meeting, a resolution put to vote shall be decided by a show of {b) exercise .all the powers required to ensure the full and proper hands unless voting by secret ballot is demanded by at least five of the members administration and management of the affairs, business and property present and voting. of the society~ except those powers reserved to the Annual General (3) At the election of members to the Management Committee, the voting Meeting of the society; shall in all cases be by secret ballot. (c) have· the legal and judicial representation of the society before all (4) In the case of an equality of votes the chairperson shall have a casting vote. competent authorities and in all dealings and transactions with third - ' parties; Minutes of meetings (d) consider, approve or reject subject to the provisions of this Act, applications for membership of persons who apply after registration

57. (1) Minutes of the meetings shall be entered in the minute book and shall of a society; • contain - (e) call for and examine regular reports from persons employed by the (a) the number of members or delegates present at the meeting and the • society with the object of disclosing the true position of the society, name of the chairperson who presided; • its operations and f;inancial conditions; {b) the time the meeting commenced and ended; and (f).open and.operate banking accounts; (c) all resolutions and decisions taken at the meeting. (g) appoint sub-committees if necessary and prescribe their functions; (2) The minutes of each meeting shall be read at the next following meeting, (h) keep members informed of the progress of the society, to encourage and, if signed by the chairperson of that meeting and the secretary, be evidence interest and a sense of ownership on the part of the members; . of everything therein contained. (i) carry out educational and advisory work among the members with (3) The minutes of each meeting shall be circulated within a period of sixty respect to co-operative principles and the objects of the society; days from the date of the meeting. G) prepare and present to the Annual General Meeting of the society a proposal for the distribution of any net surplus accrued during the Management Committee preceding financial year in accordance with this Act and by-laws

58. (1) Every society shall have a management committee and the number of of the society; members of such committee shall be prescribed in its by-laws. {k) make a report to the Annual General Meeting on the work of the (2) Subject to subsection (3), members of the management committee shall Management Committee during the preceding financial year and be elected, suspended or removed only by a majority of members or delegates make such recommendations as it may deem necessary to maintain 98 99 or improve the services provided by the society to its members; (2) A member of a Management Committee may receive such allowance as may be prescribed in the by-laws of a society. (1) take immediate action to correct mistakes, errors or malpractices which are disclosed in the reports of the Commissioner or the (3) A·member of the Management Committee shall be entitled to recover auditor. such out of pocket expenses generally approved in principle beforehand by the Management Committee, as may have been incurred in connection with work (2) A full record of all proceedings of the management committee in carrying performed for or on behalf of the society and in such amounts as may be specifically out i_ts duties s~ be kept and be available for inspection by the Commissioner approved by the Management Committee. or his representattve. Meetings of ·the-Management Committee

61. (1) The management committe sba1l meet as often as the business of the society I Functions of the cbairpenon, secretary or treasurer

64. (1) The chairperson shall - may require and in any case not less than once in every month. • (a) preside at all meetings including the meetings of the management (2) The quorum at a meeting of the management committee shall be half committee. In the absence of the chairperson, his functions shall be of the number of its members present and voting. carried out by the vice-cbariperson, and in the absence of both the chairperson and the vice-chairperson at any meeting, by any other (3) Decisions shall be taken by a simple majority of votes and the chairpenon penon elected by a majority of those present at that meeting; --·sha:lt have a casting vote. (b) have the rights conferred upon him by the by-laws and in particular (4) Minutes of management co~ttee meetings shall be recorded by the the right to order the closure of a discussion and to put a matter secretary in the manager's minutes book and shall include - to the vote. (a) the number and names of those piaent; (2) The secretary shall - (b) the name of the chairperson presiding at the meeting; and (c) a brief record of the business done and the decisions taken, and a (a) maintain and keep 1Jl>"to-date all the society's records, papers, and statement with respect to each decision whether it has been taken registers; . unaoimoualy by those present. (b) sign OD behalf of the Management Committee and conduct its (S) Any member of the management committee who, without due excuse, correspondence; fails to attend three consecutive meetings of the management committee, shall be (c) in consultation with the chairperBon summon and attend all meetings deemed to have vacated his office. including the meetings of the Management Committee -1 to record . (6) The office vacated shall be filled in accordance with section 58(3). the proceedings of such meetings in a minute book; Llabfflty of members of Management Committee t (d) conduct the otdinary business ofthe society and perform all the duties- entrusted to him by the management committee.

62. (1) The members of the Management Committee shall, in the conduct of (3) The Treasurer shall - the affairs of the society, exercise prudence and diligence. (a) take charge of all financial transactions of the society, including all (2) The Management Committee shall be jointly and severally liable for any loss sustained through failure on their part to exercise such prudence and diligence or through any act which is contrary to the provisions of this Act or of any Rules and Regulations made thereunder, or to the by-laws of the society. I moneys received by the society from a bank, from members and from other persons, and to make disbursements in accordance with the directions of the Management Committee; (b) prepare or cause to be prepared all the receipts, vouchers and (3) Where the Management Committee has employed a manager to admioisrer and manage the affairs of the society, such appointment shall not absolve the documents required by the Rules and Regulations or called for by committee from its respons11illity for the proper direction of the affairs of the society. the Management Committee; (c) be responsible for the proper and punctual keeping of all the society's Restrtctlon relating to members of Management Committee accounts and accounts books;

63. (1) No member of a Management Committee shall hold office of profit under (d) keep an inventory of the property belonging to the societies. the society. 100 101 Investment of funds its by-laws.

65. A society may invest or deposit its funds - (2) A society which under its by-laws has power to borrow money shall determine from time to time at the Annual General Meeting, the maximum liability (a) in investments and securities that are authorised for the investment which it may incur in loans or deposits from members and non-members and notify of trust funds by the Commissioner; the Commissioner of the maximum so fixed. (b) with any bank registered under the Financial Institutions Act 1999; (3) The maximum so fixed shall be subject to the approval of the (c) in the shares of any other society;' Commissioner who may, at any time, reduce the maximum or impose such (d) in the purchase or leasing of land or buildings or in the construction conditions as he considers necessary and his decision shall be final. of building necessary for the conduct of its business and the welfare of the Co-operative Movement; PART VII (e) in such other manners as may be approved in writing by the I PROPERTY AND FUNDS OF SOCIETIES Commissioner, either generally or in any particular case. Reserve fund Capital

66. (1) There shall be a reserve fund which shall be composed of surplus from 69. (1) A society's capital may be composed of the following: societies transactions. (a) registration fees which shall not be refundable except in case where an application for membership has been rejected; (2) Moneys from the reserve fund shall be used in such manner as may be prescribed in the by-laws of a society. (b) shares subscribed and paid up by members, of which a minimum number prescribed in the by-laws shall only be withdrawable after (3) At least one-half of the reserve fund shall be kept in the fonn of liquid termination of membership, except that shares subscribed in assets. excess of this minimum contribution may be either withdrawable (4) A society shall pay into the reserve fund at least five per cent of the swplus or transferable, subject to the provisions of this Act and to any resulting from the operations of the S09jety. duting the financial. year, provided limitations laid down in the by-laws; that when the reserve fund has reached· an amount _that is equal to fifty per cent (c) voluntary savings deposits from members which shall be withdraw- of its paid up share capital, such society may carry five cent of its surplus to the able subject to conditions laid down in the by-laws; reserve fund. (d) deposits or loans from non-members subject to such restrictions as (5) The issue of bonds or debentures by a society shall be subject to approval are laid down in this Act and in the by-laws; of the Commissioner. (e) surplus carried to the reserve fund which shall be indivisible social (6) The reserve fund shall be indivisible and no member shall claim any I capital of the society; and specific share of it. (f) donations made by third persons except that no donations from any foreign source whether offered directly or otherwise, shall be Restrictions on Loans received by a society without prior consultation with the Commissioner. 67. • (1) A society shall not make a loan or allow any credit to any person other than a member except that a society, with the written consent of the Commissioner, Central Co-operative Fund make a loan to another society. 70. (1) There shall be established a fund by an apex organisation to be known (2) A society shall, except with the permission of the Commissioner, not as the Central Co-operative Fund to which every society shall contribute five per lend money on the security of any movable property other than produce or goods cent of the surplus resulting from the operations of the society during the preceding in which the society is authorised to deal. financial year. (2) The Central Co-operative Fund- shall be used to further co-operative Restriction on borrowing education, training, research, audit and for the general development of the Co- operative Movement in Lesotho.

68. (1) A society may receive deposits and loans from persons who are not (3) The Central Co-operative Fund shall be administered as a trust fund by members only to such extent and under such conditions as may be prescribed by an Apex organisation in such manner as the Minister may prescribe in the Rules 102 103 and Regulations. affairs of the society, or any cash or securities belonging to the society. Dfstn1,ution of net surplus (c) require an officer, employee or member of the society to furnish 71.. (1) The re~er of_the surplus resulting from the operations of the society any material information in regard to any transactions of the society •dunng the preceding financial year may after contributions are made to the Reserve or the management of its affairs; and fund and to the Central Co-operative Fund in accordance with sections 66 and (d) to make copies of or extract from accounting and other records. 70 respectively be divided among the members as follows: (3) Notwithstanding subsection (1) the Commissioner may delegate the (a) by way of dividend; exercise of his power to audit societies, partly or totally to a co-operative apex (b) bonus or allocation to any other funds constituted by the society organisation, as soon as such organisation has established an audit section and to such extent and under such conditions as may be prescribed • employed competent staff to take over this function. under this Act or in the by-laws. f (4) Where the exercise of the audit function has been delegated to a co- operative apex organisation, the Commissioner shall supervise the audit carried (2) No society shall pay a dividend on paid-up share capital exceeding a maximum rate to be determined by the Minister from time to time in the Rules out by the audit section of the co-operative apex organisation and do all things and Regulations. necessary to ensure that the audit is effectively conducted and in accordance with the provisions of this Act. (3) a person may donate an amount not exceeding ten per cent of the annual net surplus for a charitable purpose. Inquiry by Commissioner Bonus Shares 75. (1) The Commissioner may, where he deems it is necessary, or on the application of a majority of the members of the management committee or one-

72. (1) A society may distribute a part of its net surplus among its members third of the members, hold an inquiry or direct any person authorised by him in in the form of bonus shares. writing to bold an inquiry into the constitution, operation and financial condition (2) A member holding such shares, is entitled to withdraw or transfer the of a society or any other affairs -,f a society. shares only after five years from the date when the bonus shares were issued. (2) Officers, employees or members of the society shall, on request, produce (3) For purposes of this section a "member" includes a person who has books, accounts, papers and securities of the societies and furnish such information resigned as a member. in regard to the affairs of the society as the Commissioner or the person authorised by him may require. PART VIII (3) The Commissioner shall communicate the results of such an inquiry to • the society into whose affairs the inquiry has been made. DUTIES AND POWERS OF THE COMMISIONER (4) The Commissioner may, following an inquiry made under this section, Assistance in organisation of co-operatives and tenchnical advice issue an order which shall be binding on all members of a co-operative society, committee and employees.

73. The Commissioner may provide to societies co-operative officers who shall provi~ any ass~s~~ or technical advice in the formation, organisation and EDlllbwtlo.- of books of Indebted society o~ratton of societies m order to enable them to comply· with the provisions of 76. (1) The Commissioner shall, on the application of a creditor of the society, this Act. eumine or direct any person authorized by him in writing, to examine the books Power of Commissioner regarding accouts of societies of the society where the creditor - (a) proves to the satisfaction of the Commissioner that an ascertained

74. (1) The Commissioner shall appoint an auditor who shall audit the accounts sum of money is due to him and that he has demanded payment of societies in accordance with this Act. thereof and bas not received satisfaction within a reasonable time; (2) The Commissioner shall - and (a) have access to all accounting and other records relating directly or (b) deposits with the Commissioner, as security for the costs of the in~tly to financial transactions of the society; proposed examination any such sum as the Commissioner may (b) require the production of any book or document relating to the determine. 104 (2) The Commissioner shall communicate the results of such examination • (6) A Liquidator shall not wind-up a society unless - to the creditor and to the society whose books were examined. (a) an appeal instituted under sub:::e.ction (4) of this section has been Communication of defects in the operation of a society • determined; or (b) until two months have elapsed from the date of winding-up order.

77. (1) If an audit, inquiry or examination of books made under this Act discloses any defect in the operation of a society, the Commissioner may bring such defect Powers of the Liquidator to the notice of the society and if the society is- affiliated to a secondary society or apex organisation also to the notice of that other society. 80. (1) The Liquidator shall - (2) The Commissioner may make an order directing the society to take such (a) take immediate possession of all assets belonging to the society and action as may be specified in the order within time mentioned therein to remedy of all books, records and other documents pertaining to the business the defects disclosed in the audit inquiry or examination of books. t thereof; (b) carry out the business of the society so far as may be necessary for Costs of inquiry and examination winding-up beneficially, except that he shall not for this purpose be entitled to issue any loan;

78. (1) Where an inquiry is held under section 75 or an examination is made in terms of section 76 (1), the Commissioner may, by certificate, make an award (c) fix by notice in the Gazette a date before which creditors shall state apportioning the costs or part of the costs that he may consider necessary between their claim for admission; the society, the members or creditors demanding the inquiry or examination and (d) refer a dispute to the Tribunal; the officers or past employees of the society. (e) institute and defend suits and other legal proceedings on behalf of (2) The decision of the Commissioner made pursuant to subsection (1) shall the society; be final. (f) give such direction in regard to the collection and realization of assets (3) A sum awarded by way of costs under subsection (1) shall be a civil , as may be necessary in the course of winding up the society; debt recoverable summarily on production of the certificate referred to in that (g) investigate all claims against the society and, subject to the provisions subsection (1). of this Act, decide by order, questions of priority arising between claimants; Dissolution of society (h) pay claims against the society (including interest payable up to the

79. (1) Where the Comissioner - date of the winding-up order) according to the respective priorities, if any and in full or to such an extent as the assets of such a society (a) after holding an inquiry under this Act; or pennit; (b) after making an examination under this Act and on receipt of an t (i) compromise any claim by or against the society, provided that the application made by three-fourths of the members present and approval of the Commissioner has first been obtained; voting at an extra-ordinary meeting, • • (j) call meetings of members whenever necessary for the proper conduct is of the opinion that such society ought to be wound up, he may issue an order of the liquidation, giving not less than fifteen working days notice directing it to be wound up. of every such meeting; (2) The Commissioner may make a winding-up order in respect of a society (k) decide by order, and subject to any by-laws limiting the liability of which has ceased or the membership of which is reduced to less than the minimum members contributions to be made by members, past members or membership prescribed in this Act. by the estates of deceased members of the society to its assets; (3) No society shall be wound up save by an order of the Commissioner. (1) arrange for the distribution of the assets of the society in a convenient manner where a scheme of distribution has been approved by the (4) A member of a society may, within two months from the date of a Commissioner; and winding-up order, appeal in writing to the Minister, against the winding up order (m) decide which persons are to bear the costs of the liquidation and in and the decision of the Minister thereon shall be final. what proportion. (5) When making a winding-up order under this section, the Commissioner may appoint a Liquidator for this purpose and fix his remuneration. (2) A creditor who shall not prove his claim before the date for admission 106 107 is fixed by the liquidator in accordance with paragraph (c) of subsection 1 shall Enforcement of Liquidation Order be excluded from any distribution. •

82. (1) The decision of the Tribunal on a matter referred to it under section (3) A person aggrieved by an order of the Liquidator made under this section 80(1) (b) shall be binding upon the parties and enforceable in like manner as an may, in writing, appeal to the Commissioner within thirty days of the date of such order made by the Commissioner under that section. order. (2) An or~r made by the Commissioner under sections 77 and 78 shall be (4) A person aggrieved by a decision of the Commissioner under the provisions of subsection (2) may appeal in writing to the Minister within thirty enforced by a Court of competent jurisdiction in like manner as a decree of that Court. days of such a decision and the decision of the Minister is subject to appeal to the High Court. Disposal of assets on liquidation (5) A Liquidator shall deposit the ftmds and other assets of a dissolved society which are collected by him or which come into his possession as Liq\'lidator in ·f , a 83. Upon the winding up of a society, the assets, incl~ding the rese1:7e ~~d, such manner and in such place as may be determined by the Commissioner. • shall be applied first to the costs of liquidation, then to the discharge of the liabilities of the society, then to the payment of the share capital held by the mem~r~ and (6) A Liquidator shall, once in every three months - then, provided that the by-laws of the society permit, to the payment of a ID:vtdend (a) submit to the Commissioner a report stating the progress made in or bonus at a rate not exceeding that laid down in the Rules and Regulations or winding-up the affairs of the society; in the by-laws of the society for a period during which no dividend or bonus was (b) on completion of the liquidation proceedings, submit a final report in fact paid. and hand over to the Commissioner all books, registers and accounts Cancellation of registration relating to such proceedings and are kept by him. (7) A Liquidator appointed under this Act shall, in addition to other powers, 84. (1) Where the Commissioner issued a winding-up order in accordan~ with have power to summon and enforce the attendance of parties and witnesses and this Act and the affairs of the society have been wound-up with the assistance to compel the production of documents in the same manner as is provided in the of a liquidator, the Commissioner shall, within two months of the winding-ul? of case of Court of competent jurisdiction. the society, make an order cancelling the registration of the society and such sOCiety shall be dissolved and cease to exist as a body corporate from the date of such order. Power of Commissioner to control liquidation (2) The claim of a creditor or a member of the society who has received what is due to him upon the approved scheme of distribution shall prescribe after

81. (1) A Liquidator shall exercise his powers subject to the control and supervision of the Commissioner. two years from the date of cancellation of registration and a notice of closure of liquidation and cancellation of registration is published in the Gazette. (2) The Commissioner may - • f (3) Any moneys remaining after the disposal of assets on liquidation and (a) rescind or vary an order made by Liquidator and make a new order any sums unclaimed after two years shall, except in the case of a secondary or where necessary; Apex organisation, be carried to the co-operative societies liquidation account kept (b) remove a Liquidator from office; by the Commissioner. (c) call for all books, documents and assets of the society; (4) A sum carried to the co-operative societies Liquidations Account shall be kept in this Account for at least two years and may after that be transferred (d) limit by order in writing the powers of a Liquidator under this section; to the Central Co-operative Fund, or applied generally for the furtherance of Co- (e) require accounts to be rendered to him by the Liquidator; operative Principles and Practices in such manner, as may be specified by the (t) procure the auditing of the Liquidator's accounts and authorize the Minister. distribution of the assets of the society; (5) The interest accruing in respect of th~ s ~ ~ed to the Co-o~rative (g) make an order for the remuneration of the Liquidator, which Societies Liquidation Account in accordance with this section, may be apphed for remuneration shall be included in the costs of liquidation and shall purposes specified in subsection (4) or as the Minister may direct. be payable out of the assets in priority to all other claims; and (h) refer any subject of dispute between a Liquidator and a third party Surcharge and attachment to the tribunal if the third party has consented in writing to be bound by the decision of the tribunal. 85. (1) Where - 108 109 (a) in the course ofan audit of a society held under the provisions of Commissioner. • this Act; Establi5hment of Tribunal (b) in the course of an inquiry into the affairs of a society held under section 75 or in the course of an examination of books under 87. (1) There is established a Tribunal to be known as the Cooperative Societies section 76; or Tribunal. (c) in the course of the winding up of a society, (2) The tribunal shall consist of - it appears that a person who has taken part in the organisation and management (a) a chairman who shall be a person who is a legal practitioner of not of such society has misapplied or retained or become liable or accountable for le~s than 4 years experience and shall be appointed by the Minister any money_or_ property of sue~ society or breach of trust in relation to such society, in consultation with the Chief Justice; the Comnn~s1oner may'. on his own _motion, or on application of the Liquidator (b) a member who shall be a representative of cooperative· societies or any creditor or contributor, examine the conduct of such person and make ~ and shall be appointed by the Minister; and or:a-er. requiring him to repay or restore the money or property or any part thereof (c) a member who shall be a person with experience in cooperative with interest at such rate as the Commissioner deems just or to contribute such societies issues and shall be appointed by the Minister. s~ to _the_ assets ~f such. society by way of compensation in regard to the mtsapplication, retainer, dishonesty or breach of trust and such order shall be (3) A member and chairman shall hold office for a terin not exceeding 3 enforced in the same manner as if the order had been a judgement of a court of years and are eligible for re-appointment. competent jurisdiction. (4) Two members of the Tribunal shall form a quorum. (2) This section shall apply notwithstanding that the act is one for which (5) At a meeting of the Tribunal, the chairman shall have a deliberative vote the offender may be crimiiially responsible. and in the case of equality of votes, h... shall have a casting vote. (3) The Co~ssioner may, where he ~ satisfied that a person with intent (6) The Tribunal may - to delay the execution of any order or award which may be made against him under this Act - (a) regulate its own procedure; and (b) appoint one of its members to act as chairman where the chairman (a) is about to dispose of the whole or any part of his property; or is absent. (b) is about to remove the whole or any part of his property from Lesotho, (7) There shall be a secretary of the tribunal who shall be a public officer. unless adequate security is furnished, direct the interim attachment of the said (8) Where a person who is not a public officer is appointed a member, he shall receive such allowance as the Minister after consultation with the Minister property or part of the property as he may consider necessary and such attachment • shall have the same effect as if it has been made by a Court of competent jurisdiction. .,. f responsible for Finance, may determine. (4) A person aggrieved by an order of the Commissioner made under (9) A member of the tribunal who has a direct interest in .he matter which subsection (1) or (3) may appeal to the Minister within two months by the directive is the subject of the proceedings before the tribunal, shall not take part in those of the Commissioner to attach the said property. proceedings. Disputes to be referred to Commissioner Sittings of the Tribunal

88. The Tribunal shall sit in such place and at such times as the chairman may

86. Any dispute arising out of activities of cooperative societies whether its - appoint. (a) among members, past members and persons claiming through members, past members and deceased members; Appeals to the Tribunal (b) between a member, past member or deceased member and the

89. A person aggrieved by a decision of the Commissioner made in relation to a dispute arising out of activities of cooperative societies whether - society, its Management Committee or any officer of th; society; (a) among members, past members and persons claiming through (c) between the society or its management committee and any officer members, past members and deceased members; of the society; or (b) between a member, past member or deceased member, and the (d) between the society and any other society, may be referred to the society, its Management Committee or any officer of the society; 110 111 (c) between the society or its management committee and any officer (i) freeze the bank accounts of a society when it is proved to the of the society; or • . satisfaction of the Commissioner that such measure is necessary to (d) between the society and any other society. prevent losses or misuse of funds; and May within 21 days of the date upon which he is informed of the decision, appeal (j) where the Commissioner is satisfied after due inquiry by a person to the Tribunal. appointed by him that the management committee of a society is not performing its duties properly, he may suspend all or some activities (2) A person making an appeal in accordance with subsection (1) shall - of the society for the prescribed period: (a) give to the secretary Qf the Tribunal a written notice of appeal; and except that the Commissioner shall use such extraordinary powers only after giving (b) set out in the notice of appeal the grounds upon which the appeal an opportunity to the management committee to show cause why action should is based. not be taken to suspend the activities to the society. (3) A person aggrieved by the decision of the Tribunal may appeal to thcl ~ PART IX High Court within 30 days of the date of the decision of the Tribunal. MISCELLANEOUS Proceecllngs of the Tribunal Powers of Mtntster .., make _regulations

90. (1) The proceedings of the Tribunal shall be open to members of the concerned 92. The Minister may make regulations for carrying into effect the provisions society. of this Act and without limiting the generality of this provision, ·the Minister may . (2) The Tribunal shall not be bound by rules of evidence and shall admit make regulations - •. as evidence any matter. which in its opinion shall assist it to arrive at a just equitable (a) providing for die administtation and use of the Central Co-operative decision. Fund and of the Co-operative Liquidation Fund; • . (3) The Tribunal shall have power to - (b) prescribing the maximum rate of dividents on share capital or (a) summon any person to give evidence in any proceedings before the subscription capital which may be paid. by societies; and Tribunal or produce to the Tribunal any document relating .to the (c) providing for the establishment, functions and powers of the Co- proceedings before it; and operative Planning llDd Development Boatd. (b) confirm, vary, amend, reverse or alter a decision made by the Commissioner. Recovery of sums due to Government Miscellaneous powers of the CPmmlsooner 93. (1) All sums due from a society to the Government may be recovered in the manner provided for the recovery of debts due to the Government under any

91. The Commissioner shall - written law for the time being in force. (a) prescribe the accounts and books to be kept by a society; (2) Sums due from a society to the Government and recoverable under (b) prescribe the returns to be submitted by a society to the Commissioner subsection (1) may first be recovered from the property of the society, and secondly and the form in which such returns shall be submitted; from the members subject to the limit of their liability. (c) prescribe any form to be used for a purpose under this Act; (d) reduce the·maximum limit of bom,wing from members and non- Prohibition of the use of the word "Co-operative" • .members, fixed by a society under this Act and impose such 94. (1) No person other than a society shall, without the sanction of the conditions as he may deem necessary; Commissioner, trade or carry on business under a name or title of which the word (e) convene extraordinary. special meetings in accordance with the provisions of this Act; Co-operative is its equivalent (f) prescribe the audit fees to be paid by a society; (2) A person who contravenes the provision of subsection (1) commits an (g) rescind a resolution or action of an officer or a Management offence and is liable on conviction to a fine of not less than M5000 and not f'-.:ceeding Committee which in his opinion is outside the objects of the society Ml0 000 or to imprisonment for a period of not less·than 3 years and not exceeding as defined in the by-laws of the society; 5 years or both. 112 113 Offences Amalgamation of society

96. A society· which, or a persons who -

95. (1) Any two or more societies may, at each society's extraordinary general (a) refuses to do an Act or fails to furnish any information required for meeting, resolve to amalgamate societies into one society. the purposes of this Act; (2) The resolution to amalgamate societies into one society shall be passed at the special meeting by not less than three-quarters of the members present and (b) disobeys summons, requisition or lawful written order issued under the provision of this Act; voting. (c) makes a f!tlse rerurn or furnishes false information in connection with (3) Where an amalgamation involves the transfer of liabilities by one society his duties; to another society, three months notice of the amalgamation shall be given to all ~ creditors of the amalgamating societies. • (d) acts or purports to act as a member of a Management Committee when not entitled. to do so; (4) Creditors of any of the amalgamating societies shall be entitled to a refund of any sum due to them if they make a written demand at least one month before (e) perfonns an act which requires the consent or approval of the Minister the date which is fixed for the amalgamation. or the Commissioner without having first obtained that consent or (5) Where the amalgamating societies obtain prior agreement not to make approval; a demand of not less than three-quarters in value of the creditors, the agreement (t) makes any false, misleading or inaccurate statement either orally or shall be binding on all creditors. in any official docwnent or book; or (6) A member of the amalgamating societies may, not withstanding any by- (g) fails to account for, or make prompt or true return of any money laws to the contrary and by notice in writing given to his society at least one month or property for which he is responsible in connection with his duties. before the date specified as the date of amalgamation, declare his intention not commits an offence and is liable on conviction to a fine of not less than M5000 to become a member of the amalgamated society. and not exceeding MlO 000 or to imprisonment for a period of not less than 3 (7) If the Commissioner is satisfied that - years and not exceeding 5 •years or both. (a) the proposed amalgamation is not against the interest of the members of the societies proposing the amalgamation; Certain Acts not to apply (b) the proposed by-laws of the proposed amalgamated societies are in

97. The provisions of the Companies Act and the Societies Act shall not apply accordance with the provisions of this Act; and (c) the requirements laid down in this section have been complied with I to societies registered under this Act. he shall register the amalgamated society and its by-faws. Repeals and savings (8) The registration of amalgamated societies shall, upon registration of the

98. (1) The Cooperative Societies Proclamation, the Co-operative Societies Rules amalgamated society, be deemed cancelled and the societies dissolved. 1948 and the Cooperative Societies (Protection) Act 1966 are repealed. (9) The registration of the amalgamated society shall be a sufficient conveyance to vest the assets and liabilities of the amalgamating societies in the (2) A society which was, before the coming into operation of this Act, amalgamated society. registered under the provisions of the repealed Enactment shall be deemed to be a society registered under this Act. (10) the remaining members of the amalgamating societies shall become (3) Societies registered or deemed to be registered under the repealed members of the amalgamated society subject to its by-laws. Enactment shall adapt their by-laws in conformity with this Act not later than six (11) The creditors of the amalgamating societies or any other persons who months after the commencement of this Act. have claims against the amalgamating societies, and whose claims were not satisfied before the registration of the amalgamated society may pursue such claims or causes of action against the amalgamated society. 114

FIRST SCHEDULE (Section 16) persons willing to become' members at a preliminary meeting held at THE CO-OPERATIVE SOCIETIES ACT, .2000 ............................................................ on ........................................................... . APPLICATION FOR REGISTRATION OF A CO-OPERATIVE SOCIETY 1. We, the undersigned 6. The following undersigned persons, are now willing to become members ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••···•··•··••••············································· and have made the payments necessary for admission to membership as provised in the enclosed by•laws Dated at. ............................on this .............................day of............................ . ••••••••••••••••••••••••••••••••••····················· ..··························............................................. ~ ♦• • • • ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••···················································· o o • • • • • • • • • • • o • • • • • • • • • o • • O O • O • •. • • • • • • • • • • • • t • • • • • • • • • • 0 • • • • • • • • • • • • • • • • o o • • • • • • • • O • • • • • • • I O • O • O • 0 • • I O • • • • • 0 0 • 0 0 • • • • • • • • Names and signatures of original members: •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••····················································· (Insert names, age, nationality, address and occupation of at least ten persons, or of at least two persons duly authorized in this behalf of each society if the application is made by societies) desire to form a co•operative society under the C<H>pel'ative societies Act, 2000, and hereby apply for registration. ......................................................................-..................... , .. , ............................... 2. The name of the proposed society shall be • ......................................................................................(insert name proposed) ·················································:············································································ 3. The registered office of the proposed society shall be at • ·····························································································································"· •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••··•·············································· ✓ (Insert proposed address) and its postal address shall be • ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••·············································· ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••·················································· 4. Enclosed are three copies of the proposed by•laws which specify the objects of the society, the minutes of the preliminary meeting and one copy of the feasibility study. •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••······················································ ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••··•··•··•······································· The proposed by•laws were approved by (indicate, the number of people who attend the meeting) F 116 117 5. Attitude towards Community projects

SECOND SCHEDULE (Section 16) Do the people referred to in item 4 work well together in voluntary projects to benefit the community or area in which they live, or the occupational, THE CO-OPERATIVE SOCIETIES ACT, 2000 employment or other group to which they belong? I ADDfflONAL INFORMATION THAT MAY BE REQUIRED •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••·••······································ TO ACCOMPANY AN APPLICATION ••••••••••••••••••••••••••• .. •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••······•··•·•··•························ FOR REGISTRATION OF A CO-OPERATIVE SOCIETY ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••······································ In order that more information and assistance may be given to those who desire •··•·······••·•··•··•···········•·•·•·······················································.................................... to ~rg~se a co-operative .society and to determine whether organisation an4t ~ - Expected membership registration appear econo1D1cally viable or otherwise, the following information (a) number of persons ready to join now. is required where applicable - ............. ...... ......... .. ..... ........................................' .. ' .................................. ' ' ' ' ' 1. Location of a proposed society Estimated potential membership Give the location and approximate site of the area in which the proposed society will provide services to members (if other societies are to be members, ······························································••t••·················································· give their names and location). 7. Leadership Are there persons in the group desiring to organize themselves, who are ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••······················································ prepared to give gratuitous services to start the society and to assist in its operations? ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••·················································· 2. Type of a co-operative society required (List a few of them) Describe briefly the main purpose for which the society is to be organized ·················································.. ···· .......................................................................... o I O OO O O O o • • ' o O O O I O O I O O O O o o • 0 0 0 0 0 0 0 0 0 o • I o o O O O O I O O O O o O O O O I O O o I • o o o o o o o o o.o I I ♦OI o o o o o o o ~ o o o o o o I o + • • • • • • • • • • • + • • +• • + • + • • o • • • • • • • • • > ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••········································ • • • • • • •' • • • • • • • • • •••••••I•••••••••••••••••••• 0•••••••I••••••• o• • • • • • • ■ ■ • • • oo• o• • • o• • • O• • • • • • • • •, 00 • • • • • • • • 0 • • • • • • • • • • • • • • 0• • • O ··································································-··························································· 8. Officers .............................................................................................................................. 411: ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••····•············································· e Are the persons mentioned in item 7 prepared to act as members of the Management Committee and do they undertand what their duties will be? 3. Reasons ................................................................................................................................... Give detailed reasons for forming the society ······················································································•··•···································· ••••••••••••••••••••••••••••••••••••••••••••••••·····························································.................. .................................................. .......................................................................... . ~ ................................................................................................................................ . ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••················································ 4. Source of membership support 9. Management Describe briefly the main occupation or employment, or residential area, If the society is registered, will the services of a competent manager (or or other bond of association or occupation of the people to become. members. secretary, treasurer) be available? If so, provide the following information: • • •••••••I••••••••••••••••••••••••••••••••••••••••• 0• • • • • • • • • • • • • • • • • • • • • • • • • • • o • • • • • • 0• • • • • • o • • • • o • • • • • • • • • • • • • • • • • • • • • • • • • • • •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••················································ • I •••• • • I . I •• I ••••••• •••••• •• •• I I Ii'•. I I I.•••••••• I•• I• I•••••• I• I •• I••• I•• I••••• I I o. • • o I I I I I ·············································•················································································ ............................................................................................ 118 119 (a) name 12. Study groups O O •' O o o O o o • o ' O o ' O 4 O OO I OO O O o O O ♦ 0 I O O O O o o o O Oo o oo o o o o o o o • o o O • • O O O O O O I O O o 00 O O ♦ I O O O I ♦ I O ♦ O O O o O o o o o o o o I o o I o o o o o o oO o o o o O o O O o O • Have· study groups been organized to involve and inform people who wish (b) •Experience and training to become members? •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••·•••····•···••··•··•···················· ·····························••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• (a) if so, how many? ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••····•·••··•··•·•··•······ ························••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• (c) will he or she be able to keep or supervise the keeping of accurate books or records? (b) how long have they been in operation? 10. F~cial participation by members - ·····································•••••••••••••••••••••••••••••••••••••••••.. •••••••••••••••••••••••••• ........... (c) have model by-laws been discussed? (a) will members provide share capital or other contributions to start the .. , ......................................................., ......................................................... society and continue to give it financial support after •operation commence? (d) study group leaders •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••····•·•···•··•·••····· ······················•••••••••••••••••••••••••••••••••• .. •••••••••••••••••••••••••••••••••••••••••••••••••••••••••• (b) value of each share . 13. Office space If office space, a building or equipment is required for the purposes of the .............................................. .................................................................... ~ society how will this be obtained and financed? (c) total expected to be paid on shares when operations commence • • I • • • • 0 • • • • • • • 0 • • • • 0 • • I O I• I • • • • f • 0 • • • • • • • • • • • • I•• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 0 0 • I , t • ~ • • • • • • • • • • • • • • • • t f f I.• • • • • • • • • • • • • • I ., ............................................................................., ................................... 14. Planning and technical advice (d) total paid-up membership fees expected when operations commence Has advice been obtained on whether planning of the proposed society seems (e) from what source of income will members provide the capital required? adequate and whether it has reasonable prospects of success if the members give it their support? (e.g. salaries, wages, business, etc) ···························································································•·•••••••••••••..................... 11. Educational meetings - If so, give the source of such advice ~ave edu~tional 11:1eetings been held to discuss the proposed society, I I • • I O • I • • • • • 0 • I • • • • • • • • • · • I • · 0 I •• • • • I • • I O • • • • · • • • • • • • • • • • • • · • • • . • . 0 • • • • • • • • • • • • • • • • ... • • • 0 • • • • • • • • • • • • • • • • . I f ~ I I ~ ! • • • • I • . ' • Of. its operations and its benefits to members if they support it? ·····················································......................................,,,.............. ,.............. , ..... ············································•···········••t••······················································ 15. Consultation with Co-operative Officer or Apex Organisation •••••••••••••••••••••••• . ········································••t••··············································· Has a Co-operative Officer or Field Officer of any Apex Organisation been (a) if so, how many? consulted on the need for the proposed society and necessary preparation? (Give details). ··········································••t••···,································································ ........................................................................................... (b) average number of attendants , ......................., .................................................................. Signature of any two applicants and the Resource Person ····································································································J·,············ 1. .................................................................... . (c) resource persons 2. ...................................................................... . 3. .................................................................... .. •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••······································ 120 121 11 . The mode of summoning and conducting meetings, and the rights of voting. Postal address......................... , ................................... . 12. The powers and duties of general meetings and Management Committee. ••••••••••••••••••••••••••••••••••••••••••••••••••••••··•·····•·•·············· •••••••••••••••••••••••••••••••••••••••••••••••••••••••········•····•·········· 13. The modes of election, appointment, term of office, suspension and removal ............................................................................... of the Management Committee and officers of the society . Endorsement by Co-operative Officer....................... -. ........... .......... .. 14. The authorization of an officer or officers to sign documents and to use the seal on behalf of the society. Date .......................................................................... . Address ...................................................................... . 15. The method of constituting, operating and allocating the reserve fund and - the amount or method of fixing the amount to be contributed thereto. .................................................................................. 16. The disposal of the annual net surplus . •••••••••••••••••••••••••••••••••••••••••••••••••••••···························· ••••••••••••••••••••••••••••·••··•··•··•··••· .................................... 17. The honorarium or allowance, if any, to be paid to officers of the society. 18. Unless the Commissioner otherwise determines, in the case of a society the objects of which include the creation of funds to be lent to the members,

THIRD SCHEDULE (Section 23) additional by-laws in respect of the following matters • THE CO-OPERATIVE socmTIES ACT, 2000 (a) the conditions on which loans may be made to members, including - INFORMATION REQUIRED TO BE IN THE BY-LAWS OF (i) the maximum rate of interest; A CO-OPERATIVE socmTY (ii) the maximum period allowed for the payment of a loan; Every society under subsection (1) of section 4 of this Act shall have by-laws in (iii) the extension of the term and renewal of a loan; respect of the following matters - _• • 1. The name of the society (iv) the purpose for which a loan may be granted; and 2. The place and postal address of its registered office (v) the security required for repayment; 3. The objects of the society (b) the consequence of default in payment of any sum due on account of shares, subscriptions, deposits or loans and the consequences of failure 4. The geographical area of operation of the society to use loan for the purpose for which it was granted; 5. The purpose to which the society's funds may be applied (c) the occupation or residence of persons who may become members; and 6. The value of each share (d) the conditions on which loans and deposits may be received from 7. members and non-members and the extent to which the society may The qualification for membership, the terms of admission of members, the borrow from members and non-members. entrance or affiliation fees, if any, payable and the mode of admission. 8. The manner of raising share capital, if any, and other funds and the terms 19. In the case of a secondary society or an Apex Organisation, the method of representation of members at general meetings, the removal of delegates and of withdrawal or transfer of shares. the manner of voting of delegates. 9. The rights and obligations of members and the extent of the liability of 20. In the case of a primary society where the general meeting of members is members for debts of the society replaced by a meeting of delegates, the method of electing delegates and their deputies, the number of members to be represented by each delegate, and 10. The conditions under which a member may withdraw from membership. 122 123 the conditions for the eligibility of the delegates and their tenns of office. FOURTH SCHEDULE (Section 21) CERTIFICATE OF REGISTRATION 21. The duties of the chairperson, secretary, treasurer or manager of a society. NO................... 22. By-laws in respect of any other matters incidental to the management of the IN THE MATIER OF APPLICATION NO................. ~······ MADE BY society's business. 1. 23. Prescribe the Form for admission to membership of a society. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. I hereby certify that I have this day registered ................. ,., ................................ . as a co-operative· society with........................................................under the above name and with its address at. ...........................................;....................................... . in accordance with the co-operative societies Act No .......................................... . of. ......................................................... . Written at Maseru e This ................................................ day of. ....................... ,...................... . COMMISSIONER OF CO-OPERATIVE SOCIETIES 124 FIFl'II SCHEDULE (Section 17) PROVISIONAL CERTIFICATE OF REGISTRATION I NO.................... . IN THE MATTER OF APPLICATION NO........................MADE BY: 1. 2. 3. 4. 5. 6. 7. \ 8. \ 9. 10. 11. 12. I hereby certify that I have this day provisionally registered............................... .........................................as a co-operative society with................................ ,...... .. f. under the above name and with its address at: ....................................................... I l in accordance with the co-operative societies Act No ....................of.................. . This..........................................................day of......................................................... . COMMI~IONER OF CO-OPERATIVE SOCIETIES Printed by the Government Printer, P.O. Box 268, Maseru l!IO, Laotbo