Co-operative Societies Law

2. In this Law: - ··bye-lav.s·· includes the registered bye-laws made b) a soc.ict) in thl' excrci5e of any power conferred by this La~, and any rt!gi , tcn:d amendment thereof. such amendment being either a ne\\i bye-la\\ or the \ ariation or revocation of an existing bye-law ~ ··Commissioner·· means State Commissioner for the time hcing charged with responsibility for matters relating to co-operative :)oc1ctie"'. ·committee'' means the governing body of a registered society to \\ horn the management of its affairs is entrusted~ ..council of inspection" means the elected council of member., \\ho are not member of the committee to whom the supervision of the committee or soc1et) is entrusted; ..delegate.. means representative of a society elected to he 1b prox!' in meeting~ or a secondary society with which the society ic;; affih ..,ted: ··Director of co-operatives" means Director of Co-operati\e ~oc1ctie~ appointed under section 3:ofthis law and includes any person for the tune heing exercising the powers of the Director of co-operatives under this la\.\i ; ··di\idend'' means a share of the net surplu~ of a registered ~oci~t) divided among its member~ in proportion to the paid-up share cJpita\ held h~ them: "honorarium·· means a share of the net surplth of a rt:gtster\.'d . ncil?t) di, ided amongst sorne or all of the mcn1bcr5 of the committee ,)r th · council of inspection or scrutinizers of the ~oc1L·t~ m n:ct)gnition o f ervice for which otherwise no payn1ent is rccct\ed: --1iabilit, of members.. mean~ thl: extent to \\hid1 a member n a} b . e obliged to contribuk mone~ to meeting the debts n n soqc1~ on liquidation thereo[ ..member" includes a person or registered societ) Jornmg 111 the application for the registration of a society. and a person or rqir,tered society admitted to membership after registration in accordance\\ ith the bye-laws and rules: "members· bonus" means a share of the net surplus of a rcgi~tl!rL·d Sl)cict) divided among its members in proportion to the\ olume ofhu~m~ss done b) them with the society from which the surplus of the soc1et) \\as derived~ --net surplus·· means the difference between income received or accrued during the financial year and the total expenditure made or accrued during the year and provisions and allowances for the depreciation of fixed assets or the \\Titing off of losses or bad debts and for the creation or maintenance of reserves against bad debts or depreciation of stock~; ··officer"' includes a president, chairman, treasurer. member of committee or secretary, or other person empowered under the rules or bye-laws to give directions in regard to the business of a registered society~ ··primary society" means a registered society consisting of individuals as members; ··productive society" means a registered society whose principal object is the carrying on of agricultural or forest production. fishing or manufactures and whose members are respectively working farmers. forest Vvorkers, fishermen, or craftsman or industrial workers: ..registered society'· means a co-operative society registered under this Law· ' ·'registrar·· includes registrars of all grades, assistant director of co- operatives and other officers of the cadre of regi strar of co-operative societies in the co-operative Division of the State Ministry respons ible for co-operative matters. ··registration fee'· means fee payable by a group of individuals or registl:rt'd ~ocieties seeking registration as a primary or a secondar) so<. Ill\ respectively; · ·~school society'' ~cans a co-operative society who"c lllL' tnhcr-.; ar " Pl,piJ-.; or students attending ~chool ; ·'scrutinizer·~ m ans a member of'" society who ii.. not a mc,nhi:J' of lh ~ committee of uch oc,et} and wh(" is clecteJ to "iuperv1St: the \\ ork ~ · \: rn 01 lhe ~ '•'-'C11 nd,_ 11., f111. 1111..:ing oc1ct~' mi.:,ms c1 i.:g1 t~rcd ., ,c.1ct\ nrllh tp tt l t)hJ I I to makt.: lu,tll"i h, ntlirt rl'.'"1'-ilt:I~d c..oudH..: · scrn,.1d.11 ) 'iot: ll..'.I) •• Hh.:lmk·s .i rl'.'gt~t~r~d so:id) of \\.hr'-h c.,un. c 1 , ll<.:icltC'S dl C llH:mh~L\ ~ 1,_ thli -..ht.:d !I, L1ultt.1tc thi: opl'rafh}I)') l't II..: r I J ~ c ~·t 1cs lll acl:onlancc ""1th c1H)J)l'.'rdli\ c pnncipl •<;, and ubo J c\.., · 1 t 1 1 1 ftn,lllt'lllf "nerdy , ··srn.:t1.:1y .. nr .. , l:gistercd ~ocict) ·· means co-operative sm:1d\' under th1 l D\\ ; . ··Stall:·· 1111..·, tn s l·,nugu State 1>f l\ligcria "~t-~f I horn1~" means a !,hate of the net surplus of a registered . , 1Ct} divided am<>ngst -.;omc or all ot the employees of the soc1ct_ : PART 11.- REGISTRATION

3. I Ii~ approp1iatc body of persons which by enactment for the time hc:mµ in loll.:i: i... em powered to appoint into posts in the State Mmistn for the time hcinµ rc~ponsiblc for co-operative societies may appoint person to hi.! r\.'g1-,trar, \)r Director of co-operative societi es ( - ) The ( ommissioner may confer on the any Registrar all or an) of the powt:>r:-. or the I) irector un<ler this Law.

4. Any pi:rson appointed as Director under section 3 shall h,ne a ~~al of ~u<.:h dcv ice a~ may be approved by the Commissioner and impre~sion:, of ~uch seal shu l I he judicially noticed. S. ( J) Subject to the provisions of this Law, a society which has as its objed the promotion of the economic interests of or the pro\ ision or services for. its members in accordance with co-operative principks. or a society e tablished with the object of facilitating the operation'.-i of such societies. may be registered under this Law with or without limited liJbility ~ the Director may decide. (2) From the date of the coming into operation ofth1s lav. all <..n-op~ruti, ~ su<..:ietics po ses ing a registered address within Enugu State of'\ it-~n..t and regist red under the Co-operative ocieties Act ~hall he deem~d t(\ bi;.• registered und r thi s law and shall be subject to the provis10n~ l,f th,.., I d\ .

6. (I) No prin1ar)' soc ict) shall be registered undrr this I a\\ \\ h1d1 (k·~ not consist of .. t least 10 individuals each of \\hom ,~ qu,tl itic l :111 kr section _5 of this Law fo r membership: , ,, J ,I th.lt .1 l h l h l ·tt \ 1.' •~' )"·ic,, n1a,·, hl.'. tt' 'tsk,~ d \ ,th d ' 1 I n l ( I .,,. fh,111 (, tthft , 1dua 1~- ' \ 'I ll 'l ll J ' ' I ' .. \ ,, ""',\ ihi. , , ,,,\.·t 'I \ , I .lll b1.· I1.T. lSft·1 l'd unit\,'\~ at h:·a~t ': f l ' 0 i ,t red ~ ' . ' ,t h,' ~ • , nh.,' h. , :-. t h ., .,)I ~\ . -'qui , ,1k·n1~hall fo rm f1"1rt lh' \\,'l ,t.. \.'\ ' · , 'l '\,,l,l 1I \ ... l \l its. , l'I 11,ll' ttl.u '- . ,,,i,h.'t\' i undl'r tllls l ~l\\ . ,\, t. 11, • n.un · ,, 1· ., ,1., ·, ,d • 1 •1, 1 .:- · • 11h ' \\ ,\i t --1 II· 11I l,'-' I" , ,1 tl"', , ,,,11 •l\.. : t1hr \ ·t . . aknt ~lwll • .t'lllll\ . last ,,,ord in .., . ' he the ". th, n,\lll' ,f l'\ 'I: ~\,,:11."t: , , llh lunt lcd lta bil rty fL'g 1slucd L1Jl(k1 thrs l n\\ . l5) \ , ''-·h._,,,1 "' )"' tt.'£: ~h.tll b1.' n:gisk'rL·d su,·e with the consent o f tht.\ t \,mm1~~ h.' ll ·r lt\\ \\ h('r '- ti.,r rh1..· purp,,Sl' t)f this sc~1in11, any qu~slit>~1 arises concerning the ,1s1;.'. r ·s1 i ·n~t·. pn)pt'fl: . qualification or stJ tus of nny person. then the s ,lll'l' sh,11l hl' ~k(1d \.l b) lhl' Dir1.' clor. ( -) \ 1n pl'rson ,tt!.gril'\'t'd at any d~t i ~ion the registrar under or subsc"·tiL)n l~ ) m,1: appeal in writing by the Co1n1nissioncr whose d '( 1sion sh.11! l1c final \ 8) fo rq; 1stcr .1 ,·,,-,,pcra t h ·c soc ict y. every primary or second my sue ie t) sh.1ll r~1\ a rc~istr~1tinn frt!, thl' amount of \\ hich shall he fixed hv th\? Dir~ch.\~ - · \pplt(Jtwn for n:g1 tnHitln 7. \ l ) An appli ation for rcgi tration hall be made to the D irecto r a nd the per l non "hose beha lf such appli cation is made s hall furnis h uc h infonnation \\ ith re ·pc t to the society as th" Direc tor rnay requirt·. (2) .. uch ap_rlication shall he signcd- (a) m the ca-e o f a primary society. hy a t least I O individual. r '!' the cas o f a productive s cicty 6 111dividuals. qun/,tieJ1 for mcmhnship under sectio n 25: and (b) in the case 0 1 a sec m dury soc ie ty, h. n d u!) :iur h( ri.reJ per ·on on heh.ii f or every rcgi'ih.':r-..:d sod et) wh,d1 i~ a mcmhcr. and '"'hcrl' nJI the m em hi:r~ pf the soci1.·t) .J t e no l rcgi tcr ,cJ ~,)c ictil!~. h) IO oth~r mt:111 bers. c1r when.: there art' h.: ss than I O r1 the1 n h..·m h~rs, by u ll nr them . .., I '-~l 1 ...... - • .,. -~m btt1 :q q f ••et ..._,... { 3) Su h artph1.:dlHtn ~h.111 tndudc tht: addr1; , 0 d c 111 pan1,.;J b) 1 copie ,f th I rope d h)~-IJ H. t l ff till Due h 1r 1~ i;,a J'ificd that th · tet, ,~ ell •1hle for :rndl.!J tl is sectl(1n ,.m<l h, s compltco \\Jlh he pr ·\ 1s1 n- c t tht I lf q pr, r > ~d hj ~-la\vs are n )l mu 1n s1c;tcn1 "llh the p O\ 1-,1on, of rh1 h · m.iy. d he thmks fit rt:gist<:r the ciel\. and ib b,c-Ja,, ., ( ·)) II Ilie Din:ctur rcfu c to rc!.!1 ter a sociel\ he shall nj\ c n tJ e t<. the applic..anf ' m writing <Jf the reason for his rctiisal. e { 3) Wlu.:rc the Dirc<.:tor rcf u~cs to rcgii-;ter a soc1el) an appeal htill lie to the < o11rn11 ~ tuner \\r tthrn 1 month" of the Director g,"ing notice under ub,e tt n C2 ), ,md lhc dec.1,1c ,n o1 tht.- Commissioner thereon ~hall be final.

9. A sot:1t'L) v. hen registered shall be a body corporate having as it, name lhl! mime under which it is rcgi~tered~ shall ha, c perpetual succes~Jt n and l,: 1 \. a cnn1mon ~ca l~and \\-ith power to hold movable and immo\able propcrt) of every tks~ription. to enter into contracts, to sue and be sued and to do all th ings ncccs\af) for the purpose of its constitution. b,d .c I 0. J\ c.;crtdi~atc of rcgi"tration signed and sealed b) the Director shall be r ~ _ ,tru u,ndu~t \ 1: L v,Jcnce that the c;ocict) therein mentioned 1s du!~ reg1 terc~d. unl\.'ss 1t ,.., pnncJ thal the registration of the society has been cane "lled. p RT 111.- DUTIES AND PRIVILEGES OF REGI TERED SOCIETIES Pm,er It

11. (I) A registered society may, subject to the approval of the Director. ~ -lJ\\ make any bye-laws that are necessary or desirable for the purposes for \\ hich such soc iety is established. (2) A registered ociety shaH make bye-la\\is in respect of th~ follo\\ ing matters - .(a) the name of the societ) and the n:.ime of th~ hH\ n ,n \ ill.ig~ where it ""ill have its rcgist~rc.:d ad<ln..~ s: ~9t~J6!_.~C~A~P~ .l~8JJ_ _ _ _ _ 1,,."11n·e .\oc li't1,·,· ~'.:.:!1..~..'..!.:.:...:...:..:.~----------------- ( ·(/ _ 1 , (h) thl: ~l1..\l o l 1t~ up".. r:1ti01r (c:) thL' (>bJ1..'l'IS nf the S01..' ICl) : (d) thL' pu~pos1..·s tu whi1.·h th~ "ocict) lund 111':l} hi: tpplt u 1 th1.: mode of custody ..mJ in\'t:$ln1~nt nf fund"~ (c) the qualification" Ior mt.>m hL"rship. I hl~ tet ms of r.t1.ifllhs1 m member-;. the entrante or affi Iiatit >n f~L's. i r any. r iy 1hle. and1 the 1nodc of election~ (l) the nature an<l c-x tent or the JiahiJit~ <'r mc111hcTs. (g) the notice required for withdrawal of n1cmhership: (h) the manner of raisi ng the ~hare <.·apitdl. ir dB), and l.Hher fund~ and the tcnns ofv.,ithdravval or transfer of sh;-u·l~.; (i) the pO\\Crs and duties of a general meeting and ut committees other than those specified in the rules~ (j) the authorization of an officer or officers to sign dncun1cms and to use the seal on behalf of the ~ociety: (k) the disposal of the annual net surplus: (I) in the case of a hous ing society, the duration or the soci~t), (m) in the case of a secondary society, the method of representation of members at general meetings, the removal of delegates and the manner of voting of delegates. (3) If the ohjects of the registered society include the creation of fund~ to be lent to the members, additional bye-laws shall be made in respect of the following matters - (a) the conditions on which loans may be made to n1cn1bers including - (i) the maximum rate of interest~ (ii) the maxi mum peri od allowed for the rcpa) mt.nt P1 a loan~ (iii) the ex tension of the tem1 and rencv~ al uf a loan ~ (iv) the purposes for which a loan may he grnnted: and (v) the security required for repa) mcnt: (h) the consequences of default in payment ot ~m~ ~um due O1 account of shares. compulsory ~a,, mg~ ('f lo.,m. and th'-, consequences of fail ure to u~ ~ a loun for thl' purpo tor which it was granted ~and ( ) It . . II \ llf't tllPll 1,f r '> I I h t 1l\: 11 h r f_) \n mi1 ...·111l1t1"11I wl11d1 ltttll 1 1.:s the 11an1c of., snc,ct\ -,h.11J n,,t c1fJc t 111 1 • ) 1g lll 1 >1 11 ld1g.tl1 11 11 ol Ilic srn;1c1y tH flll)' ,,t its 11;c111hc~ ,r pn t) 1':nihcr-.; .111d "'') lcg.t l p, l>\.:Ccd111 '~ pcllding m,t\- he <.:nntJ11ucd In or ugamst the ),rn;:1~!\ 111,d I tht: nc" rmn,c. • • L\. ( I J "h)\:·MIH\\ ol. SP<.:h.: ty or a111cndrncn1 to a byc-l,1\\ '>k1II he h.d,J u11ttl ,t h.is ht.·cr, n·g1sh;·rcd hy th~ Director. ( ) I he I )11 \.!l:1111 J1all rl'gtstcr 11 hyc-law or an amendment to t.1 b)c-la,\ ll h\..· 1s s,tll~ lil! l tlrnt it 1s 11ol 111consj~tcnt with th(.; prov1s1ons <1f 1h1s I a\\ ,1r th'-· 1ules. f 1) ft tJw l>in:<.:tor refi.1-,1,.·" t, , rcv1 ~tcr a hye-law or an amcndmcnl to a h~~-Iaw he hall ,nforrn lhe 'ioc1ct,> in wriltng of the reasons fur his rc..f usal. (4) \\'here the Director rl.!fusc"i to rcgi <ilcr a hyc-law or an amendment to a hye-lU\.\ an uppt.:al shall lie to thl! Cnmmis ·ioncr within 1 months of the D1rc<..tor informing the society under ~uhsection (3) and thr d1.:t1s1on thereon by the ( 'ommis\1oncr c,hall he final. (5) \\' hen th~ Director r~gistcrc, an umc:ndmcnt to th~ hJc-1, v.s (d a r~g1ster1?d ·cKicl)'. he <,hall i. -,u~ to the \0c1tty a copy o the d1111.mdmtnt certified and scakd h1 him. i.mJ ~uc.h <.:Op) so tt:rtili d an f. ~alt: I ~h,111 he con lushe cv1dcrn.: • th I rite amcndmcnr is duly regi ster~ I.

14. (l > 1-.:. very rcgi steic<l society ~hu: : hnvc tIO wtdre .s rt: 'l!ith:rcd in accordanc\! w i th the rule-., to which ulJ n •t1ces ~ind cnrnmuni1..at1 ms a11.· s nt. -& - -· ( l I ' t ,,,1d11\ \\ I( h ' ,, \ \ 't1 I ' t ll ll ( \I It I lh .,h.t\" ''\ll -I I \ 1-..th ' h ,,,\ll\ t .hi h ,11uttl h.Hl"l'd l ntra h "1th \h. ~l) .\ ,~uist ·r ·d .._,,ctL't\ \\ht\·h h., . . :1s Plh.' nl ih obkcts Iii, dt~p,,~ I m,·mtk·1 . " \"" dth.:\.'\.\ l'l '-' \'l,\11\1..·\. l \)\ l'f ,11)\ ,\rlH.'k Ill \..:, \\Pl'I <lf llh.111°'\ll\ ,ll It\ • tn1?11\l~ 'IS. \\h~th1..;r th~ l'''-'dll(l' \lt':\fl 1ntlt111,·. :111i111:il h11 ~b.111d1) , tt,, 'Sir) fi~h~r,1.."~. h.,111..h(r .tfh "'' l,thL'l\\ is1..; 11\,l\ p1 P\ idc i11 1Is h, l'-ld\\ s or other\\\'-\.' hn (,,ntr,h.h \\tth il'i tnctnh1..·r'i th,\t 1..·,~n ~uch member,, ho prndul:L'S an~ ~ucli r11 tick ~hall dt"P"'~e t~f thc "hnk nr :m, 'ii"l'l' ll1cd ~tllllHllll . propPrtit111 1 r Jc~cnpt1nn thL'rl'of ltl or through thL' -..nl 11. ·t, : :llld (b) that an> rnemb~r "ho is pnl\'l'd or adjudgl:d in su~h mann~r as ma) he prescribed hy the ruks In hc1, L' co1nn11tlc....d a brl,;ad1 of the b) c-la,," or contrart shal I pa~ tt) the ,ocicty a~ liquid.ited damag~s a sum ascertained or a~~c,-..~d in ~uch manner as ma) he prcscrihc<l h) the ruk\. (2) 1\o contract entered into under this section ~hall he C\)Jltl""-ll'd in nn\ court on the ground onl-y that it constitutes a contract m rl'str..tult <ll' tr,1d~. lreauon or dur~cr in ta, pur 17. Subject to any prior claim of Governm~nt t.'r to Ll chat gL' 1,n, fulh of re~ _tctcd soc1et~ . registered on the propert~ of the debtor and of a l.1ndl()rtl m t l''-lrl'l I of rci~t or any money reco, erable :is rent- (a) any debt or outstanding demand O\\\!tl to a r~gi,1~1 l't I St ,.;\'. t) b) an) member or past mcmht.:r ,ha ll he .i fip,t d1.u l'C' · (i) upon crops or other ugncultu, al produu: r.,i-.ed Hl \\·hole or in part \.\ith a lo, 11 kl.ken fl\1m the so · ,e t~ hy such member or Ptl~I member. and Iii) ~1pnn an i.:ank: . fodd~t for '- ittk H!.lt ult r l 1t m..iu~IJ,al impk·rm:nt:.;· ut ru•, 111 , t \.:·11"1 .., I nr Ill Ill 1 \\,>rk~hnp1: · ,tu11.:~ nt plal..'l!s <,t hu Ilk • or lo\..k u · 1 lanJ Pr huildrnL! Sltppli\.:d to u~h 111t·mh , s 01 p.. t n 1 11 h~ th-: soctct~ l,r pu1ch;1i.;..:d b~ hun m \\hol ~ )r ,n p ir \ tl .my lnan. \\ heth1...·r in 1wnc~ 01 ood!.. g1vc11 to 111m l'l\ th 11 ~lh..'.ld) . hProvid~d that n~thing \..Ontaincd ht:n:in slMII at fl:Cl the d,1im~ of m ona lu/e purcha" , 1· · ,. . ~u or lr~tns ~re\? tor ,alu\! ,, tthout tHIIJ 1...' of am sut h crop~. or 0 1!1'-'r agncultural piodll<.:c. l..',tttk. fodde, h'H ..11tlc oc rm.\ mat~nals.; for 01 I . 1 anu Ll<.:turc or agncultur'-' lish11H.! or mJu~ln I impl crnents. nr ~\ ork, hop~. store\ or pt1ecs of hll'-llll'"s. rn "tnc h m tr..idc or and nr hutl<lmgs. ( b) an~ ou:~ta~ding dues pay?hle to d rl!g~skn:d housing soc1_ct) h) an) Ilk mh1.:r 01 past member 111 rcsp~ct ol an1 n.~nl. ~hc11\~ capital. loan~. purch ..1sc money. or nny rights or mnount pa) Jhk tn such soc1~t). ,;;hall be a first charge upon his mtcrc~t 111 the itnmo\ ahk propcrt, of tlh~ ~ociet) . · 18. .\. regi stered societ) shall have a charge upon the shan:s or inkn.: t m th~ capital and on the deposits of a member or past mcmher or dccl:a-..ed member and upon an) di\ idend, bonus or surplus payahk to ,1 mcmhc, or pa:-.t member or to the estate of a deceased member in rc~pect of an) Jcht due to the society from such member or past member or estdli.:. anJ ma) set-off an) sum credited or payable to a member or past member or estate of a decea. ed member in or towards payment of any such debt.

19. Suhject to the provisions of section 18. the share or interc t of a men1ber in the capital of a registered society shall not be liable to attachment or sale under any decree or order of any court in n:sped of an~ debt or liabilitv incurred by such member. and neither his ,l~~1gns in insoh cncy nor ·a receiver duly appointed shall be cntitkd to or haH', n) claim on. uch hare or interest.

20. ( I) On the death of a member, a registered socict~ may tr~nsh:r tl_t share or interest of the deceased member to the person nominated. rn accordance y, ith any rules made in this behal L or tf th(.!r~ is no rxr '" t nominated. to such person as may appear to the commtttL'C to lx th~ h.:ir or legal representative of the decea'icd mcmhc1. or md~ p.1) h) u h nominee. heir or legal representative. as the L.t-,~ nm) he a sum repres ,nting the value of such member·~ -.;hare or ml,:li.,t . ~1 asc\:·rt,1 11H:<l in accordance with the rule!) or its bye-ldws. c; P.28 <'0 - 0 H:rat n•e 801 ·1elle\ (2) A registered so<.;~ety shall pay ~di otht:r monc\ ~ due l( tl n1cn1hc r f ro,n the soc11.:ty to such nominee. heir or h.:gal r pre l the case may he. (1) J\ll tran <.; fcrs and payment~ made by a registered ~<1<.H!l\ in drl:t J with thi s ~ection sh,tll be valid and e ffect ual ~1gainst an, demi nd 11 a f upon the society hy any other pcrsor1. cpo::.1ts hy or 011 21. (1) A rcgi~tered 1.,ocicty may rec<:i v<: dcpo~its lrom 01 lo, the lx:ndlt !hat( of minors of. n1inor<.; and it <,hal l he Jawful for a rcgistcn;d societ) to pa) ~uch minors the interest which 1nay become due on s uch deposit . An) depo ll made by a minor n1ay, together with the interest accrued thereon. be paid to that minor; and any deposit made on hehal f of a minor ma). together \Vith the interest accrued thereon, be paid to the g uardian of the rrnnor tor the use of the minor. (2) The receipt of any minor or guardian for mone) paid to him under th1s section ~hall be a sufficient discharge of the: liabi lity of the ocid) m respect of that money. Reµ1, ter of 22. The register of members kept by a regi stered socict) shall ~c prmw mcmher" facie evidence or any of the following particulars entered lhcrcin- (a) the membership of any member. (b) the date at which any mem ber became a mcmhct. (c) the date at which any member ceased to he a ml!mbe1 Proof of cntl") in 23. (l) A copy of any entry in a book of a registered socict) regular!) th.: h1Joks of the kept in the course of business shall if certified in such manner a J societ: prescribed in the ntles. be received' in any legal proceeding. ci, ii or criminal, asprima /acie evidence of the existence of such cntr) and hall be admitted as evidence of the matters. transaction~ and accoun ts th~rein recorded in every case where, and to the same extent as. thl-' original t·ntr) itself is admissible. (~) No offic~r of_any such society '->hall. in ar1:: k gitl procct:ding, lt wh1_ch !he society 1s not a party, be compelled to produce lll: c f the society s books, th~ contents of which can he rroved untkr suh, cd1 n (I) or to _appear as witness to prove any matter, tran...,.1ctinn ~ 01 c1ccount therein recorded, unless the court so directs . SU!fl l'rm.1der11 Jund 24. ( 1 ) Any regi~tcrcd ~ocic ty muy ,.:stithl ,s h •1 rn )\ u.knf fund for ir cmplo) CC~. or ma} with the consl'nt ol .t nd on Lnndit,,rns laid dO\\ n b,. the ( O·Opcrative l ni~>ll of I llllpll ~latt: J1dl flt rp.ih.: Ill ~I pro\ id~ nt rw; j c ~tahl1~hcd h} s ut.'1 l 111011 I ( o-opu of ll ( (~) Any such pn)\idcnt fund :,;hall be t1dmini~ter~d in aclotddm.:t: and go\ crncd h\. the rules made h\ thL i.!Cncral mcetin}.! of the so<.: cstahl ishing it. · · '"" ~ ( l ) Any employee \-\ho i'; a dcpo'->itor in such a fund ma\ nominatt:. , accord~mcc with any ruk'-> mack in that hcha!C a pcr~nn-or r~rsm1s l<. wl~on1 tn the C\cnt ol h1 ~ death hi ~ dcpo\ it or intcn:~t 111 the fund "hall he paid according to any ruk'-> mack un<.k r ~uh\ccti on (2). (4) All pnymcnb made un<ler the provisions of subsection ( ~) shall he valid and effectual against any demand made upon the J·und or the societ) by any other person notwithstanding any written law or an) custom to the contrary. (5 ) The society shall have a fir~t charge upon the depo~tt or interest ol an c1nployec, former employee or deceased employee in ~uch provident fund in respect o t any dcht due to the society from such emrlo)ee. fi1rmcr cn1ployec 01 deceased employee. and may set off anJ sum cn.:ditcd or pa; ahk to the employee. former_ employee or estate nf a <.k:cca cd employee in or to\\ards rayment ol such debt. PART IV.- RIGHTS AND LIABILITIES OF MEMBERS

25. ( 1) ·1o be qualified for membership or a registered soc1ct~ an individual must have attained the age of 16 years and he resident v.ithm. or in occupation of land within_ the area or operation or the n.=gislL'r('d society as defined h) its bye-laws. (2) To be qualified for membership of~ s:condary c.,oud) a r_cgistcred society must have its regi stered address v.1thm the urea ol opc,attun nl the secondary society as defined in its byc-lav. ';. ( 3) Notwithstanding the provision<; of suhsccllon ( I ) (a) a pupil over the age of 8 } car\ '-.hall he qualifiL·d lor membership of a rcgi ~tcrcd "-lhool -.,oc1cty· and (b) an apprentice under thi.! age ol 16 )L:ar 1.i 1., h.111 he qu.1litkd IPt membership of a rcg1 -., t1:rcd producll\c -., o<..a:ty ol L"1.1 l ts1111.:11 . and (c) the per~on lll \\hom a regi-., Lcr\.!d \ OLtl'l} tr ;ui i., lu s the ..,h.11c 1 H inten:\t of a Jccca~c<l mcmh\.!r 111 .tll or d.111c"'· \\ 1th .111, nommatinn um.l~r section 20 "h.tll h\.' qu, tl ,11'-·d lrn memhl'r-.,hip ol , m.h rcgistc1 ed sm ,et) 12 ( V\ hen for the purpos of thL ~ ection an) q ue. tton an the ag . re idtnc~. propert). qualification or statu. ot an~ r r san1e hall be dee.: idcd b) the con1n1ittec. subject to an 1.lpp Director. (5) Any per~on aggric\cd b1 a deci\1011 of th~ Director under uh et (4) may appeal in \\riting to the Con1n1issioner ,,ho e de 1sion h final. Member-. not to 26. o member of a registered society shall exercise the nght of a C\.l.rc.1se right until due payment member unless or until he has made such pa) n1ent to th ·o i t) m made respect of membership or acquired such interc~t in the ~ol'.iCt). n mn) h' prescribed by the rules or its bye-laws. Restnc.llon of 27. Except with the sanction of the Director. no person ~hall be a membership member of more than one registered society whose b>e-la\\s pem11t the grant of loans to members in excess of their share or interest m the society. Yotmg. 28. ( I) Subject to the provisions of this section no mem ber of a registered society shall have more than one vote in the conduct of the affair~ of the society: Provided that in the case of an equali ty of \'Ok') tht? prc,1d ~nt or other person presiding at the meeting shall have a cd-..ttng 'otc. (2) A registered society which operates in a town or in more than ont' village may in its bye-laws provide for local meetings or for, ()ting b~ proxy. (3) The members of a secondary society shan have such ,·oting po,,t?r~ as are laid down in its bye-laws. (4) 1:'- registered society which is a member of a scconda~ ...oci~!~ 111 ;~- appomt a proxy for _the rurpose of voting in the conduct ot the .1ft. ll - such secondary society m accordance with its hyc-la\\s: Provided that the person so nominated shall he a member lll° th · said registered society. Contracts with · · or um Ier-age

29. The mmonty ' ot·any pe rson duh ttdmittLu1 .1-. ,1 n1l ·rll ix-r ~ 11 ocic:tv of of any registered society shall not <-khar thut f'L'r~on from e,ecutinf :: • members " ho arc instrument or g ·i v ·ing any accep t ancc nc<.:t.:!-1',Hf) to he executeJ or _c1,t: n minor'- Co-operul in: Societies under this Law or of any rules made thereunder, and shall not he Ll ground for invalidating or voiding any contract entered into by any 5uch person with the society, and any such contract entered into by an) 15uch person with the society whether as principal or as suret). shall be cnforccahlc b) or against such person as though he were of full age and capacity: Provided that a member who has not attained the age of 18 years ">hall not be \iab\e save for payment for necessary things and services, and in respect of contracts entered into for his benefit.

30. No member. other than a registered society. shall hold m ore than one- Rl',tm:111 n of sh,11 d1uJ,hn~ fifth of the share capital of any co-operative society.

31. (\) The transfer or charge of the share or interest of a member or past Rl',rr 11.:111m nf lr.11i-.kr of member or deceased member in the capital of a regi stered society shall he ,h,ir.:, or sub1ect to such conditions as to maximum holding as may he prcscrihed h) lllfL'l\.'',1-, thi~ Law or b y the rules. (2) \n the case of a society registerc_d with ~n_limitcd _liability, t~ mcn~her sha\l not transfer any share he\d by him or hi s rntercst 111 the capital of the society or any part thereof unless- . (a) he has held such share or mtcrcst for not less than one ) ~ar: and (b) the transfer or charge is made to the ~ocict) or to a member ~)r the society. or to a person whos~ application fo_r mcmhcr')h1p has been accepted by the committee of the c.,oc,ct)

32 . (\)Notwithstanding any h~e-law~ t~c lia~ili~y- of a mcmher prv;cnt or I I h1lt1~ ol " member t of a registered ">Ocicl; \A.tth ltm1tcd liahiltt} shall extl'nd to th~ ~~s~ina\ \.-aluc of an1 sharec; held or suh..,(;rihcd h} him (2) \\'here in the byc-la\.\S ofa rcgi stc_rcd so(.tcl~ v.ith limited l1..1hd1ty the amount of the liabilil)' ot a mcmhcr 1s cxprc~;-,cd to he rredh:r than till. nominal\ Im: of an~ ">hares held or suhscrihcd h) him then the linhilll) ol ~uch nh:m~r -,hall extend to ~ud1 greater amount. c~) \\' hctc the socict) has rcLCl\C<l u loan or a<l,a11cc Imm a (.11 -oper .ttl\"-' h nk or a st.atuwr; u>rporatt~n, c,ery mcmh<.1 ol that ,oLH.l) "h,tll. m addit1on to an} mount tor which he ma~ Ii He htcomc ll,1hk pl:rson,,ll to the socict:, m re pet:\ ol uch 10°11 or ,1(h:,mcc, or\\ l11d 1 h,,s h .... " p.1id "nut of the loan m ad\,m~c he lt 1hlc 10 the ~o-np •r,,lt \C h,111k tH t,,tlllnn c.orporalion a s urct) tor th\: rcp,i~m nt ut the lt,.m rn · o-o n rut ll'l' • 'o ·iet1e, ad\ ance. \\ ith interest and cosb b~ the societ). in an amount equa l c.1111ount \\ hich he has reci:1, ed from th~ soc1et} out of the lonn or c.1d or" hich hns been paid out of the loan or ad, ancc tc)r nn: good upp or in respect of an) sen ices rendered to him b: the oc,et}

33. The liabilit) of d pa~t membe r for the de bts of d registered ~oc1t't} a l ,ab1ltt, ol ra l mcmbc~ lnr debt the) c,istcd on the date on \\ hich he ceased to be <1 member -hall not of soc1et) contmue for a penod of more than ~ year reckoned from that date.

34. The estate of a deceased member shall not be liable for the debt of Liabilttv of the estate l;f deceased the society as the) existed on the date of his decease for a period of more member for debt than 2 years reckoned from the date of his decease. soc1et) PART V.- PROPERTY AND FUNDS OF REGISTERED SOCIETIES

35. ( 1) Subject to sectio n 38, a registered society shall not make a loan Restriction or loans. to any person other than a m e mber o f such society. or. with the prior approval of the Director. to ano ther registered society. (2) A registered society sha ll not lend m oney upon the securit: of an: movable property other than produce o r goods o n ,vhich the ~ocict: is authorized to deaL w ithout the prior approval of the Director. (3) The Director may by o rder prohibit o r restric t the lending ofmone: on mortgage of immova bl e property by any regi.ste red soc1et). .... . (4) Thi s section shall no t app 1y to a second ary fin ancing . soc1.et: . Deposits and 36. A registered society s ha II receive . depos its . a nd loa ns from . loans from non- pers0n-;. w h o are not mem b ers only t h members may be prescribed by ~h ° Suc extent and unde r suc h condi tion" ll" c ru 1es or bye-laws . Restric11on~ of

37. Save as provided fo r in secti .., . .1 other transactions with non- registe red soc iety with perso o ns J 5 and ., 6 . the tra11sac u0ns ot • ns ot Iic r th an b a.. t c1 members such prohi biti ons and restrictio ns as • ~ne m c :s c;, ha ll he s u ufc'C l may he prcscnhed hy the rnlcs. h 0-0J t ( 1 t~ ffh) in, est or depo It it~ fund - 1 d ra\ a\ ,ng Ban . r (b' m n) bank~ r \\ 1th an) regi krcd . ocict) . appr \ ed b, the l>,re tor: r - tc, ,nan) other mannt:r appn)\ l!d hy the Du~ctor.

39. ( l) ubiect to the pH)\ ision of thi ~cc.:tion no n:oistered soc1et, o l in1ited hahi \it) sha\\ pay a di\ idcnd or honus or othen~ ise distri hute ·an, part of ib n~t ~urp\us c,cept as pro, i<lcd in it~ byc-la\\!-1 and,, ith the prio·r approval of the Director. ( 2) rcg,-.;ten:<l societ)' of unlimited liability shall not make an) distribulton ot tl5 surplus >without the authority of the Director. ( 3) r , e~ registered society shall pay one quarter of its net ~urpl us to a fund to be ea\ led the reserve fund of that society: Pro, idcd that the Director may exempt any registered societ) of limited ltabiht)' from further contribution to its reserve fund or reduce the rate of such contribution. (4) Any registered society or member or officer of any registered society , ho distributes any part of the net surplus of such socict) except as \ rovi<lcd under this section or in accordanc~ with the bye-l~\\.s of: <.;uch r ,,ctv is guilty of an offence and shall be liable upon conv1ct1on in the . .,_~K .. <.;fa registered society to a fine not exceeding N200 and in the case of ~a~~ember or officer, to a fine not exceeding N200 or imprisonment for not more than 6 months. PART VI.-AUDIT, INSPECTION AND INQ UIRY Audit

40. ( l) The Director shall audit or cause to be audited by some pcr~on authorized by him by general or special order in writing. the accounts of every registered society at least once in every year. (2) The audit under subsection (l) shall include an examination of an) overdue debt ·. and a \aluation of the assets and liabilities of the reg1~tcr~d society. (3) The Director and ever other person appointed to audil the accounts of a ociety shall have power when necessary- ( 'o-OJ 'l'O/i\ t' 5,'o IC/I ) I 'i ) tP sUllHl1lH1. at the . tinll' t.)fhis. ._(llt<ftl ' tit\. o flvICl.:'I . ,1gcnt -, t 1 n1cn1hLr of• •th1..· ...,,l~td\ • \\htHll hl' h' 1s '''-'""' "t'"·c, 11 l ( l I">1,;·I I \ e (. 111 n1nt1:flal tnhH·m,1t1Pll 1_n 1e...·g,11d 10 nit) t1 ~111 sc1L11n11 o1 the < or thl' rn,111agcn11..·111 ol it s al Lt11 ..... or (h) h) n:qwrL' th1..· productH)fl of ,Ill) hook or doc1111w111 1d,ll111 , tc th an:ur... oL (.)) ,lll~ c,1-;h ()f" "iCCllfllll'" hclolli.!illµ lo. till' SOl,;ll't\ t, the \1ftiL:L'I . .igcnt. scn ,mt or member 111 possl'ssinn 1)/ sw h b >k dtKUml..'nt. cash or securities. ( 4) An) officer. agl•nt. scn ant or mem ber of.1 n:gistc1 L'd socil·t) \\ tl1ulh n~glectmg or refusing to do a ny act or furni sh an) rnfornrnt, 011. or 1urni~hmg informati o n known to him to he false or \\ ithout an) n:asonahk exc u se diso beying any s ummons. rcqwsit,on or n1dc1 under suhsedion (3) sha ll he guilty o f an offence. and shall he lidhk on con\ ic tion to N 200 o r impri sonment for not mon: than (l months <)I to a fine not exceeding N 200. 00. Pt'" i:r l\ l' Dm!(tor

41. ( l ) The Director. and every othe r person appointed h) him in tl11~ and auJ1wr w behalf under thi s sectio n shall at all rcasona h k ti,rn;-.; IW\ c m:ccss to all inspl.'1.'.I bol,1-..°' and the books. accounts. papers and securiti es of a registered socid)'. and rl.''"\l11r • ri:tunh shall he entitled to inspect the cash in h a nd and en:r) nflin:1 nl thl? societ) shall furnish such information in regard to the transact inn., and wor~ ing o f the society as the person m ak ing such inspect ion ma: require . (2) The director may give directions either generally or specificall: presc ribing the returns to be submitted and the person by v.-110111 :-;uch returns shall be submitted to the Director. by registered societies. ocicty or member or officer of any registered ~o<.,H:~) (3 ) A 1:): registered th "vho_ fails to comply ~ith a direction gi ven under the pr<)\ is ton'-> ()t '!) ~ection or who s_ubm1ts information or makes a return knowing it t() be false sh~ll be gw It~ of an offence and liable upon conviction in tllL' ca~1.' 01 of a regi5 rered society to a fine not exceeding N 200 and in the c.:a~c a member or officer of_such society to a fine not exceeding N 200 or to not more than 6 months imprisonment. . , "b'"1ll on the appli au 0 n ·

42. ( l ) The Director n1a\ on h1s O\\ n 111otton. a 1l1 · l ( f th ie- - than one-t11tr :"> - . f f a n1aj nt) of the com1n1ttee. or o n~ t .~ )f direct ~on1t: P'-= l"'"l n n \en1ber~ of a re2.1~tered soc1et). hold an mqrnf) l _ \d · 1 ( uir) a uthorized b\ h1';n b\ order m writing in that behalt to ho. an u_l d. .into the con~t1tut1on - . . · \\Ork1no and fmanc1a ::- · 1 cona·ition · ot _a rc-g1sterc :· . - ' e - · t o c1et,. and al\ otfic~r~ and member ot t11e soc1e : s 1u-\ l turn ri \ 1 1 ~ h s uc 1 infor~1ation in rel!ard to the affairs of the societ) and the ca~h in hand and such books. 'accounb. papers and securities of the societ) J~ the Director or the person authorized by him. may require. ( 2) The Director shall. on the application of a creditor of the reg1 tered ~o~iety. e~an1me or direct some person authorized by him in writing to e~an1ine the hook~ of the society. if the applicant- la) pro, es to the satisfaction of the Director that an ascertained sum of money is then due to him and that he has demanded payment thereof and has not received satisfaction within a reasonable time: and ( b) deposits with the Dire~tor_such sum as security for the costs of the proposed exarnmat1on as the Director may require . ( 3) The Director shall commL~nica~e the results ~f any such examination to the creditor and of any such inquiry to the registered society into whose affairs inquiry has been made. ( 4 ) \\'here an inqui:Y is held und~r subsection (l) or an examination is made under subsect10n (2). the Director. may . by a certificate unde , r h'I S k d hand and _sea\ ma e an awar app~rt1oning the costs, including the remuneration of any person appointed to make such inquiry examination. ~r such part of the costs, as ~e may ~hin~ right between tt~~ registered society, the m~mbers demandm~ the mqu1ry, the officers or former officers of the society, and any creditor on whose application the examination was made. (5) An 1 sum av..arded by way of costs under subsection (4) shall he rcco\erable in the same manner a~ a fine imposed by any court having jurbdiction over the person against whom the award is made, on production before the court of the certificate referred to in subsection (4 }. • ( ·o-o n:ral il'L' ,\'ociel h·., it 8 CAP.28] (6) The Director or the p.:rson authori/cd h} h11n 10 umd , under subscct ion ( I ) 111a) . if he con,id ers I haI I I is m the h the members that the books and pn1pc1 ty nl fhc ,ouei deposited with hi 111. order the books and pro pc 11,; I,, hc dq1,, 1 such time and at such placi: as is stated 111 the n1dcr (7) Any registered society or member or ofliccr of :111) 1cgistc1cd (>Clt v.ho foils to supply information when n:qm:stcd "' In do unJcr 11 section or who gives information knov.ing 1h:1t ii is fohc nr n:lu,c t surrender the books or property of a reg istcn:d ,oc Icl) ,1 ft er an nrdcr I been made under subsection (6) shall bc guilty of an nl fcntL ,111d I, 1hl on conviction in the case of a rcgisten:d society to a linc nnl excccJ n. 1'1200 and in the case or a member or officer to a line 11,,1 cxcecdm 1'1200 or to not more than 6 months imprisonment. PART VI.-DISSOLl JTJ()N 43. _(1) _If the Director. after holding an inq uir) or mahin~ \\. 1nd1ng up exam111at10n under section 42. or on receipt of an npplic.it i,,n made ~- three:fourths of the members of a registered society present al a p< meeting convened for the purpose. is of the opinion th,11 ,uch , - ' ought to be wound up. he may issue an order direct in"c ,t 10 he ",,uml,. (2) The Director may on h · , 1s own motion. m ak e a \\ Ir1Ll1nl.! · . ur < rui.:r J respect of a registered society wh ieh has not c, 11n n,cnc~d "or~ UL ,,r ' ce_as_ed work mg or the mem hersh ip of" hi c h " red lie cd Io le 1ha ! minimum membership prescribed in :-,cction (1 . Di (3) No regi stered soc ictj ' I,a II 11c wound up s;t\' t,, ,111 , ,r l r , rcclOr. (4) Any date ofa member t , ,J , oc,ct> 'v\ind · of a regi 'ere . ~ ma} , \\ i1h111 111onth, I mg up such ord ~r to th . c.· order und . . h . . er ..,u sec tion · ( I ) nr t _ )• ..1pl ~·1 c c omm 1ssH . .111 I . thereon shall he lin,,1. · ,ncr • ' lh.: Jc,"" 11, itl tht' L, ,,.111 ~ 1 1 Director ( ~) "'-'hc11 • m~killf' ,t \\.lllJin, 11 P ord, • u11Je1 , uh ..-, ,,,,,, 1 1 •' rcmu ·ma) Llppn111t u lilJ u,~ · j ·..i!w ·for 1!11 ~ 1"1 111,, ,.,,.: ,n,l '' 11 erntwn. · 0 - - - - - ~ - - - - - - ~(~o~-~'EP~e,~\'!_tli'.'_r:,:tJS~o~l!!.'l~l\ ~- - -- - - ~ ~ ~ " !\I 2 (o) A liq d Und u, ator shall not\\ ind u a p ~ 'L ~ t) until an~ appeal pr er subsection ( 4) h b from the date of the \\ ~~d~: 1 dt'.t~rmincJ ?r until 2 month ha\ t: I, P g up order \\ h1che, er ncriod i the ~h ter 44 1 · ( > Subject to the · -· . under sectio n ..f" f I . trov1s1ons ot any order made b) the Direct r ha\ e po,\ er- - o t 11s a\\ a hqmdator appointed h: the D1re1.:tor h, II (a) to take immed · t · . ia e possess10n of all assets helonoinu tu the registered society and of all books. records ~nd other documents pertaining to the business thereof: (b) to carry on the business of the society so far as mm be necessary for winding it up beneficiall;: - Provided that he shall not for this purpose be entitled to issue any loan; (c) to appoint by notice in the Enugu State Gaze tie a day before v.·hich creditors shall state their claims for admission or be excluded from any distribution made before they ha\ e proved them; ... any dispute to arbitration and institute and defend (d) to re1er . . d other legal proceedings on behalf of the registered swts an . ty by his name or office; soc1e . h directions in regard to the collection and (e) to a 1ve sue . t: . f assets as may be necessary m the course of realization o . \,·inding up the society~ . . te all claims against the registered societ), and (f) to invesuga . . the provisions of t h'1s Law, to dec1de . by order subJe~t to of priority arising between claimants. questions a claims against the registered society (including (g) ~o P intere :t payable up to the date of the winding up order) . . . . . ·r .m 1.uII or to .ng to their respective pnont1es, 1 any. accordl such extent as the assets of such society permits: : AP.28 C'o-o Jerath'e Societie., (h) to con1pron1ise any clain1 by or against rhe socJL·t\ : Pro\ ided that the approval of the Director h<.1s· tir~r heen obtained: (i) to call such n1eetings of members as 1nav he nccc. ')a1: for the proper conduct of the I iquidation. g1 vrng 1101 le ,s than J 4 da) notice of C\ ery such 1neeting: (j) to decide b) order s ubject to an} h> e-la\\ s Ii m it ing the liability of n1embers a nd to the provision~ of s~ctiun 32. the contributions to be 1nade by m embers and pa~t members orb: the estates of deceased members of the society to its asscts: (k) to arrange for the distribution of the assets ofth<: "'>OCi~ty in a convenient n1anner when a sche1ne of di~trihullon has been appro\·ed by the Director; (J) to order by what persons and in what proportions the co~ t · of liquidation are to be borne. (2) An1 person aggrieYed by any order of the liquidator made under paragraphs ( 0. (i) o r ( I) of s ubsection (1) may appeal to the Di rector,, irhin 30 days from the date of such order. ( 3) An) person aggrieved by a decision of the Director given under subsection (2) may appea l in writing to the Commi~~ioncr within JU da:~ of such decision and the decision of the Con1mis~ ioncr shall he final and conclu~rvc . . <4) 5ubJect to the rules. any liquidator appornted under thi s I a\, shall. ITT S<~ far a~ 1:>uch powers arc nccc~~ar) for carrymg our the purp(lSt: of thi, ~c_ctwn. h~\C all ')Uch power\ a.~ urc \.C'i tcd 111 a 1agistratc on the t l.·ca,i< 11 0 1_;my '1l:t10n ,n rc!>pect ol '>Un1r11omn11 fldrtic!). l?ni<>n:ing the att~nd:mce )f v.Jtnc st!s and compdlmg till' rroduuion o/ dol.·llnH.: nl: . l \I (5) An) pcr~on \Vilful ly neglecting or refusing to do dll) ad or to f urr 1 1 any in1ormation. or furnishing information known tu him to be ttl c required for the purpo~c of this section, or \.\ ithout rea-.;nndhle cxcu~t di5obeying any sun1mons, requisition or order issued thcrcun(k r. shall be is guilty of an offence and shall be liable on corn 1ction to imprisonment for not more than 6 1nonths or to a fine not exceeding tv.o hundred naira.

45. ( l ) A liquidator shall exercise hi s powers subject l o the direction and control of the Director, who may- (a) rescind or vary any order made by the liquidator and make whatever new order is required; (b) remove the liquidator from office; (c) call for any books, documents and assets of the society: ( d) by order in writing limit any of the powers of the liquid,ltor referred to in section 44; (e) require accounts to be rendered to him by the liquidator: (f) procure the auditing of the liquidator·s accounts and authorize the distribution of the assets of the society: (g) make an order for the remuneration of the Iiquidator: or (h) refer any subject of dispute between liquidator and an~ third party to arbitration if that party shall have consented in writing to be bound by the decision of the arbitrator C P.28 ( 'o -u Jeralil'C' Societies (~) The Director n1ay insert a notice in the Enugu State C,tt:<.lh t 111 the nmnc or narnes of an) society in respect of \Vhich a \\ ind,ng up oz J has been made. Any such notice shall contain tht? nmne of the l1qwJ Ho \Nho has been appointed in each case and his address. and shall ~talc the day before which creditors shall state their clain1s f(Jr ad n1ission or be excluded fron1 any di stribution n1adc before they ha\ e pn" ed then1 . (3) Any person \Vil fully neglecting or refusing to do any act or lo ft.JJm h any infonnation, or furnishing inforn1ation knov. n lo hin1 to he false. required for the purpose of subsection ( l ). or \Vithout reasonable ex.cu e disoheving - ...... anv order iss ued thereunde1. shall he 1!llilt,, ~ . ofan offence anJ ~ shall be liable on conviction to in1prisonn1ent for not ,nor~ than 6 month~ or to a fine not exceeding two hundred naira. nlon:rmcnt o( rdc, -16. ( I ) The decision of an arbitrator on any n1atlcr rcferrl: d to him under section ..J.5 shall he binding upon the parties, and enforceable in lik .. manner as an order made by the Director under that section. (2) ,\n order n1ade by the liquidator or by the Director under L'Cfion -l4 or 45 shall be enfo rced hy any civil court, having _jurisdiction o, er th~ place where the registered address of the society is situated in like nrnnrlt'r as a decree of that court. I 1m11ution of JUI 1sdict1on of -.: oun.:. t: 7 · Save in so far as expressly provided in this I ,a\\. no court 01her chan e Slate High Court shall have jurisdiction in rl;;.spt:ct of arn matter concerned \-\:ith the d . I . .· . isso ut1 on of a rcgi~ten.:d society under ch1 I cl\\ D, posril of ;1, cts on hqu1da1ron 48. l Jpon the ~ indin ' . . rcsene fund, shall g up ~f a rcg,~lcn:d soc 1l'ly . Ilk H!-iSL'I S, in~ludrng th discharge of th . bb~ ~~plied first to the cost o f I iqu idation. then lO th 1 of th c society. · then to the p:1vn1e11t o f ·h~ n• 1 capital. and thec ,a lu1cs. n pro\, tdcd that ll h I . r' the payment of a di ·d le ye- aws of rhe sociL·t, ~o pcrmH l l d , ' end or ,nl· 1l1h • . I . 111 a, down 111 such h, •. l: r" "lonus at ~1 ra lt· nnt c ~ct·~ f11H.! C4 · c 1a\.\ fo r ·111) , 1 · l · mcmher.. honus was i, ,~ .. .' pcnot dunng \\ hich nn di\ 1tkfl ' i • l .Jct p:ud. <·o-oJh'rut irt .\,Jt ict it , (( \P 2 h 49 . · IJ f .l lLgt . ( l) \\ .hL'I1 the '~ff,llls '1 . •, .... tl'IL'd :-.t)l')l'l\ lt)J' • \\ h1L'l1 . .1 l1quid.1tor h.t LLt ,lppomh:d h..1, c h,, l apnt)JI1t ".J • t·, . .., LLl: \\lHllll up t)r. \\hell' 1w liquidallll has been th,t D t:u. , . •1 ll:t - .n1onths· tr) tl , 1 · • l 111 k !11.lt-dng ol ,ll1 t)rdl'! under scctwn 41 b, • L trLC(Or l)f ,lftcr COllf. . . -..hal I rna' , d II r:1:.H1on l)f ~uch tWdcr on .1ppcal. the D11 Cl tor "-l: an or er cancelt 1 n tl , · · · ,ocret, "hall ht! dis . )l , . I:::- k rcg1st~·atHrn t)I such St)Cil't} dnd the • ~ <. 't:d trom the date of such order. . d(~).. The. dairn of ':1n,· erL, 0 I t Ol. O1- l 1le SOCll'ty . \\ ho h.is not l"l'Cl'i \ cd \\ hat bi Ut: to httn under the appnn l'd scheme ofdi~tribution sh.111 he rroscrihcd - . · - · 't: '' 1en .., \ ~·1rs h:::1 .. el.1pse · - d trom · the date of•cancelbtion of registr.ition. ( 3) ,\n~ surplus remaining after the application of the lt11H.b to the rurpose" specified in section 48 and any sums unc!J1mcd ttlkr 2 \ears ! under -_ub~ect1on ( 2_) hal not be di, idcd among the members. c,ccpt ;n the ca-..e ot th~ 1Iqmdat1on ot a ~ econdar) socict). but shall be disposed of b\ the Director in accordance \\ ith the rules. - P RT VIII.- ' URCHARGE AND ATTACHMENT

50. ( 1) \\herein the course of an audit of a registered society held urH.kr '-urLh rgL ·ecllon -lO. or in the cour. e of an inquir) into the affairs of a rcg1..,LLTL'J ·ociet~ held under the provisions of section 42 or Ill the cour~e of the \\ mding up of a rcgi tered ociet). it appear that an) per ·on \\ho ha.., t 1kcn part in the organization or management of such ",(lCict1 or an: pJ..,t nr pre ent officer of the ociety has misapplied or retained or become ltahlc or ac ountablc for an) monc} or pro pert~ of uch O iety or has hccn guilty of mi~foa<.;ancc or htl'ach nf trust 1r. rdation to such ')Ociet). the Director ma). on h,. , 0\\11 motion. or on the application of the liquidator or an} creditor or Lonlrihutor. c,ttrnini.: the conc.Ju~t of uch per',on and make an order n:qu1ring hun to rq,a) or n.::--hirt· th moncv or propcrt) or an1 part thcn.:nf w, th\..' L,tsc nii1\. he "ith inll'IL'"' 1 u h r~tc a~ the Dirc<.:tnr thrnks just. OJ lo co11111hutc.: \., LIL.h ~urn 11, tilt· ·t ot su h sotJC I\ by ,,a) of \.:ompl f1S1.1llon 111 rq _,11d tt1 th · 0 1 1 nu applic uon. rcwin~r. mi slca ancc or .t hrl."ach of t, ust .is tli~· I >ir c\.·1 11 thin tit. <'o-operative S'ocietie \ ~2.t~£C~Af P-~28U l- ---~..!.!:.!-'C:-~------------------ . I,o w ithout reasonable ex cuse. fr.tils to comp) ( '1 )A n)rc1sonW ' . i.. • . • , , order issued under subsection ( J ) shall be gml 1rov1s1ons O1 ttn l .. · · · · .. ·1, II he liable on conv1ct1on to nnpn"ionment fnr n ol knee anc1 s 1a . . than f..\) 111 0 11 tl i s. ()r· to a fine not cxcccd1ng tvvo hundred na1ra. .\ ppl.'al 51 _( 1) /\ny person aggriev~d by ~ny order ot ~he Director mudc undl:r section 50 may. w ithin a pcnod of 3 1nonths o f the order. arpenl t, th ('ommi ssi()ncr. (2) J he Commissioner on appeal shal I have power to confirm. , a~ or quash the order of the Director and to remit the matter \\ith uch directions as he thinks fit for givi ng effect to his decision. (3) Sub.1ect to the provisions of this section any order made b~ rhe Commissioner shall be final and shall not be called in question in an~ court. \1t,1d1111cnt ~2. ( l) Where the Director is satisfied that any person \\ ith int nt 1 Jdraud. or with intent to delay the execution of any order or a,\ard \\ hi may he made against him under section 44. 45. 50. 51 or 53 - (a) is about to dispose of the whole or any part of hi-.. propert~ or (b) or is about to remove the whole or any part hi ~ pn 1r~rt~ tn m the loc I r1 1· . l' , . a m ts of the Juri sdiction of tht: 1)1 r~'- 1'1r D1 rector may · . I ,J J1r? . . , un 1ess adequate scc unl\ 1s tun11~1\_; · t he interim att h · ·uch P h , , ac ment of the sa ic.J propcrt) t)f • t ercof as he th . k nt ,h.. h ,. in s necessary~ and su~h Jttttdune 1 ave the sam f" ·l1t1I . e c icct as if it had been nwd~ h~ =1 competent Juri sdiction. (~) Any pc rson whO with . \\ 1t order issued under . b , o~t rca~onahl c l:Xcus1: f;ul s lti . .,i ,mr' 1\ i ~ b 1· b su s ct1 on ( I ) ·I . . . t.'"' ,dt ' e ia le on conv icti . s1a)l b~ gull ! \. ol .1n nlh.ll 1(11· t 0 i- on to llnn .· ft ,11, H a ine not exceed in , r·' l 'ionrnc nt tor not II h ,1 c.· tl wn g "' <> hun-•,. u d na1ru. Co-operat /\'l Soc 1e1 ,c., [( PART lX.-DISPUTE

53 . ( 1) If anv dispute t h. . . . . ., ouc 1ng the business of a reg1ste1ed SllCtcl) anses- (a) among members, past members and persons cla1mtn<T thn ugh members , past mem b ers an d deceased memhu ~: or1::- ... (b) between a member, past member or person claiminQ through a member, past membe r or deceased member and th~ ...,ouet, its committee or any officer, agent or servant of the ...,ocict): ~H~ (c) between the society or its committee and any officer, agent or servant of the society~ or (d) between the society and any other registered society, such dispute sh all b e re ferred to the Director. (:.) Without prej udice to the generality of subsection ( l ) - (a) a claim by a registered society for any debt or demand due to it by a m ember, past member or the nominee or legal personal representative of a deceased member, whether such debt or demand be admitted or not; and (b) a claim by a men1ber who was guarantor of a loan againt;t the member w hose loan he guaranteed, resulting from the repaym ent by the guarantor of the loan to the socict~. for the repaym ent of the amount by the borrower to the guarantor. shall be deemed to be disputes touching the husi ne% or the society w ithin the meaning of subsection ( \ ). (3) The Director shall on receipt of a reference IT\adc und~r "'uh'-lcct1nn 0)- (a) decide the dispute himsclL or (b) subject to the provisio_ns of the r~1\ct;. rdcr it wan arhitratn, ,,r arbitrators to be appo inted h} him l4) ' ubject to th e pro-..ision-. of the rule.,. thi: J)iicltrn rn,1 ;,- \\1thd1 ,m ~m: reference m ade und\! r paragraph ( h) o l -;uh..,u·unn ( 'l ,md d~~1dc thi.: ,fo. .pute himse\ l' unde r pa ragraph (a ) o f 'illh-.\.'.c\1on Ill ~ CAP.28 (5) Any party aggrieved by an av~ard uf an arhit rn lor, ,r a1 h1tr,1to1 rn appl!al within 30 da)s of the a\\ard. to the Di rector. spccil~ ing Lh ,t r~ut of the award again~t whid1 he is appealing und stating i11 dct 111 th grounds of his appeal. arbitrator or arhitrators. (6) The Director. of his O\i\ n motion, on reviL:\.\- or on appeal unJc, subsection (5 ). may confirm, vary or quash the awar<l nwc.h: hy the (7) Thc Director and any arhitrator or arbitrators appointed hy him under the pro\ 1s1ons of this section shall for the purposes nf the any proceedings brought under this section have all such powers a'-> are n:stc<l in a magistratc on the occasion of any action in respect of summon111g partic~. enforu ng the attendance of witnesses and compelling the production nl documents. ( 8) Any person aggrieved by the decision of the Director undc, "iUhsectiun (6) may within 30 days of the date of such deci sion appeal lti the Commi ssioner, who shal l have power to confirm. vary or quash Lht: decision of the Director or to remit the matter to the Director\.\ ith such directions as he thinks fit for giving effect to his deci sion. (9) Subject to this section any award made by an arbitrator or arbitrators or any decision given by the Director or the Commissioner as the ea c may be, shall he final and shall not be called in question in any cow1. ( I0) The award of the arbitrator or arbitrators or the decision nf the D!rector or tl_1e Commissioner as the case may he, shall on the application ol the rarty _111 ~\h?se favour it is given. be enforced hy an~ court which \vould have .1unsdiction in civi I suits between the partic~ to tht.: disputl! in the .same . manner as if the award or dcc1s1on · · had been a ·1udgmcnt or dcc1!:>1on of the court. ( l 1) Notv. ithstanding the pr) · · . f · · . ( vi sions o any written law an appl1cat1on made under subsect1011 ( I 0) ma b"' d ·- · . . Y l! ma e by a puhl 1c \)l I1ccr mnhnnzed h, the Director m that behalf. _ _ _ _ _ _ _ _ _ _ __:(...:'<.:..>-..:.:<>.L.t'..:.<>.:..f.:.:.ll:.:.I'~"~('..:..,::."~(~It~·[~[(:;_:,'':__ _ _ _ _ _ __ __~( I P RT X.-RULES AND RULES ()'1~ C(llJRT

54. ( 1) Suhject to section 55 the Commissioncl mav make all such rule" a. _111 ~) he necessary for the purpo~c of carrying out giving L'ITcct to the t;r pnnc1ples and provision~ of this La\\i (2) . In• particular and without prejudice .. to the '-'~eneralitv., of thr l'tH-L'<•u1110 C ::, prov1s1ons. such rules n1ay- (a) prescribe the forms to be used and the conditions to hL' con1plied with in the making of applications for the registration of societies and the procedure to be follo'Aed \A ith regard to such applications; {b) prescribe the conditions to be complied with by person!-- applying for ad1nission or admitted as members and provide for the election and admission of members and payment to he 1nade and the interest to be acquired before the exercise of the right of 1nen1bership; subject to the provisions of section 30, prescribe the (c) n1 a~imum number of shares or portion of the capital of a society which may be held by one member; prescribe the extent to which a society may limit the number (d) of its 1nen1bers; rovide for the withdrawal or expulsion of members and for (e) i}1 e payments, if any, to be made to members who withdra\v or arc expel led, and for the Iiabi Ii ties of past members: provide for general meetings of the members, cmpo'Acr the (f) Director or any person authorized by him to summon uch meetings. provide for the procedure of such meetings, pc)\\ers and to be exercised at such meetings~ and the appointment und voting po""ers of delegates of affiliated 8ocicti es to the meetings or secondary societies; \ pr )\ 1 i l r th '.11 p 1ntn1l'lll. ll'lllll · t\f tlf i ·c. u~1 n 10n 111 I ·~ l t th ~ , n,nutt L' .1nd ,1th ·r ,}t lirl't ~- Jn j f >1 th \th· \mn11n·~ .•mll,uthl'J''"l''"'tnhc l:ltl p rl 1n1H.:d \ th' 'l 111n11tt ·e '111 I nllll'1 ofli<.:~r altc 1n h 1n \ thl: ,,nd1t1n11..., td h t h · nm k. thl '-und,11011, ll, I "- h, n i l I t ( 11 -operatfr • ,\'ocierh•, 'J J (p ) P~<n id~ fo_r the per ons h~ ,,hom. and the fom1 in ,, hich. u1p1l: of entries m books of societies may be certified: (q ) pro, ide for the formation and mai ntenance of a regi ~tc1 111 members. and where applicable. of a regi~tcr ol ..,hdn:s. ( r) provide fo r the inspection of documents and rcg1..,tcr'i at t lu: Director· s office. and the fees to be paid thereof and for the issue of copies of such documents or registers: (s) prescribe the manner in which any question as to the hrcach of an) bje-law or contract relating to the disposal of produce to or through a society may be determined and the manner in which the liquidated damages for any such breach may be ascertained or assessed: (t) prescribe the mode of appointing an arbitrator or arbitrators and subject to any rules of court made under the provisions of section 55 the procedure to be followed in proceedings before the Director or such arbitrator or arbitrators; (u) prescribe the procedure to be followed by a liquidator appointed under section 43 ;. (v) prescribe the forms to be used, the fees to be paid, the procedure to be observed in. and all other matters connected with or incidental to. the presentation, hearing and disposal of appeals under this Law or the rules; and ( ) provide for the amalgamation or divi sion of registered societies <3) In anv case ~here the Director is sati sfied that a suhstnntial number o1membc~.., ofan" societ} is unacquainted with the English language. he shall cause such ;ules to be translated into a language with \\hi ch 1-, uch members arc acquainted and additionally lo be ma<lc kno\.\ n in ~u<.:h manner as i~ customary for the communit) concerned. )30 C \P.28 ( ·o-o Jerath·e Socil't 1£ s Ruks of ( 'ourl

55. Without pr~jud~cc to an) pov.cr to make rule.~ of court under rh . H1gh Court Rules Con1mittee nun. aflerc()n ·tlltat,on Court' La\\. the l \\ I tll h C t e on1In1ss1oncr 1nake rules of court su~ject to the pnn i~inns ,l1 rh, Law for regulating the pleading. practice and procedure of the High Court or of a n1agistratc ·s court in any matter hrought hcinn: :--uch l'<)t7rt under the provision~ of thi~ La,\ and the practice and procedure h1 be adopted and the form\ to be employed by a liquidator in the ext·rcisc of his po,\er~ under s ubsection ( 1) of section ..J-1- and h) the D,rector in rh~ exercise of his po·wers under subsection (1) of section 5~ . PART XI-MISCELLANEOt·s ( '..1s1.! ~rated

56. (I) Notwithstanding any thing contained in section 53 the D1nxtor at any time when proceeding to a decision under thi::, La,\. nr the Commissioner at anv time when an appeal has been referred to him against any decisionr of the Director under this La,\. ma: refrr an_, question of law arising out of such decision for the opinion of the High Court. (2) Any Judge, or Judges. of the High Court as the Chief Judge nw> direct may consider and determine any question of la\\ sn referred. and the opinion given on such question shall be final and conc.111~1\ c. Rcco, Cf) of !>Ums due 10 57. ( 1) Any sum as may be due from a registered soc1et) or from an.: Go,crnmt!nl. officer or member or past member of a registered soc1ct) a~ -,ud1. to th ~ Government may be recovered in the manner pro,·ided for the n:~o, e~ of debts due to the Government under any Jaw for the rime being in force. (2) Sums due from a registered society to the Go\ernment and rcct1\ cr~Jbl: un~er subsection ( 1) may be recovered first. from the prop~rl;,_ ()/ r1:r socie ty~ secondl). in the case of a societ,· of which thl? Jwf:,r/Jl.' l • • f (/](?J( '!1e~ b. ers 1s l111:1ted. from the members subject to the l1m1l (l ., ·~-- r · • l1ab1hty; and th1rdl). in the case of o ther socictic~. from the mcml ~ L I ( 'o operat,w Soc1e1te.s 58_. ( l) No person other than a registered society shall trade or carry on b~smess under a _name. or title of which the word ·'co-operative" is part without the sanction ot the Director. (2) Any person who contravenes the provisions of this section is guilty Penalty of an offence and liable on conviction to a fine not exceeding N20 and in the case of a continuing offence to a further fine not exceeding N2 for each day dunng which the offence continues. Jpform· 100 Ill

59. All infonnation contained in the books and accounts of a registered soctet) 's books society relating to the property or the financial situation of the society's exempt from members shall be wholly exempt from disclosure for any purpos-e relating d1sclo:mrc for certain to any inco1ne tax or other tax or to rating unless the Commissioner shall purposes. direct to the contrary. Power to

60. ( l ) The Governor by notice published in the State Gazette may in the exempt from case of all or any registered societies reduce or remit- certain duties and fees . (a) the stamp duty wit½. which, under any law for the time being in force, instruments executed by or on behalf of a registered society or by an officer or member and relating to the business of such society or any class of such instruments are resp.,ectively chargeable; (b) any fee payable und~ the ~aw _relating to the registration of instruments for the time bemg m force. (2) The Governor may by notice published_ in the State Gazette cancel or modify any notice , I published under subsection ( 1). '

61. ( 1) The pro'visions of the companies ~n? Allie? matter Act and of the Rcstnction on Moneylenders Law shall not apply to societies registered under this Law. application of certain laws. (2) The provisions of the Arbitration Law shall not apply to proceedings under section 53 . (3) The provisions of the Pawnbrokers Law shall not apply to agricultural Produce or the produce of handicrafts_men or stock in trade pledged, Pawned or otherwise deliv~red to a soc•ety registered under this Law by tnembers ofthe society. · 932 CAP.28) Co-operative Societies Exemption from 62. Nothing in the Law relating to the registration of instruments for the ... ompulso~ registration of time being in force shall apply to- shares, etc.. of · registered society. ( a) any instrument relating to shares in a registered societ\ , notwithstanding that the assets of such society consist in whole or in part of immovable property; (b) any charge created in favour of a registered society by a member of that society in respect of -any product of his agriculture, his land, his craftsmanship or in respect of his stock in trade; or ( c) any instrument relating to a deposit by a me1nber 111 or a loan to a member by, a registered society. . Misappropriat10n 63. ( 1) If any person obtains possession by false representation or of society's property. imposition of any property of a society or having the same m his possession withholds or misapplies the same, or wilfully applies any part thereof to purposes other than those expressed or directed in the rules or in the bye-laws of the society he shall on complaint of the ~o\. ;..:t:· )f any member authorized by the society or the conunittce thereof 0r b. h~ Director or any person authorized in writing by the Director be liabk on summary conviction to a fine not exceeding N40 with c0sls. and ! .b:- ordered to deliver up all such property or to repay all moneys apphei.i • improperly, and in default of such delivery or repayment of such monc~s .. to be imprisoned for a term not exceeding 3 months . . d l an from (2) Any member of a registered society who has receive a 0 . ·t to some his society for a specified and approved purpose and app l1~s. 1 an' other purpose without the consent of the committee of the socie~, ~rn, t~ . surety of such member who wilfully . to report sueh mis fails · apphcauo . ble 00 the committee, shall be guilty of an offence and shall be h:ine fll t 1 conviction to imprisonment for not more than 6 months or a exceeding two hundred naira. SUBSIDIARY LEGJ LATION