What is a co-operative? ...

1. What is a co-operative?

A co-operative is an autonomous association of persons united voluntarily to meet their mutual economic, social and cultural needs and aspirations through a jointly owned and democratically controlled enterprise organized and operated on co-operative principles.

2. What are the characteristics of a co-operative?

• Association of persons
• Voluntary basis
• Mutual or common economic, social and cultural needs
• Jointly owned and democratically controlled enterprise
• Co-operative principles

3. What are the principles of the co-operatives?

• Democratic member control
• Voluntary and open membership
• Autonomy and independence
• Educational training and information
• Co-operation among co-operatives
• Concern for community
• Member economic participation

4. How does the co-operative work?

A co-operative is a distinct form of enterprise that provides services and products to its members. Profits are divided among members in relation to the amount of the business each member did with the co-operative.

5. What are the benefits?

• Achieve what one cannot achieve on his own
• Provide easy access to needed services
• Pay less for inputs, marketing, distribution and selling of produce
• Process products if necessary

6. How to start a co-operative?

FORMATION: HOLD A MEETING TO ESTABLISH IF THERE IS ENOUGH INTEREST IN THE PROPOSED PROJECT

• Chairperson read part of the business plan which outlines the aims and objectives, as well as the business prospects to all present in the formation meeting
• Answer all the questions arising
• Invite everybody to join
• Those interested should be given an Application Form For
• Membership to complete
• Those that completed the Application Forms For Membership will then choose the Board of Directors
• The Co-operative is now legally formed

FORMATION: HAVE A FORMATION MEETING

• Identify the objectives (Exactly what the co-operative wants to do)
• Equipment, buildings, and other materials needed in the enterprise
• Financial requirements (How are you going to obtain this?)
• Premises (Where will the co-operative be located)
• Choose a steering committee for the purpose of driving the formation process further
• Draw-up an initial plan of operation
• Obtain a constitution (statute) which will lay down the procedures to be followed by the co-operative in executing its aims and objectives. (see bottom of this page)

FORMATION: The Process Further

• First meeting of the board
• Registration process
• Completion of registration forms & constitution
• Filing documents with the Registrar of Co-operatives for consideration
• Certificate of Registration
• Registered constitution
• Start operating!

7. Who can be a member? 

• Anyone who has completed a membership application form
• Anyone who shares the same interests in the group (co-operative)
• Any person above the age of eighteen