HOW TO CREATE A COOPERATIVE SOCIETY

Cooperative Societies are very important and plays a very important role in the SME Sector. This groups are formed by individuals who have common interest in a particular agricultural crop which can be converted to money.

The Cooperative Societies can be formed by villages or LLGs which have a certain crop of interest for business..Eg..Coffee is a common agricultural crop planted by all farmers and this farmers from a particular area can simply form a Cooperative Society to participate actively in coffee business. 

According to the Cooperative Societies Regulation 2003, the fee for an application to register a Co-operative Societies is K25.00 and the fee for an application to reserve the name of a Cooperative Society is K30 which is a total of K55.00.

The following steps were extracted from the Co-operative Societies Act 1982;

STEP 1: Pre-registration requirements

 – Hold a meeting for the proposed society and the meeting must be attended by at least 7 members. Members must be PNG citizens above the age of 18 years with the aim of getting together to promote a common economic and social interest.

The meeting must agree to a written statement showing;

- The objectives of the proposed society

The reasons why you believe that the proposed society will achieve its objectives.

The rules under which the proposed society will operate;

In accordance with the rules,

a) Elect a board of directors

b) Other officers provided for in rules

c) Members must sign an application form for membership of the proposed society within two months from the election of the Board, the board shall apply to the registrar for registration to the Registrar as a society under the Co-operative Societies Act of 1982.

STEP 2: Attachments to applications

 – Make two copies of the registration form and the following documents;

a) The agreed written statement from the first meeting; 

B) Proposed rules signed by any of the two; -Directors

- List of members

- Full name, address and office of other office holders

- Statement of showing the name of the society

STEP 3: Registration decisions by Registrar 

 The Registrar may;

A) Register the proposed society, or

In writing, request the proposed society to amend their application or amend the application as a fresh application, or

B) By notice of his/her seal to the proposed society, refuse to register the proposed society and refund the registration fee according to the rules of the Co-operations Act.

STEP 4: Registration process for successful applications – 

Where the Registrar registers the Society, he/she will;

A) Issue a certificate of registration, and

B) Publish a notice of registration in the National Gazette

C) Endorse his approval on all or part of the proposed rules to be the rules of the society

The date shown on the certificate is the date the society was registered and the society will;

1. be a corporation under the name it is registered

2. have perpetual succession and a common seal

3. have the power to;

    A) Hold property; and

    B) Enter into contracts; and

    C) Can sue and be sued in a court of law

Do all things necessary to implement its objectives as set out in the rules.

The Cooperative Society Must Be Named like for example " PNG SME COOPERATIVE LTD"

GOOD LUCK

Ref; Tau geno

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