Cooperative Societies In Lagos

Cooperative societies play a vital role in Nigeria’s socio-economic development by pooling resources, promoting self-help, and empowering individuals to achieve common economic goals. In Lagos State, cooperative societies are regulated under the Cooperative Societies Law, Cap. C15, Laws of Lagos State, and are supervised by the Lagos State Ministry of Commerce, Industry and Cooperatives.

Whether it’s a group of civil servants pooling resources for loans, market women saving collectively, or young entrepreneurs funding their ventures, cooperatives provide a structured and legally recognized framework for collective action.

Registering your cooperative society with the Lagos State Government is not just a formality; it confers legal status, protects members’ interests, and ensures compliance with state laws. This guide walks you through the process, highlighting the key legal provisions as outlined in the Lagos State Cooperative Societies Law, Ch. C17, 2003 and its subsequent regulations.

Before diving into the how, it’s crucial to understand the why. Registration offers significant benefits, and they are enumerated below:

1. Legal Personality: Upon registration, the cooperative becomes a distinct legal entity separate from its members. It can sue and be sued, acquire property, and enter into contracts in its own name.

2. Limited Liability: Members’ liability is typically limited to the amount of shares they have subscribed to, protecting their personal assets from the society’s debts.

• Access to Support: Registered cooperatives can access support, training, and sometimes financing from the Lagos State Government through the Ministry of Commerce, Industry and Cooperatives (MCIC).

4. Credibility and Trust: Registration instills confidence in members and potential partners, as it signifies adherence to statutory regulations and proper governance.

Pre-Registration Essentials:  What to do before initiating Registration.

The registration process begins long before you submit any forms. A solid foundation is key, the process entails the following below:

1. It is pertinent to form a Steering Committee by Gathering a minimum of 10 individuals who are eligible for membership that is qualified adults who are of sound mind. This group will draft the initial bylaws and guide the society until an official management committee is elected.

• After that, Draft Your Society’s Bylaws which is usually the most important, your bylaws are your cooperative’s constitution and must align with the laws of Lagos state. They must clearly state:

• The name and address which usually contains the proposed name and registered office of the society which must be situate or domiciled within Lagos State.

• The primary economic and social objectives of the society e.g. such objectives  could mean to  provide credit facilities to members

• The value of each share and the minimum number of shares a member must hold.

• Conditions for admission, withdrawal, and expulsion of members.

• The rights and duties as prescribed by law and the society’s rules.

• The composition, powers, and election process for the committee.

• Rules governing the use of funds, auditing, and distribution of surpluses (dividends/patronage refunds).

Once the foundation is laid, you can proceed with the formal registration at the Lagos State Ministry of Commerce, Industry and Cooperatives (MCIC), Alausa, Ikeja where you will undergo the following:

Step 1: Name Reservation and Availability Check

Make a submission of your proposed name which usually ends with Cooperative Society Limited. To the Ministry for a search to ensure it is not already in use.

This is the first official step to secure your chosen identity, this is expedient so as to make due diligence, it is worthy of note that section 4 of the co-operatives societies law of Lagos gives provision to certain words which must form part of the proposed society for registration, the word Co-operative or its synonymous equivalent must form part of the name of the would be registered society, furthermore, the same section states that the word Limited or its synonyms equivalent must

be the last word in the name of the registered co-operative society and finally the requirement closes with paragraph c of the section restricts co-operative societies from using the word bank or banking as part of their names except they are a central financing society.

Step 2: Completion of Registration Forms

The next step Obtain and accurately complete the following forms from the Lagos State Ministry of Commerce, Industry and Cooperatives (MCIC), the form are usually in two forms which are form A and form B, Form A is Application for Registration of a Cooperative Society while form B is a form of queries about the society’s proposed operations, including details of its business plan, loan policies, and internal controls.

Step 3: Submission of Required Documents

The next step is to submit the forms alongside the following documents as required by section 5 of the of the co-operatives societies’ law of Lagos, you are to Submit the completed forms along with the following documents:

• Four (4) copies of the Society’s Bylaws which is duly signed by the members of the interim management committee.
• Minutes of the Inaugural Meeting, Showing the resolution to form the society and the election of the interim committee.
• List of Members  also known as Register of Members, Containing the names, addresses, occupations, and share contributions of the founding members with a minimum of 10 people having the capacity to form a co-operative society
• Evidence of Payment which includes the receipts for the name reservation fee and the registration fee. Kindly note Fees are subject to change, so confirm with the Ministry.
• Surety Forms are also needed as some societies may be required to provide sureties for the officials.

Step 4: Scrutiny and Approval by the Registrar

The Office of the Registrar for Cooperative Societies will meticulously examine your application and submitted documents. They will ensure the cooperative’s objectives are lawful and that the bylaws are not contrary to the provisions of the Cooperative Societies Law, furthermore the proposed society is based on sound cooperative principles. The Registrar also has the power to refuse registration if the society’s proposed bylaws are deficient or its objectives are not in line with cooperative principles. The Registrar must communicate the refusal in writing, stating the reasons.

Step 5: Collection of Certificate of Registration

If the Registrar is satisfied that all requirements have been met, your society will be registered. You will be issued a Certificate of Registration, which is the definitive proof of your society’s legal existence. According to section 7 of the Co-operatives societies laws of Lagos Upon registration, the society becomes a body corporate with perpetual succession and a common seal. It gains the power to hold property, enter into contracts, and enjoy all the privileges granted by the law.

Post-Registration Obligations

Registration is not the end. To remain in good standing, your cooperative must fulfill ongoing statutory obligations:

1. Annual Returns:  Your co-operative society must submit audited annual returns, including a statement of accounts, a list of members, and a report on the society’s activities, to the Registrar every year.

2. Annual Audit: The society’s accounts must be audited by an auditor approved by the Registrar.

3. Notifications: Inform the Registrar of any changes to the society’s bylaws (which require approval), address, or management committee.

The law mandates the keeping of proper books of account, annual auditing, and the submission of returns. Failure to do so can attract penalties, including the suspension of the society’s committee according to Sections 26 to 31 co-operatives societies’ law of Lagos.

Conclusion

Registering a cooperative society in Lagos is a structured process designed to ensure the sustainability and legality of your venture. While it requires diligence and attention to detail, the benefits of operating as a registered entity far outweigh the initial effort. By following these steps and adhering to the provisions of the Lagos State Cooperative Societies Law, your group can build a robust and thriving cooperative that serves the economic needs of its members for years to come.

CONTRIBUTORS

Managing Partner EKO SOLICITORS AND ADVOCATES

Counsel EKO SOLICITORS AND ADVOCATES

Counsel EKO SOLICITOR AND ADVOCATES

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