How to set up a Cooperative Society in Bangladesh, Setting up a Cooperative Society in Bangladesh is a popular query among people who are setting up a society. How to set up a Cooperative Society, its process, cost, and legal issues are very important to know for those who are setting up a Cooperative Society. This article focuses on explaining the complete guideline and steps to form a Cooperative Society.
Contents
How to set up a Cooperative Society in Bangladesh
A society may be registered if it has as its object to promote the economic interest of its members in accordance with cooperative principles and consists of not less than ten members. The step-by-step process of registration has been explained below:
Name Clearance
The first step to forming a cooperative society is to choose a name for the Society which should be unique. After choosing the name, one needs to apply for name clearance in order to get the name approval certificate from the Registrar of Joint Stock Companies and Firms (RJSC). It usually takes 1 to 2 days to get the certificate. Currently, the government fee for name clearance is 230 BDT or 3 USD.
Memorandum of Association (MOA)
The next step would be to draft the Memorandum of Association (MOA) which basically includes the objectives of the Society. In addition, the MOA of a cooperative society may also include the following:
- Name and address of the society
- Membership category: the details about the categories of membership the society will have
- The territory of the society: the jurisdiction of the society is mentioned under this heading of the MOA
- Privileges and obligations of the members
- Membership subscription: this includes the membership process, fees, duration of the subscription, etc.
- Organization of the society: this includes details about the executive committee of the society
- Election of the executive committee: this includes the rules and process of election
- The duties of the advisers and members of the executive committee are also stated
- Meetings: details about the general meetings and executives meetings, the time interval between each meeting, etc are stated
- Financial power: details about the bank maintained by the society, how and by who it will be operated, source of funds of the society, etc will be mentioned under this heading
- Arbitration: details about how disputes will be resolved.
Article of Association (AOA)
Article of Association (AOA) is the constitution of the Society. An AOA contains all the rules of how a Cooperative Society will run and who will be the President, Secretary, Treasurer, etc of the Society. In addition, an AOA also includes how the bank account of the Cooperative society will be operated, how the decision will be made among members of the executive committee, and what will be the minimum quorum for making a decision.
Bank account opening
A bank account needs to be opened under the name of the Cooperative Society through which the funds of the society will be managed.
The documents that need to be submitted are:
- Photocopy of name clearance certificate
- Draft MOA
- Photocopy of passport (applicable for foreign nationals)
- NID (applicable for Bangladeshi nationals)
After receiving the above-mentioned documents, the bank will open a provisional account in the name of the society.
Registration
For the purpose of registration, an application needs to be made to the registrar (i.e. Registrar of Joint-stock Companies). The application shall be accompanied by three copies of the proposed rules of the society, MOA and the persons by whom or on whose behalf such application is made shall furnish such information in regard to the society as the Registrar may require. The application shall be accompanied by the prescribed registration fee.
In order for any such society to obtain registry under the Societies Registration Act 1860, it shall be sufficient that the governing body file with the Registrar of Joint-stock Companies a memorandum showing the name of the society, the objects of the society, and the names, addresses and occupations of the governing body, together with a copy of the rules and regulations of the society certified and a copy of the report of the proceedings of the general meeting at which the registration was resolved on.
Cost of registration
The registration fees for the society are listed below.
The Registrar, upon being satisfied with the foregoing matters, may register the society and its rules and shall forthwith inform the Governor who shall publish a Government Notice. The registration of a society shall render it a body corporate by the name under which it is registered. In addition, the body will have perpetual succession, and power to hold property, enter into contracts, institute and defend suits and other legal proceedings, and do all things necessary for the purpose of its constitution.
Dissolving the Cooperative Society
Any number not less than three-fifths of the members of any society may determine that it shall be dissolved, and thereupon it shall be dissolved forthwith, or at the time than agreed upon. All necessary steps shall be taken for the disposal and settlement of the property of the society, its claims, and liabilities, according to the rules of the said society applicable thereto if any. It is to be noted that no society shall be dissolved unless three-fifths of the members shall have expressed a wish for such dissolution by their votes delivered in person, or by proxy, at a general meeting convened for the purpose. Moreover, if the Government is a member of, a contributor to, or otherwise interested in, any society registered under this Act, such society shall not be dissolved without the consent of the Government.
LEGAL ADVICE ON THE FORMATION OF A COOPERATIVE SOCIETY AT CLP
The Barristers, Advocates, and lawyers at CLP in Gulshan, Dhaka, Bangladesh are highly experienced in dealing with matters of the Cooperative Society. In addition to handling various issues related to domestic clients on a regular basis, it also has experience in consulting and assisting numerous international clients with utmost care and attention throughout their legal troubles. For queries or legal assistance, please reach us at:
E-mail:info@counselslaw.com
Phone:+8801700920980, +8801947470606. Address: House 39, Road 126 (3rd Floor) Islam Mansion, Gulshan 1, Dhaka.
