FOREWORD
Cooperative societies are the autonomous associations of persons united
voluntarily to meet their common economic, social and cultural needs and
aspirations through a jointly-owned and democratically-controlled enterprise.
They are the means for forming a legal entity to conduct business besides
forming a company. It pools together human resources in the spirit of self and
mutual help with the object of providing services and support to members.
The operation of co-operative societies is subject to control and regulation by
the cooperative societies laws. The control and regulation are purposed to
prevent fraud and to ensure that every member enjoys equal rights and
benefits in respect of the business of the society. There are restrictions and
principles on profit disposal and rules to sustain corporate governance.
Hence, the readers will appreciate the importance of statute, common law
and equitable principles have played a major role in the development of
cooperative law.
This booklet entails the concept, origins, development and classification of
the cooperative societies. Hence, it induces basic knowledge and
understanding of the what are the cooperative societies, their origins,
classification and purposes. In addition, it deals with beginning to the ending
of the cooperative societies. It embraces registration issues of the
cooperative societies, membership, management and administration as well
as termination of the cooperative societies. It induces knowledge of how
cooperative societies are formed, governed and terminated basing on the
law governing the cooperative societies.
Therefore, this booklet is designed to help readers to develop an
understanding of cooperative law principles and acquire a basic framework
within which the cooperative societies are formed, operate and dissolved.
Consequently, the readers will be able to understand and analyse
cooperative law issues as they are encountered by lawyers, regulators and
policymakers, and other stakeholders of the cooperative sector.
Eliud Kitime
Author, 2019
i
, LIST OF CASES
Puget Sound Plywood v Commissioner 44 T.C. 305, 307-308 (1965)
ii
, LIST OF STATUTES
The Companies Act, Cap 212 RE 2002
The Cooperative Societies Act, Act No. 6 of 2013
The Cooperative Societies Regulations, GN no. 272 of 2015
iii
, TABLE OF CONTENTS
FOREWORD _____________________________________________________________________ii
LIST OF CASES ___________________________________________________________________iii
LIST OF STATUTES_________________________________________________________________iv
CHAPTER 01
COOPERATIVE SOCIETIES
1.0 Introduction ________________________________________________________________1
1.1 Objectives _________________________________________________________________1
1.2 Cooperative Societies ______________________________________________________2
1.3 Nature of Cooperative Societies_____________________________________________3
1.4 Manifestation of Cooperative Societies ______________________________________5
1.5 Characteristics of Cooperative Societies _____________________________________6
1.6 Significance of Cooperative Societies _______________________________________8
1.7 Summary___________________________________________________________________9
1.8 Exercise ___________________________________________________________________10
1.9 Review Questions__________________________________________________________10
1.10 References _____________________________________________________________11
CHAPTER 02
ORIGINS AND DEVELOPMENT OF COOPERATIVE SOCIETIES
2.0 Introduction _______________________________________________________________11
2.1 Objectives ________________________________________________________________12
2.2 Historical Development of Cooperative Societies Worldwide _________________12
2.3 Historical Development of Cooperative Societies in Tanzania ________________15
2.4 Reasons for the Growth of Cooperative Societies____________________________20
iv
Cooperative societies are the autonomous associations of persons united
voluntarily to meet their common economic, social and cultural needs and
aspirations through a jointly-owned and democratically-controlled enterprise.
They are the means for forming a legal entity to conduct business besides
forming a company. It pools together human resources in the spirit of self and
mutual help with the object of providing services and support to members.
The operation of co-operative societies is subject to control and regulation by
the cooperative societies laws. The control and regulation are purposed to
prevent fraud and to ensure that every member enjoys equal rights and
benefits in respect of the business of the society. There are restrictions and
principles on profit disposal and rules to sustain corporate governance.
Hence, the readers will appreciate the importance of statute, common law
and equitable principles have played a major role in the development of
cooperative law.
This booklet entails the concept, origins, development and classification of
the cooperative societies. Hence, it induces basic knowledge and
understanding of the what are the cooperative societies, their origins,
classification and purposes. In addition, it deals with beginning to the ending
of the cooperative societies. It embraces registration issues of the
cooperative societies, membership, management and administration as well
as termination of the cooperative societies. It induces knowledge of how
cooperative societies are formed, governed and terminated basing on the
law governing the cooperative societies.
Therefore, this booklet is designed to help readers to develop an
understanding of cooperative law principles and acquire a basic framework
within which the cooperative societies are formed, operate and dissolved.
Consequently, the readers will be able to understand and analyse
cooperative law issues as they are encountered by lawyers, regulators and
policymakers, and other stakeholders of the cooperative sector.
Eliud Kitime
Author, 2019
i
, LIST OF CASES
Puget Sound Plywood v Commissioner 44 T.C. 305, 307-308 (1965)
ii
, LIST OF STATUTES
The Companies Act, Cap 212 RE 2002
The Cooperative Societies Act, Act No. 6 of 2013
The Cooperative Societies Regulations, GN no. 272 of 2015
iii
, TABLE OF CONTENTS
FOREWORD _____________________________________________________________________ii
LIST OF CASES ___________________________________________________________________iii
LIST OF STATUTES_________________________________________________________________iv
CHAPTER 01
COOPERATIVE SOCIETIES
1.0 Introduction ________________________________________________________________1
1.1 Objectives _________________________________________________________________1
1.2 Cooperative Societies ______________________________________________________2
1.3 Nature of Cooperative Societies_____________________________________________3
1.4 Manifestation of Cooperative Societies ______________________________________5
1.5 Characteristics of Cooperative Societies _____________________________________6
1.6 Significance of Cooperative Societies _______________________________________8
1.7 Summary___________________________________________________________________9
1.8 Exercise ___________________________________________________________________10
1.9 Review Questions__________________________________________________________10
1.10 References _____________________________________________________________11
CHAPTER 02
ORIGINS AND DEVELOPMENT OF COOPERATIVE SOCIETIES
2.0 Introduction _______________________________________________________________11
2.1 Objectives ________________________________________________________________12
2.2 Historical Development of Cooperative Societies Worldwide _________________12
2.3 Historical Development of Cooperative Societies in Tanzania ________________15
2.4 Reasons for the Growth of Cooperative Societies____________________________20
iv
