Cooperative societies were registered for several key reasons, all aimed at providing a legal framework for their operation, protecting the interests of members, and ensuring proper governance. Here are our primary reasons for registering a cooperative society:
- Legal Recognition: Registration provides legal recognition to a cooperative society, making it a distinct legal entity. This enables the cooperative to enter into contracts, own property, and carry out business operations under the law.
- Limited Liability: Registered cooperatives provide limited liability to their members. This means that the personal assets of members are protected in case the cooperative faces financial difficulties or legal challenges.
- Access to Government Support: In many countries, registered cooperatives may receive government support in the form of grants, subsidies, loans, or other incentives. Being registered makes the cooperative eligible for these benefits.
- Accountability and Transparency: Registration ensures that the cooperative is governed by formal rules and regulations. It establishes a clear structure for management, decision-making, and accountability, which helps prevent fraud and mismanagement.
- Access to Financial Services: Registered cooperatives often have easier access to financial services such as loans and credit facilities from banks or other institutions. Their legal status can help establish trust with financial institutions.
- Protection of Members’ Rights: By being registered, cooperatives are bound by laws that protect the rights of their members. These include ensuring fair distribution of profits, transparency in operations, and participation in decision-making.
- Promotion of Cooperative Principles: Registration helps ensure that the cooperative adheres to the cooperative principles, such as voluntary membership, democratic governance, and equitable sharing of profits. It creates a system of checks and balances to protect the cooperative’s ethos.
- Tax Benefits: In some regions, registered cooperatives may be eligible for tax exemptions or lower tax rates, which can help reduce operational costs and improve financial sustainability.
Across the region, we have registered clusters of cooperative societies in the following numbers:
2.4.1 Registration of 25 new cooperatives across the 18 LGAs covering the six priority crops of Project Earn from the Soil (Cassava, Rice, oil palm, Maize, Cocoa, and aquaculture) in Cross River State.
2.4.2 Registration of 32 new cooperatives across the communities in Akwa Ibom State
2.4.3 Registration of 10 new cooperatives across the communities in Bayelsa State