The main purpose of this directorate is to provide for the
formation, registration and super-vision of co-operatives and it is mandated to
administer the Co-operatives Act, 2005 (Act No. 14 of 2005). It also
facilitates increased enterprise ownership by disadvantaged persons and
promotes the establishment of co-operatives in poor rural communities.
Main areas of responsibility
The directorate is responsible for the registration, liquidation and
deregistration of co-operatives as well as amalgamation and conversions. It
answers queries from the public and provides information relating to
co-operatives. Furthermore, it is also responsible for analysing the financial
statements of co-operatives.
1. What is a co-operative?
A co-operative is an autonomous association of persons united
voluntarily to meet their mutual economic, social and cultural needs and
aspirations through a jointly owned and democratically controlled enterprise
organised and operated on co-operative principles.
2. What are the characteristics of a co-operative?
Association of persons
Voluntary basis
Mutual or common economic, social and cultural needs
Jointly owned and democratically controlled enterprise
Co-operative principles
3. What are the principles of the
co-operatives?
Democratic member control
Voluntary and open membership
Autonomy and independence
Educational training and information
Co-operation among co-operatives
Concern for community
Member economic participation
4. How does the co-operative work?
A co-operative is a distinct form of enterprise that provides services
and products to its members. Profits, known as surpluses in a co-operative, are divided among members in relation to the
amount of the business each member did with the co-operative.
5. What are the benefits?
Achieve what one cannot achieve on his own
Provide easy access to needed services
Pay less for inputs, marketing, distribution and selling of produce
Process products if necessary
6. How to start a co-operative?
FORMATION: HOLD A MEETING TO ESTABLISH IF THERE IS ENOUGH INTEREST IN THE PROPOSED PROJECT
Chairperson read part of the business plan which outlines the
aims and objectives, as well as the business prospects to all present in the
formation meeting
Answer all the questions arising
Invite everybody to join
Those interested should be given an Application Form For
Membership to complete
Those that completed the Application Forms For Membership will
then choose the Board of Directors
The co-operative is now legally formed
FORMATION: HAVE A FORMATION MEETING
Identify the objectives (Exactly what the co-operative wants to
do)
Equipment, buildings, and other materials needed in the
enterprise
Financial requirements (How are you going to obtain this?)
Premises (Where will the co-operative be located)
Choose a steering committee for the purpose of driving the
formation process further
Draw-up an initial plan of operation
Obtain a constitution (statute) which will lay down the
procedures to be followed by the co-operative in executing its aims and
objectives. (see bottom of this page for models that could be used)
FORMATION: The Process Further
First meeting of the board
Registration process
Completion of registration forms & constitution
Filing documents with the Registrar of Co-operatives for
consideration
Certificate of Registration
Registered constitution
Start operating!
7. Who can be a member?
Anyone who has completed a membership application form
Anyone who shares the same interests in the group (co-operative)
Any person above the age of eighteen
TO REGISTER A NEW CO-OPERATIVE, COMPLETE:
(1) Forms CR1, CR4, and a constitution;
or
(2) Forms CR1, CR4, CR8 and a constitution.
These forms are available on this website under "Registration & Forms"
Submit 2 copies of a constitution. One copy may be a photocopy of the original constitution.
