COOPERATIVES

SOCIETY ACT OF
MALAWI
GROUP MEMBERS
HOPE MILLION (BSOCDS/NE/2022/0873)
JUDITH MHONE(BSOCDS/NE/2022/0872)
RACHEAL MHANGO(BSOCSW/NE/2022/0222)
GRACE MHLANGA(BSOCSW/NE/2022/1062)
AGNESS MENYERE(BSOCCD/NE/2022/0813)
Malawi cooperative act
 An act to consolidate the law relating to the construction and
regulation of cooperative societies and for other matters incidental
thereto or connected therewith.
 A cooperative society is a voluntary association of individuals united
by a common bond, such as a shared interest or goal, who work
together to achieve economic and social benefits.
Key Definitions
• Apex society; refers to a registered society with membership restricted to cooperative
unions, providing facilities for banking, insurance and supply of goods and services.
• By-laws; Are a set of rules or regulations that govern the internal affairs affairs of a
registered society.
• Society; A registered society formed for a particular purpose or activity.
• Primary society; Means a registered society under this act, the membership of which
consists of individual persons and includes any body of persons and its formed at
grassroots level.
• Secondary society; Means a cooperative formed by two or more primary cooperatives to
provide sectoral services to its members, and may include juristic persons.
• Cooperative union; A cooperative union is a type of organization that represents a group
of cooperative societies or organizations that share common goals, interests, and values.
Rights and liabilities of members
• Some of the rights of members are;
• The right to participate in management and decision making process of the
cooperative society
• The right to vote
• The right to receive information
• Restriction of shares or interest
• Some of the liabilities are;
• Member should have attain the age of 18 years of age
• A member should be a resident within or in occupation of land within the
societies area of operation
Registration requirements and process
• Some of the key requirements are;
1; The society must be registered under the cooperatives societies act and must have a
registrar who shall also be the commissioner
2; The society must have at least 10 members.
3; The society must have a registered office address in Malawi.
Some of the key processes are;
1; The society must apply for registration to the registrar of cooperatives.
2; If the application is approved, the society will be registered and issued a certificate of
registration
3; Commencement of operations, once registered the cooperative society can conduct its
activities, and benefit from legal recognition and protection provided by the Cooperative
Societies Act.
Duties of registered societies and privileges
• Complying with the provisions of cooperative act and any other by-
laws
• Maintaining proper records and accounts of the cooperative society’s
financial transactions
• Ability to voluntarily divide itself into two or more societies if
approved by the registrar
• Ability to enter into contracts and agreements with members
• Liability of past member
• To hold annual general meetings
Property and funds of registered society
• Restriction of loans; registered society shall not make a loan to any
other person than a member
• Investment of funds
National cooperative education fund
• Establishment of the fund; every registered society shall contribute
one per centum pre annum of its net profit to the fund.
• Fund committee; There shall be elected members including the
registrar, chairman and three other persons to make procedures in
regard to the cooperative movement in order to improve skills
development and promote knowledge among cooperatives.
• Account and audit; The fund committee shall compose proper books
of accounts of the fund to be kept together with adequate financial
and other records relating to the fund
Charges by societies
• A registered society may from time to time, with the consent of the
registrar, charge the whole or any part of its property, if its by-laws
expressly empower it to do so and to the extent to which its by-laws
empower it do so
• Register of charges; Cooperatives are required to register any charges
they create with a designed authority and if registration is not done,
the society and its officers are guilty of an offense and are required to
pay MK3,000 for each day the offense continues.
Supervision and Inspection of affairs
• The section grants the registrar the authority to supervise and inspect
the activities of the registered cooperative for example granting any
other chose persons to produce cashbooks and accounts or other
financial records.
Dissolution of registered society
• A society shall be shut down when two thirds of its share capital has
been lost or when they have achieved its objective.
Surcharge and Attachment
• The registrar upon discovering mismanagement or misappropriation
can surcharge the responsible person.
• The registrar is allowed to attach the property of the responsible
person to enforce collection.
Settlement of disputes
• Two parties resolve conflicts in a fair and peaceful manner without
resorting to violence or legal battles.
• There are methods used such as negotiation, mediation and
arbitration to reach a mutually acceptable agreement.
Regulations
• The minister is empowered to make regulations for the purpose of
carrying out the provisions of the act and provide guidelines for the
operation of cooperatives societies.
• The regulation aims at ensuring that cooperatives societies operate
efficiently, transparently and in accordance with the law
conclusion
• The Cooperatives Societies Act of Malawi provides a legal framework
for cooperatives to operate and thrive in the country, promoting
economic development and social empowerment.