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Cooperative laws and bylaws
- 1. Introduction Importance In Nepal NCDB and NCF/N Is this enough? By laws Amending bylaws Conclusion References COOPERATIVE LAWS AND BYLAWS Prepared by : Sneha Khanal B.Sc Ag Agriculture and Forestry University Rampur, Chitwan, Nepal
- 3. Introduction Importance In Nepal NCDB and NCF/N Is this enough? Bylaws Amending bylaws Conclusion References COOPERATIVE LAWS • Cooperative Law,includes all legal rules that shape a cooperative enterprise and regulate its operations, such as law on cooperatives, international law, national constitutions, administrative Acts, court decisions and jurisprudence. • With the creation of the ILO’s Cooperatives Unit in 1920, cooperative law gained an international dimension. • In case of Nepal, After the restoration of democracy in 1990 A.D (2046 B.S.), the democratic government enacted the Co-operative Act 1992 A.D (2048 B.S) and the Co-operative Regulations 1993 A.D (2049 B.S.)
- 4. Introduction Importance In Nepal NCDB and NCF/N Case Studies By laws Amending bylaws Conclusion References Why Cooperative laws? • Establishing the legal status and requirements for the formation of cooperatives. • Providing guidelines for the management and governance of cooperatives, including the roles and responsibilities of members, directors, and officers. • Establishing rules for the distribution of profits and the allocation of losses among members. • Regulating the financing of cooperatives, including the issuance of shares, loans, and other forms of capital. • Providing mechanisms for resolving disputes between members and between members and the cooperative. • Establishing requirements for the dissolution or conversion of cooperatives. • Overall, the cooperative laws and byelaws are important to promote the growth and development of cooperatives by providing a stable and predictable legal environment
- 5. Introduction Importance In Nepal NCDB and NCF/N Case Studies Bylaws Amending bylaws Conclusion References Cooperatives Act, Regulations, and Policies in Nepal • Cooperative Act 2048 B.S • Cooperative Regulations 2049 B.S • Cooperative registration operation, auditing, monitoring and execution standards 2068 BS • National Cooperative Policy 2069 • Election Directives of Cooperative union/society 2069 • Cooperative organization unification related Guideline 2070 BS . In that development path, it has now own Ministry-Ministry of Cooperatives and Poverty Alleviation since 2069 B.S. (2012 A.D). Major Features of Cooperative Acts 1992 (Sahakari Ain 2048 B.S.) Simple registration Process • Legal and Organizational Personality • Equality in membership • Arrangement of Elected Board Committee • Thinking of autonomous organization • Open membership • Self-control mechanism • Structure of federal cooperative movement • Limited Liability of the members • Cooperative Entrepreneurial Business area • Some discount arrangement for cooperative union/organization
- 6. Introduction Importance In Nepal NCDB and NCF/N Is this enough? By laws Amending bylaws Conclusion References National Cooperative Development Board(NCDB) • Formed in August 1991 with decision of Government of Nepal • Main tasks are: Formulate cooperative policies Work out a new cooperative legislation Help set up the structure of the cooperative movement from bottom to top Coordinate the activities of cooperatives in different sectors Establish infrastructure required for facilitating the process of cooperative development National Cooperative Federation of Nepal(NCF/N) Established in Jun20,1993 under the Cooperative Act,1992. National apex body of cooperatives of all types and levels Functions: I. Cooperative Promotion and Development 2. Leadership and Representation 3. Business Promotion, Planning, Management and Consultancy Services 4. Cooperative Training and Education 5. Inter-Cooperative Relation 6. Environmental Conservation
- 7. Introduction Importance Key elements NCDB and NCF/N Is this enough? By laws Amending bylaws Conclusion References Is Cooperative Law Sufficient for Cooperatives to Prosper? • The cooperative law, by and of itself, does not change anything. Besides the many other conditions to be fulfilled in order for an effective and efficient cooperative movement to emerge and/or to evolve, the law must be applied. In order to be applied the law must be understood. • Although public awareness concerning cooperatives has certainly improved over the past years, it cannot compare with that concerning stock companies. • But as mainstream economics starts to discover the role of people in modern knowledge production, as it is made aware of the insufficiencies related to share holder information and control, it will turn towards the comparative advantages of the way cooperatives are organised.
- 8. Introduction Importance Key elements NCDB and NCF/N Is this enough? Bylaws Amending bylaws Conclusion References What are cooperative bylaws? Bylaws state how the cooperative will conduct business and must be consistent with both State statutes and the articles of incorporation. the owners’ manual of the cooperative business. Are specific rules and regulations established by the cooperative itself Cover everything from membership requirements to voting procedures and profit distribution. What do bylaws include? • the purpose of the cooperative • the name of the cooperative • the principal office Bylaws should additionally include rules about: •how to become a member •cessation of membership •membership duties, e.g. if membership fees have to be paid •the composition of the board of directors •how and when the members come together for a general meeting •elections and voting procedures •specifics about putting forward and voting on resolutions
- 9. Introduction Importance Key elements NCDB and NCF/N Is this enough? Bylaws Amending bylaws Conclusion References Is amending the bylaws necessary? In general, cooperatives can develop their bylaws as they wish, if the legislation applying to them allows Often bylaws are written according to guidelines provided to cooperatives. Optional sections in the bylaws are often included to meet the requirements of the cooperative’s individual purpose. As mentioned above, certain points have to be included in the bylaws so that the cooperative smoothly and there is no dissimilarity between members and the executive. In certain cases, it is necessary to amend the bylaws keep up with new developments in society, such as the possibility to vote online.
- 10. Introduction Importance Key elements NCDB and NCF/N Is this enough? By laws Amending bylaws Conclusion References We can conclude that both the cooperative laws and by laws are extremely important for effective and smooth functioning of cooperatives that ultimately aids to economic upliftment and betterment with both the public and private sectors.