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Credit Unions - Guide to Registration - Co-operative Principles

Every society registered must be guided by the Co-operative Principles. Section 4(1) of the Co-operative Societies Act, Cap. 378A states that:

 “For the purposes of this Act, a society conforms to co-operative principles if

(a) no member or delegate has more than one vote;

(b) no member or delegate is entitled to vote by proxy;

(c) its business is carried on primarily for the benefit of its members;

(d) its membership is voluntary and available without any artificial restriction or any unlawful basis of discrimination,

     to any persons who can use its services and is willing to accept the responsibilities of membership;

(e) the rate of dividends on share capital that it pays does not exceed the rate prescribed in the regulations made under this Act;

(f) any surplus or savings arising out of its operations is:

    (i) used to develop its business,

    (ii) used to provide or improve common services to members,

    (iii) used for the payment of dividends on share capital,

    (iv) distributed among members in proportion to the business done by each member with the society,

    (v) used to educate its members, officers or employees or the general public in the principles and techniques of economic and democratic

         co-operation,

    (vi) distributed to non-profit charitable or benevolent organizations;

(g) co-operation with other societies is pursued; and

(h) it provides for continuing education.”