What is a co-operative society ?

A co-operative society is an autonomous association of persons united voluntarily to meet their common
economic, social and cultural needs and aspirations through a jointly-owned and democratically-controlled
enterprise.
A co-operative society is another means for forming a legal entity to conduct business besides forming a
company. It pools together human resources in the spirit of self and mutual help with the object of providing
services and support to members.
The Co-operative Principles under which a co-operative society operates and carries out its business are :-
1. Voluntary and open membership.
2. Democratic control, one member one vote.
3. Autonomy and independence.
4. Promoting economic activities.
5. Promoting education and information technology.
6. Co-operation among co-operatives.
7. Concern for the social and ecological environment.
How is a co-operative society regulated ?
The operation of co-operative societies is subject to control so as to prevent fraud and to ensure that every
member enjoys equal rights and benefits (equity and equality) in respect of the business of the society.
There are restrictions on profit disposal and rules to sustain corporate governance.
When a co-operative society is dissolved, the remaining surpluses shall be disposed by the Registrar at his
discretion for any co-operative purpose.
The Co-operative Societies Ordinance, Cap 33 enshrines the Co-operative Principles and the Director of
Agriculture, Fisheries and Conservation is appointed as the Registrar to register and regulate co-operative
societies.
Other than a registered co-operative society, or unless approved by the Chief Executive, no one shall trade
or carry on business under any name or title of which the word 'co-operative' is part.
How to form a co-operative society?
To set up a preparatory committee, preferably with 5 members, to pool human and other resources together.
To convene meetings to discuss the organizational structure of the proposed co-operative society (e.g.
name, object, common bond of its members, share and business scope).
To draft co-operative by-laws by referring to the model by-laws obtainable from the Registrar and find
suitable premises for the society.
To recruit members (at least 10 persons, each over 18 in age).
A Guide to the Registration of Co-operative Societies

I. Introduction

Any 10 or more persons who wish to associate themselves together as a co-operative society for the objects of the
promotion of the economic interests of its members in accordance with co-operative principles, or facilitating the
operations of such a society, may be registered under the Co-operative Societies Ordinance, Cap. 33 (the
Ordinance), the Laws of Hong Kong SAR. The Registrar of Co-operative Societies (a post concurrently held by the
Director of Agriculture, Fisheries and Conservation) is responsible for the registration of societies and their by-laws,
the inspection or audit of accounts and general supervision.


II. Membership

In order to be qualified for membership of a Co-operative Society, a person must:-
(a) have attained the age of 18 years;
(b) be resident within or in occupation of land within the societys area of operation as described by the by-laws
of the society.

III. Preparation on Application for Registration

A. Inquire by phone on 2150 6763 or in person to the Co-operative and Credit Union Section, Agriculture, Fisheries
and Convservation Department, 6
th
Floor, Cheung Sha Wan Government Offices, 303 Cheung Sha Wan Road,
Kowloon.

B. Talks introducing the principles and operations of co-operative will be provided by the Section.

C. Assistance will be given in the drawing up of the proposed by-laws and the filling in of the Application for
Registration in the prescribed form.


IV. Application for Registration

A. The Application for Registration form shall be submitted to the Registrar together with 3 copies of the by-laws
which the society proposes to adopt.

B. If the Registrar is satisfied that the application has complied with the provisions of the Ordinance, and that its
proposed by-laws are not contrary to the Ordinance, he may, if he thinks fit, register the society and its by-laws within
3 working days.

C. Upon the registration of a society, the Registrar shall forward to the society free of charge the following
documents:-
(a) a certificate of registration;
(b) a copy of the by-laws of the society as approved by him and certified under his hand; and
(c) a copy of the Co-operative Societies Ordinance and Rules.
How to apply for registration ?
To complete and submit an application to the Registrar of Co-operative Societies.
To submit 3 copies of the proposed by-laws.
Registration is free of charge.

How to run a co-operative society ?
The following meetings are convened for the formulation of business policies and implementation of
strategic plans :
1. General meeting
2. Special general meeting
3. Committee meeting
A 5-member committee is entrusted with the duties and responsibilities in the management of the society's
affairs.
The committee is elected by members annually at the general meeting in a one-member-one-vote manner.
Members of the committee are unpaid.
Supreme authority is vested in the general meeting with the committee as its executive arm.
Accounts, books and records should be properly kept and are subject to audit by persons authorized by the
Registrar.
I. Introduction

Any 15 or more persons who wish to associate themselves together as a credit union for the objects to
promote thrift, to receive the savings of its members either as payment on shares or as deposits and to
make loans to its members for provident or productive purposes, may be registered under the Credit Unions
Ordinance, Cap. 119 (the Ordinance), the Laws of Hong Kong SAR. The Registrar of Credit Unions (a post
concurrently held by the Director of Agriculture, Fisheries and Conservation) is responsible for the
registration of credit unions and their by-laws, the examination and inquiry, and general supervision.


II. Condition of Registration

In order to be qualified for tendering application for registration, the applicants must:-
(a) not less than the age of 16 years;
(b) have at least three of them not less than the age of 21 years;
(c) within the common bond of occupation, employment, association, or residence as defines in the
proposed by-laws of the credit union.


III. Preparation on Application for Registration

A. Inquire Credit Union League of Hong Kong (the League) by phone on 2388 0177 which is
incorporated for the objects to provide educational and advisory services and to assist in the organization of
credit union.

B. Seminars introducing the principles and operations of credit union will be provided by the League.

C. Assistance will be given in the drawing up of the proposed by-laws and the filling in of the
Memorandum of Association in the prescribed form.

D. Inquiries may also be made by phone on 2150 6763 or in person to the Co-operative and Credit Union
Section, Agriculture, Fisheries and Convservation Department, 6
th
Floor, Cheung Sha Wan Government
Offices, 303 Cheung Sha Wan Road, Kowloon.


IV. Application for Registration

A. The applicants shall sign in duplicate before two witnesses a Memorandum of Association and cause
both copies thereof to be submitted to the Registrar together with 2 copies of the by-laws which the credit
union proposes to adopt.

B. The persons signing the Memorandum of Association shall appoint a provisional secretary.

C. The Registrar may make such inquiries as he deems necessary upon receiving the Application.

D. The Registrar may, register the credit union within 3 working days, if he is satisfied-.
(a) that the proposed by-laws do not conflict with any provision of the Ordinance;
(b) that the proposed by-laws are sufficient to enable the credit union to carry out its objects;
(c) that the body to which membership is limited is such as to ensure reasonable personal association
amongst the members;
(d) that the applicants have reasonable prospects of carrying out the objects of a credit union;
(e) that the applicants and the application comply with the requirements of the Ordinance.

E. Upon the registration of a credit union, the Registrar shall forward to the credit union free of charge the
following documents-
(a) one copy of the Memorandum of Association;
(b) one copy of the by-laws, with his approval endorsed thereon; and
(c) a certificate of registration.

How to form a Co-operative Society?
Step I Hold a meeting
To find out whether there is enough interest to form a co-operative, it is suggested that you
invite friends and other people who may be interested to hold a meeting and discuss the idea of
setting up of a co-operative.
If there are enough people who are interested, you should discuss the following:-
(a) Exactly what you want the co-operative to do?
(b) How are you going to get the equipment, stock, etc. to get the co-operative started?
(c) How are you going to get the money needed and how much each person should contribute
to start the co-operative?
(d) The place where the co-operative will be situated?
More meetings may be necessary to discuss all matters and to make sure that there are still
enough interested people.

Step 2 Choose a Steering Committee
Choose a chairperson (president) and a secretary and other office bearers to sit on a steering
committee.
The steering committee will hold all other meetings that may be necessary.
The steering committee will be responsible for the setting up of the co-operative.
The steering committee will make sure that the co-operative works well and that formation
meetings are held.
Step 3 Contact the Co-operative Societies Section of the Co-operatives Division
The Registration Unit is located at
Ministry of Business, Enterprise, Cooperatives
and Consumer Protection (Cooperatives Division)
3rd Floor, LIC Centre
John Kennedy Street
Port Louis
Tel: 211 7739 (Hot Line)

An officer of the Registration Unit will help you to draw up the Rules and will answer any question you
may have.
The rules set out the rights and responsibilities of the members (what they should do as well as what the
co-operative is going to do).
The officer will ask for the following information to help draw up the Rules:
(a) The proposed name of the co-operative.
(b) Where the co-operative will be situated?
(c) What the co-operative is going to do and how it is going to reach the goals set?
(d) The plan of action that has been drawn up by the steering committee to get the co-operative started.
(e) The number of persons (management committee) required to manage the co-operative.
(f) The number of persons who are interested in forming the co-operative.
(g) The officer will draw up the Rules to suit your needs.

Step 4 Describe the aims of the Co-operative
The steering committee must now draw a paper which describes the aims of the co-operative and the
kind of business it is planning to undertake. For the sake of good business, the steering committee should
compile a business plan, keeping in mind that a co-operative is a business and should therefore be
sustainable. The business plan must state how the co-operative will meet its goals with the means
available and must also contain at least the following information:
(a) The volume of business the co-operative expects to do;
(b) The funds therefore required to buy the assets needed to run the business; and
(c) Whether experienced people (staff) are available to manage the business.

Step 5 Hold a Formation Meeting
The steering committee must hold a formation meeting.
Choose a President and Secretary for the meeting. The President should state why the meeting is being
held and must read out the paper prepared by the steering committee which sets out the aims of the co-
operative as well as how it is going to achieve the aims (business prospects). The steering committee
should answer all questions about the
co-operative.
Those interested should answer all questions about the co-operative.
The applicants (i.e. those who have completed applications form) should now choose the board of
directors (management committee) of the co-operative. The number to be chosen is stated in the Rules of
the co-operative.
The co-operative is now legally formed but not registered yet. The Registrar of Co-operative Societies
should now register it.
Step 6 First meeting of the Board of Directors
After the formation meeting has been held, a meeting of the members who were chosen as executive
members should be held to select a president and a vice-president.
This meeting should also appoint the secretary who will be responsible for submitting the application for
registration of the co-operative to the Registrar.
Step 7 How to Register the Co-operative
After the formation meeting has been held (not later than 7 days) you have to apply to the Registrar of
Co-operative Societies for registration of the society.
Together with the application for registration, the following should be supplied:
(a) The copy of minutes of proceedings made by the Secretary and signed by him that everything
required has been done.
(b) The co-operative project setting out the aims of the co-operative, its business plans as well as
statistical proof which shows the project is viable. The President and Secretary must sign this document.
Three copies of Rules of the Co-operative that have been signed on the last page together with
the application form signed by at least 10 executive members who have applied to be members of the co-
operative, full names and addresses of persons who have applied for membership, the amount paid by
each person.
The address where the co-operative is situated as well as the postal address of the co-operative.
Registration Process
It takes about two months for the Registration process to be completed. As soon as the co-operative is
registered, the Secretary will receive a certificate that the co-operative is registered as well as one copy of
the Rules of the co-operative. The co-operative can now start operating.
The co-operative must inform the Registrars office that they have received the certificate of registration
as well as one copy of the registered rules.