* The Rule Book of the Rochdale Society of Equitable Pioneers was written by Charles Howarth and includes the Objects of the Society as its “Law First”. They were setting out to improve both the financial and social conditions for members. The objects include the setting up of a shop, the building of houses, manufacturing, farming and a Temperance Hotel – to provide an alternative to the public house, which was the only meeting place for working people at the time. The ultimate aim was to change all production, distribution, education and government to co-operation. They knew that a world based around co-operation would be a much fairer place. All members would be able to buy good food at reasonable prices, to be part owners of the Society, take part in the decision making about how it would operate and receive a fair share of the profits. In addition, they would have access to libraries and educational classes which were normally only open to the rich.

Understanding Book: APPLYING THE CO-OPERATIVE FORMULA during formation

Many people have been made to perambulate and waste their precious time and effort by some wolves in sheep’s clothing, just because they don’t understand the actual process of setting up a co-operative society. Is it atypical to be a novice in what you don’t previously know? Or is it compulsory that someone must pass through some unusual stress before he/she can be put on track? It is neither strange nor funny for somebody to be taught what he doesn’t know. Therefore, as an amateur, to benefit from what we are actually discussing about in this book, which is “STEPS TO SETTING UP CO-OPERATIVE SOCIETY AND RUNNING IT” I advise readers to pay more than the usual attention to this book. As it will not just help those intending to set up co-operative societies alone, relatively, it will add to the knowledge of managing co-operative societies, which you already know.

Most of the information’s you will find here might be what you already know, but if you remind yourselves of it and act on them, you will achieve great benefit from it as a co-operator. To start up this entertaining TRIP, let’s consider the words used in the co-operative society BYE-LAWS. They are expected to guard you through this exciting trip.

What You Must Do, Before Your Co-operative Society Is Approved For Registration:

1.1a.    About ten individuals who understands and trust themselves and have a common objective or pursuit are expected to come together, to discuss ways they hope to excel in their various businesses, and also what to do to help their immediate Community. After conducting with themselves and seeing the possibilities of succeeding if they work together, they are expected to make their intention known to the Co-operative officer in charge of the Area/LGA they operate from.

1.1b.    The Co-operative officer is expected to visit the group during their meeting, to ascertain whether they have been pre-informed or not. This visit by the officer will display the authenticity of the existence of such group. In the visit, the officer is likely to educate them on the primary guidelines of setting up a co-operative society, what a co-operative society is, how a co-operative society is expected to function, its financing and the ways they expend funds.

1.1c.    The requirements to meet up with before setting up a reputable co-operative society are made known to them. The reason of thrift payment by co-operators is decisively explained to them in detail. The need not to be in a hurry in running a co-operative society is brought bare before them.

1.1d.    The co-operators will then be expected to start some savings in which part of it will be used to register the co-operative after which on routinely, the officer visits them and check their various record books to make sure they are acquainted with the understanding of book keeping and how to record them.

1.1e.    During these several visit by the officer in charge, who is certain that they have gradually saved enough money to register the group and also very sure that after the registration that the co-operative group will still have some money left, he/she will then advice the co-operators to write an application to the Director of Co-operatives through the registrar of the co-operative societies, which he/she will attest to that he is recommending them for registration.

Understanding Book: COMPLETING THE REGISTRATION PROCESS

2.1a.                After submitting the application of registration to the Director of co-operative through the co-operative officer, the officer is expected to keep an eye on the activities of the group in the area of regularity and making sure that the vision behind the formation of the group is maintained. During this period, the members are taught the Bye-Laws. They may be shown a copy of the Bye-Law and ask to read through in order to ascertain whether they understand and is satisfied with the contents.

2.1b.                Because they are new in the co-operative business, it will be fair to show them a copy of the Bye-Laws as it will serve as a guard to them, in case they intend to correct the content of the general Bye-Law to suit their interest. Hence the suggestion in section 2.1a.

2.1c.    Some words used in the Bye-Law which might seem strange to the new cooperators, are:-

i.                    “Director”

ii.                  “Regulation”

iii.                “Financial Year”

iv.                 “Laws”

v.                   “Board or Committee”

2.1d.    The words written in italics in section 2.1c above which is defined below, Needs to be thoroughly explained to the new Co-operators in order for them to be well sentient in the structure and activities of the Co-operative system.

                                i.            DIRECTOR- Means; the registrar of Co-operative societies Edo State Nigeria. If the group is doing the registration in Edo State.

                              ii.            REGULATION- means; The Bendel State Co-Operative  Societies Regulation, 1976,as amended from time to time (as applicable In Edo State) if the Co-Operative Society is to be registered in Edo State.

                            iii.            FINANCIAL YEAR- means; the period of twelve months beginning on 1^st January and ending on the following 31^st December.

                            iv.            LAWS- means; the Co-operative Societies Law, Cap. 45 Bendel State of Nigeria Laws 1976 as amended from time to time (as applicable in Edo State) if the Co-operative Society is to be registered in Edo State.

                              v.            BOARD OR COMMITTEE- mean; the Board of Director of the Co-operative Societies.

2.1e.    the Officer must not fail teach the new venturers the actual definition of co-operative society. The definition below will help the new co-operative society member to be well acquainted with the terms and conditions of setting up a co-operative society, and running it. At this point, the new co-operators will be given the opportunity to make up their minds whether they are still willing to continue with the process of registration or to terminate it. As the Director of Co-operative will ask them what they know about the co-operative society, before registering the group.

Undertanding Book: CO-OPERATIVE CORE VALUE

3.1.                  The core value of a cooperative enterprise system is called, “coordinated cooperation," which enables human with equal rights and mutual respect for each other work together, for the welfare of the group. This differs from "subordinated cooperation," where people work individually or collectively but are under other people's supervision. Subordinated cooperation occurred in state socialist communities that were formed through forced collectivization. True coordinated cooperation does not exist as a prevailing value in any present economic system.

a.     The cooperative system cannot function effectively in an environment of exploitation, corruption, and materialism, nor where they are forced to compete with themselves or with large corporations for marketing and supplies. For cooperatives to succeed, they must have morality among the working-members, strong management of the enterprise, and community support for the cooperative system. Furthermore, cooperatives need ready access to suppliers and markets for their goods and services. And the members of a cooperative must be able to work in a collective spirit and must share similar material aspirations.

b.     For a cooperative Society to function effectively, it requires decent people with cooperative values, people with similar material/economic needs. Most importantly, people with mutual respect for each other. Having the sense of appropriate organizational and management structures; to function conveniently in this politically dominated society. Demonstrating neutrality can help to create an environment where the government and other interest groups will come in to support small and medium scale cooperative industry for the development of a local economy.

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 In attempting to establish a viable cooperative economy, it must be considered whether cooperatives can develop in the absence of a sufficient moral base. (In other words, strong moral).

c.      Values must first be established among members, for the cooperatives to flourish. Or relatively; it will become the responsibility of the co-operative managers to create strong moral values in the members in order for the group to make progress. This book therefore is designed to offers practical viewpoint for developing cooperatives. It will help to examine the co-operative principles, advantages, internal organizational structures, supportive infrastructure, and wider environmental factors necessary for their development. Finally It will address difficult questions of strategic priorities.