_______________________________________
CONSTITUTION
I.
BASIC INFORMATION ON THE GROUP
i.
Name of the group: _____________________________________________
ii.
Address: ______________________________________________________
iii.
The group was formed on: ________________________________________
iv.
Date of official registration: ________________________________________
II.
MISSION
_______________________________________________________________________
_______________________________________________________________________
III.
VISION
_______________________________________________________________________
_______________________________________________________________________
IV.
OBJECTIVE OF THE GROUP
The purpose of the group is to be an independent, profitable provider of financial services to
its members.
The services the group provides to its members in order to achieve this objective are;
i.
ii.
iii.
iv.
v.
vi.
vii.
viii.
V.
Savings.
Loans.
Welfare funds.
Social networking.
Community Cleaning.
Group business enterprise
Business advices and market support for member business owner.
Sharing financial, technical and behavioral change skills to adolescent girls and
young women.
RELATIONSHIP TO EXTERNAL SOURCES OF FINANCIAL SERVICES
i.
The group will not borrow from financial institutions during its first cycle of
operation. If it does so in the future cycles, it will follow these rules the loan to
the group will not exceed the value of the previous cycle’s share –out amount.
ii.
The group will take the loan, not individual members.
iii.
The group will on-lend the money to its members and will not provide
information about this to the lender.
iv.
If the group borrows from a financial institution, members agree that their
individual borrowing money may never exceed 15 times their shares (without
an outside loan from a financial institution, the rule remains 2 times.)
v.
If a group borrows from a financial institution, member savings will not be used
as security deposit.
VI.
WHO MAY BE A MEMBER OF THE GROUP
i.
Lower age limit: _______________
ii.
Residence: ___________________
iii.
A youth as by the Uganda constitution.
iv.
A resident and national of Uganda.
v.
Of a sound mind.
vi.
Ability to save.
VII.
COMPOSITION OF THE MANAGEMENT COMMITTEE
i.
Chairperson:
_______________________________________________________________
ii.
Secretary:
________________________________________________________________
iii.
Treasurer:
________________________________________________________________
iv.
Money counters:
1._______________________________________________________________
2._______________________________________________________________
VIII.
ELECTION PROCEDURES
i.
Elections must be held at the beginning of each new cycle.
ii.
The minimum number of people to stand for each position is 3.
iii.
A member can only be re-elected to the same position once.
iv.
The minimum number of members who must be present to hold an election is¾.
v.
The election procedure will use a system that allows everyone’s vote to be secret.
vi.
A candidate for every position shall propose her/himself or be proposed by another
member.
IX.
REMOVAL OF OFFICERS FROM THEIR POSITION BETWEEN ELECTIONS
i.
Any member of the association may, at any time request a vote of no confidence
against a member of the management committee.
ii.
The committee member must resign if the majority of the members decide to remove
him/her.
iii.
An election is required to fill the vacant position.
X.
MEETINGS
i.
The group shall meet every week to buy shares.
ii.
Loan acquisition and repayment transactions will also be done every week. The
group will conduct a share-out every year.
XI.
MEMBERS LEAVING THE GROUP
i.
If the member leaves the group before the cycle is finished, the money they have used
to purchase shares will be returned to them, minus any loan and service charge they
owe including interest at the end of the cycle.
XII.
EXPULSION FROM THE GROUP
The reasons for which a person shall be expelled from the group are but not
limited to;
i.
Theft of group’s money and materials.
ii.
Consecutive missing of meetings more than four without any prior notice of any
form.
iii.
Misconduct of a member in a group. Such as disrespect of other members and
group leaders, fighting, who’s act damage the future of the association and divides
the group members.
iv.
Acts contrary to the constitution of the association.
v.
_______________________________________________________________
vi.
_______________________________________________________________
XIII.
FINES
The following table lists the fines that will be charged;
Offence
Failure to attend the meeting
Late for the meeting
Not remembering group rules
Forgetting keys
Chatting through the proceedings
Showing disrespect to fellow ,members
Not remembering balances from the previous meetings
Failure of the member of the management committee to perform
duties
Gossip / Rumor of group secrets to non-members.
Welfare late charges (monthly)
Leaving meeting without permission.
Being drunk during meetings.
(others)
(others)
XIV.
XV.
Amount
AMENDMENTS TO THE CONSTITUTION
i.
2/3 of the members must agree before the constitution can be amended.
ii.
Any member can propose an amendment to the constitution.
SERVICES OFFERED BY THE GROUP
i.
SAVING
 Members may buy 1-5 shares in each meeting.

The purchase price of a share will be ___________.

Members may contribute an equal agreed upon amount at the start of every future
cycle to speed up the loan portfolio. At this moment only, the number of start-up
share can be more than 5 shares per member, if all members agree.
ii.
LENDING

The maximum amount that anyone can borrow is thrice or below the value of their
savings.
 The maximum length of a loan term is only 12 weeks during the first cycle.
 A member must repay a loan before he/she can take another.
 The monthly service charge for every four weeks will be _______.
 If a member fails/can pay back the loan for any reasons, it will be treated as follows;
The next of kin and the guarantors shall pay the remaining balance.
 If a member dies before paying the loan, it will be treated as follows;
Balance off by redeeming shares then forgive the balance.
_________________________________________________________________
_________________________________________________________________
 The highest priority for the loan will be for business and investment respectively.
iii.





SOCIAL FUND/ WELFARE
Social funds shall be given out to members as interest free loans.
The contribution to the social funs per meeting will be _________.
Social welfare funds shall be repaid after one month.
A fine of ________ will be charged when its repayment date is passed due.
Payment of social fund is compulsory to every member per sitting/meeting.
Below are but not limited to, the emergencies upon which members shall borrow from
social funds;






iv.
Abrupt visitors.
Sickness.
Journeys.
Food.
School requirements.
_____________________
CONDOLENCES
 The condolences for death of a member will be _________.
 The condolences for the death of a spouse will be _______.
 The condolences for the death of a child will be _________.
 The condolences for the death of a parent will be _________.
 0thers) _____________________________________________
 (Other) _____________________________________________
We the members of ________________________________________________________
do hereby agree and promise to abide and respect this group’s constitution at all time;
Name: ______________________________________
Signature:
___________
Name: ______________________________________
Signature:
___________
Name: ______________________________________
Signature:
___________
Name: ______________________________________
Signature: ___________
Name: ______________________________________
Signature: ___________
Name: ______________________________________
Signature: ___________
Name: _________________________________________Signature:
___________
Name: ______________________________________ Signature: ___________
Name: _________________________________________ Signature:
___________
Name: ______________________________________ Signature: ___________
Name: ______________________________________ Signature: ___________
Name: ______________________________________ Signature: ___________
Name: ______________________________________ Signature: ___________
Name: ______________________________________ Signature: ___________
Name: ______________________________________ Signature: ___________
Name: ______________________________________ Signature: ___________
Name: ______________________________________ Signature: ___________
Name: ______________________________________ Signature: ___________
Name: ______________________________________ Signature: ___________
Name: ______________________________________ Signature: ___________
Name: ______________________________________ Signature: ___________
Name: ______________________________________ Signature: ___________
Name: ______________________________________ Signature: ___________
Name: ______________________________________ Signature: ___________
Name: ______________________________________ Signature: ___________