BRIEF NOTES ON THE CO-OPERATIVE SOCIETIES ACT (Chapter 62)
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OBJECTIVE OF THE ACT

Register co-operatives

Regulate co-operatives
CO-OPERATIVE PRINCIPLES

Open and voluntary membership

Democratic control

Limited interest on capital

Distribution of surplus to members in proportion to their patronage

Promotion of education

Co-operation among co-operatives at local, national & international levels
SOCIETIES WHICH MAY BE REGISTERED
Those which -
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
promote the economic interests of its members in accordance with cooperative principles

promote the economic interests of both its members in accordance with
essential co-operative principles and the public generally or any section of
the public

facilitate the operations of both the above types of societies
CONDITIONS OF REGISTRATION

10 persons (primary societies)
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
2 or more societies/trade unions (secondary societies)

"co-operative" and "limited" as part of its name

By-laws are not contrary to the Act
PRIVILEGES AND DUTIES OF SOCIETIES
On registration, a society 
becomes a body corporate

has perpetual succession

has power to hold movable and immovable property

has power to enter into contracts

has power to sue and be sued

has power to do all things necessary for the purposes of its by-laws

may make or amend its by-laws
15 days notice required
amendments shall not bound a member to subscribe more shares
without his written consent

shall notify Registrar of Co-operative Societies (RCS) of every change of
registered address

shall maintain Register of members and shares

shall notify RCS of names, occupations and addresses of all officers

shall not impose fines >$500 for infringement of by-laws, except with
RCS approval

shall produce moneys and books of societies and furnish information to
RCS

shall submit audited accounts, annual report and keep proper accounts
and records

may federate and form secondary societies and apex organisation

shall hold Annual General Meetings
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within 6 months of end of FY
RIGHTS AND LIABILITIES OF MEMBERS
Qualifications for membership 
16 years (12 years for school co-ops) or

registered society or trade union

citizen or resident in Singapore

meet residence, employment, profession requirements as prescribed in bylaws

credit co-op individual membership restricted to those who belong to preexisting common bond of association or community of interest
Votes of member 
individual - 1 vote

institution - such number of votes as provided in the by-laws
Maximum of 20% share-holding for individual member
Right to withdraw from society

notice shall not exceed 1 year for primary society

notice shall not exceed 2 years for secondary society
May nominate a person to receive sum due on his death
May be expelled for contravening the Act, the rules, the by-laws or for acting in
any way detrimental to the interest of the society
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ORGANISATION AND MANAGEMENT OF SOCIETIES
Supreme authority shall be vested in the General Meeting of its members
Extra-Ordinary General Meeting (EGM) 
requisition by 60 members or 20% of members
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
members making requisition have power to convene EGM if committee fails
to convene it within 1 month of receiving requisition
Quorum 
30 or 20% of members or delegates
Voting 
decision by majority of votes

chairman no casting vote

election by secret ballot
Committee of Management 
5 to 30 members, including chairman, vice-chairman, secretary and
treasurer

if < 5 members - shall co-opt
Eligibility for membership in Committee 
21 years old except for school co-operatives

citizen of Singapore or resident in Singapore except with RCS approval

not be an undischarged bankrupt

not be convicted of an offence involving fraud or dishonesty

5-year disqualification period applicable for non-credit co-ops

No time bar for credit co-ops

not be convicted of an offence under this Act

not be dismissed as an employee of a society

not be previously found to have misused or mismanaged the funds of a
society
Meetings of Committee 
not less than once in 3 months
Restrictions on honoraria and allowances 
honoraria and allowances to officials to be approved at general meeting
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PROPERTY AND FUNDS OF SOCIETIES
Restrictions on loans 
society shall not make a loan or allow credit to any person other than:
 a member of the credit society or his immediate family member;
 an employee of the credit society ; or
 another society that is not a member of the credit society, with the
written consent of RCS
Restrictions on borrowing 
society shall determine at general meeting the maximum liability it may incur
in loans from non-members and seek RCS’ approval for this;

credit society shall determine at general meeting, the maximum liability it
may incur in loans or deposits from its members and their immediate family
members.

RCS may reduce the maximum liabilities or impose conditions
Investment of Funds 
society to invest its funds in such manner as it thinks fit, subject to the same
duty of care imposed on trustees under the Trustees Act
Central Co-operative Fund (CCF) 
5% of first $500,000 of surplus to the CCF

20% of any surplus in excess of $500,000 to either the CCF or the
Singapore Labour Foundation (SLF), as society may opt

used to further co-operative education, training, research, audit and general
development of the co-operative movement
Payment of Dividend 
not exceeding 10% of share capital
Bonus Certificates 
maturity in 5 years (no interest or dividend)
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Bonus Shares 
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maturity in 10 years
DUTIES AND POWERS OF REGISTRAR

Convene special meeting

Inspect books, accounts, papers & securities of society

Audit or authorise auditor to audit accounts of society

Hold an inquiry

Examine books of society

Issue Winding-up Order

Appoint liquidator

Cancel registration

Settle disputes

Suspend activities

Remove committee of management
MISCELLANEOUS
Minister 
may make rules for carrying out or giving effect to provisions of Act

exempt a proposed society from any of the requirements of the Act

exempt a society from any provision of Act or direct that the provision be
applied with modification
Offences under the Act -
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
carrying on business under a name of "Cooperative" without the Registrar’s sanction

neglects or refuses to do an act or furnish
information for purposes of the Act

makes a false return or furnishes false
information

disobeys any summon or order issued under
the Act

pretend to be a member of a Committee

performs any act which requires the consent
or approval of the RCS, without first obtaining his
consent or approval

a society or officer or member neglects or
refuses to do an act or thing required by the Act
to be done

does an act prohibited by the Act
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$5,000 or $500 for
every day that
offence continues
after conviction
$10,000 or $500
for every day that
offence continues
after conviction