Amalgamation of Cooperative Societies means the merging of two or more Cooperative Societies which have the same objectives into one single society. In this case, one society is to transfer its assets and liabilities into the absorbing society.
In addition, the absorbing society will retain its name. In some other cases, both societies may decide to take a new name. in such circumstance, the registration certificate of both societies will be cancelled and withdrawn by the Director of Cooperatives.
When Amalgamation is to take place, in order to protect the interest of the members of the society and that of the Creditors,
amalgamation needs the approval of the Director of Cooperatives.
It is also the duty of the Director of Cooperatives either at the Federal or State level to supervise and guide the societies in the process of amalgamation.
If the Director of Cooperatives appoints someone to do the amalgamation, he would have to give guidelines to the officer so appointed.
3.9.1 Activities of the Amalgamator after appointment
• The Officer appointed to do the amalgamation should acquaint himself with the Cooperative law, principles of Cooperation and the society‟s byelaws. This would assist in the ability of the officer to be able to do the job effectively.
• The members of the society must apply for amalgamation to the Director of Cooperatives.
This application for amalgamation must be supported by a report on the special general meeting wherein the resolution to amalgamate had been proposed and passed.
• The officer should ensure that the evidence to show that enough notice (as required by the bye-laws of the society) had been given to its members and that the meeting of the members had been summoned for no other purpose than that of amalgamation.
• He should note the total number of member in the society that is affected by the amalgamation. This information can be got from the membership and attendance register.
• In the meeting, where a resolution for an amalgamation is made, two thirds of the members present in the meeting should agree to the amalgamation. Also, the Creditors of the society should agree with it, otherwise the Creditors of the society may demand for the payment of their money owed by the society before any amalgamation can take place.
• In the resolution of member, the mover, seconder and number of votes cast in favour of the amalgamation should be well recorded.
• The basis for the fusion of assets and the liabilities of the societies should be spelt out.
• The Area of operation of the new society is to be spelt out. In addition, members who will constitute the new society should be well recorded.
• Some members of the society may not agree to the amalgamation. Such members should signify their intention not to be members of the new society within a period of two moths from the receipt of the copy of the preliminary resolution of the society.
• After the first meeting of members, the society will hold a second special general meeting on the amalgamation to confirm the resolution passed on the amalgamation in the first special general meeting.
• The officer doing the amalgamation must ensure that a copy of the preliminary resolution had been sent to the members of the society and the society‟s creditors.
After all the above conditions have been met, then, the amalgamation of the societies can take place. The amalgamation is deemed to have taken place when in addition to the above conditions, the Director of Cooperatives registers the new society. “the registration of the new society shall operate to vest in it all the assets and liabilities of the original societies.”
4.0 CONCLUSION
This unit discussed the liquidation and dissolution, factors that can lead to liquidation Identify the types of dissolution, liquidation procedure cooperatives know how to appeal Against dissolution/liquidation, the director of cooperative as the liquidator for preparation of liquidation report and submission of report and preparation of scheme of distribution.
5.0 SUMMARY
The process of liquidation involves activities of winding up the business of a cooperative society therefore there is need to understand the liquidation and dissolution factors that can lead to liquidation and Identify the types of Dissolution/Liquidation Procedure Cooperatives also know how to appeal Against Dissolution/Liquidation, the Director of Cooperative as the Liquidator for Preparation of Liquidation Report and Submission of Report as well as preparation of Scheme of Distribution.
6.0 TUTOR MARKED ASSIGNMENT
1. Discuss the liquidation and dissolution and factors that can lead to liquidation?
2. Identify the types of Dissolution and Liquidation Procedure Cooperatives?
3. How do we appeal Against Dissolution/Liquidation?
7.0 REFRENCES/FURTHER READINGS
Akubuilo, C.J.C (2003). Cooperative extension service, Mimographic:
Ebonyi State University, Abakaliki
Akubuilo, C.J.C (2005). Extension organization management and supervision, Mimographic: Ebonyi State University, Abakaliki Bye-Laws of Cooperative Thrift and Credit Society Ltd
Chukwu, S.C (1990). Economics of the Cooperative Business Enterprise, Marburg Consult, Marburg.
Cooperative Development (2002), Federal Ministry of Agriculture and Rural Development, Cooperative
Federation of Nigeria. Reports of CFN Zonal Conferences for the West, East and North Nigeria
Falodun, S.A (1985). The History, growth and Development of Cooperation in Nigeria up to 1985
Hornby, A.S (1974) Oxford Advanced Learners’ Dictionary of Current English
International Labour Officer (1968) Cooperative Management and Administration, Geneva
Lagos State Government Manual for Cooperative Officials and Cooperative Inspectors.
Lawal,K.A.A and Oludimu, O.L(2011).Management theory, practices and focus, Ibadan: Asogun Publishers
Lawal,K.A.A and Adelowo, (2013) Cooperative Education and Extension, NOUN Publishers
Nigerian Cooperative Societies Act 1993. Cap c 35 Laws of the federation of Nigeria
Okeke, E.U. (2001). Cooperative Movement: Meaning Origin and Ideology, In Nigerian Journal of
Cooperative Economics and Management, Vol 1, No.1 Jan-June.
Okonkwo J.N.P Hints on Cooperative Fieldwork. Chuka Printing Company Ltd Enugu
Owojuyigbe,S. (2007).Cooperative Administration and Fieldwork in Nigeria 3rd Edition, Samlolly Publishers
Strickland C.F, (1934) Report on the introduction of Cooperative Societies into Nigeria and the
Cameron under British Mandate: Government Printers, Lagos
MODULE 4
Unit 1 Preparation of Report
Unit 2 Supervision and Control of Cooperatives Unit 3 Computer Applications to Cooperative
Fieldwork Administration
Unit 4 Organizing, Administration, History and Prospect of Cooperative Fieldwork
UNIT 1 PREPARATION OF REPORT