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Co-operative Societies Act

28. Membership and powers of the Committee

Edition: 2023-12-11 · In force

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28. Membership and powers of the Committee

(1)Every co-operative society shall have a Committee consisting of not less than five and not more than nine members.
(2)The members of the Committee shall elect a chairman and a vice chairman from among their number.
(3)The Committee shall be the governing body of the society and shall, subject to any direction from a general meeting or the by-laws of the co-operative society, direct the affairs of the co-operative society with powers to—
(a)enter into contracts;
(b)institute and defend suits and other legal proceedings brought in the name of or against the co-operative society; and
(c)do all other things necessary to achieve the objects of the co-operative society in accordance with its by-laws.
(4)No person shall be a member of a Committee if he—
(a)is not a member of the co-operative society;
(b)is under eighteen years of age;
(c)is unable to read and write;
(d)receives any remuneration, salary or other payment from the co-operative society save in accordance with this Act;
(e)is a committee member in two other co-operative societies;
(f)being a member of a co- operative society that lends money to its members, lends money on his own account;
(g)being a member of a co-operative society which trades in goods or produce, trades either on his own account or some other person's account in the same type of goods or produce;
(h)has not, within thirty days of being appointed, declared his wealth to the Commissioner in the prescribed manner;
(i)is an undischarged bankrupt;
(j)is of unsound mind;
(k)has been adversely named by the Commissioner in an inquiry report adopted by a general meeting for mismanagement or corrupt practices while a member of the Committee;
(l)has been convicted of any offence involving dishonesty or is sentenced to imprisonment for a term exceeding three months;
(m)has been convicted of any offence under this Act or rules made thereunder;
(n)has any uncleared debt owing to a co-operative society at the end of its financial year other than in respect of a loan under the provision of any rules made under this Act;
(o)is a person against whom any amount of money is due under a decree, decision or order or is pending recovery under this Act.
(5)The Committee may delegate any of its duties under this Act to an officer or officers of the co-operative society but, nothing in this subsection shall absolve the Committee from its responsibility to run the affairs of the co-operative society in a proper and businesslike manner.
(6)In the conduct of the affairs of a co-operative society the Committee shall exercise the prudence and diligence of ordinary men of business and the members shall be held, jointly and severally liable for any losses sustained through any of their acts which are contrary to the Act, rules, by-laws or the directions of any general meeting of the co-operative society.
(7)The Commissioner may suspend from duty any Committee member charged in a court of law with an offence involving fraud or dishonesty pending the determination of the matter.[Act No. 2 of 2004, s. 14.]
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Source: Kenya Law