CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
Cooperative Societies are found throughout the Word. They are found in capitalist countries, in socialist countries as well as in countries described as mixed economist existing and functioning as an integral part of the whole economy. The history of cooperative society could be traced as far back as the dark-ages when they used to exist and still in existence; Esusu, Aro e.t.c in Nigeria. Onyemachi (l983) said the history of modem cooperative could be traced to 1844 in Rockdale Concashine in England. He said it was on as October 1844, that the society was registered under the same name; The Equitable Society of Rockdale. In starting a cooperative society, a number of at least ten persons is required in the case of primary society and for secondary society to be registered, it must has primary societies as it members, that is made possible by the Nigerian Cooperative Society Decree 90 of 1993.After registration, the duties and privileges of a registered society is expected to be presented with the registration application, this power and privileges are made in form of by-law which will have all necessary and desired regulations which dictates the code of conduct of its activities in line with the purpose of its establishment. Cooperative society is the commercial effort by people living in a community engaged in same trade, occupation or effort at assisting one another to improve on their economic output through the contribution of money into a common pool which is then distributed according to their pre determined sharing formula.
Cooperative Society could also be defined as the voluntary organization of consumers into a society, controlled as possible for the purpose of supplying their immediate needs by observing definite and generally accepted rules of action. The international Labour Organization(ILO) defined cooperative society as “an association of person usually of limited means who voluntarily, democratically come together to achieve a common economic and social objective of its members by making equitable contribution to the capital required and accepting a fair share of the risks benefits of the undertaking”. As can be seen from the definition above member of cooperative society must join voluntary i.e without any coercions or force but should join by their own volition and willingness, the cooperative favours the doctrine of equal rights, benefits and opportunity for all vested in a management committee or board of directors but in the general meeting of members. All members of cooperative pursue identical society and economic interest to achieve a common goal and such, all members share in risks and benefits, benefits in the form of patronage rebate i.e a share of surplus and risks by forfeiting the capital contributed in event of winding up. Equitable contribution that does not permit overwhelming percentage of the total is required i.e just reasonable and modest contribution.