Minutes of the cooperative meeting held October 26, 2017.

Resolution/Action Plan:                                        

Comment/Action by:

Recap of decision at AGM to raise share capital of NGN 50m which will be used to expand cooperative business. For equity, all co-operators are to contribute NGN 150,000 to raise the share capital. This payment can be spread across 10 months at NGN 15,000/month. To cushion the effect, the mandatory savings will be reduced to NGN 10,000/monthly for 10 months as against the current NGN 20,000/month. The mandatory savings will return to NGN 20,000 after 10 months.

The total compulsory deduction for all cooperative members for 10 months will be minimum of NGN 25,000/month (NGN 10,000 savings + NGN 15,000 share capital) as against the current NGN 20,000/month. This represents an increase of NGN 5,000 only/month.

President

Further explanations/clarifications/response to questions:

It is statutory according to the cooperative law of Lagos state and also as contained in our Bye-law (8.3) that every member must hold shares for a cooperative multipurpose society which we are as against just a credit and thrift society.

Having share capital will ensure that the usual savings will be used for loan disbursement and not for business any longer.

The money remains the money of the co-operator and he/she is entitled to it in full on withdrawal from cooperative membership.

Every new member will also have to contribute equally to the share capital.

Any interested member can make additional contribution to the share capital voluntarily. However, no member is entitled to own large enough shares to be recognized as majority share- holder/business owner.

The profit from capital investments/cooperative business will be shared as dividend according to cooperative practice hence no interest or time value of money principle apply to this funds.

The co-operators however can decide to increase the share capital by additional savings or by appropriation from dividend according to sharing formula decided at cooperative meetings/AGM.

Mr. Bakare (Apapa area officer)

The deduction will take effect from January 2018

An investment committee to be appointed by the management committee in January 2018 to manage the funds and report to the management committee.

Further and adequate deliberations/communication should be made on this matter and other matters.

Members