The Importance of Studying Co-Operative Laws and Rules

The Importance of Studying Co-Operative Laws and Rules

Co-operative laws are those legislative enactment aimed at regulating and directing the activities of Co-operative Societies.  It guides the ruling, formation of co-operative enterprises, so that it enables their activities to be stable, effective and efficient for the successful operation of a given co-operative society.

The Co-operative originated in Nigeria in 1935 under the NO. 39 Ordinance, while the rules follows in 1936.  Both applied the rules follows in 1936.  Both  applied to the whole locating, then colony and protectorate of Nigeria.  In 1952, the country was divided into 3 regions, North, West and East and co-operative was made a regular subject.  Each adapted the 1935 ordinance with necessary amendments.  In August, 1977, the then Federal Commissioner for Co-operative and Supply, Alhaji U.A Mutallh, set up a panel  to review and unite the Nigeria co-operative society laws and rules with J.T Catlow Idowu as chairman.

It was General J.B Babangida at the face end of Military rule, decided to sign the draft into a decree, the Nigerian Co-operative Societies Decree No. 90 of 1993.  Being a federal law which superseded all other laws of co-operative society in Nigeria.


The motive behind this project is to undertake a study of a critical assessment of the important of studying co-operative laws and rules.


–         To examine the impact of the co-operative law in every co-operative establishment.

–         To examine the law meant for co-operative establishment.

–         To know the limit provided by the law that differentiates it from other terms of business.

–         To suggest ways and means of enhancement.

–         To know that there is provision in the law of co-operative that every registered society must have their bye-laws.


With the above project been carved out by the researcher, the society will get to know and understand that co-operative laws and rules will  help to improve the economic activities of the society.  This research work will equally help the federal government to improve the society, since it  is the federal government that enact the law in which co-operative must follow.  Co-operative law is a vital element in co-operative development which should not be under-rated.

The law should discriminate between full – rigid genuine co-operative, psendo co-operative and pre-co-operatives.

The law stipulates that all the co-operative should be registered and it must be reformed to reduce federal government control so that a true co-operative movement will emerge.

Co-operative law should take legislative cognizance’s of the higher-class, co-operatives and invest them will freedom to take their own decisions.


Co-operative society is a dynamic and liable business enterprise that has unique ideologies and method.  It should be regularized not as the same way as other business organizations.

a)       To take the co-operative out of the content of preview of other laws.

b)      To encode a legal personality on the co-operative and other privileged upon registration co-operative receive body cooperate status.

c)       To grant special right to the co-operatives  such as exemption from taxes.

d)      Enlarging self and self – reliance in other to bring co-operative to the stage supervision and development.

e)       Protection of its members is vital and third parties e.g, supplies creditors, employ the public.

f)        To give good advice to co-operators on the proper way to manage their business.

g)       Preventing fraud in the co-operative enterprise.


In an attempt to produce this research work, the researcher is faced with several handicaps which include lack of adequate materials.  Project will be based on the Nigerian Co-operative Societies Decree of 1993 which was written by an Engima of the Co-operative of our time Enyenbe Onuola (Dr.).

Its study covers the laws and rules of co-operative societies to enable them to be regulated in the affortioned way.

The Director or Commissioner should work towards the affairs at the society to enable them improve their economic well-being of the members.

Once again this project is not so verse as much as it ought to have been, but centered on the Nigerian co-operative Decree of 1993.



According to OBODOECHI (2002, P. 30)  defined Co-operative “as the process of man working in consonance with another to attain a positive result.”   Co-operative entails man in a social frame working, striving to accomplish:

a)       Religious result

b)      Economic result

c)       Political result

d)      Cultural result

e)       Ethical result

f)        Educational result.


These are legislative enactment aimed at regulating and directing the activities of the people.


These are rules made by the Director exercised by him, given to him by Section 54 of the law.


This is the going of weaker societies to become one.


It is the quarrel that arises in the society which affects the business activities of the society.


This is the power to demand payment of money stolen.


The authority to seize goods.


This is a bear truth or general law determining the existence and regulating the conduct of an organization and distinguishing it from other system.


This is a manner in which members are compensated for their involvement  in the co-operative.


—This article is not complete———–This article is not complete————
This article was extracted from a Project Research Work/Material Topic


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Co-Operative Economics and Management Project Materials, Click Here!

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