Legal framework governing cooperative societies in Tanzania.

The legal framework governing cooperative societies in Tanzania is primarily governed by the Cooperative Societies Act, 2003. This Act provides for the registration, regulation, and management of cooperative societies in Tanzania.

Under the Act, a cooperative society is defined as an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly owned and democratically controlled enterprise.

Some key provisions of the Cooperative Societies Act, 2003 include:

1. Registration of cooperative societies: The Act provides for the registration of cooperative societies with the Registrar of Cooperative Societies. In order to be registered, a cooperative society must have at least ten members who are eligible to be members under the Act.

2. Management of cooperative societies: The Act sets out the rules and procedures for the management of cooperative societies, including the election of office bearers, conduct of meetings, and financial management.

3. Rights and obligations of members: The Act sets out the rights and obligations of members of cooperative societies, including the right to participate in the management of the society and the obligation to contribute to the society's funds.

4. Dissolution and winding up of cooperative societies: The Act provides for the dissolution and winding up of cooperative societies in certain circumstances, such as insolvency or failure to comply with the Act.

In addition to the Cooperative Societies Act, 2003, cooperative societies in Tanzania may also be subject to other relevant laws and regulations, such as the Companies Act, 2002, the Income Tax Act, 2004, and the Value Added Tax Act, 2014.

Primary Legislation

- Cooperative Societies Act, 1991 (Cap. 218)

Secondary Legislation

- Cooperative Societies Regulations, 1992
- Cooperative Development Fund Regulations, 1992
- Cooperative Societies (Registration) Regulations, 2015
- Cooperative Societies (Election and Appointment of Officers) Regulations, 2015
- Cooperative Societies (Audit and Inspection) Regulations, 2015
- Cooperative Societies (Financial Management) Regulations, 2015
- Cooperative Societies (Dispute Resolution) Regulations, 2015

Key Provisions of the Cooperative Societies Act

Definition of a Cooperative Society:

- A voluntary association of individuals united to meet their common economic, social, and cultural needs and aspirations through a jointly-owned and democratically-controlled enterprise (Section 2).

Objectives of Cooperative Societies:

- To promote thrift and self-help among members
- To develop and operate cooperative enterprises for the benefit of members
- To promote education and training for members
- To contribute to the economic and social development of the community

Membership:

- Open to any person who meets the eligibility criteria set by the society
- Members have equal rights and responsibilities

Management:

- Governed by a board of directors elected by members
- Board of directors is responsible for managing the society's affairs, including financial management, operations, and compliance with the law

Finance:

- Primary source of income is from membership fees, subscriptions, and surpluses from business activities
- May obtain loans from banks or other financial institutions
- Required to prepare and submit financial statements for audit

Supervision and Regulation:

- Supervised by the Commissioner for Cooperative Development
- Commissioner has powers to investigate societies, conduct audits, and take disciplinary action against errant societies
- Cooperative Development Fund established to provide financial and technical assistance to societies

Dispute Resolution:

- Disputes between societies or between members and societies are resolved through a cooperative dispute resolution mechanism
- Can also be referred to the courts