ROAACCU.

4. FUNDS OF SOCIETY

• The funds of the Society shall be derived from
  a) Entrance fees
  b) Ordinary Shares Capital
  b) Ordinary Shares Capital
  c) Savings /Deposit
  d) Loans to the Society
  e) Interests
  f) Donations
  g) Miscellaneous Income

5. OTHER FUNDS

• The Society shall maintain such other funds from its net surplus as it may deem necessary.

6. SAVINGS

• a) Members of the Society shall save regularly.
  b) The General Meeting shall have power to decide on the least (smallest) amount to be saved regularly.
  c) Members who cannot fulfill their obligation to save regularly must consult the General Manager.

7. MINIMUM SHARES

• Every member must subscribe to a minimum share capital which shall be determined from time to time by the Board of Directors. This amount can only be withdrawn on resignation and after giving a minimum of 90days notice in writing, indicating the member’s intention to withdraw.

8. MAXIMUM SAVINGS

• The savings of any one member shall not exceed 20% of the total savings of the Society or as determined by the Board of Directors from time to time.

9. WITHDRAWAL OF SAVINGS

• Savings may be withdrawn at the time when the office of the Society is open for business.

10. RESTRICTION ON WITHDRAWAL

• Savings cannot be withdrawn if they are frozen to guarantee a loan. Neither can savings be withdrawn if, and so far as the member is indebted to the Society for any reason.

11. DIVIDEND ON SHARES

• Members may receive dividend on their shares at the end of the financial year, if so, decided by the Annual General Meeting in accordance with paragraph 43 (c) of these bye-laws. However, where the minimum Capital Adequacy Ratio (CAR) of the industry has not been met by the Society, the dividend shall be capitalized.

12. LIABILITY OF MEMBERS

• The liability of a member for debt of the Society shall be limited to the member’s shareholdings with the Society as determined in paragraph 7.

13. FINANCIAL YEAR

• The financial year of the Society shall be 1st January to 31st December.

14. ACCOUNTS AND BOOKS

• The accounts of the Society shall be kept in such books and in such form as may be approved from time to time by the Registrar of Co-operatives and by Ghana Co-operative Credit Unions Association (CUA) Ltd.

15. REGISTER OF MEMBERS

• The register shall be maintained at the registered office of the Society which shall contain:
  a) The name, residential address (GPS address) and telephone number of each member.
  b) The date on which each member was admitted to the Society’s membership.
  c) The date on which a person ceased to be a member.
  d) Age and gender of the member.
  e) Occupation of member.

16. SEAL OF THE SOCIETY

• The Society shall have a seal on which its name and registered number shall be engraved in legible characters with or without any other device, the whole of which shall have been approved by the Registrar of Co-operatives. The seal shall be in the custody of the General Manager and shall be used only by him/her, in the presence of the Board Chairman or the Treasurer.

17. LOANS TO MEMBERS

• a) The Society shall grant loans to only its members.
  b) At any given time, the total of all loans to member shall not exceed 69% of the total assets of the Society or as determined by the Board of Directors or CUA from time to time.

18. PURPOSE OF LOANS

• Loans shall be granted for any worthwhile purpose; productive or provident.

19. APPLICATION FOR LOANS

• Application for loans must be in writing and on the prescribed forms.

20. LOANS TO NEW MEMBERS

• For the first six (6) months of membership, members shall receive loans only to the extent of their savings.

21. LOANS MATURITY

• A loan shall not be made by the Credit Union to a member for a period exceeding five (5) years commencing on the date on which the loan is paid to the member.

22. MAXIMUM LOANS TO INDIVIDUAL

• a) The Board of Directors shall determine the maximum loan to be granted to a member from time to time, however, no individual shall be allowed to borrow more than 20% of the total savings of the Society.
  b) Loans to members who cease to belong to the common bond require collateral to be provided.

23. SECURITY FOR LOANS

• a) Loans shall be secured by the borrower’s own savings and if necessary, the savings of one or more other members.
  b) The guarantors shall indicate the amount of their savings to be pledged as security for a loan.
  c) Savings of a borrower or a guarantor pledged as security for a loan may be pledged as security for another loan only after such savings have been released as security for the first loan.
  d) Registered indentures and vehicle papers may also be used as security for a loan.
  e) Other securities as maybe directed by the Board of Directors can be used to secure loans.

24. SECURITY FOR LOANS (WAGE ASSIGNMENT)

• A wage assignment may be used as guarantee to a loan from organizations accredited by the Society. A wage assignment is a written agreement between the borrower, the employer and the Credit Union whereby the employer agrees to reimburse the Credit Union for any amount of the employee’s salary pledged against any unpaid or overdue loan balance.

25. RELEASE OF SECURTY

• a) When a loan is being repaid, the security pledged by the guarantor(s) is released before the security of the borrower himself.
  b) In case of more than one guarantor for a loan, repayment of the loan releases the security of the guarantors proportionately to the amount so guaranteed.
  c) In case a wage assignment is used as a security, the guarantor(s) savings, if any, are released first, the wage assignment is released next, and finally the borrower’s own savings.

26. INTEREST ON LOANS

• Members shall be charged interest on loans at competitive rates. However, the minimum interest rate to be charged shall be determined from time to time by the Board of Director in accordance with the guidelines from Ghana Co-operative Credit Unions Association (CUA).

27. COLLECTION OF LOANS

• A. In case a loan is not repaid according to the terms of the loan agreement, the borrower shall be liable to pay the collection expenses.
  B. In case a loan is not repaid according to the terms of the loan agreement, the borrower may be liable to pay fines not exceeding 10% per annum on the unpaid balance.

28. INTEREST REBATE

• Members may receive a rebate on interest paid on their loans at the end of the financial year, if so decided by the Annual General Meeting in accordance with paragraph (43) of these by-laws.

29. POWER TO BORROW

• The Society shall have the power to borrow money up to 40% of its assets not already pledged outside the Society.

30. INVESTMENT AND DEPOSITORIES

• a) All monies not needed for the day-to-day business of the society Shall be invested in any safe manner as provided for by paragraph 26 of the decree.
  b) All funds of the Credit Union, except for daily operations, shall be deposited in such qualified depository as the Board of Directors may from time to time designate, and shall be deposited not later than the first banking day after their receipt.

31. RESERVE FUND

• a) The Society shall maintain a reserve fund which shall serve to protect the Society in case of loss.
  b) In case of loss the General Meeting shall decide on the disposition of the reserve fund.
  c) The reserve fund shall be credited with at least 25% of the net surplus and shall be deposited with the CUA Central Finance Facility, within 3 months of the end of the financial year.

32. SIGNATORIES

• All cheques, or draft and other obligations of the Society shall require three signatories. The signatories shall be appointed by the Board of Directors of which the Chairman and any other two can sign to withdraw monies on behalf of the Society. In the absence of the Chairman, any other two can sign.

33. PUBLICATION OF NAMES

• a) Name of any person(s) empowered to receive or pay out cash on behalf of the Society shall be posted, preferable by a written notice at a conspicuous place in the Society.
  b) Names of difficult delinquent borrowers shall be published from time to time as directed by the Board of Directors.

34. QUALIFICATION FOR MEMBERSHIP

• a) Membership is open to persons of good character and of sound mind.
  b) A member must not be a minor.

35. APPLICATION FOR MEMBERSHIP

• a) Application for membership shall be in writing on a prescribed form.
  b) The applications shall state the name(s) of the persons to whom the shares/savings of the member shall be paid in the event of the member’s death.

36. ADMISSION TO MEMBERSHIP

• a) An applicant shall be admitted into membership by Management. However, re-admission shall be by 2/3 majority vote of the Board of Directors.
  b) Membership shall only be effective when:
  i. The membership application has been approved by the General Manager.
  ii. The entrance fee has been paid.
  iii. The minimum shares are paid.
  iv. Two passport size photographs of the applicants are provided.
  v. A valid Ghana Card or Ghanaian Passport is provided.

37. WITHDRAWAL FROM MEMBERSHIP

• a. A member may withdraw from membership only by giving at least three months’ notice in writing. In lieu of notice of three months, a member loses 8% of his/her total savings and shares.
  b. Such withdrawal cannot become effective until all debts of the member have been settled and he/she has ceased to be a guarantor for any loan.

38. EXPLUSION FROM MEMBERSHIP

• a) A member may be expelled from the Society by 2/3 majority vote of the Annual General Meeting.
  b) Reasons for expulsion shall be: • Behaviour detrimental to the interest of the Society.

39. DEATH OF A MEMBER

• Upon the death of a member his/her savings/shares shall be paid/transferred to person(s) whom he/she has nominated on his/her application form in paragraph 35(b).

40. PAYMENT AFTER TERMINATION OF MEMBERSHIP

• If a person has ceased to be a member because of death, withdrawal or expulsion, his/her savings/shares shall be paid/transferred to his/her nominee(s) or heir(s) only after all his/her debts have been deducted or his/her guarantees for loan have ceased.

41. SUPREME AUTHORITY

• The supreme authority of the Society shall be vested in the members who exercise their power through voting at General Meetings.

42. ANNUAL GENERAL MEETINGS

• a) The Annual General Meeting shall be held every year within four months after close of the financial year.
  b) The membership shall be informed of the Annual General Meeting at least two weeks in advance.

43. BUSINESS AT ANNUAL GENERAL MEEETING

• The Annual General Meeting shall:
  a) Confirm the minutes of the previous Annual General meeting and any intervening Special General Meeting.
  b) Receive the report of the past year’s work from the Chairman; the Statement of Accounts for the same period and any Auditor’s report.
  c) Decide on the manner of disposal of the net surplus gained in the last financial year; provided that the proper amount has been credited in the statutory reserve and other reserves.
  d) Consider appeal against the expulsion of members.
  e) Elect members of the Board of Directors and Supervisory Committee.
  f) Approve allowances or honoraria, if any, for voluntary work done for the Society by Officers or members.
  g) Approve recommendations to the bye-law done by Board of Directors.
  h) Conduct any other business.

44. SPECIAL GENERAL MEETING

• a) A Special General Meeting shall be held when requested by:
  i. A 2/3 majority vote of the Board of Directors; or
  ii. A unanimous vote of the Supervisory Committee; or
  iii. A written request from at least 200 or ¼ of the members, whichever is the lesser.
  b) A Special General Meeting shall be announced to members at least 2 weeks in advance.

45. BUSINESS AT SPECIAL GENERAL MEETING

• a) The business at a Special General Meeting shall be made known to members in the announcement of the meeting.
  b) A Special General Meeting shall consider only the announced business.

46. VETTING COMMITTEE

• a. A Vetting Committee comprising Officers from the Department of Co-operatives and CUA shall vet all aspiring candidates and present qualified candidates to the General Meeting for election.
  b. An aspiring member may be disqualified on one or more of the following grounds;
  i. History of any fraudulent activities,
  ii. Embezzlement
  iii. Loan delinquency
  iv. Dormant savings and
  v. Involvement in any other act that is contrary to the rules and regulations of the Credit Union.
  vi. A person who has been convicted of fraud or dishonesty shall not be eligible for election to any of the Committees of the Credit Union.

47. VOTING AT GENERAL MEETING

• a) Each member shall have one vote.
  b) Voting may be by ballot.
  c) A member must be present to vote.
  d) The minimum voting age shall be 18years.

48. QUORUM AT GENERAL MEETING

• a. The quorum at Annual and Special General Meetings shall be 200 or ½ of the members whichever is the lesser.
  b. In case a quorum has not been reached the meeting shall be adjourned for one week, and until such time as the adjourned meeting is held the affairs of the Society remain unchanged in so far as that is possible and consistent with justice, equity and common sense.

49. BOARD OF DIRECTORS

• a) The Board of Directors shall consist of a minimum of 5 and a maximum of 11 members.
  b) It shall include the Chairman, Vice Chairman, Secretary, Treasurer and other Officers as may be required and other members; provided that no such person shall be an employee of the Society or a member of Supervisory Committee.

50. ELECTION OF BOARD MEMBERS

• a) The members of the Board of Directors shall be elected at the Annual General Meeting.
  b) Vacancies occurring during the year shall be filled by the Board of Directors and ratified by the members at the next Annual General Meeting.
  c) Elected members shall serve four (4) year – term of office, and shall be eligible for re-election, provided the members shall not have served for a maximum of two consecutive terms of four years each.
  d) After serving for a total of eight (8) years, made up of two terms of four years each, a Board member shall not be eligible for election until break of a term.
  e) Elections shall be organized in such a way that a percentage of members face elections as and when election are due.

51. LOSS OF OFFICE

• If a member of the Board of Directors fails to attend three consecutive meetings without apology, his/her office may be declared vacant by the Board.

52. SUSPENSION / EXPULSION FROM OFFICE

• a) The Board of Directors shall have the power by a vote of 2/3 of its number present and voting to suspend from office any Board member for misconduct, such as dishonesty, fraud, corruption or any other act injurious to the Society.
  b) A Board member suspended under 52 (a) above shall only be expelled after the final decision of a General Meeting.

53. MEETING AND QUORUM OF BOARD OF DIRECTORS

• a) Meeting of the Board of Directors shall be held regularly, at least, once a month and other time when necessary.
  b) The Board of Directors may invite the members of the Supervisory Committee to its meetings.
  c) The quorum at meeting of the Board of Directors shall be a majority of the members of the Board.
  d) Each Board member shall have one vote. The Chairman shall have a casting vote in the event of a tie in voting.

54. DUTIES OF BOARD OF DIRECTORS

• a) The Board of Directors is the Executive organ of the Society. Subject to the authority of the General Meeting and these bye-laws, the Board of Directors shall perform or authorize all actions necessary to achieve the aims of the Society.
  b) It shall in particular:
  1. Determine the purposes and objectives of the Credit Union.
  2. Draft and propose bye-laws
  3. Develop and ensure the implementation of Operational Policies of the Credit Union (lending, savings, investment, financial and personnel etc).
  4. Develop both short, medium and long-term business plans for the growth of the Credit Union.
  5. Represent the Society in its dealings and transactions.
  6. Engage the services of a General Manager for the day-to-day activities of the Credit Union and fix his or her remuneration and conditions of service.
  7. Decide on the bond which may be required of employees or Officers handling the funds and property of the Society.
  8. Open bank accounts in accordance with the provisions of the decree, and decide on the investment of funds.
  9. Appoint at least 3 signatories for cheques, notes, drafts and other obligations of the Society.
  10. Constantly evaluate the performance of the Credit Union.
  11. Develop and implement ongoing educational program for the Society.
  12. Authorize borrowing by the Society in accordance with paragraph 29.
  13. Ensure that true and accurate records and accounts of all transactions of the Society are kept.
  14. Take action against delinquent borrowers.
  15. Recommend to the Annual General Meeting the dividend rates on shares.
  16. Determine interest to be charged and paid on loans and savings respectively as it is deemed necessary.
  17. Prepare and present budgets at the Annual General Meeting for approval by the General members.
  18. Suspend from membership, for valid reason, and until General membership decision is reached, any member of the Society.
  19. Where necessary, the Board of Directors may appoint an Internal Auditor to complement the work of the Supervisory Committee.
  20. The Board of Directors shall have the power to delegate to an Officer or an employee of the Society such of its own powers as may deem necessary.
  21. The Board of Directors shall see to the approval of all loans according to the Society’s lending policies.

55. MEMBERS OF SUPERVISORY COMMITTEE

• a. The Supervisory Committee shall consist of a minimum of three members elected by the Annual General Meeting.
  b. The members of the Supervisory Committee shall not be members of the Board of Directors, the signatories, or persons handling cash or accounts on behalf of the Society.
  c. Members shall have four-year-term of office but can be re-elected for a maximum of two consecutive terms.

56. DUTIES OF SUPERVISORY COMMITTEE

• Supervisory Committee shall have the following duties;
  1. To check whether the Board of Directors has fulfilled its functions properly.
  2. To check whether Management has followed the prescribed procedure in granting loans, particularly with regards to security.
  3. To see that the General Manager or another authorized person prepares monthly financial statement and copies submitted to the Chapter office and a copy on the notice boards of the Society.
  4. Ensure that the General Manager or another authorize person prepares a balance sheet and income and expenditure account at the end of each financial year and send them to the Registrar and the National Credit Unions Association (CUA) Headquarters.
  5. See that a complete audit of the books of account is made at least once a year.
  6. Test-check some members’ passbooks against their statement of accounts at least once a year.
  7. Check the cash on hand, bank accounts and investment securities at least once a year.
  8. Make a report to the Annual General Meeting.
  9. Meet monthly to check and sign the financial statements and bank reconciliation statements.

57. OTHER COMMITTEES

• The Board of Directors shall establish any other Committee(s) as it may deem necessary.

58. OFFICERS

• The Officers of the Society shall be a Chairman, a Vice Chairman, a Secretary, a Treasurer and such other Officers as the Society may require.

59. ELECTION OF OFFICERS

• a. The Officers shall be elected by the Board of Directors from among its own members.
  b. Officers need not be present to be elected.

60. TERM OF OFFICE

• Officers shall hold office as per “paragraph (50) (c) and (d)”

61. CHAIRMAN

• The Chairman shall preside over all General meetings and meetings of the Board of Directors.

62: VICE CHAIRMAN

• The Vice Chairman shall perform the duties of the Chairman in the absence of that Officer.

63. SECRETARY

• a. The Secretary shall record and keep the minutes of all General meetings and all meetings of the Board of Directors, and shall perform such other duties as are regularly performed by a Secretary.
  b. The Secretary may delegate part of his duties to a qualified person with permission of the Board of Directors.

64. TREASURER

• a. The Treasurer shall ensure that full and complete record of all financial affairs and monies of the Society are kept.
  b. He /she shall ensure that monthly financial statements are prepared and posted in a conspicuous place at the offices of the Society. He / she shall also ensure that a balance sheet and an income and expenditure accounts are prepared at the end of each financial year.
  c. He shall also perform such other duties as are regularly performed by a Treasurer.
  d. The Treasurer may delegate part of his duties to another qualified person with the approval of the Board of Directors.

65. THE GENERAL MANAGER

• The Board of Directors shall appoint a General Manager who will be in charge of the day-to-day administration of the Credit Union and shall fix his/her remuneration for his/her services. The services of the General Manager may be terminated or suspended in line with the staff conditions of service.

66. DUTIES OF THE GENERAL MANAGER

• a. To act as a Technical Advisor at Board meetings, Executive meetings and at any meetings, as far as his/her services are required.
  b. To conduct the correspondence on behalf of the Credit Union.
  c. To appoint other staff with the approval of the Board of Directors and to dismiss an employee and report such action to the Board of Directors.
  d. To supervise and co-ordinate the activities of the staff of the Credit Union.
  e. To act on behalf of the Treasurer of the Credit Union and as far as delegated to deposit and withdrawal from banks or other financial institutions as well as investing surplus funds.
  f. To sign cheques, notes and other obligations of the Credit Union as may be recommended by the Board of Directors.
  g. To keep accurate accounts and records and have charge of the document, payment vouchers and receipt of the Credit Union as may be recommended by the Board of Directors.
  h. Prepare monthly financial statements, i.e. income and expenditure statement and balance sheet in a timely and efficient manner for the attention of the Board of Directors.
  i. To carry out such duties that may be lawfully assigned to him/her by the Board of Directors.

67. ACCOUNTS

• The accounts of the Credit Union shall be inspected and audited within three months after the end of each financial year in accordance with the Co-operative decree.

68. VOLUNTARY DISSOLUTION

• The Credit Union may be dissolved by the consent of ¾ of its members testified by their signatories identified by registration numbers.

69. SPECIAL RESOLUTION

• By a Special resolution, the Credit Union may amalgamate with or transfer its engagements to another Credit Union.

70. AMENDMENT OF BYE-LAWS

• a. These bye-laws may be amended by ¾ majority vote of members present at a General meeting, provided that ½ or not fewer than 200, which is lesser, of the members of the society are present.
  b. No amendment of the bye-laws can be made unless the proposed amendment was specified in the notice calling members to meeting.
  c. An amendment duly passed at a General meeting can only become effective when it is registered according to paragraph 9 of the decree.

71. RECORDS

• The Credit Union shall maintain permanently the following records:
  a. Register of members
  b. Registered copy of rules and amendments thereto
  c. Supplementary bye-laws
  d. Minutes of General meetings, Annual and Special meetings, and of all other Committees.
  e. A member shares/savings and loan register and general ledger.
  f. Application for membership and loans
  g. Any other accounting books and records prescribed by the National Association

72. AFFILIATION

• The Society shall have the power to affiliate with any Regional or National Association established with the object of facilitating the operations of Savings and Credit Societies in accordance with Co-operative principles.

73. DISPUTES

• All disputes within the Society which cannot be settled by the Board of Directors at General meeting shall be referred to the Registrar in accordance with paragraph 45 of the decree.

74. LIQUIDATION

• The Society shall be liquidated only by order of the Registrar in accordance with the decree, paragraph 54-63.