A Critical Assessment Of The Importance Of Studying Co-Operative Laws And Rules

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A Critical Assessment Of The Importance Of Studying Co-Operative Laws And Rules


This research work is focused on the study of critically the origin, reasons, importance and the problems affecting the co-operative laws. It specifically dealt with different sections of the co-operative laws and their importance and prospects with co-operative economics department.  In order to carryout this research work five research questions were formulated. The research reviewed related literature written and used, questionnaires as well as personnel interview in gathering data, percentage relations were used to analyze the data so collected.  The major findings on critically the importance of co-operative laws.  The research work also examine the co-operative laws and recommendations on how to solve the problems of co-operative society.



1.0    Introduction

1.1       Background of The Study

1.2       Statement Of The Problems

1.3   Objective of the Study

1.4   Research Questions

1.5   Significance of the Study

1.6   Scope and the Delimitation of the Study

1.7   Definition of Terms


2.0    Literatures Review

2.1          Co-operative Law

2.2          How Co-operative Law Limits its Growth

2.3          Co-operative Law and the Courts

2.4          Members of Co-operative and Its Law

2.5          Contents of Co-operative Law

2.6          Eastern Nigeria co-operative Law of 1963.

2.7   Observation of 1993 Decree


3.0   Research Design and Methodology

3.1         Research Design

3.2         Area of the Study

3.3         Population of the Study

3.4         Sample Size Determination

3.5         Sources of Data

3.6         Method of Data Collection

3.7         Administration of Instrument

3.8        Method of Data Analysis


4.0         Data Presentation and Analysis

4.1         Presentation of Responses from Questionnaire

4.2         Interpretation of Data


5.0    Summary Of Findings, Conclusions And Recommendation

5.1      Summary Of Findings

5.2      Recommendation

5.3      Conclusion





Co-operative laws are legislative enactment aimed at regulating and directing the activities of the people in co-operative society and outside co-operative society laws is very vital in any organization, I doubt the existence of any organization without the law.  Law is respecter of no man whether rich or poor. L aw started as far back as the origin of man even the bible.  The fall of man in the biblical context is those that neglect the law as far back as the time of Noah and the Ark, and many people in the Bible up till date.


Co-operative law 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.


Law generally is seen as a legal enactment to guide the co-operative societies and other societies.  The law is meant to guide the affairs of any co-operative societies sometimes problems will arise.  But it is the duty of the director of co-operative society to appoint an arbitrator or go by himself to settle the disputes.  The directors will appoint an arbitrator to look upon the matter in other to settle the case amicably.   Co-operative should not go to court to settle their disputes because they are not a business enterprises that are dash off to court seeking for justice.  The reason for the exclusion of court is that court cases are expensive and time consuming and often create bitterness. If the co-operative societies go to court their capital will be clearned off and their capital and business suffers due to time constraints on issue not involving the co-operative business.  And so, court cases are deemed time wasting, expensive  and often create bad blood.  If co-operative should go to court their business may be brought to and end or half.


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.


The following were asked by the researcher duly the period of carrying the research work.

1.     What are the important of law in any society?

2.     Do the students in co-operative economic and management department recognize law?

3.     Do the co-operative members go to court when there is dispute in their midst?

4.     Who settle the dispute in co-operative society?

5.     What are the requirements needed to one to be members of cooperative society.


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.  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, pseudo 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.



According to OBODOECHI (2002, P. 26), 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)    Ethnical 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 coming together of two or more co-operative societies lawfully to create a new co-operative society by loosing their old identities and become a new co-operatives.


This 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 from co-operative society.


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.

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