CAP. 313 COOPERATIVE SOCIETIES ACT BELIZE
CO-OPERATIVE SOCIETIES ACT
CHAPTER 313
REVISED EDITION 2000
SHOWING THE LAW AS AT 31ST DECEMBER, 2000
This is a revised edition of the law, prepared by the Law Revision Commissioner
under the authority of the Law Revision Act, Chapter 3 of the Laws of Belize,
Revised Edition 1980 - 1990.
This edition contains a consolidation of the following laws- Page
ARRANGEMENT OF SECTIONS 3
CO-OPERATIVE SOCIETIES ACT 8
Amendments in force as at 31st December, 2000.
BELIZE
CO-OPERATIVE SOCIETIES ACT
CHAPTER 313
REVISED EDITION 2000
SHOWING THE LAW AS AT 31ST DECEMBER, 2000
This is a revised edition of the law, prepared by the Law Revision Commissioner
under the authority of the Law Revision Act, Chapter 3 of the Laws of Belize,
Revised Edition 1980 - 1990.
This edition contains a consolidation of the following laws- Page
ARRANGEMENT OF SECTIONS 3
CO-OPERATIVE SOCIETIES ACT 8
Amendments in force as at 31st December, 2000.
THE SUBSTANTIVE LAWS OF BELIZE REVISED EDITION 2000
Printed by the Government Printer,
No. 1 Power Lane,
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the Government of Belize.
Co-operative Societies [CAP. 313
[ ]
3
CHAPTER 313
CO-OPERATIVE SOCIETIES
ARRANGEMENT OF SECTIONS
PART I
Preliminary
1. Short title.
2. Interpretation.
PART II
Registration
3. Appointment of Registrar and Assistant Registrars.
4. Societies which may be registered.
5. Conditions of registration.
6. Application for registration.
7. Registration.
8. Societies to be bodies corporate.
9. Evidence of registration.
PART III
Duties and Privileges of Societies
10. Amendment of the by-laws of a registered society.
11. Address of society.
12. Copy of Act, rules, by-laws, etc., to be open to inspection.
13. Disposal of produce to or through a registered society.
14. Creation of charge in favour of registered societies.
15. Charge and set off in respect of shares or interest of members.
16. Shares or interest not liable to attachment or sale.
17. Transfer of interest on death of member.
18. Deposits by or on behalf of infants.
19. Register of members.
20. Proof of entries in books of society.
PART IV
Rights and Liabilities of Members
21. Qualification for membership.
22. Members not to exercise rights until due payment made.
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23. Restriction of membership in society.
24. Votes of members.
25. Representation by proxy.
26. Contracts with society of members who are infants.
27. No individual to hold more than one-fifth of share capital of any
society.
28. Restrictions on transfer of share or interest.
29. Liability of past member and estate of deceased member for debts
of society.
PART V
Property and Funds of Registered Societies
30. Loans made by a registered society.
31. Deposits and loans received by a registered society.
32. Restrictions on other transactions with non-members.
33. Investment of funds.
34. Disposal of profits.
PART VI
Audit, Inspection and Inquiry
35. Audit.
36. Power of Registrar to inspect societies’ books, etc.
37. Inquiry and inspection.
PART VII
Dissolution
38. Dissolution.
39. Cancellation of registration of a society due to lack of membership.
40. Effect of cancellation of registration.
41. Liquidation after cancellation of registration of society.
42. Liquidator’s powers.
43. Power of Registrar to control liquidation.
44. Enforcement of order.
45. Closure of liquidation.
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PART VIII
Surcharge and Attachment
46. Power of Registrar to surcharge officers, etc., of a registered
society.
47. Appeals.
PART IX
Disputes
48. Settlement of disputes.
49. Case stated on question of law.
PART X
Rules
50. Rules.
PART XI
Miscellaneous
51. Disposal of fees.
52. Recovery of sums due to Government.
53. Powers to exempt any society from requirements as to registration.
54. Power to exempt societies from provisions of Act.
55. Power to exempt from stamp duty and registration fees.
56. Prohibition of the use of the word “Co-operative”.
57. Penalty for non-compliance with Act.
58. Appeal Board.
CHAPTER 313
CO-OPERATIVE SOCIETIES
[1st June, 1948]
PART I
Preliminary
1. This Act may be cited as the Co-operative Societies Act.
2. In this Act, unless the context otherwise requires-
“bonus” means a share of the profits of a registered society divided among its
members in proportion to the volume of business done with the society by
them from which the profits of the society were derived;
“by-laws” means the registered by-laws made by a society in the exercise of
any power conferred by this Act, and includes a registered amendment of the
by-laws;
“committee” means the governing body of a registered society to whom the
management of its affairs is entrusted;
Ch. 101,
R.L., 1958.
CAP. 246,
R.E. 1980-1990.
40 of 1963.
Short title.
Interpretation.
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“dividend” means a share of the profits of a registered society divided among its
members in proportion to the share capital held by them;
“member” includes a person or registered society joining in the application for
the registration of a society, and a person or registered society admitted to
membership after registration in accordance with the by-laws;
“officer” includes a chairman, secretary, treasurer, member of committee, or
other person empowered under the rules or by-laws to give directions in regard
to the business of a registered society;
“registered society” means a co-operative society registered under this Act;
“Registrar” means the Registrar of Co-operative Societies appointed under
section 3 and includes any person when exercising such powers of the Registrar
as may have been conferred upon him under that section;
“rules” means rules made under this Act.
PART II
Registration
3. The Governor-General may appoint a person to be Registrar of Co-
operative Societies for Belize and the Public Services Commission may ap-
point persons to assist such Registrar, and may, by general or special Order
published in the Gazette, confer on any such persons all or any of the powers
of a Registrar under this Act.
4. Subject to the provisions hereinafter contained, a society which has as
its object the promotion of the economic interests of its members in accordance
with co-operative principles, or a society established with the object of facilitating
the operations of such a society, may be registered under this Act with or without
limited liability as the Registrar may decide, but the liability of a society which
Appointment of
Registrar and
Assistant
Registrars.
Societies which
may be
registered.
includes one or more registered society among its members shall be limited.
5.-(1) No society, other than a society of which a member is a registered
society, shall be registered under this Act, which does not consist of at least
ten persons each of whom is qualified under section 21 for membership under
this Act.
(2) The word “co-operative” or its vernacular equivalent shall form part
of the name of every society registered under this Act.
(3) The word “limited” or its vernacular equivalent shall be the last word
in the name of every society with limited liability registered under this Act.
(4) When for the purposes of this section any question arises as to age,
residence, or occupation of land constituting the qualification of any person,
that question shall be decided by the Registrar.
6.-(1) For the purposes of registration an application shall be made to the
Registrar.
(2) The application shall be signed-
(a) in the case of a society of which no member is a registered
society, by at least ten persons qualified in accordance with
the requirements of section 5 (1); and
(b) in the case of a society of which one or more members is a
registered society, by a duly authorised person on behalf of
every such registered society and, where all the members of
the society are not registered societies, by ten other members,
or, when there are less than ten other members, by all of them.
7.-(1) If the Registrar is satisfied that a society has complied with this Act
and the rules, and that its proposed by-laws are not contrary to this Act or to
Application for
registration.
Registration.
Conditions of
registration.
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the rules, he may, if he thinks fit, register the society and its by-laws.
(2) On registration the society shall pay such fee as may be required by the
rules.
8. The registration of a society shall render it a body corporate by the
name under which it is registered, with perpetual succession and with power to
hold property, to enter into contracts, to institute and defend suits and other
legal proceedings, and to do all things necessary for the purpose of its constitution.
9. A certificate of registration signed by the Registrar shall be conclusive
evidence that the society therein mentioned is duly registered, unless it is proved
that the registration of the society has been cancelled.
PART III
Duties and Privileges of Societies
10.-(1) Any registered society may, subject to this Act and the rules, amend its
by-laws, including the by-law which declares the name of the society.
(2) No amendment of the by-laws of a registered society shall be valid until
that amendment has been registered under this Act, for which purpose copies
of the amendment shall be forwarded to the Registrar.
(3) If the Registrar is satisfied that any amendment of the by-laws is not
contrary to this Act or to the rules, he may, if he thinks fit, register the amend-
ment.
(4) An amendment which changes the name of a society shall not affect any
right or obligation of the society or of any of its members or past members, and
any legal proceedings pending may be continued by or against the society under
its new name.
Societies to be
bodies
corporate.
Evidence of
registration.
Amendment of
the by-laws of a
registered
society.
(5) When the Registrar registers an amendment of the by-laws of a regis-
tered society, he shall issue to the society a copy of the amendment certified
by him, which shall be conclusive evidence of the fact that the amendment has
been duly registered.
(6) In this section, “amendment” includes the making of a new by-law and
the variation or rescission of a by-law.
11. Every registered society shall have an address, registered in accordance
with the rules, to which all notices and communications may be sent, and shall
send to the Registrar notice of every change of that address.
12. Every registered society shall keep a copy of this Act and of the rules
and of its by-laws and a list of its members open to inspection by members,
free of charge, at all reasonable times at the registered address of the society.
13.-(1) A registered society which has as one of its objects the disposal of any
article produced or obtained by the work or industry of its members whether
the produce of agriculture, animal husbandry, forestry, fisheries, handicrafts or
otherwise may provide in its by-laws or may otherwise contract with its mem-
bers-
(a) that every such member who produces any such article shall
dispose of the whole or any specified amount, proportion or
description thereof, to or through the society; and
(b) that any member who is proved or adjudged, in such
manner as may be prescribed by the rules, to be guilty of a
breach of the by-laws or contract shall pay to the society as
liquidated damages a sum ascertained or assessed in such
manner as may be prescribed by the aforesaid rules.
(2) No contract entered into under this section shall be contested in any
court on the ground only that it constitutes a contract in restraint of trade.
Address of
society.
Copy of Act, rules,
by-laws, etc., to be
open to inspection.
Disposal of
produce to or
through a
registered society.
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14. Subject to any prior claim of the Government on the property of the
debtor and to the lien or claim of a landlord in respect of rent or any money
recoverable as rent and in the case of real property to any prior registered
charge thereon-
(a) any debt or outstanding demand payable to a registered soci-
ety by any member or past member shall be a first charge on all
crops or other agricultural produce, felled timber or other for-
est produce, marine produce, fish, fresh-water and salt-water,
livestock, fodder, agricultural, industrial and fishing implements,
plant, machinery, boats, tackle and nets, raw materials, stock
in trade and generally all produce of labour and things used in
connection with production, raised, purchased or produced
in whole or in part from any loan whether in money or in goods
given him by the society, but nothing herein contained shall af-
fect the claim of any bona fide purchaser or transferee without
notice;
(b) any outstanding demands or dues payable to a registered housing
society by any member or past member in respect of rent,
shares, loans or purchase money or any other rights or amounts
payable to such society shall be a first charge upon his interest
in the real property of the society.
15. A registered society shall have a charge upon the shares or interests in
the capital and on the deposits of a member or past member or deceased
member and upon any dividend, bonus, or profits payable to a member or past
member or to the estate of a deceased member in respect of any debt due to
the society from such member or past member or estate, and may set off any
sum credited or payable to a member or past member or estate of a deceased
member in or towards payment of any such debt.
16. Subject to section 15, the share or interest of a member in the capital of
a registered society shall not be liable to attachment or sale under any decree or
Charge and set
off in respect of
shares or
interest of
members.
Shares or
interest not
liable to
Creation of
charge in favour
of registered
societies.
order of a court in respect of any debt or liability incurred by such member,
and neither his assignee in insolvency nor a receiver duly appointed shall be
entitled to, or have any claim on, such share or interest.
17.-(1) On the death of a member, a registered society may transfer the share
or interest of the deceased member to the person nominated in accordance
with the rules made in this behalf, or, if there is no person so nominated, to
such persons as may appear to the committee to be the legal representative of
the deceased member, or may pay to such nominee, or legal representative, as
the case may be, a sum representing the value of such member’s share or
interest, as ascertained in accordance with the rules or by-laws, but-
(a) in the case of a society with unlimited liability such nominee,
or legal representative, as the case may be, may require pay-
ment by the society of the value of the share or interest of the
deceased member ascertained as aforesaid;
(b) in the case of a society with limited liability, the society may
transfer the share or interest of the deceased member to such
nominee, or legal representative, as the case may be, being
qualified in accordance with the rules and by-laws for mem-
bership of the society, or on his application within six months
of the death of the deceased member to any person specified
in the application who is so qualified.
(2) A registered society shall pay all other moneys due to the deceased
member from the society to such nominee, or legal representative, as the case
may be.
(3) All transfers and payments made by a registered society in accordance
with this section shall be valid and effectual against any demand made upon
the society by any other person.
18.-(1) A registered society may receive deposits from or for the benefit of
Transfer of
interest on death
of member.
Deposits by or on
behalf of infants.
attachment or sale.
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infants and it shall be lawful for a registered society to pay such infants the
interest which may become due on such deposits.
(2) Any deposits made by an infant may, together with the interest accrued
thereon, be paid to that infant, and any deposits made on behalf of an infant
may, together with the interest accrued thereon, be paid to the guardian of that
infant for the use of the infant.
(3) The receipt of any infant or guardian for money paid to him under this
section shall be a sufficient discharge of the liability of the society in respect of
that money.
19. Any register or list of members kept by any registered society shall be
sufficient evidence of any of the following particulars entered therein unless the
contrary is shown-
(a) the date at which the name of any person was entered in such
register or list as a member;
(b) the date at which any such person ceased to be a member.
20.-(1) A copy of any entry in a book of a registered society regularly kept in
the course of business shall, if certified in such manner as may be prescribed by
the rules, be received in any legal proceeding, civil or criminal, as prima facie
evidence of the existence of such entry and shall be admitted as evidence of the
matters, transactions and accounts therein recorded in every case where, and
to the same extent as, the original entry itself is admissible.
(2) No officer of any society as mentioned in subsection (1) shall, in any
legal proceedings to which the society is not a party, be compelled to produce
any of the society’s books, the contents of which can be proved under subsection
(1) or to appear as a witness to prove any matters, transactions or accounts
therein recorded, unless the court for special reasons so directs.
Register of
members.
Proof of entries
in books of
society.
PART IV
Rights and Liabilities of Members
21. In order to be qualified for membership of a co-operative society a
person, other than a registered society, shall-
(a) have attained the age of eighteen years;
(b) be resident within or in occupation of land within the society’s
area of operations as described by the by-laws.
22. No member of a registered society shall exercise the rights of a member
unless or until he has made such payment to the society in respect of membership
or acquired such interest in the society, as may be prescribed by the rules or
by-laws.
23. Except with the sanction of the Registrar, no person shall be a member
of more than one registered society whose primary object is to grant loans to
its members.
24. No member of any registered society shall have more than one vote in
the conduct of the affairs of the society, but-
(a) in the case of an equality of votes the chairman shall have a
casting vote; and
(b) in the case of societies of which a registered society is a mem-
ber that society may have such voting powers as are provided
in the rules.
25. A registered society which is a member of any other registered society
may appoint any one of its members as its proxy for the purpose of voting in
the conduct of the affairs of such other registered society.
Qualification for
membership.
Members not to
exercise rights
until due payment
made.
Restriction of
membership in
society.
Votes of members.
Representation by
proxy.
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26.-(1) The infancy or non-age of any person duly admitted as a member of
any registered society shall not debar that person from executing any instru-
ment or giving any acquittance necessary to be executed or given under this Act
or the rules and shall not be a ground for invalidating or avoiding any contract
entered into by any such person with the society.
(2) Any such contract entered into by any such person with the society,
whether as principal or as surety, shall be enforceable at law or in equity against
such person notwithstanding his minority or non-age.
27. No member, other than a registered society, shall hold more than one-
fifth of the share capital of any co-operative society.
28.-(1) The transfer or charge of the share or interest of a member or past
member or deceased member in the capital of a registered society shall be
subject to such conditions as to maximum holding as may be prescribed by this
Act or by the rules.
(2) In the case of a society registered with unlimited liability, a member
shall not transfer any share held by him or his interest in the capital of the society
or any part thereof, unless-
(a) he has held such share or interest for not less than one year;
and
(b) the transfer or charge is made to the society, or to a member
of the society, or to a person whose application for member-
ship has been accepted by the committee.
Contracts with
society of
members who
are infants.
No individual to
hold more than
one-fifth of
share capital of
any society.
Restrictions on
transfer of share
or interest.
29.-(1) The liability of a past member for the debts of a registered society as
they existed on the date on which he ceased to be a member shall not continue
for a period of more than two years reckoned from that date.
(2) The estate of a deceased member shall not be liable for the debts of
the society as they existed on the date of his decease for a period of more than
two years reckoned from the date of his decease.
PART V
Property and Funds of Registered Societies
30.-(1) A registered society shall not, except as provided in section 33, make
any loan to any person other than a member, but with the consent of the
Registrar, a registered society may make loans to another registered society.
(2) Except with the permission of the Registrar, a registered society shall
not lend money on the security of any personal property other than produce or
goods in which the society is authorised to deal.
(3) The Minister may, by general or special order, prohibit or restrict the
lending of money on mortgage of any description of real property by any
registered society.
31. A registered society shall receive deposits and loans from persons
who are not members only to such extent and under such conditions as may
be prescribed by the rules or by-laws.
32. Except as provided in sections 30 and 31, the transactions of a
registered society with persons other than members shall be subject to such
prohibitions and restrictions as may be prescribed by the rules.
Loans made by a
registered society.
Liability of past
member and
estate of
deceased
member for debts
of society.
40 of 1963.
Deposits and
loans received by
a registered
society.
Restrictions on
other transactions
with non-
members.
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33. A registered society may invest or deposit its funds-
(a) in the Government Savings Bank, or with any bank or
person carrying on the business of banking approved for
this purpose by the Registrar; or
(b) in any securities issued or guaranteed by a Government
under the British Crown; or
(c) with any other registered society approved for this purpose
by the Registrar; or
(d) in any other mode approved by the Registrar.
34.-(1) At least one-fourth of the net profits of every registered society, as
ascertained by the audit prescribed by section 35, shall be carried to a fund to
be called the reserve fund, which shall be employed as prescribed by the rules.
(2) Subject to subsection (3), the remainder of such profits and any profits
of past years available for distribution may be divided among the members by
way of dividend or bonus, or allocated to any funds constituted by the society,
to such extent or under such conditions as may be prescribed by the rules or
by-laws.
(3) Subsection (2) shall not apply in the case of a society with unlimited
liability, no distribution of profits shall be made without the general or special
order of the Minister.
(4) Any registered society may, with the sanction of the Registrar, after
one-fourth of the net profits in any year has been carried to a reserve fund,
contribute an amount not exceeding ten per centum of the remaining net prof-
its to any local charitable purpose or to a common-good fund in Belize.
Investment of
funds.
Disposal of
profits.
PART VI
Audit, Inspection and Inquiry
35.-(1) The Registrar shall audit or cause to be audited, by some person
authorised by him by general or special order in writing, the accounts of every
registered society once at least in every year.
(2) The audit under subsection (1) shall include an examination of overdue
debts, if any, and a valuation of the assets and liabilities of the registered society.
(3) The Registrar and every other person appointed to audit the accounts
of a society shall have power when necessary-
(a) to summon at the time of his audit any officer, agent, servant
or member of the society whom he has reason to believe
can give material information in regard to any transactions of
the society or the management of its affairs; or
(b) to require the production of any book or document relating
to the affairs of, or any cash or securities belonging to the
society, by the officer, agent, servant or member in possession
of such book, document, cash or securities.
36.-(1) The Registrar, or any person authorised by general or special order in
writing by the Registrar, shall at all times have access to all the books, accounts,
papers and securities of a registered society, and shall be entitled to inspect
the cash in hand.
(2) Every officer of the society shall furnish such information in regard to
the transactions and working of the society as the person making the inspec-
tion may require.
Audit.
Power of Registrar
to inspect
societies’ books,
etc.
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37.-(1) The Registrar may of his own motion, and shall on the application of a
majority of the committee, or of not less than one-third of the members of a
registered society, hold an inquiry or direct some person authorised by him by
order in writing in this behalf to hold an inquiry into the constitution, working,
and financial condition of a registered society.
(2) All officers and members of the society shall furnish such information in
regard to the affairs of the society and produce the cash in hand and such
books, accounts, papers and securities of the society as the Registrar or the
person authorised by him may require.
(3) The Registrar shall, on the application of a creditor of the registered
society, inspect or direct some person authorised by him in writing in this behalf
to inspect the books of the society, if the applicant-
(a) proves that an ascertained sum of money is then due to him
and that he has demanded payment thereof and has not
received satisfaction within a reasonable time; and
(b) deposits with the Registrar such sum as security for the costs
of the proposed inspection as the Registrar may require.
(4) The Registrar shall communicate the results of any such inspection to
the creditor and to the society into whose affairs the inquiry has been made.
(5) Where an inquiry is held under subsection (1) or an inspection is made
under subsection (3), the Registrar may apportion the costs or such part of the
costs, as he may think right, between the registered society, the members
demanding an inquiry, the officers or former officers of the society, and the
creditor, if any, on whose application the inquiry was made.
(6) Any sum awarded by way of costs against any society or person under
this section may be recovered, on application to a magistrate’s court having
jurisdiction in the place where the registered office of the society is situated or
Inquiry and
inspection.
the person resides or carries on business for the time being, in like manner as
is provided for the recovery of costs ordered to be paid by the court.
PART VII
Dissolution
38.-(1) If the Registrar, after holding an inquiry or making an inspection under
section 37 or on receipt of an application made by three-fourths of the members
of a registered society, is of opinion that the society ought to be dissolved, he
may make an order for the cancellation of the registration of the society.
(2) Any member of a registered society may, within two months from the
date of an order under subsection (1), appeal from such order.
(3) Where no appeal is presented within two months from the making of
an order cancelling the registration of a society, the order shall take effect on
the expiry of that period, but where an appeal is presented within two months,
the order shall not take effect until it is confirmed.
(4) Where the Registrar makes an order for the cancellation of the
registration of a society under subsection (1), he may make such further order
as he may think fit for the custody of the books and documents and the
protection of the assets of the society until the order cancelling registration
takes effect.
(5) No registered society shall be wound up except by an order of the
Registrar.
39. The Registrar may, by order in writing, cancel the registration of any
registered society other than a society which includes among its members one
or more registered societies, if at any time it is proved to his satisfaction that
the number of the members has been reduced to less than ten, and every such
order shall take effect from the date thereof.
Dissolution.
Cancellation of
registration of a
society due to lack
of membership.
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40. Where the registration of a society is cancelled by an order under sec-
tion 38 or section 39, the society shall cease to exist as a corporate body from
the date on which the order takes effect, hereinafter referred to as the date of
dissolution, but any privileges conferred on the society by or under sections 14,
15, 16 and 17 shall be deemed to be vested in any liquidator appointed for that
society by the Registrar.
41. Where the registration of a society is cancelled under section 38 or 39,
the Registrar may appoint one or more persons to be, subject to his direction
and control, the liquidator or liquidators of the society.
42.-(1) A liquidator appointed under section 41 shall, subject to the guidance
and control of the Registrar and to any limitations imposed by the Registrar by
order under section 43 have power to-
(a) determine from time to time the contribution to be made by
members and past members or by the estates of deceased
members of the society to its assets;
(b) appoint a day by notice before which creditors whose claims
are not already recorded in the books of the society shall state
their claims for admission or be excluded from any distribution
made before they have proved them;
(c) decide any question of priority which arises between creditors;
(d) refer disputes to arbitration and institute and defend suits and
other legal proceedings on behalf of the society by his name or
office;
(e) decide by what persons and in what proportions the costs of
liquidation are to be borne;
Effect of
cancellation of
registration.
Liquidation after
cancellation of
registration of
society.
Liquidator’s
powers.
(f) give such directions in regard to the collection and distribution
of assets as may be necessary in the course of winding up the
society;
(g) compromise any claim by or against the society provided the
sanction of the Registrar has been first obtained;
(h) call such general meetings of members as may be necessary
for the proper conduct of the liquidation;
(i) take possession of the books, documents and assets of the
society;
(j) sell the property of the society;
(k) carry on the business of the society so far as may be necessary
for winding it up beneficially, but nothing herein contained shall
entitle the liquidator of a credit society, to issue any loan; and
(l) arrange for the distribution of the assets of the society in a
convenient manner when a scheme of distribution has been
approved by the Registrar.
(2) Subject to such rules as may be made in this behalf, any liquidator
appointed under this Act shall in so far as such powers are necessary for
carrying out the purposes of this section, have power to summon and enforce
the attendance of parties and witnesses and to compel the production of
documents by the same means and, so far as may be, in the manner as is
provided in the case of a civil court.
43. A liquidator shall exercise his powers subject to the control and revi-
sion of the Registrar, who may-
Power of Registrar
to control
liquidation.
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Belmopan, by the authority of
the Government of Belize.
Co-operative Societies [CAP. 313
[ ]
25
(a) rescind or vary any order made by a liquidator and make
whatever new order is required;
(b) remove a liquidator from office;
(c) call for all books, documents and assets of the society;
(d) by order in writing limit the powers of a liquidator under section
42;
(e) require accounts to be rendered to him by the liquidator;
(f) procure the auditing of the liquidator’s accounts and authorise
the distribution of the assets of the society;
(g) make an order for the remuneration of the liquidator; or
(h) refer any subject of dispute between a liquidator and any third
party to arbitration if that party has consented in writing to be
bound by the decision of the arbitrator.
44.-(1) The decision of an arbitrator on any matter referred to him under sec-
tion 43 shall be binding upon the parties, and shall be enforceable in like manner
as an order made by the Registrar under that section.
(2) An order made by a liquidator or by the Registrar under section 42 or
43 shall be enforced by any civil court having jurisdiction over the place where
the registered office of the society is situated in like manner as a decree of that
court.
45.-(1) In the liquidation of a society whose registration has been cancelled,
the funds, including the reserve fund, shall be applied first to the costs of liqui-
dation, then to the discharge of the liabilities of the society, then to the payment
of the share capital and then, where the by-laws of the society permit, to the
Enforcement of
order.
Closure of
liquidation.
payment of a dividend at a rate not exceeding ten per centum per annum for
any period for which no disposal of profits was made.
(2) When the liquidation of a society has been closed and any creditor of
that society has not claimed or received what is due to him under the scheme
of distribution, notice of the closing of the liquidation shall be published in the
Gazette, and all claims against the funds of the society liquidated shall be
prescribed when two years have elapsed from the date of the publication of
the Gazette notice.
(3) Any surplus remaining after the application of the funds to the purposes
specified in subsection (1) and the payment of any claims for which an action
is instituted under subsection (2) shall be disposed of by the Minister for any
local co-operative or charitable purpose or contributed to a common-good
fund in Belize.
PART VIII
Surcharge and Attachment
46.-(1) Where, in the course of the winding up of a registered society, it appears
that any person who has taken part in the organisation or management of such
society or any past or present officer of the society has misapplied or retained
or become liable or accountable for any money or property of such society or
has been guilty of misfeasance or breach of trust in relation to such society, the
Registrar may, on the application of the liquidator or of any creditor or
contributory, examine into the conduct of such person and make an order
requiring him to repay or restore the money or property or any part thereof
with interest at such rate not exceeding ten per centum per annum as the
Registrar thinks just or to contribute such sum to the assets of such society by
way of compensation in regard to the misapplication, retainer, dishonesty or
breach of trust as the Registrar thinks just.
(2) This section shall apply notwithstanding that the act is one for which
40 of 1963.
Power of Registrar
to surcharge
officers, etc., of a
registered society.
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No. 1 Power Lane,
Belmopan, by the authority of
the Government of Belize.
Co-operative Societies [CAP. 313
[ ]
27
the offender may be criminally responsible.
47. Any person aggrieved by any order of the Registrar made under sec-
tion 46 may appeal within twenty-one days from the date of such order.
PART IX
Disputes
48.-(1) If any dispute touching the business of a registered society arises-
(a) among members, past members and persons claiming through
members, past members and deceased members; or
(b) between a member, past member, or person claiming through
a member, past member or deceased member, and the society,
its committee, or any officer of the society; or
(c) between the society or its committee and any officer of the
society; or
(d) between the society and any other registered society,
such dispute shall be referred to the Registrar for decision.
(2) A claim by a registered society for any debt or demand due to it from a
member, past member or the nominee or legal representative of a deceased
member, shall be deemed to be a dispute touching the business of the society
within the meaning of this subsection.
(3) The Registrar may, on receipt of a reference under subsection (1)-
(a) decide the dispute himself; or
Appeals.
Settlement of
disputes.
(b) refer it for disposal to an arbitrator or arbitrators.
(4) Any party aggrieved by the award of the arbitrator or arbitrators may
appeal therefrom to the Registrar within such period and in such manner as
may be prescribed.
(5) The award of the arbitrator or arbitrators under subsection (3) shall
be enforced in the same manner as if the award had been a judgment of a civil
court.
49.-(1) The Registrar at any time when proceeding to a decision under this
Act, or the Appeal Board at any time when an appeal has been preferred to
them against any decision of the Registrar under this Act, may refer any question
of law arising out of such decision for the opinion of the Supreme Court.
(2) The court shall consider and determine any question of law referred
under subsection (1) and the opinion given on such question shall be final
and conclusive.
PART X
Rules
50.-(1) The Minister may make all such rules as may be necessary for the
purpose of carrying out or giving effect to the principles and provisions of
this Act.
(2) In particular and without prejudice to the generality of the power
conferred by subsection (1), such rules may-
(a) prescribe the forms to be used and the conditions to be
complied with in applying for the registration of a society and
the procedure in the matter of such applications;
(b) prescribe the conditions to be complied with by persons
Case stated on
question of law.
Rules.
40 of 1963.
,
No. 1 Power Lane,
Belmopan, by the authority of
the Government of Belize.
Co-operative Societies [CAP. 313
[ ]
29
applying for admission or admitted as members and provide
for the election and admission of members from time to time,
and the payment to be made and interest to be acquired before
exercising rights of membership;
(c) subject to the provisions of section 27, prescribe the maximum
number of shares or portion of the capital of a registered
society which may be held by a member;
(d) prescribe the extent to which a registered society may limit
the number of its members;
(e) provide for the withdrawal and expulsion of members and for
the payments to be made to members who withdraw or are
expelled, and for the liabilities of past members;
(f) provide for general meetings of the members and for the
procedure at such meetings and the powers to be exercised
by such meetings;
(g) provide for the appointment, suspension and removal of the
members of the committee and other officers, and for the
procedure at meetings of the committee, and for the powers
to be exercised and the duties to be performed by the com-
mittee and other officers;
(h) prescribe the matters in respect of which a society may or shall
make by-laws and for the procedure to be followed in making,
altering and rescinding by-laws, and the conditions to be
satisfied prior to such making, alteration or rescission;
(i) regulate the manner in which funds may be raised by means of
shares or debentures or otherwise;
(j) prescribe the conditions to be observed by a registered soci
ety applying for financial assistance from Government;
(k) prescribe the payments to be made, the conditions to be
complied with, and the forms of the bonds, instruments or
other documents to be executed, by members applying for
loans or cash credits, the period for which loans may be made
or credits granted, and the maximum amount which may be
lent and the maximum credit which may be allowed to individual
members with or without the consent of the Registrar;
(l) provide for the mode in which the value of a deceased
member’s interest shall be ascertained, and for the nomination
of a person to whom such interest may be paid or transferred;
(m) provide for the mode in which the value of the interest of a
member who has become of unsound mind and incapable of
managing himself or his affairs shall be ascertained and for the
nomination of any person to whom such interest may be paid
or transferred;
(n) provide for the formation and the maintenance of reserve funds,
and the objects to which such funds may be applied, and for
the investment of any funds under the control of any registered
society;
(o) prescribe the conditions under which profits may be distributed
to the members of a society with unlimited liability and the
maximum rate of dividends which may be paid by societies;
(p) prescribe the accounts and books to be kept by a registered
society, and for the periodical publication of a balance sheet
showing the assets and liabilities of a registered society;
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No. 1 Power Lane,
Belmopan, by the authority of
the Government of Belize.
Co-operative Societies [CAP. 313
[ ]
31
(q) provide for the audit of the accounts of registered societies
and for the charges, if any, to be made for such audit and
provide for the levy of contributions from all or any registered
societies to a fund to be used for the audit and supervision of
existing societies and co-operative propaganda and prescribe
for the administration of such a fund;
(r) prescribe the returns to be submitted by registered societies
to the Registrar, and the persons by whom and the form in
which the same are to be made;
(s) provide for the persons by whom, and the form in which, copies
of entries in books of registered societies may be certified;
(t) provide for the formation and maintenance of a register of
members and, where the liability of members is limited by
shares, of a register of shares;
(u) provide for the inspection of documents and registers at the
Registrar’s Office and the fees to be paid therefor and for the
issue of copies of such documents or registers;
(v) prescribe the manner in which any question as to the breach of
any by-law or contract relating to the disposal of produce to or
through a society, may be determined, and the manner in which
the liquidated damages for any such breach may be ascertained
or assessed;
(w) prescribe the mode of appointing an arbitrator or arbitrators
and the procedure to be followed in proceedings before the
Registrar or such arbitrator or arbitrators;
(x) prescribe the procedure to be followed by a liquidator appointed
under section 41 and the cases in which appeals shall lie from
the orders of such liquidator;
(y) prescribe the forms to be used, the fees to be paid, the pro-
cedure to be observed and all other matters connected with
or incidental to the presentation, hearing and disposal of
appeals under this Act or the rules.
(3) All rules made and fees prescribed under this section shall be subject
to the approval of the National Assembly.
PART XI
Miscellaneous
51. All fees received by the Registrar under or by virtue of this Act shall
be paid by him into the Treasury and form part of the Consolidated Revenue
Fund.
52.-(1) All sums due from a registered society or from an officer or member
or past member of a registered society as such to the Government may be
recovered in the manner provided for the recovery of debts due to the Gov-
ernment under the law for the time being in force.
(2) Sums due from a registered society to the Government and recover-
able under subsection (1) may be recovered-
(a) from the property of the society;
(b) in the case of a society of which the liability of members is
limited, from the members subject to the limit of their
liability; and
(c) in the case of other societies, from the members.
Disposal of fees.
Recovery of sums
due to
Government.
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No. 1 Power Lane,
Belmopan, by the authority of
the Government of Belize.
Co-operative Societies [CAP. 313
[ ]
33
53. Notwithstanding anything contained in this Act the Minister may by
special order in each case and subject to such conditions as he may impose,
exempt any society from any of the requirements of this Act as to registration.
54. The Minister may by special or general order exempt any registered
society or class of societies from any of the provisions of this Act, or may direct
that such provisions shall apply to any society or class of societies with effect
from such date or with such modifications as may be specified in the order.
55-(1) The Minister by notification in the Gazette may in the case of any reg-
istered society or class of registered societies, remit-
(a) the stamp duty with which, under any law for the time being in
force, instruments executed by or on behalf of a registered
society, or by an officer or member, and relating to the busi-
ness of such society, or any class of such instruments, are
respectively chargeable; or
(b) any fee payable for registration under any law for the time be-
ing in force.
(2) A notification exempting any registered society from the fees referred
to in subsection (1) (b) may provide for the withdrawal of such exemption.
56.-(1) No person other than a registered society shall trade or carry on busi-
ness under any name or title of which the word “Co-operative” is part without
the sanction of the Minister, but nothing in this section shall apply to the use by
any person or his successor in interest of any name or title under which he
traded or carried on business at the commencement of this Act.
(2) Any person who contravenes this section commits an offence and is
liable on summary conviction to a fine not exceeding one hundred dollars, and
Powers to
exempt any
society from
requirements as
to registration.
40 of 1963.
Power to exempt
societies from
provisions of
Act.
Power to exempt
from stamp duty
and registration
fees.
Prohibition of
the use of the
word “Co-
operative”.
40 of 1963.
in the case of a continuing offence to a further fine not exceeding ten dollars for
each day during which the offence continues.
57.-(1) Any registered society or any officer or a member thereof, who wilfully
neglects or refuses to do any act or to furnish any information required for the
purposes of this Act by the Registrar or other persons duly authorised by him
in that behalf, commits an offence.
(2) Any person who wilfully or without any reasonable excuse disobeys
any summons, requisition or lawful written order issued under this Act, or who
fails to furnish any information lawfully required from him by a person authorised
to do so under this Act, commits an offence.
(3) Every offence referred to in this section shall be punishable on summary
conviction with a fine not exceeding four hundred dollars.
58. For the purposes of this Act there shall be constituted an Appeal Board
consisting of a chairman and two other persons appointed by the Minister to
which any party aggrieved by any order or decision of the Registrar may,
within twenty-one days from the date of such order or decision where no
other period is otherwise prescribed, appeal therefrom, and the decision of
the Appeal Board shall be final.
Penalty for non-
compliance with
Act
Appeal Board.
40 of 1963.
