Legal Affairs and Registration

Core mandate of legal affairs and registration unit are: Registration of cooperatives; Arbitrate /settle disputes /conflicts arising in Cooperatives and between members and their cooperatives and cooperatives and third parties; Provide legal and technical assistance /advice; Initiate Laws, amendments to Laws and regulations related to the cooperative sector; Initiate MoUs with Cooperative Development Partners.

1. Registration of Cooperatives

What is registration?

Registration of a Cooperative is the action or process of registering a cooperative by attributing a registration number or of being registered in registration book for Cooperatives.

When, How and where to register a Cooperative?

A cooperative is registered when it fulfills all legal requirements. The exercise is done online by the applicant him/herself through the Cooperative Management Information System (CMIS).

Requirements for a cooperative to be granted legal personality

  • to have bylaws + Internal regulations
  • to define its domain of activity and objectives;
  • to have the required number of founder members;
  • to have a certificate issued by the Sector in which it will operate indicating that the cooperative meets the requirements;
  • to have a business plan indicating:
  1. the intended business model;
  2. a clear outline of the economic and social benefits the cooperative provides to its members and those it will provide to them as
  3. of their collective effort through the cooperative;
  4. an action plan for at least the first three (3) years;
  5. to present its working capital to finance its activities.

Detailed steps to register a Cooperative:

  1. Cooperative applies for legal personality through the CMIS

  2. Sector Cooperative Officer (SCO) assesses the application and may decide to visit the cooperative. The sector has 5 days to approve the application.

  3. Once approved, the application is moved to the district. The District Cooperative Officer (DCO) assesses (review) and approves or rejects. He / She has to 2 to approve or reject the application the application.

  4. After district approval, the application is moved to RCA.

  5. RCA requests approval from BNR in case of SACCO’s application

  6. If RCA approves, legal personality is granted within two (2) working days.

  7. If application is rejected, It is sent back with comments for rectification  

2. Arbitration /settlement of disputes /conflicts

When and how RCA is seized with a dispute/conflict ?

Any dispute or conflict arising between cooperatives, between a cooperative and its current and past members or heirs of deceased members, between a cooperative and its debtors or creditors, any litigation and conflict related to the application of bylaws or to the activities of a cooperative which could not be settled by the Board of Directors or by the General Assembly are settled by the National Agency (RCA).

RCA is seized in writing.

Who can seize RCA for a conflict resolution?.

  1. A member or past members of a cooperative whose rights are violated

  2. A cooperative through its chairperson

  3. A third party (debtors, creditors, NGO, Government Institutions/agencies) who has interest in the Cooperative business.

Detailed steps to settle a case in cooperative:

  1. RCA receives a request from a cooperative, a member or a third party for arbitration or RCA identifies the need for arbitration

  2. RCA designates the staff for arbitration

  3. Designated Staff assesses the case submitted to RCA

  4. Designated Staff hears explanations of the incidence from concerned parties

  5. Designated Staff assesses explanations received and produces report indicating how the issue was solved.

  6. The report is submitted to Cooperative Leaders for implementation of the recommendations’ with copy to the Sector and District.

What kind of issues to handle?

  1. When considering disputes/conflicts, RCA assists Cooperative members and their leaders to differentiate issues to be channeled to the General Assembly from those to be channeled to other relevant organs such as Districts, Rwanda Cooperative Agency, Courts….

  2. Most of those issues are in connection with misinterpretation of the provisions of the Law, mismanagement of cooperative assets, ignorance of members’ rights, ignorance of members’ obligations, personal interests of Cooperative leaders and arbitrary dismissals of members and employees, embezzlement and dissolution/liquidation.

3. Providing legal and technical assistance /advice.

Who are the Beneficiaries of the legal/technical assistance?

  1. People wishing to form cooperatives (information is provided on how to establish a cooperative and manage it, all legal requirements and other relevant information given).

  2. some primary cooperatives wishing to transform themselves into Companies,

  3. some cooperatives wishing to dissolve/liquidate themselves

  4. Some cooperatives wishing to merge and form one cooperative.

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4. Initiating Laws, amendment to Laws and regulations related to the cooperative sector.

  1. The Law governing Cooperatives in Rwanda may be amended at the initiative of the RCA through its Registration and Legal Affairs Unit.

  2. Ministerial orders implementing the Cooperative Law are initiated by RCA through its Registration and Legal Affairs Unit.

  3. Regulations implementing the Cooperative Law are drafted by RCA through its Registration and Legal Affairs Unit.

5. Initiating MoUs with Cooperative Development Partners.

The objective of initiating a Memorandum of Understanding (MoU) between RCA and its Partners is to enhance a collaborative partnership between both Parties in the fields interesting both Parties, fields related to the Cooperative Sector, fields agreed upon in the mutual interests.