MUSCCO BY - LAWS

MUSCCO A national democratically controlled apex body for Savings and Credit Cooperatives (SACCOs) in Malawi. It was established on 15th September 1980 to promote, service and support the development of SACCOs in Malawi.

MUSCCO Mission Statement “To faciliate and promote on sustainable basis , the growth and development of Savings and credit Cooperatives (SACCOs) through the provision of a diversified range of financial, technical, administrative and other support services and products”. MUSCCO Vision ‘To be a leading Financial Cooperative Development Centre of Excellence in Malawi’

In line with the vision and statement, MUSCCO; Supports the ability of SACCOs to develop and introduce products and services that correspond to the needs of their members. Provides access to technical assistance and financial resources needed to support growth and expansion through out the system. Set standards for practice among various types of SACCOs.

Represents the interests of membership with the government and with other relevant organizations, both in Malawi and externally. Operates as a strong, vocal advocate of cooperative approaches to the management and delivery of financial services and products.

MUSCCO Programs and Services 1. Finance a. Central Finance Facility Capital Mobilization A variety of Deposits instruments and loan products b. Accounting Function Financial Recording and Analysis

Programs & Services 2. Insurance (Sacco Financial protection Plan (SFPP) Life Savings and Loan Protection Policies Funeral Cover .3. Risk Management and Internal Security Inspection and Investigation Examination ( Offsite and Onsite) Audit ( Internal and Financial Statements)

Programmes & Services 4. Business Development SACCO Capacity Building IT support services Lobbying and Advocacy Marketing and Publicity Projects Management Coaching, mentoring and placement services

Governance Structure Elected GENERAL ASSEMBLY 15 CHAPTER DELEGATES National Board of Directors (5) SACCOS 15 CHAPTER DELEGATES 3 CHAPTERS Elected 3 External Technical members 9 9

Eligibilty for Membership SACCO must abide to applicable laws and regulations Cooperative Society Act 1998 Financial Cooperative Act 2011 Internationl Cooperative Principles MUSCCO By laws Demonstrate financial and prudential operating standards – Due Diligence Include but not limited Minimum Shares Capital of MK 2 million Minimum membership of 300 for payroll based and 500 for Community based SACCO. Annual Subscriptiob fees ( MUSCCO Dues) Acceptable Governance & Management profile

Eligibilty for Membership Participate in SACCO Financial Protection Plan (Insurance Program) Hold accounts in Central Finance Facility

APPLICATION AND ADMISSION A copy of a registration certificate and license Approved SACCO by laws A copy of the SACCO’s latest audited financial statements A copy of the SACCO’s operating policies such as Lending and Investment policy. A profile of the SACCO directors and senior members of staff. Proof of payment of a non refundable affiliation fee as may be determined from time to time.

CESSATION OF MEMBERSHIP Failure to pay annual dues; Failure to service a loan(s) obtained from MUSCCO Central Finance as per agreement. Cancellation of the SACCO's registration by the Registrar of Co-operatives; Withdrawal of a license by the Registrar of Financial Institutions By resolution of the Annual general Meeting and upon giving MUSCCO a written notice of not less than ninety days of the intention to withdraw. Gross violation of any and/or all of the provisions of these bylaws. Loss of Chapter membership.

CHAPTERS The mandate of Chapter is to provide a forum for an exchange of information and experiences to foster growth and development of SACCOs. Chapters shall comprise SACCOs that are affiliated to MUSCCO There shall be 3 Chapters across the country following the three regional geographical boundaries. Every SACCO affiliated to MUSCCO shall belong to a Chapter. Every Chapter shall be represented on MUSCCO Board subject to these by laws.

ANNUAL GENERAL MEETINGS The supreme authority of MUSCCO is vested in the Annual General Meetings At least 25% of the affiliate SACCOs and/or a simple majority of the Chapters must be present to form a quorum for the MUSCCO Annual General Meeting. Each Chapter shall send five delegates (Chapter Director inclusive) to the MUSCCO Annual General Meeting. The delegates shall have been elected at Chapter Meetings. Once every 3 years, the Annual General Meeting will precede a MUSCCO indaba which all affiliates shall be invited to attend.

COMPOSITION OF MUSCCO BOARD The Board members of MUSCCO shall be democratically elected from their Chapters and they shall serve on MUSCCO Board on voluntary basis Board shall consist of a minimum of five elected members and a maximum of nine elected members. The Board may, however co-opt other ex-officio members to the Board if deemed necessary, for advisory purposes and these may include, Registrar of Cooperatives and Technical experts from various fields e.g. Finance, Law, Economics, Aggregated SACCO Shares in CFF per Chapter Number of Directors Up to MK1 billion 1 Director Greater than MK 1billion 2 Directors

POWERS OF THE BOARD MEMBERS The Board of Directors shall be the governing authority subject to any directions from the Annual General Meeting and the Bylaws, it shall: Direct the affairs of MUSCCO Perform or authorise actions consistent with the Act, the rules and these Bylaws Ensure that correct and accurate records of all assets and liabilities of MUSCCO are maintained Approve and lay before every Annual General Meeting audited accounts and recommend a dividend rate to be declared on shares Employ, carry out his annual performance evaluation and dismiss the Chief Executive.

POWERS OF THE BOARD MEMBERS Authorise affiliation with any local, national or international co-operative organisations having similar or related objectives and designate representatives to attend meetings of such organisations Appoint Sub-Committees from the Board of Directors or from amongst the SACCO members to carry out specific or standing functions. Sanctioning major contracts and agreements.

Finance and Investment Committee. Audit and Risk Management Committee BOARD COMMITTEES Executive Committee Finance and Investment Committee. Audit and Risk Management Committee SACCO development committee

MUSCCO - FUNDS & REVENUE CFF Shares currently set at 10% of each SACCO’s total members shares with minimum of MK2,000,000 for each SACCO Mandatory Liquidity reserves comprising of 10% of total SACCO members deposits lodged with each depositing taking SACCO and any other mandatory liquidity reserves which Directors may determine form time to time. Deposits from members and non-members; Trust Funds; Loans

MUSCCO - FUNDS & REVENUE Membership fees (Annual dues); Grants and donations; Interest on loans granted to members and associate members; Interest on Trust Funds; Investment returns; Audit fees; Consultancy and Training fees; Administration fees Sundry Income

DISPOSAL OF SURPLUS Subject to the Act and the Rules, the net gain or surplus resulting from operations of MUSCCO during any financial year shall be disposed of as follows:- A minimum of 30% of the surplus shall be credited to the Statutory Reserve; The balance may be disposed of as decided by an Annual General Meeting in the following manner:- Paying of dividends; Carried forward to a Retained Earnings Account; Put to any other use the Annual General Meeting may approve

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