Unconstitutional provisions

Cooperative Societies Act

• 9. Cancellation of registration on probation Unresolved

  The Constitutional Court in Nathan Nandala Mafabi, Enoka Musundi, Sam Wagona and Hajji Hussein Mumenya Vs Attorney General, Constitutional Petition No. 46 of 2012 declared sections 6(3), 9, 10(6), 10(7), 17, 26(1), 28(2), 28(3), 47(1), 50, 51(2), 59(5), 59(6), 59(7) and 59(8) of the Cooperative Societies Act inconsistent with and in contravention of Articles 29(1 )(b), 29(1 )(e) and 40(2) of the Constitution and accordingly declared the sections null and void to the extent of the inconsistency.

  Provision as at 31 December 2023:

  9. Cancellation of registration on probation

  (1)At any time during the period of registration of a society under section 6(1), the Registrar may, by notice in writing to the person responsible for the running of the society, cancel the registration on probation of the society stating the reasons for the cancellation; and the society shall, from the date of service of the notice, cease to be a registered society.

  (2)The cancellation referred to in subsection (1) shall be gazetted and published in at least one of the English newspapers in Uganda.

  (3)Where a society registered under section 6(1) contravenes or fails to comply with section 8, that society and any officer or person who purports to act on its behalf commits an offence and is liable, on conviction, to a fine not exceeding 0.5 of a currency point and in the case of a continuing offence to a further fine not exceeding 0.05 of a currency point for each day on which the offence is continued after conviction of the offence.

  (4)A cooperative society shall be deregistered if its membership falls below the prescribed number in section 4.

• 6. Registration on probation (3) Unresolved

  The Constitutional Court in Nathan Nandala Mafabi, Enoka Musundi, Sam Wagona and Hajji Hussein Mumenya Vs Attorney General, Constitutional Petition No. 46 of 2012 declared sections 6(3), 9, 10(6), 10(7), 17, 26(1), 28(2), 28(3), 47(1), 50, 51(2), 59(5), 59(6), 59(7) and 59(8) of the Cooperative Societies Act inconsistent with and in contravention of Articles 29(1 )(b), 29(1 )(e) and 40(2) of the Constitution and accordingly declared the sections null and void to the extent of the inconsistency.

  Provision as at 31 December 2023:
  (3)Where at the expiration of twenty-four months, the Registrar is not satisfied with the performance of the society, he or she may either cancel the registration or extend the probationary period by a period not exceeding twelve months; and if after the extension he or she is still not satisfied with the performance of the society, he or she shall cancel the registration of the society.

• 10. Amendment of byelaws of registered society (6) Unresolved

  The Constitutional Court in Nathan Nandala Mafabi, Enoka Musundi, Sam Wagona and Hajji Hussein Mumenya Vs Attorney General, Constitutional Petition No. 46 of 2012 declared sections 6(3), 9, 10(6), 10(7), 17, 26(1), 28(2), 28(3), 47(1), 50, 51(2), 59(5), 59(6), 59(7) and 59(8) of the Cooperative Societies Act inconsistent with and in contravention of Articles 29(1 )(b), 29(1 )(e) and 40(2) of the Constitution and accordingly declared the sections null and void to the extent of the inconsistency.

  Provision as at 31 December 2023:
  (6)Where it appears to the Registrar that an amendment of the byelaws of a society is necessary or desirable in the interest of the society, he or she may call upon the society, subject to any regulations made under this Act, to make the amendment within the time as he or she may specify.

• 10. Amendment of byelaws of registered society (7) Unresolved

  The Constitutional Court in Nathan Nandala Mafabi, Enoka Musundi, Sam Wagona and Hajji Hussein Mumenya Vs Attorney General, Constitutional Petition No. 46 of 2012 declared sections 6(3), 9, 10(6), 10(7), 17, 26(1), 28(2), 28(3), 47(1), 50, 51(2), 59(5), 59(6), 59(7) and 59(8) of the Cooperative Societies Act inconsistent with and in contravention of Articles 29(1 )(b), 29(1 )(e) and 40(2) of the Constitution and accordingly declared the sections null and void to the extent of the inconsistency.

  Provision as at 31 December 2023:
  (7)Where the society fails to make the amendment within the time specified, the Registrar may, after giving the society an opportunity of being heard, himself or herself make and register the amendment and issue to the society a copy of that amendment, certified by him or her.

• 17. Restriction on membership Unresolved

  The Constitutional Court in Nathan Nandala Mafabi, Enoka Musundi, Sam Wagona and Hajji Hussein Mumenya Vs Attorney General, Constitutional Petition No. 46 of 2012 declared sections 6(3), 9, 10(6), 10(7), 17, 26(1), 28(2), 28(3), 47(1), 50, 51(2), 59(5), 59(6), 59(7) and 59(8) of the Cooperative Societies Act inconsistent with and in contravention of Articles 29(1 )(b), 29(1 )(e) and 40(2) of the Constitution and accordingly declared the sections null and void to the extent of the inconsistency.

  Provision as at 31 December 2023:

  17. Restriction on membership

  A company incorporated or registered under the Companies Act and an unincorporated body of persons shall not be entitled to become a member of a registered society, except with the written permission of the Registrar.

• 26. Audit, annual returns and accounts (1) Unresolved

  The Constitutional Court in Nathan Nandala Mafabi, Enoka Musundi, Sam Wagona and Hajji Hussein Mumenya Vs Attorney General, Constitutional Petition No. 46 of 2012 declared sections 6(3), 9, 10(6), 10(7), 17, 26(1), 28(2), 28(3), 47(1), 50, 51(2), 59(5), 59(6), 59(7) and 59(8) of the Cooperative Societies Act inconsistent with and in contravention of Articles 29(1 )(b), 29(1 )(e) and 40(2) of the Constitution and accordingly declared the sections null and void to the extent of the inconsistency.

  Provision as at 31 December 2023:
  (1)Every registered society shall cause its accounts to be audited at least once in every year by an auditor appointed by the annual general meeting and approved by the Registrar, and the cost of the audit shall be borne by the society; except that—

  (a)no auditor chosen by a registered society to audit its books shall perform that function for more than three annual audits in succession unless authorised by the Registrar;

  (b)where the registered society is unable to appoint its own auditors, the Registrar may appoint the auditors.

• 28. Estimates and expenditure (2) Unresolved

  The Constitutional Court in Nathan Nandala Mafabi, Enoka Musundi, Sam Wagona and Hajji Hussein Mumenya Vs Attorney General, Constitutional Petition No. 46 of 2012 declared sections 6(3), 9, 10(6), 10(7), 17, 26(1), 28(2), 28(3), 47(1), 50, 51(2), 59(5), 59(6), 59(7) and 59(8) of the Cooperative Societies Act inconsistent with and in contravention of Articles 29(1 )(b), 29(1 )(e) and 40(2) of the Constitution and accordingly declared the sections null and void to the extent of the inconsistency.

  Provision as at 31 December 2023:
  (2)A copy of those estimates shall be sent to the Registrar for an opinion before they are submitted to the general meeting.

• 28. Estimates and expenditure (3) Unresolved

  The Constitutional Court in Nathan Nandala Mafabi, Enoka Musundi, Sam Wagona and Hajji Hussein Mumenya Vs Attorney General, Constitutional Petition No. 46 of 2012 declared sections 6(3), 9, 10(6), 10(7), 17, 26(1), 28(2), 28(3), 47(1), 50, 51(2), 59(5), 59(6), 59(7) and 59(8) of the Cooperative Societies Act inconsistent with and in contravention of Articles 29(1 )(b), 29(1 )(e) and 40(2) of the Constitution and accordingly declared the sections null and void to the extent of the inconsistency.

  Provision as at 31 December 2023:
  (3)Supplementary estimates may be prepared by a society during the financial year and submitted to the Registrar for an opinion before they are submitted to the annual general meeting.

• 47. Restrictions on borrowing (1) Unresolved

  The Constitutional Court in Nathan Nandala Mafabi, Enoka Musundi, Sam Wagona and Hajji Hussein Mumenya Vs Attorney General, Constitutional Petition No. 46 of 2012 declared sections 6(3), 9, 10(6), 10(7), 17, 26(1), 28(2), 28(3), 47(1), 50, 51(2), 59(5), 59(6), 59(7) and 59(8) of the Cooperative Societies Act inconsistent with and in contravention of Articles 29(1 )(b), 29(1 )(e) and 40(2) of the Constitution and accordingly declared the sections null and void to the extent of the inconsistency.

  Provision as at 31 December 2023:
  (1)A registered society shall receive deposits and loans from persons who are not members only to such extent and under such conditions as the Registrar may, in writing, authorise.

• 50. Investment of funds Unresolved

  The Constitutional Court in Nathan Nandala Mafabi, Enoka Musundi, Sam Wagona and Hajji Hussein Mumenya Vs Attorney General, Constitutional Petition No. 46 of 2012 declared sections 6(3), 9, 10(6), 10(7), 17, 26(1), 28(2), 28(3), 47(1), 50, 51(2), 59(5), 59(6), 59(7) and 59(8) of the Cooperative Societies Act inconsistent with and in contravention of Articles 29(1 )(b), 29(1 )(e) and 40(2) of the Constitution and accordingly declared the sections null and void to the extent of the inconsistency.

  Provision as at 31 December 2023:

  50. Investment of funds

  A registered society may invest or deposit its funds only—

  (a)in a registered cooperative bank;

  (b)in any registered society, company or statutory corporation approved in writing by the Registrar;

  (c)in any bank or financial institution incorporated in Uganda;

  (d)in and upon such investment and securities as are by law allowed for the investment of trust funds; or

  (e)in such other mode as specified by the byelaws of the society and approved by the Registrar.

• 51. Dividend or bonus (2) Unresolved

  The Constitutional Court in Nathan Nandala Mafabi, Enoka Musundi, Sam Wagona and Hajji Hussein Mumenya Vs Attorney General, Constitutional Petition No. 46 of 2012 declared sections 6(3), 9, 10(6), 10(7), 17, 26(1), 28(2), 28(3), 47(1), 50, 51(2), 59(5), 59(6), 59(7) and 59(8) of the Cooperative Societies Act inconsistent with and in contravention of Articles 29(1 )(b), 29(1 )(e) and 40(2) of the Constitution and accordingly declared the sections null and void to the extent of the inconsistency.

  Provision as at 31 December 2023:
  (2)No society shall pay a dividend to its members exceeding the maximum rate prescribed by regulations made under this Act.

• 59. Ad hoc committee of inquiry (5) Unresolved

  The Constitutional Court in Nathan Nandala Mafabi, Enoka Musundi, Sam Wagona and Hajji Hussein Mumenya Vs Attorney General, Constitutional Petition No. 46 of 2012 declared sections 6(3), 9, 10(6), 10(7), 17, 26(1), 28(2), 28(3), 47(1), 50, 51(2), 59(5), 59(6), 59(7) and 59(8) of the Cooperative Societies Act inconsistent with and in contravention of Articles 29(1 )(b), 29(1 )(e) and 40(2) of the Constitution and accordingly declared the sections null and void to the extent of the inconsistency.

  Provision as at 31 December 2023:
  (5)During the period of inquiry referred to in subsections (1) and (2), the chief executive and other officers or employees may be suspended from duty by the Registrar as he or she may deem necessary to facilitate the smooth holding of the inquiry.

• 59. Ad hoc committee of inquiry (6) Unresolved

  The Constitutional Court in Nathan Nandala Mafabi, Enoka Musundi, Sam Wagona and Hajji Hussein Mumenya Vs Attorney General, Constitutional Petition No. 46 of 2012 declared sections 6(3), 9, 10(6), 10(7), 17, 26(1), 28(2), 28(3), 47(1), 50, 51(2), 59(5), 59(6), 59(7) and 59(8) of the Cooperative Societies Act inconsistent with and in contravention of Articles 29(1 )(b), 29(1 )(e) and 40(2) of the Constitution and accordingly declared the sections null and void to the extent of the inconsistency.

  Provision as at 31 December 2023:
  (6)Where the chief executive has been suspended in accordance with subsection (5), a caretaker manager shall be appointed by the Registrar in consultation with the Board.

• 59. Ad hoc committee of inquiry (7) Unresolved

  The Constitutional Court in Nathan Nandala Mafabi, Enoka Musundi, Sam Wagona and Hajji Hussein Mumenya Vs Attorney General, Constitutional Petition No. 46 of 2012 declared sections 6(3), 9, 10(6), 10(7), 17, 26(1), 28(2), 28(3), 47(1), 50, 51(2), 59(5), 59(6), 59(7) and 59(8) of the Cooperative Societies Act inconsistent with and in contravention of Articles 29(1 )(b), 29(1 )(e) and 40(2) of the Constitution and accordingly declared the sections null and void to the extent of the inconsistency.

  Provision as at 31 December 2023:
  (7)The caretaker manager shall remain in office until either the former chief executive is reinstated, or a new one is appointed; except that he or she shall not stay in that office for more than three months after the report of the committee of inquiry has been submitted.

• 59. Ad hoc committee of inquiry (8) Unresolved

  The Constitutional Court in Nathan Nandala Mafabi, Enoka Musundi, Sam Wagona and Hajji Hussein Mumenya Vs Attorney General, Constitutional Petition No. 46 of 2012 declared sections 6(3), 9, 10(6), 10(7), 17, 26(1), 28(2), 28(3), 47(1), 50, 51(2), 59(5), 59(6), 59(7) and 59(8) of the Cooperative Societies Act inconsistent with and in contravention of Articles 29(1 )(b), 29(1 )(e) and 40(2) of the Constitution and accordingly declared the sections null and void to the extent of the inconsistency.

  Provision as at 31 December 2023:
  (8)Where during the course of inquiry cause arises to dissolve the committee of the society, the Registrar, in consultation with the Board, shall dissolve the committee and convene within thirty days a special general meeting to replace the committee.