What is sacco in full

A Savings and Credit Cooperative Society Sacco simply means the coming together of members for the object of promoting their economic and social interests in accordance with cooperative principles. Section 3 of the Cooperative Societies Act Cap.

Hence any community or group of members desirous of forming a union for their economic or social interest must satisfy the conditions set out in Section 4 1 of the Cooperative Societies Act, to wit; the number of members must at least be thirty all whom are qualified for membership of the society under Section 13 of the Act, in order to form a cooperative society.

Contrary to the requirement of attaining eighteen years, section 13 2 permits a person of twelve years and above to become a member of a society, but such a person shall not be eligible to act as a committee member of the society until he or she has reached the age of eighteen.

Take note that most of the societies that people form are primary societies that mainly aim at advancing their economic and social interests at the grass root level. A cooperative society being a legal entity must satisfy all the legal requirements in order to be registered. This is in line with the law and the need to prevent unscrupulous persons that form such entities as a conduit of theft and unjust enrichment.

While choosing the name of the society, the law requires that it must reflect the elements of domicile, economic activity of common bond of members and of course bearing the words Savings and Credit Cooperative Society at the end whether limited or unlimited. For instance, consider that the intended cooperative society is to advance economic and social interests of young men and women dealing in metal works in Wandegeya-Kampala.

Metal Works is the economic activity that binds the members which as well advances their social interests, and being a Savings and Credit Cooperative Society. In case it was a company or association prior to the registration, it must be deregistered and proof of deregistration letter s should be attached as well as the letter acknowledging the process from the respective authorities.

The above name and membership can give you a hit of how to come up with the name of your Sacco and the scope of membership. The law requires that the minimum number of members to start and operate a cooperative society must be at least thirty persons. This means that as long as any group has thirty or more individuals then they can proceed to apply for registration of their society as a primary society since the law does not provide for upper cap then they can be as many as they can organize themselves.

Take note that considering human rights advancements and gender equality laws and reforms, the members must include both genders as well as different age brackets and persons with disabilities. Similarly, members must include both the youths and the elderly whereby the membership cannot only contain one group.

This is intended to clear the imbalances in human development, provide employment and income sources for all age groups as well as guarantee continuity of the society through the young men and women that work along the old persons. As much as the law prohibits persons below the age of eighteen to become members of cooperative societies, it permits a person of twelve years and above to become a member but such a person cannot be elected to act in any capacity as a committee member until they have turned 18 years.

The only practical challenge with this provision is that persons below the age of eighteen years do not have National Identity Cards and yet it is a compulsory requirement that in order to be registered, all members must submit a copy of their National Identity cards.

This is a hindrance not only to the persons below eighteen years but also to any other person without the card. Liberalization would therefore require that the authorities should relax the requirement by allowing any other legally accepted form of identification like passports, schools and university identity cards for students among others to be used during the registration process.

Finally in order to be accepted as a member, there must be a common bond with other members. The law requires that a person should either be a resident or owning land in the area where they are registering the cooperative society.

The intention of this rather limitation is to weed out the riff ruff societies that make it hard to trace members in case they take loans and disappear without known identity or the persons that form such entities just as a conduit to high handed theft and corruption.

This has happened before in western parts of Uganda where a self-styled entity called COWE took peoples savings and only after a few months just closed its doors and left with hefty amounts of money. Any thirty or more persons that are desirous of forming themselves into a Saving and Credit Cooperative Society can follow the following procedure to be registered as a society:.

Filter by: Select category from list Sacco, Nicola Sacco noun United States anarchist born in Italy who with Bartolomeo Vanzetti was convicted of murder and in spite of world-wide protest was executed see more ».

Notify me of new comments via email. Akankwasa Bob. Like Reply Report 1 5 years ago. Cancel Report. Create a new account. Log In. Don't keep it to yourself! Add it HERE! Still can't find the acronym definition you were looking for? In a bid to finance agriculture, the government of Uganda has encouraged and promoted cooperative societies as an engine to accelerate the accessibility of loans from these cooperative societies which in this case are SACCOs.

The aim of promoting these SACCOs is because in developing countries like Uganda, there are low levels of saving culture owing to poor underdeveloped stock markets, dominance of urban based commercial banks, Micro Deposit Taking Institutions MDIs and non regulated Micro finance institutions in the financial markets as vehicles for savings. Hence Savings and Credit Cooperatives SACCOs are intended to offer an alternative to improve the above un- desirable situation in low income countries especially helping members who in most cases are farmers.

Savings and Credit Co-operatives SACCOs are community membership-based financial institutions that are formed and owned by their members in promotion of their economic interests.

These institutions mobilize and intermediate savings exclusively with in their membership under the co-operative statute