Bye Law
Official Rules and Regulations
In accordance with Islamic Laws
بِسْمِ اللَّهِ الرَّحْمَٰنِ الرَّحِيمِ
IN THE NAME OF ALLAH,
THE BENEFICENT, THE MERCIFUL
NATIONAL OPEN UNIVERSITY OF NIGERIA
MUSLIM STAFF HALAL COOPERATIVE SOCIETY LIMITED
[NMSHCS]
BYE-LAW
Motto: 'Fear of Allah and Avoidance of Usury'
IN THE NAME OF ALLAH,
THE BENEFICENT, THE MERCIFUL
NAME:
The Society shall herein be referred to and called
'NATIONAL OPEN UNIVERSITY OF NIGERIA MUSLIM STAFF HALAL COOPERATIVE SOCIETY LIMITED [NMSHCS]'
ADDRESS:
C/o Central Mosque,
National Open University of Nigeria, Jabi,
Abuja - Nigeria.
(Founded in 1444A.H/2023 C. E.)
1 Preamble
National Open University of Nigeria Muslim Staff Halal Cooperative Society Limited (NMSHCS) is an Islamic Model Cooperative Society which has resolved to operate on interest-free basis in accordance with the injunctions of Almighty ALLAH in the Glorious Qur'an [2:275-281 and 3:130].
2 Objectives
Our objectives are, by the grace of ALLAH, to:
Assist the needy and qualified members of the society.
Avail qualified members of essential commodities through retail/wholesale trade business.
Provide opportunities for members to have access to substantial funds without the burden of interest.
Use any other measures designed on cooperative principles to encourage members on the spirit and practice of mutual savings and self-help.
Partner with individual(s) and/or corporate bodies on businesses in accordance with Islamic principles.
3 Entry Requirements [Membership and Liability]
3.1 Membership
This is strictly restricted to the National Open University of Nigeria Muslim Staff, both males and females, who believe in the oneness of ALLAH and the Glorious Qur'an. In addition, the members shall consist of persons who apply to be members with payment of a non-refundable fee as may be determined by the society.
3.2 Qualification
Every member of the society must:
Ordinarily be National Open University Staff, who has permanent employment with the University;
Be an active Muslim and of good character or ready to abide by the Islamic principles that guide the operations of this society;
Not be less than 18 years of age.
3.3 Admission
Application form for membership shall be made online through the Cooperative's website and shall be screened and disposed of by the Executive Committee who may grant or refuse admission, and in case of refusal, shall state their reason(s).
He/she whose application is rejected/refused shall be informed in writing, to appeal through a member of the society to the next General meeting of members, which may take such decision as it thinks fit.
3.4 Membership and Attendance Register
Every member shall sign or thumb print the membership and attendance register.
3.5 Termination of Membership
Membership may be terminated if:
A member renounces Islam or is not willing to abide by the Islamic principles that guide the operations of this institution
A member retires from service
A member withdraws his/her service
A member dies
Voluntarily withdraw his or her membership of the cooperative
Any other reason(s) deems fit by a member or the society.
If for any of the above reasons, a member wishes to withdraw his/her membership, this will be granted if such a member is not indebted to the society.
The termination of membership and repayment of savings and share capital will become effective after six months from the date notice of withdrawal is given.
In case of death of a member who is indebted to the society, the recovery of the actual amount of indebtedness shall be through the Sureties for the liquidation of the loan.
4 Officers of National Open University of Nigeria Muslim Staff Halal Cooperative Society Limited
The officers are the President, Vice-President, General Secretary, Assistant General Secretary, Financial Secretary, Treasurer, Auditor, Public Relations Officer, Chairman and Secretary of Business/Investment Committee, Study Centre Representatives. The officers shall form Executive Council of the cooperative. They shall hold office for a period of two (2) years subject to renewal for another two years.
4.1 President
The President shall preside at all meetings of the society and shall have power to convene meetings. In the absence of the President, the Vice-President, shall be the Chairman, and in the absence of both a member of the executive shall be appointed/elected as Chairman of the meeting.
He shall give annual reports of activities of the Society at Annual General Meeting.
4.2 Vice President
Vice President shall act as the Chairman in the absence of the President.
4.3 General Secretary
The duties of the Secretary shall be as follows:
To maintain adequate and up-to-date records of the society;
To sign on behalf of the society and conduct its correspondences;
To summon and attend General and executive meetings;
To record proceedings of such meetings and have them duly signed.
4.4 Assistant General Secretary
The duties of the Assistant General Secretary shall be as follows:
To assist the Secretary in the performance of his duties.
To take minute of the Executive meeting in the absence of General Secretary;
To serves as secretary to other Committees.
4.5 Treasurer
The duties of the Treasurer shall be as follows:
To take charge of all monies received by the Society from members and make disbursement in accordance with the directives of the committee;
To deposit all funds over the limit fixed by the General Meeting in any Bank approved for this purpose by the General Meeting. All such sums shall be deposited in the name of the society.
To prepare and submit to the Executive the Annual Accounts and Statements;
To be the custodian of all financial security documents of the Society.
4.6 Financial Secretary
The duties of the Financial Secretary shall be as follows:
To procure from borrowers the due execution of bonds with security;
To prepare all receipts, vouchers and documents required by the regulations or called for by the Executive;
To sign the Cash Book in token of its correctness and produce the cash balances whenever called upon to do so by the Executive or the Auditor at the General Meetings;
To sign all members' passbooks;
An automatic member of Business/Investment Committee.
4.7 PRO/Zonal Representatives
Their duties shall be as follows:
To attend and contribute to the deliberations at the Executive meetings;
To adequately and promptly disseminate information to all members.
5 Signatories to Bank Accounts
The President, the General Secretary and the Financial Secretary are the signatories to the Cooperative account.
Any two (2) signatures from among the three (3) signatories suffice for any transaction
6 The Business/Investment Committee
The Business/Investment Committee shall consist of at least 3 to 5 members, and be responsible to the Executive Council.
6.1 Powers and Duties
It shall seek for, receive and bring business investment opportunities to the society for consideration and approval of the Committee.
It shall involve in retail/wholesale trade business on essential commodities for the benefit of the members.
It shall also involve in any business not at variance with the constitution of the society.
6.2 Ad-Hoc Committees
There shall be provision for Ad-Hoc Committee from time to time. Their functions, duties and terms of reference shall be determined by the Executive council. These include:
Surah Committee;
Disciplinary Committee;
Annual General Meeting Planning Committee;
Education/Developmental Committee, etc.
7 Sources of Funds
The funds of National Open University of Nigeria Muslim Staff Halal Cooperative, Society Limited shall compose of:
Monthly Savings
Share Capital
Development Levy
Investment Savings
Entrance Fees
Profit from business/investment
Sales of forms and replacement of lost passbook
Any other sources which may be approved by the Executive Council from time to time.
7.1 Compulsory Savings
Every member shall make regular monthly savings of at least Five Thousand Naira (N5000.00) only which shall be withdrawable only by the permission of the Executive Council for necessary or productive purpose.
7.2 Uses of Custody Funds
The funds of the society may be held in form of:
Reserve funds
Development, Education or other funds approved by the General Meeting
Interest free Bank Account
7.3 Operation of Bank Accounts
Before money is withdrawn from the bank, any two (2) of the following committee members - President, General Secretary, and Financial Secretary - must sign the withdrawal slip or cheque, as specified in the signatory arrangements for the society's bank accounts.
8 Loans
a) Purpose of the Loans
Loans may be granted to members only for purposes, which in the opinion of the executive are productive or necessary, and in the best interest of the borrowers.
b) Conditions Governing Loans
Before any member can be granted a loan, he/she must fulfil the following:
At least six (6) months membership and savings are required
A member cannot borrow more than triple of his/her savings
He/She must obtain a loan form or apply online from the Cooperative's website and pay the sum of one thousand naira (N1000) for administrative charges. The purpose of the loan must be clearly specified
Loan application will be on monthly basis, and the application must be made on or before the end of the third week of every month
Any loan given out to the members must be repaid within the period that applies to such loan
Loan approval is subject to a repayment that ensures that at least 40% of any borrower's salary is not tampered with after monthly deduction
8.1 Bonds and Sureties (Loan Guarantors)
Every borrower shall execute a bond and shall furnish two sureties. No extension of the period of repayment shall be granted without the approval of the Committee.
The duty of the sureties is to monitor the borrower and ensure that the loan is used for the purpose stated by the borrower in his application.
In case of default in the part borrower, the recovery of the actual amount of indebtedness shall be through the Sureties for the loan.
8.2 Recall of Loans
All loans shall be issued subject to the right of the society to call for immediate repayment if:
any mis-application is proved;
the borrower gives an indication of resignation or transfer of service from the University.
8.3 Withdrawal from the Savings
Withdrawal from member's saving account shall be granted provided such a member is not servicing any loan and the request is not more than 30% of his/her saving.
9 Disposal of Surplus
9.1 Reserve Fund
The reserve fund is indivisible and no member is entitled to claim a specified share in it.
It shall not be utilized in the business of the society but shall be deposited to the bank.
9.2 Dividend
The dividend paid on the share shall be determined by the General Meeting based on prevailing situation
10 Books and Accounts
10.1 Prescribed Books and Records
Accounts and Records shall be maintained and shall include the followings
A membership and attendance register, showing the name and address of every member, the number of shares held by him, the date of admission on membership, the next of kin and the member's attendance at General Meetings;
A Cash Book showing the receipts, expenditure and balance on each day on which business is done;
General ledger;
Personal ledger with accounts for each member;
Minutes book for proceedings of General and Executive meetings;
Such other records as may be appropriate.
10.2 Inspection of Books
The books, accounts, register and paper of the society shall be opened at all reasonable times for the inspection of members, provided that no person other than the Committee members of the society shall be allowed to see the personal account of any member without member's consent.
This is without prejudice to accredited cooperative staff/officials and government officials who may be performing their statutory duties.
10.3 Passbook
Each member shall obtain a passbook from the society in which particulars of his personal accounts with the society shall be recorded.
10.4 Seal
The General Secretary shall hold in safe custody the seal of the society on its behalf. Documents shall be sealed by at least two of the signatories to the society's Bank Accounts, one of whom shall be the Secretary.
11 Affiliation to Apex Body(ies)
The Society shall be affiliated to any reputable apex body(ies) as determined by the Executive Council from time to time.
12 References
The Society references shall be this Bye-Law in accordance with the Holy Qu'ran and Hadiths.
13 Amendments of Rules and Regulations
Any amendment(s) or addition(s) to the above rules and regulations shall be made by the General Meeting of the Society in accordance with the Holy Qu'ran and authentic Hadiths.
Document Completion
This Bye-Law document is now complete and serves as the official rules and regulations for the National Open University of Nigeria Muslim Staff Halal Cooperative Society Limited.