Cooperative Societies Investments & Retiring Members: A Fair Returns Assessment
Loading...
Date
2012
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
European Journal of Globalization and Development Research
Abstract
Cooperative thrift and credit societies in paid employment organizations admit only members of staff of such organizations. Memberships of such societies elapsed when members retire or leave the organization. Withdrawing members are paid only the balances in their savings and shares. Investments held by the societies are not taken into consideration when these members are paid off. Values of shares in limited liability companies are not based on nominal values of shares held at the time of disposal. Market value is a key factor. This paper assessed the fairness or otherwise of such practices in departmental cooperative societies, in The Polytechnic, Ibadan Oyo State, Nigeria as a case study. An empirical investigation was undertaken, using the chi square analysis and it was found that departmental cooperative society members are not satisfied with the present system relating to withdrawal or disengagement from the societies. Following our findings, we recommend that investments of cooperative societies (or current market values of the shares) should be taken into consideration when members are to be paid their entitlements when withdrawing from these societies