2013 staff seminar for Bamenda chapter

RULES AND REGULATIONS

GOVERNING THE FUNCTIONING
OF THE PROMOTION COMMITTEE
Legal framework
 OHADA Uniform Acts on Cooperative Societies of
15/12/2010.
 Law No 92/006 of 14th August 1992 relating to
Cooperative Societies and Common Initiative Groups.
 Model credit union bye-laws of 29th December 2012.
Preamble
Art 94 of the Model Credit Union Bye-laws of 29th
December 2012: - Where it deems necessary, the Board
of Directors (BOD) may propose for approval by the
General Assembly to institute promotion committees
for specific branches. It shall include the number of
promotion committee members which shall take into
consideration financial implications, the size of the
branch and others as shall be discussed and agreed
with CamCCUL and validated by the General
Assembly. The committees shall be answerable to the
BOD and advise the latter on matters concerning the
said branch.
Criteria to determine the number of promotion
committee members per branch

Total branch Number of

balance sheet committee
members
<50 million 2

>50 million 3
 The members shall agree who are to become the
chairperson and the secretary

Eligibility to become a member

A promotion committee member must fulfill the
following conditions:
 Enjoys his/her civic rights and not have been found
guilty of any common law offence involving
dishonesty.
 Holds at least a First School Leaving Certificate and is
able to read and interpret financial statements.
 Has not been involved in any cash shortage, fraud or
mismanagement.
 Is not delinquent in the repayment of any outstanding
loan or interest on it for more that 60 days.
 Is not a member of a group with an irregular situation
vis-à-vis the Credit Union.
 Has an average shares/savings of 500.000Fcfa.
 Has been a member for at least 24 months.
 Is not currently working as a Credit union staff,
CamCCUL staff and must not be a member of another
credit union.
 Is not a money lender or cash daily collector.
 Must have saved at least 12 times in the previous
financial year.
 Must not have had his/her loan written off.
 Is not a guarantor of a loan that is delinquent.
Term of office of Promotion
Committee members
The term of office of committee members shall be
renewable every year as deemed necessary by the BOD
and reported to the general assembly for confirmation.
Notwithstanding, the BOD may as well terminate the
office of a promotion committee member for any
misconduct , replace the member and report to the
general assembly for ratification.
Promotion committee meetings
Meetings shall be held monthly. Extra-ordinary
meetings could be held in case of an emergency for the
smooth functioning of the branch.
Duties of the Promotion
Committee
The committee shall be in charge of the following:
 To carryout publicity of the union to the public and
sensitization of members and would-be members on a
monthly basis.
 To set the education and training programme of branch
members and forward to the BOD for approval.
 To appraise loans above shares/savings above the branch
manager’s capacity up to a maximum of ____________FCFA
covered by other collateral. Any loan above
_____________FCFA shall be recommended only by this
committee and forwarded to the BOD for approval.
 To review expenses incurred by the branch and also to
approve expenses above the manager’s limit up to
__________FCFA. Any expense above ____________FCFA
shall be recommended by this committee and forwarded to
the BOD for approval.
 To ensure the safe custody of the branch’s assets and their
prudent and profitable use.
 Count cash regularly, check bank accounts regularly and
ensure their reconciliation. May also be signatories to bank
accounts to facilitate cash transactions to and from the
bank.
 Do periodic passbooks sample verifications.
 Check sample loan applications periodically and note any
irregularities.
 Report to the BOD on any delinquent loan and also assist
to recover these delinquent loans.
 To tick members’ ledger cards against the system printout.
 To assist persons empowered to audit the branch accounts
and supervise the operations of the branch.
 To implement all the resolutions from the BOD and the
general assembly.
 To listen to members’ complaints and submit such
complaints to the BOD for solutions.
 To report to and advise the BOD on any major issues
pertaining to the branch monthly or quarterly and also
submit proposals to the general assembly for the proper
functioning of the branch.
 To review and implement audit recommendations in audit
reports.
 To ensure the compliance with credit union policies,
network policies, cooperative law, microfinance
regulations, COBAC prudential norms, the OHADA
uniform acts and any other regulations governing credit
unions.
 To carryout other investigations as deemed necessary in
the interest of the credit union and report to the BOD and
CamCCUL.
Compensation
 The duties of the promotion committee shall be
voluntary. However, members are entitled to
reimbursement of travel expenses and occasional
missions assigned by the BOD in the interest of the
credit union which must be justified with a written
report before any payments are made.
 Ordinary sittings shall entitle an allowance of
__________FCFA. Extraordinary sittings shall entitle
an allowance of __________FCFA. Recovery of
delinquent loans shall be compensated only at the end
of the year according to a particular criterion set by the
Loan Recovery Task Force Manual.
Code of conduct of committee
members
Committee members must abide by the following:
 Portray good faith and loyalty to the credit union
 Must be honest in all his/her dealings with the credit
union.
 May not accept commissions or rebates that belong to
the credit union for personal gain.
 Should not make personal attacks on other officials,
staff and members in performing their duties.
 Should conduct private life in a manner that befits the
dignity of the credit union.
 Should perform duties with care, skill and diligence.
 Should not use for personal gain any information
gained during the performance of their duties or
should be confidential.
 Should act within the boundaries of their authority.
 Shall disclose every personal conflict of interest to the
credit union and CamCCUL.
 To participate in the operations of the credit union
only as authorized by the Bye-laws and the BOD and
have respect for other organs of the network.
Liability of promotion committee
members
All members of this committee shall be jointly and
severally liable in accordance with Articles 374 and 375
of the OHADA Uniform Act on Cooperative Societies,
on any violations of the provisions of the law and the
bye-laws and on any acts of negligence in their
management of the credit union. This liability shall
apply even after they have left office.
THANK YOU