CHINESE INDUSTRIAL COOPERATIVES (6)

Grey River Argus, 25 February 1942, Page 7

CHINESE INDUSTRIAL COOPERATIVES (6)

(By

J. S. Roscoe)

basic principles.

These are set out in the model constitution with which the rules ot all C.I.C. societies must conform in much thei same manner as the Articles of Association of a public company in N.Z. must conform with table “A” of the Company’s Act.

The C.I.C. model constitution is a very comprehensive document so that I propose to 'extract only the more significant rules.

Name: The name of the society shall be Guaranteed Liability Industrial Co-operative Society of Hsien (district) in Province.

ARTICLE 3.

Objects: . The objects of the society shall be in accordance with co-operative principles. The objectives of the society shall be to carry on the following functions in accordance with cooperative principles, namely, membership open to all qualified vyorkers to the maximum number justified by the economic condition of the business, one member one vote, limited interest on share capital and distribution of net earnings on the basis of a bonus on wages:

(1) To assist the members in the manufacture and sale of

(2) To provide an organisation to make possible the arrangement and execution of collective contracts for labour.

(3) To arrange for transportation of passengers or goods for hire.

(4) To supply raw materials, machinery and tools and acquire such land and buildings as may be necessary —

(5) To make available the funds necessary for those purposes in accordance with the constitution. (6) To unite with other co-opera-tive societies for the promotion of their common interests.

ARTICLE. 7.

Membership Qualification: The qualifications for membership shall be: —

(1)' Residence within the area of operations of the society.

(2) Full members shall have attained the age of 20 years. Junioi members shall have attained 18 years of age.

(3) Capacity to earn in the business of Jhe society.

(4) Honesty, good character and freedom from bad habits, for example opium smoking, use of drugs, gambling, etc.

(5) Not bankrupt nor deprived of civil rights.

(6) No one shall be eligible for membership who is already a member of any other registered Industrial Co-operative Society.

ARTICLE 9. Members’ Admission and Share Holding: (1) Candidates for membership shall be introduced and guaranteed by two members of the society, who know the candidate, and shall be elected at a meeting of the board of dimc+ors by an affirmative vote of the majority; of all its members, subject to approval by a majority vote at the next ensuing General Meeting. (The balance of this article deals with share holding and the payments therefor). ARTICLE 10. Membership May Be Lost By: (1>) Loss of any of the qualifications set out in Article 7. (2) Ceasing to hold at least one share. (3) Insanity or death. (4) Resignation or expulsion in terms of this Constitution. Article 11 sets out a member's liability on resignation. ' Article 12 covers very thoroughly, the conditions under which shares may be transferred or redeemed. ARTICLE 13.

Expulsion: (I 1 ) A member may be expelled by a two-thirds majority vote at any General Meeting, if he is guilty of un-co-operative conduct or conduct detrimental to the interests of the Society. The vote shall be by ballot.

Article 19 lays down in a very thorough manner the procedure for calling the annual general meeting and other general meetings also for the election, of directors and officers.

Paragraph one of Article 20 reads: “The General Meeting shall exercise supreme authority on behalf of the Society.” The details of this power are set out in the following nine clauses.

Articles 20 to 25 inclusive, set ou: the powers and duties of the directors and officers of the Society.

Other articles set out in minute detail the method by which profit or loss is to be ascertained and apportioned.

It would be difficult to conceivi a more thoroughly democratic constitution and there can be no doub that membership of a C.I.C. Society provides a liberal education in citi zenship.