The uniform act on cooperatives under the OHADA law has provided for two forms of cooperatives. The simplified cooperative and the cooperative with a board of directors.
Simplified Cooperative
A simplified cooperative is formed by at least five natural persons or legal entities. The formation of a simplified cooperative is decided by the organizational general meeting. The cooperative shall be designated by a name which shall be immediately preceded by the terms ‘simplified cooperative’ and the acronym ‘SCOOPS’ written in legible characters. The simplified cooperative is required to be registered at the Register of cooperatives. They are subject to the forbidden agreement doctrine. A simplified cooperative may be converted into a cooperative with a board of directors or a cooperative not governed by the uniform act. However, certain conditions must be fulfilled.
Cooperative with a Board of Directors
A cooperative with a board of directors shall be made up of about 15 members or legal entities. The cooperative with a board of directors shall be designated by a name which is immediately preceded by the terms ‘Cooperative with a board of directors and the abbreviation ‘COOP-CA’ written in legible letters. The capital of the cooperative with a board of directors must be fully subscribed before the holding of the organizational meeting. A cooperative with a board of directors is subject to the forbidden agreement doctrine. However, this prohibition shall not apply to legal entities which are members of the board of directors. The same is the case when a cooperative with a board of directors carry out the business of a bank or a financial institution or operates mainly in the field of savings and credits.