The Department of Co-operatives & Friendly Societies has portfolio responsibility for registration and regulations of entities under the Co-operatives Societies Act and Regulations, one of the services provided is to facilitate mergers through amalgamation or transfer of engagement. The process is best described below.

The Co-operative Societies Act, Section 53 provides the legal framework which permits and authorizes the merger of two (2) or more co-operatives by having their members pass a special resolution; i.e. at least 75% of the members of a co-operative present at a legally constituted general meeting voting to accept the proposal.

There are two main types of Mergers:

Amalgamation: is the joining of two or more Co-operatives to create a new Co-operative. In the process, the amalgamating co-operatives will cease to exist as legal entities. A new Co-operative is formed with: new name, new registration number and rules. All members of the joining co-operatives, savings, loans, deposits and other interest, as the case may be, remain intact and would not be changed by the amalgamation process. An example is the amalgamation of Churches Co-operative Credit Union and GSB Clerks Co-operative Credit Union to form First Heritage Co-operative Credit Union (FHC).

Transfer of Engagements: is where one Co-operative (the receiving Cooperative) agrees to accept the operations of either one or more Co-operatives that have agreed that the operations should be transferred to the receiving co-operative. The operations of the transferring Cooperative(s) are absorbed in the operations of the receiving Co-operative. The transferring Co-operative(s), therefore, cease(s) to exist as a legal entity, while the receiving Co-operative continues in its own name. Similar to the amalgamation, the members’ assets and liabilities in the Co-operatives remains intact. An example is Clarendon Co-operative Credit Union transferred to C&WJ Co-operative Credit Union; Clarendon ceased.

Certification: all relevant documents must be submitted to the Registrar of Co-operatives & Friendly Societies for certification, before an amalgamation or transfer of engagement can be legally completed. Representatives of the Department of Co-operatives & Friendly Societies provides technical assistance to parties from the commencement of the merger projects to its completion. We also offer guidance on Parliamentary Rules, to ensure members’ queries concerning the decision of amalgamation or transfer of engagements are adequately addressed by the Board of Directors of their Co-operatives.