What Every Member Should Know

When you join a registered co-operative society in Zimbabwe, your financial stake in the co-op is represented in the form of shares. These shares are more than just numbers — they show how much you own in the business, and what you can expect to gain if the co-op does well.

Let’s unpack what that means in everyday language.

🧾 What Is a Share in a Co-op?

• A share is your piece of ownership in the co-op. Think of it as your ticket to being a part-owner.

• It is movable property — which means it can be transferred to others, but only under certain rules.

• The value of a share is set in the co-op’s own by-laws (rules made by the members).

• You must hold at least the minimum number of shares required by your co-op.

🔁 Can I Sell or Transfer My Shares?

Yes, but only under specific conditions:

• You can only transfer your shares to:

  • The co-op itself,

  • Another member, or

  • A person who has applied to join the co-op and been accepted.

• You can’t just sell them to anyone outside the co-op.

• The co-op’s management committee must approve and register the transfer before it is legal.

• You can also nominate someone to inherit your shares when you pass away, by putting it in writing and having witnesses sign it.

⚰️ What Happens to My Shares When I Die?

• You can name someone (a nominee) while you are alive who will receive your shares if you die.

• If you don’t nominate someone, the shares can go to:

  • Your heir, or

  • The executor of your estate (with Registrar approval).

• If the person receiving the shares doesn’t qualify to be a co-op member, they must transfer the shares to someone who does, within six months.

📄 Share Certificates

• After you’re issued shares (or transfer them), you’ll receive a share certificate within two months.

• The certificate proves you own shares and will include:

  • Your name,

  • The co-op’s name,

  • Value of the share,

  • Any unpaid amounts,

  • Any conditions attached,

  • Date of issue.

• This certificate is proof of your ownership — and can’t be denied unless proven false.

🚫 Can My Shares Be Taken by Creditors?

In general, no. Your co-op shares:

• Cannot be seized or sold by a court to pay your personal debts.

• Cannot be claimed by a bankrupt estate.

This protects members and encourages them to invest with peace of mind.

💵 What Are Debentures?

A debenture is like a loan you give to the co-operative — but with a promise that the co-op will pay you back with interest. It's a way for the co-op to raise money without giving away ownership.

There are two types:

• Secured debentures – backed by property or assets (like land or equipment).

• Unsecured debentures – not backed by any specific property.

To issue debentures:

• The co-op’s by-laws must allow it.

• The Registrar must approve it.

🏠 What Can Be Used as Security for Debentures?

If a co-op issues secured debentures, it can pledge:

• Movable property (like equipment or vehicles),

• Incorporeal rights (like expected income),

• Immovable property (like land), via legal documentation like mortgage or notarial bonds.

All these pledges must be registered properly in the Deeds Registry, and recorded in the co-op’s official books.

📘 Co-op Records and Transparency

Every co-op must maintain a register of:

1. All bonds and pledges against its property.

2. All debenture holders – showing how many debentures exist, who owns them, and how much is owed.

This ensures members and regulators can monitor the co-op’s financial commitments.

✅ Summary

👥 Why This Matters

For members:

• Shares show your ownership and give you voting rights.

• Debentures are a way to invest and earn interest.

For the co-op:

• Shares are part of your capital base.

• Debentures help you raise funds for growth, while protecting member control.

Always read and understand your co-op’s by-laws — they spell out exactly how these financial tools are used in your society.