Law N° 024/2021 of 27/04/2021 Governing Cooperatives in Rwanda.

This Law contains 156 Articles designed in XVIII Chapters and determines the establishment, organisation and functioning of cooperatives. It outlines different types and categories of cooperative organizations and protects the use of the term "cooperative". It also covers how profits are handled and how cooperatives can merge. Chapter II focuses on the establishment and organization of cooperatives, detailing the requirements for forming a primary cooperative, union, federation, and confederation, along with their respective responsibilities and activities. It specifies the minimum number of members, membership conditions, and representation within these organizations. Chapter III introduces the governance organs of cooperatives and their powers including general assembly, ordinary and extraordinary meetings of general assembly, voting and decision-making procedure, and responsibilities of board. The Law further provides for share capital and shares of a cooperative, requirements for a cooperative to become legal personality and registration of a cooperative with legal personality. Chapter VI outlines the obligations of a cooperative, including registering members and their shares, maintaining essential documents, and having a proper accounting system. Chapter VII defines the rights and obligations of cooperative members, such as participating in decision-making and fulfilling financial responsibilities. Chapter VIII addresses the cessation of membership and the cooperative’s financial management, including the distribution of net surplus, losses, dividends, and bonuses. It also covers the handling of deposits, loans, and investments. The cooperative must provide financial reports and undergo audits, with penalties for failing to submit these documents. Mismanagement can lead to the suspension of leaders and employees. The use of cooperative property and tender awards are also regulated.
The Law further provides for accounting records, financial year and book keeping, and inspection and auditing of a cooperative. Chapter XII provides for merger and transformation of a cooperative, share value, assets and liabilities. Chapter XIII addresses the suspension of a cooperative, the conditions for reversing a suspension, and the revocation of its legal personality. Chapter XIV focuses on the dissolution and liquidation of a cooperative, detailing the procedures for dissolution due to insolvency, the grounds for dissolution, and the process of notifying stakeholders. It also covers the appointment, duties, and compensation of a liquidator, along with their cessation of duties. Once liquidation is complete, the cooperative is removed from official records. Chapter XV outlines the liability of board members, staff, and others involved in the cooperative, even after deregistration. Chapter XVI deals with dispute resolution mechanisms, administrative faults, sanctions, and penalties for offences within the cooperative framework.