Statute Details
- Title: Co-operative Societies (Exemption under Section 97) Order 2017
- Act/Instrument Code: CSA1979-S304-2017
- Legislative Type: Subsidiary legislation (Order)
- Authorising Act: Co-operative Societies Act (Chapter 62)
- Key Enabling Provision: Section 97 of the Co-operative Societies Act
- Commencement: 19 June 2017
- Primary Subject Matter: Exemption from the election requirement for committee office-bearers under section 59(1)(a) of the Act
- Designated Society: Polwel Co-operative Society Limited
- Most Relevant Operative Provision: Paragraph 2 (Exemption from section 59(1)(a) of Act)
- Making Date: 14 June 2017
- Current Version Note: Current version as at 27 March 2026 (per the legislation record)
What Is This Legislation About?
The Co-operative Societies (Exemption under Section 97) Order 2017 is a targeted legislative instrument that grants a specific exemption to a specific co-operative society—Polwel Co-operative Society Limited—from a statutory governance requirement in the Co-operative Societies Act (Chapter 62) (“the Act”). In essence, it modifies how certain key office-bearers of the society’s management are selected.
Under the Act, co-operative societies are generally required to elect the chairman, secretary and treasurer of the society’s committee of management in a particular way. The Order provides that, for Polwel Co-operative Society Limited, the society does not have to follow the default election mechanism described in section 59(1)(a). Instead, the society must arrange for those roles to be appointed through a different process—specifically, by the society’s president—as reflected in its by-laws.
Practically, this Order is about governance flexibility while still imposing a compliance condition (by-law amendments) to ensure that the society’s internal rules align with the statutory exemption. It is not a broad reform of co-operative governance; rather, it is a narrow exemption order that operates like a “permission slip” for one society to adopt an alternative appointment structure for key officers.
What Are the Key Provisions?
Section 1: Citation and commencement sets out the formal identity of the instrument and when it takes effect. The Order is cited as the “Co-operative Societies (Exemption under Section 97) Order 2017” and comes into operation on 19 June 2017. For practitioners, the commencement date matters when assessing whether a society’s governance decisions (e.g., appointments or elections) were made under the applicable legal regime.
Paragraph 2: Exemption from section 59(1)(a) of the Act is the operative core. The Order states that, subject to sub-paragraph (2), Polwel Co-operative Society Limited is exempt from the requirement in section 59(1)(a) of the Act. While the extract does not reproduce the full text of section 59(1)(a), it clearly identifies the relevant requirement: that the chairman, secretary and treasurer are to be elected by the members of the committee of management from among themselves or by the members of the society at a general meeting.
In other words, the default statutory model is an election-based model, either (i) internal election among committee members or (ii) election by the general membership at a general meeting. The exemption means Polwel Co-operative Society Limited does not have to use that election mechanism for those three office-bearer roles. This is a significant governance change because elections typically provide a direct democratic mechanism and a clear procedural framework for selecting officers.
Paragraph 2(2): By-law requirement for appointment by the president imposes the key condition for the exemption to operate. The society must provide in its by-laws for the appointment of the chairman, secretary and treasurer by the president of Polwel Co-operative Society Limited.
This condition is legally important for two reasons. First, it ensures that the exemption is not open-ended: the society must formalise the appointment mechanism in its constitutional documents (by-laws). Second, it creates a compliance benchmark. If the by-laws do not contain the required appointment provision, the society may be exposed to arguments that it is not properly availing itself of the exemption. For legal practitioners advising the society, this means the by-laws should be reviewed and, if necessary, updated to reflect the president’s appointment power for those roles.
Notably, the Order does not itself spell out detailed appointment procedures (e.g., eligibility criteria, term length, removal processes, or appointment timing). Instead, it delegates those details to the society’s by-laws. Therefore, the practical legal work often lies in ensuring that the by-laws are drafted to be consistent with the exemption and with the broader governance framework of the Act.
How Is This Legislation Structured?
The Order is structured in a simple, two-part format typical of targeted exemption instruments:
(1) Citation and commencement (Section 1): identifies the instrument and when it begins to apply.
(2) Exemption provision (Section 2): contains the exemption grant and the condition attached to it. Section 2 has two sub-paragraphs: (1) grants the exemption from the election requirement in section 59(1)(a), and (2) requires the society to include an appointment mechanism in its by-laws (appointment by the president).
There are no additional parts or schedules in the extract provided. The legislative design reflects the narrow scope: the Order is not intended to create a comprehensive governance regime, but to alter one specific statutory requirement for one society.
Who Does This Legislation Apply To?
The Order applies only to Polwel Co-operative Society Limited. It is not a general exemption for all co-operative societies, and it does not create a class-based exemption. The legal effect is therefore highly specific: other co-operative societies cannot rely on this Order to depart from the election requirement in section 59(1)(a) unless they obtain their own exemption under the Act.
In terms of persons affected, the exemption concerns the chairman, secretary and treasurer roles within the society’s committee of management framework. It also indirectly affects the president of the society, because the president must be empowered under the by-laws to appoint those office-bearers. Additionally, it affects the society’s members and committee members because the election-based selection mechanism is replaced (for those roles) by an appointment mechanism.
Why Is This Legislation Important?
This Order is important because it demonstrates how the Co-operative Societies Act can be adapted to accommodate particular governance needs through ministerial exemptions. For practitioners, the key takeaway is that statutory governance requirements—such as election of office-bearers—are not always rigid. Under section 97 of the Act, the Minister has power to exempt a society from certain requirements, but the exemption is typically conditioned to preserve accountability and internal rule consistency.
From a compliance perspective, the Order’s condition (by-laws must provide for appointment by the president) is the central practical issue. If a society is relying on the exemption, it must ensure that its by-laws are aligned. This can affect corporate governance validity, internal disputes, and the enforceability of decisions relating to office-bearer appointments. For example, if a chairman or secretary is appointed without the by-law authority required by the exemption, members or stakeholders may challenge the appointment process.
From a governance perspective, the shift from election to appointment can change the balance of influence within the society. Elections often involve broader participation by committee members or the general membership. Appointment by the president may centralise selection authority, potentially improving continuity or enabling the president to select officers with particular qualifications or experience. However, it may also raise questions about transparency and member oversight—issues that should be addressed through by-law drafting (e.g., appointment criteria, term limits, reporting obligations, and removal procedures).
Finally, the Order is a reminder that practitioners should always check the legislation timeline and current version. The record indicates the Order is “current version as at 27 Mar 2026,” but the instrument itself was made in 2017. In practice, counsel should verify whether there have been amendments, related subsequent orders, or changes to the underlying Act provisions that could affect interpretation.
Related Legislation
- Co-operative Societies Act (Chapter 62) — in particular:
- Section 59(1)(a) (election requirement for chairman, secretary and treasurer)
- Section 97 (ministerial power to grant exemptions)
Source Documents
This article provides an overview of the Co-operative Societies (Exemption under Section 97) Order 2017 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.