Sample Stokvel Constituion

A Stokvel Constitution is an  important document that must be drawn up when you start a stokvel. Think of it as the group’s guidebook. It is also a requirement when you are opening a bank account for the Stokvel. The constitution should include guidelines on:

• How often and in what manner money is to be collected each month.
• How the money will be invested.
• Under what circumstances withdrawals may be made.
• What happens if a member fails to make contributions or decides to leave the stokvel.
• What happens if a member dies.
• The process if a new member decides to join the club at a later date after inception.

The constitution is particularly important as it provides a reference point and can pre-empt disagreements within the group before they occur.

The name of the Stokvel is……………………………

Aims and Objectives

The Stokvel/Investor Club is a Group of natural persons (individual members) amongst whom a common bond exists to form an invitation only group savings scheme, investor pool or rotating credit scheme. The Investor Club/Stokvel:

1. a.)  Consists of members who have pledged mutual support to each other towards the attainment of specific savings/investment objectives;
2. b.)  Establishes a continuous pool of capital by raising funds by means of the subscription of contributions by members;
3. c.)  The aggregate value of capital per Stokvel/Investor Club does not exceed R100 000 per annum.
4. d.)  Provides for members to share in profits and to nominate managers; and
5. e.)  Relies on self regulation to protect the interest of its members.

Membership

• Membership per club will be limited to ….. members (list number of members).
• Members will supply the club with their personal details (ID number, date of birth andresidential address).
• Members must obey the club constitution.
• Should a member die, his or her family members will not automatically become members ofthe club.

  Stokvel Executive

  The Executive Committee will consist of the following positions:

  Chairperson, whose responsibilities are:

• To lead and prepare the agenda for meetings.
• Make sure rules are followed.
• Approve money withdrawal with other executive members.
• Explore opportunities for growing the club.Secretary, whose responsibilities are:

  • Keep an accurate record of the club’s activities, namely minutes, correspondence and membership register.

• Maintain communication to make sure all members are informed of all activities of the club.
• Have signing powers with the chairperson and treasurer.

Treasurer, whose responsibilities are:

• Keep accurate account of all the club’s finances and present copies of all the deposit slips.
• Collect money or deposit slips at every meeting.
• Have signing powers with the chairperson and the secretary.
• Keep up-to-date with financial charges and banking products that could be beneficial to thegroup.

  Meetings

• Meetings will be held every ……………. (nominate day of the month), from ………… to …….. (time).
• A minimum of 10 members will be required for a meeting (number of members).
• Non-members will not be allowed to sit in the meetings.
• Special meetings will be called when necessary by the executive committee.Joining Fee

• Each member must pay R………. as a non-refundable joining fee.

Contributions

• Each member will contribute a minimum of …………………….per month.
• If members contribute different amounts, the minimum will be R00.Benefits
  • Members will receive a share in the invested assets of the Club/Stokvel relative to their contribution and the value of their investments.
  • Members must give 90 days’ notice if they wish to terminate membership
  • Members will receive their contribution plus any capital growth up to termination ofmembership,

    Beneficiaries

• If a member dies, any money they are owed will go to their family.

Code of Conduct

• No member will use the name of the club for personal business purposes or personal gain.
• Each member will be expected to conduct him or herself in a socially acceptable manner atthe meetings.
• Members must dress in a socially acceptable manner.Meeting Attendance
  • If a member is unable to attend a meeting for whatever reason, he or she must send an apology in writing.
  • Should a member fail to attend three consecutive meetings without a good reason such as illness or being away, he/she will face a disciplinary committee.

Banking

• The money in the organisation must be deposited into a bank account in the name of the Club/Stokvel.
• Signing power will be held by ……. persons nominated by the Club/Stokvel.
• All transactions must be signed by at least 2 of the nominated persons.Stokvel/Club Closure
  • In the event that the club closes, any extra funds and assets of the club will be shared amongst members according to each member’s contribution to the club.
  • Liability and debts will also be shared equally in the club if such debt is made by the club.Change of Constitution

• Members can change the constitution only if there is a majority vote.
• Proposed changes in the constitution must be announced 60 days prior to a meeting to beheld to consider such constitutional changes. To be signed by each member.

  I, …………………………………………hereby accept the constitution of ……………………………(name of club).

  ……………………………………………………………………………………………………….(full name).

  Signed at ………………………………………………on this ……….day of ………………………..20……

……………………………………………. Signature

…………………………………………………………. Full Name and Surname