1. Purpose
This policy establishes the terms and conditions governing the issuance, holding, transfer, and redemption of shares in the Shekel Savings and Credit Cooperative Society Limited (hereafter referred to as the SACCO). The policy is intended to ensure fairness, transparency, and equity among all members while contributing to the SACCO’s capital base and stability.
2. Definitions
- Share: A unit of ownership in the SACCO admitted according to the SACCO’s by-laws.
- Member: An individual or entity that holds shares in the SACCO and has been
- Par Value: The nominal value of a share as determined by the AGM (UGX 10,000).
- Paid-Up Share: A share for which the member has paid the full par value.
3. Issuance of Shares
- Shares shall be issued to members only.
- The minimum number of shares that can be held by a member will be stipulated in the by-laws.
- New shares are issued at a par value determined by the SACCO’s Committee and approved by members.
- Shares may be paid for in a lump sum or through an agreed-upon payment plan.
4. Share Capital Requirements
- Members must subscribe to a minimum number of shares to be considered in good standing, as outlined in the SACCO’s by-laws.
- Members are encouraged to continually buy shares, at least one share every month, to grow the SACCO’s capital base.
5. Valuation of Shares
- Shares will be issued and redeemed at their par value unless otherwise stated.
- In the event of liquidation, shares will be redeemable at their book value subject to the limitations set by law.
6. Transfer of Shares
Shares cannot be withdrawn but can be sold / transferred:
- Upon death of a member to a nominee or heir.
- When a member is expelled or withdraws from the SACCO, subject to the SACCO’s rules regarding withdrawal.
- Shares may be transferred to another member with the approval of the Committee.
7. Redemption of Shares
- Shares may be redeemed upon a member’s withdrawal, subject to the terms of withdrawal stipulated in the by-laws.
- Redemption of shares is subject to the liquidity position of the SACCO and may require Committee approval.
- The SACCO reserves the right to set redemption periods or to suspend redemption in cases of financial distress.
8. Dividends
- Dividends may be paid on shares out of the profits of the SACCO as determined by the Committee and approved by the AGM.
- The rate of dividends will be proportional to the paid-up value of shares held by each member.
9. Usage
Share capital (the money from members buying shares) primarily fund long-term investments, growth, infrastructure, and asset acquisition that support overall operations. While day-to-day operational expenses (like salaries or utility bills) are primarily covered using income generated from operations, such as loan interest and investments, we may use share capital to cover operational expenses when necessary for the smooth running of the SACCO.
10. Modification of Policy
This policy may be amended from time to time by the Committee, subject to ratification at a general meeting of members.
11. Compliance
All share transactions must comply with the relevant statutory and regulatory requirements.
The SACCO’s management is responsible for implementing and enforcing this policy.
12. Policy Approval
This policy was drafted by the Xavian Group and has been approved by the founding members of Shekel SACCO during a Special General Meeting and is effective as of 15th September 2026.
