• Regulations for Business Associations

• Deliver Services to your Members

  • Needs assessment

  • Action planning

  • Implementation of services

• Management of the Association

  • Job description and training of leaders

  • Membership fees and accounting

  • Cash book

 
Regulations for Business Associations  [top]

Business Association in Ghana are based on the Companies Code, 1962 – especially on the statutes of a Company Limited by Guarantee for non-profit business associations.

A guarantee company is not registered with shares and is not permitted to create any shares. This type of company is therefore only suitable if no initial funds are required or those funds are obtained from other sources, e.g. endowments and donations. The company is also not permitted to engage in trading. The company is not permitted to pay dividends or distribute/return any assets to members. The operating principle in respect of guarantee companies is "one member, one vote". The Regulations of a guarantee company must contain the following mandatory provisions:

• That the liabilities of the members are limited

• That the income and property of the company shall be applied solely towards the promotion of its objects

• That no portion of the income and property shall be paid or transferred in any manner to the members, except payments is permitted by the Regulations, such as the payment of reasonable and proper remuneration to officers in return for services actually rendered, out-of-pocket expenses, interest not exceeding 6% on money lent to the company, and reasonable and proper rent for premises let to the company. Further, no director is to be appointed to any salaried office. These may be modified only with the approval of the Registrar

• That each member will contribute to the assets of the company in the event of its being wound up, to cater for the payment of the company's debts and obligations, costs of liquidation and other amounts required, up to whatever limit is prescribed by the Regulations. In respect of members, this liability extinguishes only where a person has ceased to be a member for more than a year. Note that membership of a guarantee company may end only by death, valid retirement or any other manner prescribed in the Regulations

• That upon winding up, the residue of the property shall not be distributed to members, but shall be either given to some other guarantee company with similar objects or applied to some charitable purpose. Members before the dissolution of the company shall determine the beneficiary.

• Cooperatives. Membership is unrestricted but is for specific purposes such as joint purchase of raw materials and group marketing of products.

Registration Procedure  [top]

Business associations are registered at the Registrar’s General Department with the relevant registrations forms including the following data to be provided:

• Name of association, postal address, location of office, copies of the constitution of the association, a statement of its objectives in addition to the names, addresses and occupations of Executive members of the association.

• The registration forms provide basic information and rules of the association.

• The registration forms are available at the Registrar-General.

• The registration will be completed by a non-refundable registration fee.

The Constitution and By-laws of the Association  [top]

The regulations define the general objectives and the fields of association’s interventions, membership conditions, organisational structures, democratic representation (composition of the executive committee, secretary general, elections), and resources.

Contents of regulations:

• Establishment and legality;

• objectives;

• name, logo, publication and address;

• sources of income and accounts;

• meeting schedule;

• quorum and voting - membership;

• rights and obligations of members;

• rights of the association;

• organizational structure;

• duties and responsibilities of the General Assembly;

• duties and responsibilities of the executive committee;

• duties and responsibilities of the president, vice-president, secretary, treasurer, accountant, supervising committee;

• duration of services;

• amendement of regulations.

The by-laws define the association’s functioning in detail. Especially disciplinary measures and details, such as opening a bank account.

Contents of bylaws:

• introduction of the association;

• address;

• membership criteria and replacement of members;

• opening of a bank account and its utilization;

• disciplinary measures;

• amendment of the bylaws.

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Deliver Services to your Members  [top]

Objective of a Business Association

The objective of a self-help association is to deliver services to its members based on their needs and priorities. An association may fulfil the necessary organizational requirements such as statutes, personnel, administrative body (leadership) and equipment. However this does not guarantee that it is an effective association if it does not provide significant services to the members. In order to deliver meaningful services, the association should consider a systematic approach as outlined below.

Needs Assessment  [top]

The first step in Business Services Delivery is to assess the needs and proposals of the association members on an enterprise level and in group meetings. For the needs assessment fill out a simple situation analysis overview format presented below and discuss the following issues with the members. From the discussion you will get information about the situation and main problems and proposals of the members in a demand oriented manner:

Questionnaire on Needs Assessment on Member Level  [top]

Another possibility of assessing needs may be to prepare and distribute a questionnaire, aimed at assessing the situation, problems and proposals of the members:

• Name, address and activity of the business owner;

• types of products and services;

• types of equipment and location;

• supply: sources of working materials and equipments;

• sales: how high is the turnover?

• marketing: advertising and market research measures;

• staff: number and qualifications;

• costs per month.

• main problems of the business owner;

• proposal of the business owner to solve the problems.

General Meetings  [top]

General meetings with the members may help you obtain further information on the problems and proposals at a grass root level. In order to organise an efficient meeting, you should consider the following steps:

• Prepare proposed agenda for the meeting;

• choose a moderator for the meeting;

• invite members and partners at not too short notice;

• discuss problems of the members and related issues before handling administrative issues;

• discuss solutions and negotiate actions with partners.

Action Planning  [top]

The last column of form 1.2 ("Problems and proposals of the business owner“) will give you some ideas on the necessary activities needed to support your members. After the situation analysis is completed, it can be transformed into an action plan as follows:

Implementation of Services  [top]

The implementation of services to the members depends on your situation analysis and action planning. The better you carry out the situation and problem analysis the better you will get ideas for services.

What do you expect from the Association as a Member? [top]

Members of various associations expect to be provided with different services such as those:

• To receive appropriate training concerning their business;

• to get loans;

• to profit from any fundraising programs;

• to obtain manufacturing and trading locations;

• to benefit from advantages that can come as a result of favourable policies for the development of the private sector;

• to participate in trade fairs and bazaars;

• to receive training with regard to HIV/AIDS;

• to get acquainted with other trade associations.

Training needs, as suggested by members

The following training topics were recommended for association executives:

• Business management;

• networking;

• project development and management;

• marketing;

• gender issues;

• lobbying skill;

• business planning;

• communication;

• how to give business services;

• how to get more members;

• information technology.

Contacting Partners  [top]

In order for the action plan to be implemented, the association should think about its share of the action and about the partners who may help: vocational training centres, financing institutions, marketing service providers etc. The association’s representatives should contact these partners and negotiate on possible collaborations. The steps involved in getting partner organisations to collaborate are:

• Work out a situation analysis and action plan. Partners do not like comitting funds and collaborate without concrete proposals for actions;

• draw up a list of potential partner organisations, including their names, addresses, fields of intervention and possible fields of collaboration;

• contact them and show them your action plan;

• negotiate common activities.

Fundraising  [top]
The basis of fundraising are your own funds! Nobody will like to provide funds, if your own association does not have a contribution of its own. Sources for own funds are membership fees and fees for services accompanied by a good financial management and bookkeeping system.

• The next steps in fundraising are concrete proposals for concrete actions. No donor agency likes to finance administrative costs, but prefers to finance concrete activities and services that would benefit members.

• Prepare a list of potential partners, contact them and discuss your activities. Based on the discussion, you would then be able to request for financial support.

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Management of The Association  [top]

Job Description and Training of Leaders

Especially, in a self-help association a job description for the leaders who are not necessarily experienced in this field is very useful in order to give each of the leaders and the members an idea of his/her field of intervention and respective tasks. A list of all posts should be worked out (see regulations), and for each attribution detailed explanations should be drawn up. After every election the new leaders should be trained on the job, on the basis of the job descriptions.

Each of the leaders should be prepared to carry out an action plan for his/her field of intervention and produce an activity report at the end of each implementing period (see chapter on documentation and evaluation).

Planning, Documentation, Evaluation and Reporting  [top]

The association periodically works out action plans of activities, e.g. for a period of 6 months. This organisation action plan should have the following contents:

• List of services to be rendered to the members of the association (detailed planning of all activities, such as participation in fairs and exhibitions, organisation of workshops, training, marketing);

• list of of other activities (study tours, meetings with partners, meetings with members, general assembly);

• details of collaboration with partners.

All documents should be kept safely at the association's library to serve as references for further discussions with partner organisations. At the end of a given implementation period (e.g. 6 months), it is recommended to work out a 6-month activity report entailing the following:

• services rendered to the members;

• other activities achieved;

• achieved collaboration with partners;

• problems experienced in the last period;

• perspectives for the next period.

Membership Fees and Accounting  [top]

The association has to have financial resources in order to be able to implement and render services to its members. Membership fees are the basis of self- funding in self-sustaining associations. These funds have to be recorded on the basis of the membership list.

Cash Book  [top]
Charges and credits have to be recorded in the association’s cash book. With the start-up of an association a banking account should be opened immediately, in order to ensure the proper management of financial resources. Transparency of the financial system, especially the bookkeeping system is absolutely of utmost necessity to avoid mismanagement. This cash book can be used for both associations as well as businesses.

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Business Development Services (BDS) - Ghana