Cooperative Societies Act (2020 Revision)
Summary
A Law governing the registration, duties, and regulation of cooperative societies and credit unions in the Cayman Islands.
Sources
Cooperative_Societies_Act_(2020_Revision).pdf
Last Updated
2026-04-27
Overview
The Act provides a framework for societies formed to promote the economic interests of their members in accordance with cooperative principles. A registered society must include the word "cooperative" in its name (source: Cooperative_Societies_Act_(2020_Revision).pdf, Sections 4, 5).
Registration and Membership
- Minimum Membership: A society must consist of at least ten members (source: Cooperative_Societies_Act_(2020_Revision).pdf, Section 4).
- Qualifications: Members must be at least 18 years old and share a common bond of occupation, association, or residence (source: Cooperative_Societies_Act_(2020_Revision).pdf, Section 23).
- Share Limits: No individual member (other than another registered society) may hold more than 20% of the share capital (source: Cooperative_Societies_Act_(2020_Revision).pdf, Section 28).
Credit Unions
Specific provisions (Part V) apply to Credit Unions, which are societies focused on promoting thrift and providing credit at reasonable interest rates (source: Cooperative_Societies_Act_(2020_Revision).pdf, Sections 2, 38).
- CIMA Oversight: Credit unions are regulated by cima.
- Fit and Proper Assessment: Directors and senior officers of credit unions must be approved by CIMA as "fit and proper" persons (source: Cooperative_Societies_Act_(2020_Revision).pdf, Sections 4A, 38A).
- Audits: Credit unions must have their accounts audited annually by an auditor approved by CIMA (source: Cooperative_Societies_Act_(2020_Revision).pdf, Section 39).
Financial Management
- Dividends: Registered societies cannot declare a dividend exceeding 6% per annum (source: Cooperative_Societies_Act_(2020_Revision).pdf, Section 34(2)).
- Reserve Fund: At least 20% of net profits must be carried to a reserve fund (source: Cooperative_Societies_Act_(2020_Revision).pdf, Section 35).
- Audit Duty: Auditors must notify CIMA if they suspect insolvency, fraud, or breaches of the monetary-authority-act-2020 or anti-money-laundering-regulations-2025 (source: Cooperative_Societies_Act_(2020_Revision).pdf, Section 39A).