Constitution of the 18 Friends Group

Article 1: Name
The name of the group shall be "18 Friends Group."

Article 2: Objectives
1. To provide a platform for members to save and invest collectively.
2. To offer financial support to members during events and emergencies.
3. To promote social economic empowerment among members through joint ventures.

Article 3: Membership
1. Membership is open to individuals who are:

• Over 18 years of age.

• One must be Married and be approved by a majority vote by existing members.
2. Each member shall:

• Adhere to the rules and regulations of the group, refer to article 13.
• Make regular contributions as agreed upon, refer to article 4.

Article 4: Contributions
1. Each member shall contribute ksh400 every month, ksh3500[principal amount] and ksh 500
supplementary amount quarterly.
2. Monthly Contributions are due by the 10th of every month.
3. Failure to contribute on time will result in a penalty of ksh 500 monthly for a period of three
months.

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Article 5: Meetings
1) Regular meetings shall be held on the 1st and 3rd week of each month.
2) An annual general meeting (AGM) shall be held between November and December
every year.
3) Special meetings can be called by the Chairperson or at the request of at least [75%] of
members.

Article 6: Governance
1. The group shall be governed by the following officers:

• Chairperson
• Secretary
• Treasurer

2. Officers shall be elected after every two years during the AGM.
3. Duties of Officers:

• Chairperson: Presides over meetings, represents the group, and ensures the
constitution is followed.
• Secretary: Keeps minutes of meetings, manages correspondence, and maintains
records.
• Treasurer: Manages the group's finances, keeps financial records, and provides
financial reports.

Article 7: Bank Account

1. The group shall maintain a bank account in the name of "18 Friends Group."
2. The account shall have [4] signatories, including the Chairperson, Secretary,Treasurer and a
member
3. Withdrawals shall require the signatures of at least [4] signatories, and minutes from the
group authorizing the transaction.

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Article 8: Investments
1. Investment decisions shall be made by a majority vote of members.
2. All investments shall align with the group's objectives.
3. A portion of the profits from investments shall be reinvested, while the remainder shall be
distributed among members.

Article 9: Records and Reports

1. The Treasurer shall maintain accurate financial records.
2. The Secretary shall keep records of all meetings and correspondence.
3. Financial and activity reports shall be presented at each regular meeting and the AGM.

Article 10: Conflict Resolution

1. Disputes among members shall be resolved through mediation by a neutral party.
2. If mediation fails, the dispute shall be resolved by a majority vote of members (75%).

Article 11: Amendments

1. This constitution may be amended by a two-thirds majority vote at a regular meeting or the
AGM.
2. Proposed amendments must be submitted in writing to the Secretary at least [number]
weeks before the meeting.

Article 12: Dissolution

1. The group may be dissolved by a two-thirds majority vote at a regular meeting or the AGM.
Sharing of assets and liabilities will be as per the article 13.11

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Article 13: Rules and regulations
13.1. Each member must attend all meetings failure to which he or she will be
required to pay a penalty of ksh 100.

13.2. A member MUST give an apology direct to chairperson or secretary 3

hours before meetings, No one will be allowed to miss 2 consecutive meetings.

13.3. All meetings will take place on every Sunday of 1st and 3rd week of every
month unless otherwise agreed. A fine of ksh 50 is applicable for late comers 10
minutes, meeting starts on after 4.00 pm, failing groups scheduled meetings will
attract fine of ksh100.

13.4. All members should keep group secrets or attract a fine of ksh1000
13.5. No member shall be deprived of his/her equitable share in the assets and
liabilities of the group.

13.6. Members of the group shall make regular contributions in such amounts
and on such basis as is from time to time agreed by the group or required by the
rules.
13.7 Members shall be bound by the rules to be determined by members. Such
rules may be varied by majority resolution at a properly convened general
meeting but the rules shall not at any time contravene the principles of this
constitution. The constitution cannot be altered without the agreement of 75%
of the group for the time being.

13.8. Group membership shall be restricted to a maximum of 20 people. New

members shall only be admitted after being proposed and seconded by two
existing members and there being no objection from any other member of the
group.
13.9. No member shall assign, transfer, or sell any part of his/her contributions,
interests or liabilities in the group to another member or to anyone else except
as permitted by the authorized procedure as it will be agreed by the group.
13.10No member shall be compensated for services rendered to the group and
no member shall bind or obligate the group or any member of the group to any
matters outside the affairs of the group, and in respect of the group’s affairs they
shall only enter into agreements on the authority of a resolution properly passed
by members.

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 13.11.1 A member may resign from the group and withdraw his/her equitable share

of the group’s assets and liabilities, but the maximum period to elapse between the

date of resignation and the date of full repayment shall not exceed 90 days. That

member will be paid his or her dues less the money he owes the group

13.11.2Withdrawal, expulsion or termination of membership shall not exonerate a

member from existing personal or membership liability.

13.11.3A member who wishes to withdraw but has a pending liability in forms of a

debt owed to the group shall have his/her share of funds in the organization

used to settle the debt before any refunds.

13.11.4 In case one fails to pay back money owed by the group, the group has authority

to use all the available channels and authorities to follow up for payments.

13.12The group shall hold a general meeting once in every calendar year.

13.13At each annual general meeting, the members shall elect a chairman, treasurer

and secretary who will resign at the following annual general meeting but be subject

to re-election. Members will also elect the group’s auditors. If the auditors are

members of the group, they shall be at least two in number.

13.14At each annual general meeting, a statement of account shall be given by the
treasurer, together with the report of the auditors. The treasurer’s report shall include
a full record of the group’s income and expenditure; a list of the group’s projects; also,
a capital account for each member showing his/her total contributions and
withdrawals together with the current value of his/her holding.

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 13.15Upon the death of any member the value of his/her equitable share in the group
shall be paid or paid back to the executor of the estate in accordance with the group’s
rules for dealing with a member leaving the group. Refer to Article 13.11

13.16A member shall be expelled if ALL other members present at a properly

constituted meeting of the group support a resolution to that effect. A member who
is expelled shall be notified in writing and shall have his/her equitable share of the
Chama assets and liabilities. Refer article 13.11.

The Group may suspend a member who;

1. Willfully defaults in contribution and payments

2. Willfully fails or fails to comply with the organization’s constitution
3. Convicted of criminal offences
4. Act in anyway detrimental or prejudicial to the interest of the Organization
5. Any other reason approved by an AGM or may be contained in the code of ethics
of the Organization.

Article 14: Indemnity

The office bearers of the group are protected from liability for actions done in good faith on
behalf of the group, Provided were acting in the best interests of the group and in accordance
with its objectives and values, they will not be held personally liable for any loss, damage, or
injury that may arise from their actions.
The office bearers of the group are personally liable for any loss, damage, or injury caused by
their actions if those actions were taken in contravention of the group constitution or without
authorization if authorization was required or withheld by members of the group.

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WITNESS whereas the undersigned have set their hands
Chairman-------------------- -------------------Sign-----------------Date-----------------
Secretary------------------------------------------Sign-----------------Date----------------
Official Member-------------------------------Sign----------------Date------------------

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