FEDA Rules and Regulations

Article 1: Name and Identity

1.1 Name

The official name of the group shall be the Financial Empowerment & Development Alliance (FEDA).

1.2 Nature

FEDA shall operate as a voluntary, member-based savings group focused on financial empowerment and collective development.

1.3 Character

FEDA shall maintain a non-political, non-religious, and inclusive character.

• 1.3.1 Inclusivity shall mean equal opportunity for all eligible members regardless of gender, ethnicity, or socioeconomic background, provided they align with FEDA’s values.

Article 2: Objectives

• 2.1 To promote a culture of consistent saving, targeting a minimum of 10% annual growth in collective savings.
• 2.2 To build capital for group and individual projects that enhance financial stability.
• 2.3 To provide financial support to members during emergencies and significant life events.
• 2.4 To foster sustainable wealth through prudent investments and asset growth.
• 2.5 To enhance members’ financial literacy through regular training and knowledge-sharing.
• 2.6 To ensure accountability, transparency, and fairness in all financial and operational matters.

Article 3: Membership

3.1 Founding Members

• 3.1.1 FEDA shall be founded by five core members.
• 3.1.2 Founding members hold permanent core shareholder status and strategic decision-making authority.

3.2 General Membership

• 3.2.1 Additional members may join upon approval by at least three founding members.
• 3.2.2 The total number of general members shall be determined by the core leadership based on FEDA’s capacity, subject to annual review.

3.3 Eligibility

• 3.3.1 Must be 18 years or older.
• 3.3.2 Must demonstrate commitment through consistent attendance, adherence to financial obligations, and endorsement of FEDA’s values.

3.4 Rights of Members

• 3.4.1 All members have the right to save, benefit from funds, participate in projects, and vote on operational matters.
• 3.4.2 Founding members retain exclusive voting rights on constitutional amendments and dissolution.

3.5 Duties of Members

• 3.5.1 Uphold FEDA’s values, attend meetings, meet financial obligations, and promote unity.
• 3.5.2 Contribute to the group’s growth by proposing ideas and supporting projects.

3.6 Termination of Membership

• 3.6.1 Members may resign voluntarily with 30 days’ written notice.
• 3.6.2 Members may be expelled for gross misconduct, subject to Article 8.
• 3.6.3 Terminated members shall receive their contributions, minus outstanding obligations, as determined by the core leadership.
• 3.6.4 For a member to be declared as a terminated member, only after the full transfer of share.

Article 4: Structure and Leadership

4.1 Core Leadership

• 4.1.1 Comprises the five founding members.
• 4.1.2 Holds authority to amend the constitution, approve new members, and set strategic direction.

4.2 Executive Roles

• 4.2.1 Chairperson: Presides over meetings, represents FEDA externally, and ensures strategic alignment. Term: 2 years, renewable once.
• 4.2.2 Secretary: Maintains records, documents meetings, and manages communication. Term: 2 years, renewable once.
• 4.2.3 Treasurer: Oversees financial transactions, prepares reports, and ensures compliance with Article 5. Term: 2 years, renewable once.
• 4.2.4 Executive roles shall be elected by a majority vote of all members, with nominations open to all members.

4.3 Meetings

• 4.3.1 Regular meetings shall be held quarterly, either physically or virtually.
• 4.3.2 Emergency meetings may be called with 48 hours’ notice.

4.4 Decision-Making

• 4.4.1 Quorum for operational decisions: At least three founding members and 50% of general members present.
• 4.4.2 Constitutional amendments and dissolution require four out of five founding members.
• 4.4.3 Decisions shall be made by majority vote, with the Chairperson holding a tie-breaking vote.

Article 5: Finance

5.1 Contributions

• 5.1.1 Members shall contribute a minimum amount monthly, as agreed by the membership.
• 5.1.2 Contributions shall be recorded and banked in a registered joint group account.

5.2 Withdrawals

• 5.2.1 Withdrawals require approval by at least three founding members.
• 5.2.2 Withdrawals for emergencies or projects must follow Article 7 guidelines.

5.3 Fines and Penalties

• 5.3.1 Late Contribution (1-7 days): 2% of the monthly contribution or UGX 5,000, whichever is lower.
• 5.3.2 Late Contribution (8-30 days): 5% of the monthly contribution or UGX 10,000, whichever is lower.
• 5.3.3 Non-Payment beyond 30 days: Suspension review with an option for a repayment plan.
• 5.3.4 Absenteeism from scheduled meetings without notice: UGX 5,000.
• 5.3.5 Misconduct, dishonesty, or fraud: Subject to disciplinary action under Article 8.

5.4 Auditing and Accountability

• 5.4.1 The Treasurer shall present an annual financial report to all members.
• 5.4.2 An independent external audit shall be conducted annually, with results shared with members.

5.5 Transparency

• 5.5.1 Monthly financial statements, detailing contributions, withdrawals, and project allocations, shall be shared with all members.

5.6 Digital Tools

• 5.6.1 FEDA may adopt mobile banking or digital platforms to enhance transparency and accessibility, subject to member approval.

Article 6: Projects and Investments

• 6.1 FEDA may initiate group projects to generate income and build wealth.
• 6.2 Members may propose projects, subject to review by a project committee.
• 6.3 Investment decisions require approval by at least three founding members and a majority of general members present.
• 6.4 All projects must include a feasibility study and risk assessment, prepared by a designated project committee.
• 6.5 Projects exceeding 20% of FEDA’s total capital require approval by a majority of all members.
• 6.6 Community Initiatives: FEDA may allocate up to 5% of annual profits to community development projects (e.g., education or health), subject to member approval.

Article 7: Benefits and Support

7.1 Member Support

• 7.1.1 FEDA shall provide financial support for members’ weddings, funerals, and emergencies, subject to available funds.
• 7.1.2 Support requests must be submitted in writing and approved by at least three founding members.

7.2 Loans

• 7.2.1 Loans may be granted to members based on fund availability and a vetting process.
• 7.2.2 Maximum loan amount shall not exceed 30% of FEDA’s liquid capital, with total outstanding loans not exceeding 50% of liquid capital.
• 7.2.3 Loans require collateral or a guarantor and must include clear repayment terms.

7.3 Emergency Fund

• 7.3.1 10% of monthly contributions shall be allocated to an Emergency Fund.
• 7.3.2 The Emergency Fund may be accessed for medical emergencies, funerals, or urgent needs, subject to approval by three founding members and a repayment plan if applicable.

Article 8: Discipline and Conduct

• 8.1 Members shall respect one another and uphold FEDA’s reputation.
• 8.2 Indiscipline, including fraud, repeated defaulting, or abuse, may lead to suspension or expulsion.
• 8.3 Disciplinary Process
• 8.3.1 A Disciplinary Committee, comprising two founding members and one general member elected annually, shall investigate misconduct allegations.
• 8.3.2 Members facing disciplinary action have the right to present their case and appeal decisions to the core leadership within 14 days.
• 8.4 Disciplinary decisions require approval by at least three founding members.

Article 9: Conflict Resolution

• 9.1 Disputes among members shall be resolved through mediation by a neutral committee of two founding members and one general member.
• 9.2 Unresolved disputes may be escalated to an external mediator or legal authority, in compliance with Ugandan law.

Article 10: Legal Compliance

• 10.1 FEDA shall comply with the laws of the Republic of Uganda, including but not limited to:
• 10.1.1 The Constitution of the Republic of Uganda, 1995.
• 10.1.2 The Non-Governmental Organisations Act, 2016 (if registered as an NGO).
• 10.1.3 Other relevant regulations governing savings groups.
• 10.2 FEDA may seek formal registration as a community-based organization or savings group under applicable Ugandan laws to ensure legal recognition and transparency. (Only after qualifying)

Article 11: Amendments

• 11.1 Amendments to this constitution may be proposed by any member.
• 11.2 Amendments require approval by four out of five founding members and a majority of general members present at a meeting.
• 11.3 Approved amendments shall be documented and communicated to all members within 14 days.

Article 12: Dissolution

• 12.1 FEDA may be dissolved by a vote of at least four out of five founding members, provided all members are notified 30 days in advance.
• 12.2 Upon dissolution, assets shall be distributed proportionally based on contributions, after settling all debts and obligations.

Article 13: Member Welfare

• 13.1 FEDA shall prioritize the well-being of its members through:
• 13.1.1 Organizing annual workshops on financial literacy, health, or personal development.
• 13.1.2 Providing mentorship opportunities for new members to integrate into the group.
• 13.1.3 Establishing a welfare committee to assess and address members’ non-financial needs.
• 13.2 The welfare committee shall consist of one founding member and two general members, elected annually.

Article 14: Sustainability and Growth

• 14.1 FEDA shall pursue long-term sustainability by:
• 14.1.1 Diversifying income sources through group projects and investments.
• 14.1.2 Maintaining a reserve fund equivalent to at least 20% of annual contributions.
• 14.1.3 Reviewing membership capacity annually to ensure manageable growth.
• 14.2 FEDほとA may partner with local organizations or financial institutions to access training, grants, or resources, subject to member approval.

Article 15: Communication

• 15.1 Official communication shall be conducted through agreed channels (e.g., meetings, email, or mobile apps).
• 15.2 The Secretary shall maintain a record of all communications and ensure timely dissemination of information.
• 15.3 Members shall notify the Secretary of any changes in contact details within 14 days.
• 15.4 All members have the right to access group records, including meeting minutes and financial reports, upon request.

Article 16: Risk Management

• 16.1 FEDA shall implement measures to mitigate financial and operational risks, including:
• 16.1.1 Conducting regular risk assessments for all projects and investments.
• 16.1.2 Maintaining insurance for group assets, where feasible.
• 16.1.3 Establishing a contingency plan for financial emergencies.
• 16.2 A risk management committee, comprising one founding member and two general members, shall be appointed annually to oversee these measures.

Article 17: Code of Honor

• 17.1 We, the members of FEDA, pledge to:
• 17.1.1 Act with integrity by maintaining honesty in all financial dealings.
• 17.1.2 Serve in unity by prioritizing collective goals over individual interests.
• 17.1.3 Save and develop consistently by meeting financial obligations promptly.
• 17.1.4 Build a legacy by mentoring new members and supporting community initiatives.

Article 18: Conduct of Core Members

18.1 Purpose

To ensure core (founding) members uphold FEDA’s values of integrity, transparency, and unity, maintaining trust and accountability.

18.2 Code of Conduct

Core members shall:

• 18.2.1 Act in FEDA’s best interests, prioritizing collective goals.
• 18.2.2 Exercise fairness and transparency in decisions.
• 18.2.3 Avoid and disclose conflicts of interest.
• 18.2.4 Keep sensitive group information confidential.

18.3 Misconduct Defined

Includes:

• 18.3.1 Fraud, embezzlement, or misuse of funds/assets.
• 18.3.2 Abuse of authority (e.g., intimidation).
• 18.3.3 Repeated failure to fulfil duties (e.g., missing meetings).
• 18.3.4 Breach of confidentiality.
• 18.3.5 Actions damaging FEDA’s reputation.

18.4 Investigation Process

• 18.4.1 Allegations reported in writing to the Secretary (or Chairperson if Secretary is involved).
• 18.4.2 Conduct Review Committee (two general members, one external mediator if possible) investigates.
• 18.4.3 Accused member presents their case within 14 days.
• 18.4.4 Committee reports findings within 30 days.

18.5 Punishments for Misconduct

• 18.5.1 Minor (e.g., absenteeism): Written warning; 3-month voting suspension (majority vote).
• 18.5.2 Serious (e.g., abuse, breach): 6-12-month suspension (four core members’ vote); UGX 50,000 fine to Emergency Fund.
• 18.5.3 Gross (e.g., fraud): Expulsion (unanimous core vote, majority general vote); restitution of funds; forfeiture of shareholder status.

18.6 Appeals

• 18.6.1 Appeal within 14 days to Conduct Review Committee.
• 18.6.2 Appeals Panel (one uninvolved core member, two general members) decides within 21 days.

18.7 Transparency

Proceedings documented and shared with members, respecting confidentiality.

Declaration of Agreement

We, the founding members, hereby adopt this constitution as a true reflection of our vision and commitment to building FEDA for future generations.

By agreeing to the terms during registration, you affirm your full agreement with the provisions of this constitution and accept to be bound by the penalties outlined herein. You also acknowledge that you are subject to relevant articles of the Constitution of the Republic of Uganda governing such associations, as well as applicable common law. Any breach may result in official legal prosecution in the courts of law.

Note:

• i) This constitution, when held without an official FEDA stamp, is deemed invalid. It shall not be presented in any setting or office as grounds for action against any member, even if duly signed.
• ii) For full legal recognition, this constitution shall also be validated by an authorized stamp from the Uganda Police Force.