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CO-OPERATIVE SOCITIES. PREPARIED BY SURESH KUMAR PGT COMMERCE KV NO 1 HEC RANCHI. MEANING.
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CO-OPERATIVE SOCITIES PREPARIED BY SURESH KUMAR PGT COMMERCE KV NO 1 HEC RANCHI
MEANING The co-operative society is a voluntary association of persons who join together for mutual help. They are driven by the need to protect their economic interests in the face of possible exploitation at the hands of middlemen obsessed with a desire to earn greater profits. ->A minimum of 10 persons are required to form a cooperative society. ->The registration of co-operative society is compulsory . -> The capital is contributed by the members only in the form of share capital. ->The co-operative organisation can raise loan also from banks.
Definition According to The Indian Cooperative Societies Act ,1912 “Cooperative organisation is a society which has its objectives for the promotion of economic interest of its members in accordance with cooperative principles.”
FEATURES/CHARACTERISTICS • VOLUNTARY MEMBERSHIP-The membership of co-operative society is voluntary . There is no restriction on entry or exit of members . They can join or leave the cooperative organisation of their own will and wish . The membership is open to all the members irrespective of their caste ,creed and religion . • EQUAL VOTING RIGHTS- The cooperative societies work with democratic principle of “one man one vote”. All the members get only one voting right irrespective of capital contributed by them . • SERVICE MOTIVE-The main motive of cooperative society is to provide service to its members and not to earn profit .It lays emphasis on the value of mutual help and welfare . • SEPARATE LEGAL ENTITY-After registration , the cooperative organisation gets a separate legal entity, which means the cooperative society is considered separate from its members . IT can buy and sell property in its own name and can enter into contract in its own name
Features…… • LIMITED LIABILITY- The liability of the members of cooperative society is limited to the extent of the amount contributed by them as capital . • CONTROL-In cooperative society ,the power to take decisions lies in the hands of an elected managing committee .The right to vote gives members a chance to choose the members who will constitute the managing committee and this lends the cooperative society a democratic character.
MERITS OF COOPERATIVE ORGANISATIONS • EASY TO FORM • LIMITED LIABILITY • CONTINUITY • DEMOCRATIC SET-UP • OPEN MEMBERSHIP • ECONOMICAL FUNCTIONING • STATE PATRONAGE • SOCIAL UTILITY
DEMERITS /DISADVANTAGES OF COOERATIVE SOCITIES • LIMITED CAPITAL • INEFFICIENT MANAGEMENT • NO MOTIVATION • CONFLICT AMONG THE MEMBERS • EXCESSIVE GOVERNMENT CONTROL
TYPES OF COOPERATIVE ORGANISATIONS • CONSUMERS’COOPERATIVE SOCIETY. • PRODUCERS’ COOPERATIVE SOCIETY. • COOPERATIVE MARKETING SOCIETY. • COOPERATIVE CREDIT SOCIETY. • COOPERATIVE FARMING SOCIETY. • COOPERATIVE HOUSING SOCIETY.
