co-operative

Cooperative Society Cooperative is a voluntary association of persons who joint together to safeguard their own interests. It is a business activity without having any profit motive, but for benefiting themselves through cooperative.

According to Y.K. Bhushan, “A cooperative society is essentially an association of persons who join together on a voluntary basis for the furtherance of their common economic interests.”

According to Henry Calvert, “Cooperative form of organization wherein the persons voluntarily association together as human being on the basis of equality for the promotion of economic interest of themselves.”

The Basic Philosophy of Cooperative Society

1. Service in place of profit 2. Mutual help in place of competition 3. Self help in place of dependence 4. Moral solidarity in place of unethical business practice

Features of Cooperative Society

1. Open membership 2. Voluntary association 3. State control4. Sources of finance 5. Democratic management 6. Service motive 7. Distribution of surplus 8. Self-help through mutual cooperation 9. Nature of formation 10. Number of members 11. Legal entity

Principles of Cooperative Society

1. Unity 2. Equality 3. Cooperation 4. Honesty 5. Trust and confidence 6. Service 7. Democracy 8. Proximity 9. Friendship 10. Economy 11. Discipline 12. Impartiality

Objectives of Cooperative Society

1. Social welfare 2. Financial stability 3. Creating unity 4. Developing efficiency 5. Supply of goods at fair price6. Creating self dependency 7. Solution of capital problem 8. Poverty alleviation

Economic Importance of Cooperative Society

Creation of unity and self-realization Creating employment opportunity Establishment of large scale business Teaching morality Improvement of skill Creating habit of saving Creation loan facility Solution to unemployment problem Poverty alleviation

Types of Cooperative Society

A cooperative society is a union of individuals who generally join together to safeguard their own interests. The cooperative society can be classified from the different points of view which are the following:

Consumer’s cooperative societies: Consumer’s cooperative societies are established by the consumers of a certain locality for the purpose of economic and increasing social standard of their own members. These cooperatives are formed to ensure a steady supply of essential commodities of standard quality to the members at fair price.

Types of Cooperative Society

Producer’s cooperative societies: These cooperatives are formed for the benefit of small producers, who have difficulty in collecting various factors of production and face market problems.

Marketing cooperative societies: The societies are formed to enable their members to secure fair prices for their goods. In other words, these cooperatives are associations of producers for selling their products at fair price.

Types of Cooperative Society

Housing cooperative societies: These cooperative societies are organized to provide residential accommodation to their members, either on an ownership basis or at fair rents.

Farming cooperative societies: These cooperative societies are voluntary associations of small farmers, who join hands with the objectives of achieving the economic of large scale farming and maximizing agricultural output. Scientific agriculture involves provision of improved seeds, fertilizers, improved methods of cultivation, irrigation etc. which can be ensured through farming cooperative societies.

Formation of Cooperative Society

Taking initiative : Two or more than two persons may involve for taking initiative to establish cooperative society.

Application for registration : After taking initiative initiator prepare some documents for submitting application to the ministry.

Collecting registration certificate : If the promoters submit their all legal and supportive documents to the office of the registrar then the cooperative society will get the permission.

Commencement : After getting the permission, the cooperative society can star their business.

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