Question

Answer the following question:

State the features of co-operative society.

Answer 1

A co-operative society is a voluntary association of people who come together to meet their common economic, social, and cultural objectives. The registration of a co-operative society is compulsory in the State of Maharashtra under the Maharashtra State Co-operative Societies Act, 1960.
 The features of co-operative society are explained as follows:
(1) Voluntary association and open membership: A co-operative organisation is essentially a voluntary association of the individuals. The membership of a co-operative society is open to all those having common economic interests irrespective of their caste, creed, religion or economic status.
(2) Service motive: The main objective of a co-operative organisation is to provide service to its members and others and not to maximize profits. Mutual benefits, economy, elimination of middlemen, welfare, etc. are the other objectives of the co-operative organisation.
(3) Limited liability: As the co-operative society has a separate legal entity, the members are not personally liable to pay off the debts of the society. Therefore, the liability of the members is limited to the face value of the shares held by them.
(4) Democratic management: The management of a co-operative society is democratic. Each member has a right to express his Opinion. The principle of ‘One-member, One vote’ is followed by the management. The decisions in the General Body Meetings and in the
meetings of the Managing Committee are taken by the majority of the members present at the meeting.
(5) Independent existence: According to the provisions of the Co-operative Societies Act, 1912, a co-operative society has an independent legal existence distinct from its members. A co-operative society is, therefore, a corporate body. It enjoys a perpetual or long term existence.
(6) Registration and State (Government) control: As per the provisions of the Co-operative Societies Act of the respective state, registration is compulsory for a co-operative society, A cooperative organisation established in Maharashtra is required to be registered under Maharashtra State Co-operative Societies Act, 1960. The cooperative organisations function under the supervision of respective state governments.
(7) Surplus profit: After the distribution of the dividend and the payment of the bonus, a certain portion of the profit is transferred to the statutory reserve. The leftover profit is then utilised for the welfare of the locality in which a cooperative organisation is situated.