There are numerous types of business organizations and one such type is of a cooperative society. Today we will talk about this societies in brief starting with the introduction of these cooperative societies.
Introduction
Prevailing in the whole world this not a new concept and you can rather say it is a universal concept. Nowadays more and more countries are making efforts to enhance their cooperative sector which will generate great revenue for the country and hence helps in the progress. These societies ate active worldwide and are represented in all the sectors which include agriculture, food, finance, healthcare etc. It can be regarded as a voluntary association of persons which is made to protect the interest of the weaker section of the society. The welfare of the members is the topmost priority.
Features of cooperative society
• As this is a volunteer association, anybody is free to join a cooperative society and also can leave the society as per his wish. These societies are open to all, irrespective of their religion, gender & caste, membership.
• As the co-operative society is a separate legal identity to the society, it is needed to be registered before getting in the operation. Moreover, it will not get affected by the entry or exit of the members.
• In the cooperative societies, the liability is limited of the members of co-operative society. Liability is limited to the extent of the amount which is contributed by members as capital.
• The powers in the cooperative society are given to the elected managing committee to take decisions. Members of the society have the right to vote, through which they elect the members and then they will constitute the managing committee.
• The main principle of these societies is based on mutual help & welfare. Hence, the principal of service is more important in its working. In conformity with the bye-laws of the society, it the surplus is generated, then it would be distributed amongst the members as a dividend.
Types of cooperative society:
1. Producer Cooperative society
These societies are set up to protect the interest of the small producers. The society can include farmers, landowners, and owners of the fishing operations. The members of this society perform several activities such as processing, marketing and also distributing their own products.
2. Consumer Cooperative society
These societies are owned and governed by consumers which come together for their own benefits. Their main aim is to provide services to consumers.
3. Housing Cooperative society
These societies are formed to solve the housing problems of the members. The main aim of the society is to provide the member with the residential house at lower cost.
4. Marketing Cooperative society
These societies are established with the aim of helping the small producers in selling their products. The members of this society are the producers who wish to obtain reasonable prices for their output.
You can be a member of any of these societies and moreover, you can start your own. You just need to follow the cooperative society registration process and can go for online cooperative society registration in India for the faster process for your society.
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