A co-operative society is a voluntary association of persons formed to protect and promote the common economic interests of its members. It works on the principle of self-help and mutual help, with service motive rather than profit maximisation.
Definition (exam-friendly): A co-operative society is an association of persons who voluntarily join together to achieve common economic objectives through mutual help and democratic control.
Common co-operative principles include:
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A co-operative society has voluntary membership and is formed for mutual help. It follows democratic management with one member one vote. It has a service motive and aims at welfare of members rather than profit maximisation. Registered co-operatives have a separate legal entity and usually provide limited liability to members. Surplus is distributed fairly and used for reserves and welfare.
Important co-operative principles include voluntary and open membership, democratic control (one member one vote), and member economic participation. Co-operatives also emphasise autonomy and independence, education and training of members and employees, co-operation among co-operatives, and concern for community through sustainable development.
Business organization, an entity formed for the purpose of carrying on commercial enterprise. Such an organization is predicated on systems of law governing contract and exchange, property rights, and incorporation.
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A co-operative society is a voluntary association of persons formed to protect and promote the common economic interests of its members. It works on the principle of self-help and mutual help, with service motive rather than profit maximisation.
Definition (exam-friendly): A co-operative society is an association of persons who voluntarily join together to achieve common economic objectives through mutual help and democratic control.
Common co-operative principles include:
Co-operative societies are suitable where:
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A co-operative society is a voluntary association of persons formed to promote the common economic interests of its members through mutual help and democratic control. It is based on the idea of self-help and service rather than profit maximisation.
Features of co-operative society: Membership is voluntary and open to persons having common interests. A registered co-operative has separate legal entity and usually provides limited liability to members. Management is democratic with one member one vote. The society works with service motive and aims at welfare of members. Surplus is distributed fairly in the form of limited dividend/patronage bonus and is also used for reserves and welfare. Co-operatives are regulated by law and work for collective benefit.
Principles of co-operation: Important principles include voluntary and open membership, democratic member control, and member economic participation. Co-operatives maintain autonomy and independence, provide education and training to members and employees, encourage cooperation among co-operatives to strengthen the movement, and show concern for community through sustainable development.
Thus, co-operatives operate on democratic values and mutual help to protect members’ interests.