CO-OPERATIVE SOCIETY

Co-operative society

A co-operative society is a voluntary association of persons.
Persons hailing from the same locality voluntarily join together to
achieve a common economic objective. Any person can join the
society. There is no compulsion to become a member of a society.
A person can join a co-operative society whenever he likes and
leave it whenever he wishes.

In a co-operative society all the members are equal. Every
member has only one vote irrespective of the number of shares
held by him.
“One man one vote”is the most important principle.
The society is managed on democratic principles. Every member
has equal voice in the management of a society to render service to
its members. Service is primary and profit is secondary.
The business of a co-operative society is generally carried
on cash basis. Every state government has appointed a Registrar of
co-operative societies for registering, controlling and supervising
the societies. When a co-operative society is registered, it becomes
a body corporate. It has separate legal existence. It is exempted
from payment of stamp duty and registration fees. It also enjoys
the special feature of limited liability.