CO OPERATIVE SOCIETIES

A co-operative society is a self-help voluntary organization formed by a group of individuals with common interests. They come together to form a business for the benefit of its members.

Characteristics of Co-operative Societies
Perpetuality: The society continues to exist even if a member dies.
Limited Liability: Members' liability is limited to the amount they have contributed.
Democratic Control: Management and control are democratic, with each member having one vote.
Profit Sharing: Profits are shared based on the level of patronage by members.
Member Welfare: The primary aim is to promote the interests and welfare of members.
Capital Contribution: Capital is raised through voluntary contributions from members.
Types of Co-operative Societies
Consumers' Co-operative Society:

Members pool resources to buy goods in bulk from manufacturers.
Goods are sold directly to members at cheaper rates.
Producers' Co-operative Society:

Producers collaborate to either produce collectively or market their products jointly.
Credit and Thrift Co-operative Society:

Members pool small savings which are loaned out to members at moderate interest rates.
Retailers' Co-operative Society:

Managed by a voluntary group of retailers to make goods available at reduced prices.
Wholesalers' Co-operative Society:

Wholesalers pool resources to buy in larger quantities from producers and sell to retailers.
Multipurpose Co-operative Society:

Combines functions of various types of co-operative societies to serve multiple purposes.
Advantages
Encourages Saving: Promotes saving habits among members.
Democratic Management: The society is run democratically.
Member Loyalty: High loyalty among members towards the co-operative.
Access to Loans: Easier access to loans for members.
Cheaper Goods: Goods are cheaper, improving members' standard of living.
Disadvantages
Mismanagement: High risk of embezzlement and mismanagement of funds.
Lack of Initiative: Limits individual initiatives.
Membership Issues: Indiscriminate enrollment can lead to problems.
Tax Evasion: Potential for tax evasion.
Nonchalant Attitude: Members may have a nonchalant attitude towards the co-operative's activities.
This summary provides a comprehensive overview of co-operative societies, covering their characteristics, types, advantages, and disadvantages. It highlights the importance of such societies in promoting mutual benefits and the welfare of their members, while also addressing the challenges they face.