Co-operative society in India |Definition|Features|Types|Benefits

Co-operative society in India

Before starting off on Co-operative society in India, at first one should know what is a Co-operative Society i.e. the definition of it, how it came into existence.

Definition of Co-operative society in India

A Co-operative society in India can be described as the association of persons coming together voluntarily for a specific purpose of the same territory. Therefore, voluntarily some like-minded persons form a society to fulfil their economic, social and cultural needs. It is an autonomous body and self-help organisation controlled by their members who actively participate in setting their principles and making decisions solely for the interest of the members of the society. To form a co-operative society there must be the consent of at least 10 members with equal voting rights or power.

How Co-operative society in India came into existence

The sole purpose of introducing the concept of co-operative society in India was to establish economic and social regeneration and welfare among the weaker and poorer section of the community across India including women empowerment. At times, there was a very adverse situation when rich were becoming richer and poor were becoming poorer. To eradicate exploitation of the weaker sections of the society especially farmers by the then hungry businessmen, The Government of India came up with The Indian Co-operative societies Act, 1912. After independence, different State Govt. adopted the original act and further reconstructed various acts and rules in conformity with the original Co-operative societies act according to the needs of their people.

Features of Co-operative society in India

  • A Co-operative society must be voluntary in nature;
  • A Co-operative society shall be accessible to all irrespective of all caste, creed and religion of the members. This means it should not be formed only for the welfare of a particular caste or religion;
  • A Co-operative society must necessarily be democratic in nature and be controlled by their members only;
  • The essential part of a Co-operative society is that its state of affairs shall be managed and administered by elected or appointed persons as consented by all the members;
  • Every member of a Co-operative society shall enjoy equal voting rights in conformity with their basic principle;
  • The members of a Co-operative society enjoy limited liability facility along with limited right to receive limited compensation;
  • Every member of a Co-operative society shall enjoy equal profit sharing facility. This results in fewer chances of grievances among its members;
  • It must be registered under Co-operative societies act;
  • A Co-operative society must act in the interest of its members and must co-operate with other Co-operative societies as far as practicable;
  • Last but not the least A Co-operative society must provide priority to the welfare and sustainable development of its members.

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Types of Co-operative society in India

Co-operative society in India

Before starting off on Co-operative society in India, at first one should know what is a Co-operative Society i.e. the definition of it, how it came into existence.

Definition of Co-operative society in India

A Co-operative society in India can be described as the association of persons coming together voluntarily for a specific purpose of the same territory. Therefore, voluntarily some like-minded persons form a society to fulfil their economic, social and cultural needs. It is an autonomous body and self-help organisation controlled by their members who actively participate in setting their principles and making decisions solely for the interest of the members of the society. To form a co-operative society there must be the consent of at least 10 members with equal voting rights or power.

How Co-operative society in India came into existence

The sole purpose of introducing the concept of co-operative society in India was to establish economic and social regeneration and welfare among the weaker and poorer section of the community across India including women empowerment. At times, there was a very adverse situation when rich were becoming richer and poor were becoming poorer. To eradicate exploitation of the weaker sections of the society especially farmers by the then hungry businessmen, The Government of India came up with The Indian Co-operative societies Act, 1912. After independence, different State Govt. adopted the original act and further reconstructed various acts and rules in conformity with the original Co-operative societies act according to the needs of their people.

Features of Co-operative society in India

  • A Co-operative society must be voluntary in nature;
  • A Co-operative society shall be accessible to all irrespective of all caste, creed and religion of the members. This means it should not be formed only for the welfare of a particular caste or religion;
  • A Co-operative society must necessarily be democratic in nature and be controlled by their members only;
  • The essential part of a Co-operative society is that its state of affairs shall be managed and administered by elected or appointed persons as consented by all the members;
  • Every member of a Co-operative society shall enjoy equal voting rights in conformity with their basic principle;
  • The members of a Co-operative society enjoy limited liability facility along with limited right to receive limited compensation;
  • Every member of a Co-operative society shall enjoy equal profit sharing facility. This results in fewer chances of grievances among its members;
  • It must be registered under Co-operative societies act;
  • A Co-operative society must act in the interest of its members and must co-operate with other Co-operative societies as far as practicable;
  • Last but not the least A Co-operative society must provide priority to the welfare and sustainable development of its members.

Types of Co-operative society in India

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