Features of Co-operative Society - Class 11 | HSC

Following are the characteristics of Co-operative Society

1. Voluntary Association : A cooperative society is a voluntary association of people who have a desire of improving their financial condition through joint action.  It is a voluntary association of persons who have a common interest. The membership of cooperative society is open to all regardless of caste, religion, and gender of person. A person can join and leave the cooperative society at any time. Nobody is forced to become a member or to continue as a member. Everyone having a common interest are free to join a cooperatives society.

2. Religious and Political Neutrality: Anyone can become a member of a cooperative society irrespective of his/her religion, caste, creed or political affiliation.

3. Equal Voting Rights. Co-operative Society works on the principle of One Man One Vote. Every member has only one vote irrespective of the number of shares held by him/her. This prevents rich members (holding more shares) from dictating the terms. The society is run in a democratic manner.

4. Separate Legal Entity : A cooperative society has a separate legal identity of its own. In eyes of law, cooperative society and its members are different from each other. It can own a property and enter into contracts in its own name. It can sue and be sued in its own name. The death, insolvency or lunacy (insanity) of any member does not affect its existence.

5. Service Motive : The main aim of a cooperative society is to provide service to its members and not to maximize profits. However, a cooperative society may earn some profits for the benefit of its members.

6. Registration : Registration of a cooperative society is compulsory. A cooperative society has to be registered under the Co-operative Societies Act. A co-operative society has to be registered with the Registrar of Cooperative Societies.

7. State Control :  All the cooperative societies are closely regulated by the government. This is done to ensure healthy growth of these societies.

8. Distribution of Surplus : As mentioned earlier, a cooperative society may make some profit during the course of its business. A part of this profit is distributed among its members.

9. Limited liability: The liability of the members of a cooperative society is limited only to the extent of their capital contribution in the society.

10. Democratic control: Management and control of a cooperative society lies in the hands of the managing committee which is elected by the members themselves.