What are Co-operative Societies?
“Co-operative word represents universal brotherhood and it should not lose its path in political inconsistencies. There is no place for favoritism here. ”
Co-operative societies are in vogue in many nations of the world, especially in the underdeveloped and the developing ones. These societies operate under some set rules and are philanthropic in their philosophy. Let’s have a look at them.
In a co-operative society everyone is at liberty to enter or leave it as and when he likes and nobody can be compelled for membership. Although there is no limit on the membership of these societies, sometimes certain limits are imposed to keep the societies functional as a workable group.
Consumer co-operative societies normally do not restrict membership but marketing co-operatives, producer co-operatives and insurance societies etc. may limit membership to a number, which is properly manageable. The membership of co-operative societies is open to all irrespective of religion, caste, political affiliation, color or creed.
The co-operative movement is able to attract a large membership only by staying out of politics. Co-operative word represents universal brotherhood and it should not lose its path in political inconsistencies. There is no place for favoritism here.
The management of co-operative societies is always constituted on democratic lines. All the members of a society elect a body of persons to conduct and control the day-to-day working of the society. The members meet often and give guidelines to the executive. The management is elected through one man, one vote system.
Expert persons conduct routine work but the ultimate control lies with the members. Every member is given one vote irrespective of his contribution towards Capital.
The primary objective of the co-operative societies is to provide service to their members. Their aim is not to earn profit and hence they are different from almost all other kinds of business organizations. The societies earn a small amount of profit to deal with their administrative expenses.
These societies also earn surplus money from their services. This surplus is divided among the members not on the basis of capital contribution but according to the purchase made by the members in case of consumer co-operatives. In case of producers’ co-operatives this division is done on the basis of goods delivered to public in general.
Author - DeeKay
Tags - Finance, Economy
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