UPSCpedia: Economedia: Cooperative Societies

Cooperative

• A cooperative is defined by the International Cooperative Alliance's Statement on the Cooperative Identity as "an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through jointly owned and democratically controlled enterprise".
• A cooperative is a business organization owned and operated by a group of individuals for their mutual benefit.
• In the final year of the 20th century, cooperatives banded together to establish a number of social enterprise agencies which have moved to adopt the multi-stakeholder cooperative model.
• Cooperatives are based on the cooperative values of "self-help, self-responsibility, democracy and equality, equity and solidarity" and the seven cooperative principles:
  1. Voluntary and Open Membership
  2. Democratic Member Control
  3. Member Economic Participation
  4. Autonomy and Independence
  5. Education, Training and Information
  6. Cooperation among Cooperatives
  7. Concern for Community

Cooperative Societies in India:

• Some important points about Indian Cooperative Societies:

  • Cooperative Society can be established for purpose of credit, production or distribution.
  • Agricultural credit societies must be with unlimited liability. 
  • Unlimited society is not best form of cooperation for agricultural   commodities. However, the provision is continued as in several States such societies do exist and are working. It is not intended to give them undue encouragement, but to legalise their existence. 
  • Unlimited society can distribute profits with permission of State Government.
• State Government will appoint Registrar of Cooperative Societies.
• A society which has as   its object the promotion of economic interests of its members in   accordance with cooperative principles can be registered as a Society.
• A society can be formed with at   least 10 members of age above 18 years.
• Each society will be managed by   Committee. - - Committee means the governing body of a registered society   to whom the management of its affairs is entrusted.
• A registered   cooperative society is a body corporate with perpetual succession and   common sea. (just like a company). It can hold property, enter into   contracts, institute and defend suit and other legal proceedings and to do   all things necessary for the purposes of its constitution.
• A registered society can give loans   only to its members. However, it can give loan to another registered   society with permission of Registrar.

 

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