This document discusses the concept, definitions, principles, objectives, characteristics, types and formation process of cooperatives. It defines cooperation as people voluntarily working together to achieve common economic goals. The key principles include democratic member control, member economic participation, autonomy and independence. Cooperatives can be classified based on their objectives like agricultural marketing, banking, housing etc. or their legal structure. The document outlines the registration process and requirements for cooperative societies under the law.

1. CO-OPERATION

2. CONCEPT OF CO-OPERATION
 Co-operation means working together.
 Co-operation means acting together to
accomplish the common goal through
co-operative principles.
 The word ‘Co-operation’ is derived from the
latin word ‘co-operari’: ‘Co’ means
‘together’ & ‘Operari’ means ‘to work’.

3. DEFINITIONS OF
CO-OPERATION
 Acc. to Talmaki “Co-operation is an organisation
where a person voluntarily associates together with
others on the basis of equality for the promotion of
their economic interest by honest means.”
 Acc. To Mr.W.P.Watkins “Co-operation is a system of
social organization based on the principles of unity,
economy, democracy, equity & liberty.”
 Acc to Mr. H. Calvert “Co-operation is a form of
organisation, wherein persons voluntarily associate
together as human beings on the basis of equality,
for the promotion of economic interests of
themselves.”

4. DEFINITIONS OF PRINCIPLES
OF CO-OPERATION
 W.P.Watkins defines “Co-operative principles
are the ideas inherent in co-operation which
determine what is as a mode of action. They
are ideas of co-operative activity to realize.’
 Acc. To Late Prof. D.G. Karve “Co-operative
principle is a way of organizing &
conducting co-operative activity which is an
inherent & indispensable corollary of the
ideal of co-operative movement.”

5. PRINCIPLES OF CO-OPERATION
1) Voluntary & open membership
2) Democratic control
3) Limited interest on share capital
4) Equitable distribution of surplus
5) Self-help & mutual help
6) Co-operative education
7) Co-operation among co-operatives

6. OBJECTIVES OF
CO-OPERATION
1) Removal of middlemen
2) Removal of Capitalism evils
3) Increasing the weaker sections economic status
4) Abolition of social inequalities
5) Neutrality in religion & politics
6) Increasing the prosperity of the community
7) Raising the moral standards of its members
8) Development of Co-operative life

7. CHARACTERISTICS / FEATURES
OF CO-OPERATION
1) The association of persons
2) An undertaking
3) A voluntary organization
4) A democratic organization
5) The keynote is service & not profit
6) The basis is equality
7) It is based on propotionality or equity
8) It is a socio-economic movement

8. TYPES OF CO-OPERATIVES
 Co-operative society may be classified on the
basis of object or on the quantum of liability

9. A)NATURE OF OBJECTS &
ACTIVITIES
1) Agricultural Marketing Society
2) Apex Society
3) Consumer Society
4) Co-operative Bank
5) Crop Protection Society
6) Farming Society
7) Federal Society
8) Housing Society
9) Lift irrigation Society
10) Processing Society
11) Resource Society
12) General Society

10. B) QUANTUM OF LIABILITY
1) Society with limited liability, &
2) Society with unlimited liability

11. AGRICULTUTRAL MARKETING
SOCIETY
 The objective is
1) The marketing of agricultural produce
2) The supply of implements & other requisites
for agricultural production
3) Not less than ¾ of members of which are
agriculturists OR societies formed by
agriculturists

12. APEX SOCIETY
1) The area of operation extends to the whole
state of Maharashtra.
2) The main objective is to promote the
principal objectives of the society.
3) To provide facilities & services to the
members.
It has been classified as apex society for the
registrar.

13. CONSUMER SOCIETY
1) Procurement, Production or Processing &
distribution of goods OR the performance
of the services of its members
2) The distribution among its members &
customers in the proportion prescribed by the
rule or bye-laws of the society

14. CO-OPERATIVE BANK
1) A society which is doing business as
banking as defined in the banking
companies act,1949 & includes
2) Any society which is functioning OR is to
function as Agricultural & Rural
Development Bank

15. CROP PROTECTION SOCIETY
 A society the object of which is the protection
of crops, structure, machinery, agricultural
implements & other equipments.

16. FARMING SOCIETY
 The objective is
1) Increasing agricultural production
2) Employment
3) Income &
4) Better utilization of resources
Lands are bought together & jointly
cultivated.

17. FEDERAL SOCIETY
 At least 5 members are which themselves
societies
 These societies have not less than 4/5 of the
total number of votes in the general meeting
of the society

18. HOUSING SOCIETY
 The objective is to provide its members with
1) Open plots for housing
2) Dwelling houses
3) Flats
4) Common amenities & services related to
housing

19. LIFT IRRIGATION SOCIETY
 The objective is to provide water supply to its
members for irrigation & otherwise

20. PROCESSING SOCIETY
 The objective is processing of goods

21. PRODUCERS SOCIETY
 The objective is
1) Production & disposal of goods
2) The collective disposal of the labour of the
members thereof.

22. RESOURCE SOCIETY
 Its objective for its member is
1) Credit
2) Goods
3) Services required by them
Eg. Agricultural credit society, Thrift & urban
credit society

23. GENERAL SOCIETY
 A society not falling in any of the classes of
societies is considered as general society.
 These are of two types:
1) Social
2) commercial

24. QUANTUM OF LIABILITY
1) Society with limited liability, &
2) Society with unlimited liability

25. FORMATION OF
CO-OPERATIVES

26. CONDITIONS OF
REGISTRATION
1) A society must have atleast 10 persons
2) Each member must be from a different family
3) Only competent persons
4) They should be the resident of the area of operation
5) Unlimited liability clause
6) Crop protection society-only after inquiry
7) Federal & lift irrigation society shall be registered
with atleast 5 co-operatives as its members.
8) Implication of the word limited or unlimited

27. PROCEDURE OF
REGISTRATION
1) An application form to the registrar
2) Accompanied by the 4 copies of bye-laws
3) Registration fees
4) Any other information required by the
registrar
5) Application must be signed by 10 persons

28. PROCEDURE OF REGISTRATION FOR A
FEDERAL SOCIETY
1) Registrar may register within 2 months of the
receipt of application.
2) Reference to the next officer or state govt.
within next 15 days in case of non-disposal.
3) If this is not done, the society & its bye-laws
are deemed to be registered.
4) In case of refusal, the registrar must
communicate immediately to the applicant.

29. BYE-LAWS OF A
CO-OPERATIVE SOCIETY
1) The bye-laws are meant for the internal
management of the society
2) In case of inconsistency with the act, they
will be ineffective
3) They are binding upon the members
4) No breach of bye-laws by the office bearers
5) Difference between the bye-laws of the
society & state govt.rules

30. AMENDMENT OF BYE-LAWS
 The following steps are to be followed:
1) A notice convening a Special General Meeting should be given to all the
members.
2) A resolution in the favour of amendment should be passed by atleast
2/3rd majority of members present for voting.
3) Within 2 months of the date of meeting the documents should be sent.
4) Any modification suggested by the registrar should be adopted in the
meeting
5) Such application of registration of amendment is disposed by the
registrar within 2 months of the date of receipt
6) In case of refusal, communication is required
7) Certified copy of amendments to be issued to the society in case of
registration.
8) If the above things are not done, the society’s amendments are deemed to
be registered.