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Cooperative society


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Cooperative Society

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Cooperative society

  1. 1. Atul Abhiman Agalawe (M. Com, D.B.M, B. Ed)
  2. 2. • “Cooperation is a form of organization where the persons voluntarily associate together as human beings on the basis of equality, for the promotion of economic interests of themselves” – E. H. Calvert • “A co-operative society is an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly-owned and democratically-controlled enterprise.” • “A cooperative is an autonomous association of people who voluntarily cooperate for their mutual social, economic, and cultural benefit.”
  3. 3. • “A society, which has as its objects the promotion of the economic interests or general welfare of its members, or of the public, in accordance with co- operative principles”. – Sec 4 of Cooperative Societies Act • “An association or corporation established for the purpose of providing services on a nonprofit basis to its shareholders or members who own and control it.” • “A jointly owned enterprise engaging in the production or distribution of goods or the supplying of services, operated by its members for their mutual benefit, typically organized by consumers or farmers.”
  4. 4. A cooperative (or co-op) is a business operated and democratically controlled by its membership of owners to meet their common needs and aspirations. Co-ops are guided by the seven principles. • Voluntary, Open Ownership: Open to all without gender, social, racial, political, or religious discrimination. You may shop, you may join, and you may leave the co-op at any time. • Democratic Owner Control: One Owner, one vote. Your voice will be heard. • Owner Economic Participation: Owners contribute equitably to, and democratically control, the capital of the cooperative. The economic benefits of a cooperative operation are returned to the Owners, reinvested in the co-op, or used to provide Owner services. You control the capital. • Autonomy and Independence: Cooperatives are autonomous, self-help organizations controlled by their Owners. Together, you are autonomous. • Education, Training and Information: Cooperatives provide education and training for Owners so they can contribute effectively to the development of their cooperatives. They inform the general public about the nature and benefits of cooperation. You can develop yourself into the consumer you want to be. • Cooperation among Cooperatives: Cooperatives serve their Owners most effectively and strengthen the cooperative movement by working together through local, regional, national and international structures. You are more successful when you cooperate with others who know how to cooperate. • Concern for the Community: While focusing on Owner needs, cooperatives work for the sustainable development of their communities through policies accepted by their Owners. You can do something for the community even as you keep succeeding.
  5. 5. 1. Voluntary Membership 2. Legal Status 3. Limited Liability 4. Membership 5. Service Motive 6. Equal Voting Right 7. Democratic Control 8. Return of Capital 9. Surplus Profit 10. No Transferability of shares 11. Cash Transactions 12. Registration
  6. 6. 1. Easy formation 2. Democratic Management 3. Open Membership 4. Limited Liability 5. Perpetual Succession 6. Relief by Govt. 7. Low cost of Management 8. Low Price 9. Service Motive
  7. 7. 1. Lacks of Capital 2. Inefficient Management 3. Lacks of Business Secrecy 4. Lacks of Motivation 5. Political Interference 6. Lacks of Public Confidence 7. Limited Scope for Expansion 8. Heavy Govt. Control
  8. 8. • The first Step is to get 10 Individuals together who are desirous of forming a Society. • A Provisional Committee should be formed and a chief Promoter should be elected from amongst them. • A Name for the Society has to be selected. • An Application has to be made to the Registration Authority for reservation of Name and a letter to that effect has to be obtained confirming the reservation of Name. The name once reserved is valid for 3 Months. • The entrance fees and share capital has to be collected from the prospective members. • A Bank account has to be opened in the name of the proposed society as per the directions of the registration Authority. The entrance fees and share money has to be deposited in the bank account and the certificate from the bank has to be obtained in that respect. • The registration fees have to be deposited with the Reserve Bank of India and receipted 1challan thereof is to be obtained.
  9. 9. • The application for registration of the society should be submitted to the Registrar of Societies of the concerned municipal ward. The documents to be submitted for registration are as follows: • Form No. A in quadruplicate signed by 90% of the promoter members • List of promoter members • Bank Certificate • Detailed explanation of working of the society. • 4 copies of proposed bye-laws of the society. • Proof of payment of registration charges. • Other documents like affidavits, indemnity bonds, any documents specified by the Registrar also have to be submitted. • The Registrar will enter the particulars in register of application maintained in Form “B” and give serial number and issue receipt in acknowledgment of the same. • On registration, the Registrar will notify the registration of the Society in the Official Gazette and issue Registration Certificate.
  10. 10. • Robert Owen (1771–1858) is considered as the father of the cooperative movement. A Welshman who made his fortune in the cotton trade, Owen believed in putting his workers in a good environment with access to education for themselves and their children. "villages of co- operation" • 1844: The Rochdale Society of Equitable Pioneers was a group of 28, around half were weavers in Rochdale, Lancashire, England.
  11. 11. • 1889: ‘Anyonya Sahakari Mandali’ Baroda • 1904: The Government passed the Cooperatives Societies Act to combat poverty, famine and rural indebtedness in India. • 1912: A comprehensive act was brought in to cover the formation, management and regulation of cooperative societies, thus widening their scope beyond offering credit facilities. • 1914: Sir Edward Maclagan Committee recommended guidelines to societies • 1946: AMUL
  12. 12. 1. Consumer Co-operative Society 2. Industrial/Producer Cooperative Society 3. Marketing Cooperative Society 4. Credit Cooperative Society 5. Farming Cooperative Society 6. Housing Cooperative Society